William D. Ford Federal Direct Loan Program - 150% Limitation

On July 6, 2012, the Moving Ahead for Progress in the 21st Century Act (MAP-21)was signed into law. MAP-21 included two changes to the William D. Ford Federal Direct Loan (Direct Loan) Program. Specifically, MAP-21 amended section 455 of the Higher Education Act of 1965, as amended (HEA) to extend the 3.4 percent fixed interest rate that applies to Direct Subsidized Loans made to undergraduate students to loans for which the first disbursement is made before July 1, 2013. Second, the law placed a limit on Direct Subsidized Loan eligibility for new borrowers on or after July 1, 2013. Specifically, a new borrower on or after July 1, 2013 is no longer eligible to receive additional Direct Subsidized Loans if the period during which the borrower has received such loans exceeds 150 percent of the published length of the borrower’s educational program. Additionally, the borrower becomes responsible for accruing interest on any Direct Subsidized Loan made to the borrower on or after July 1, 2013 if he or she is enrolled after reaching this 150 percent limit. The Department of Education (the Department) is requesting an extension of the current information collection.

The latest form for William D. Ford Federal Direct Loan Program - 150% Limitation expires 2023-07-31 and can be found here.

150% Limitation - Individuals/Borrowers

Federal Enterprise Architecture: Education - Higher Education