@PPofEngrDr, there was a regulation put in place several years ago that limits the timeframe students can receive subsidies on their loans. The 150% Subsidized Loan Limit means a borrower can get subsidized loans for no more than 150% of the published length of their program or “maximum eligibility period.” This applies for borrowers who took out these loans as a first-time borrower on or after July 1, 2013.
A person in a two year program loses eligibility after 3 years. A person in a 4 year program loses eligibility after 6. There are rules for tracking part time status. After the 150% is reached, borrowers are no longer eligible for sub loans and they are responsible for paying interest on their prior subsidized loans. Say that a borrower gets a bachelors after 5 years in school. They later return to school in a new bachelors program. They don’t have a new clock - they only have a year left for any bachelors program. And once they hit that 6 year point, the subsidized loans they previously borrowed will start accumulating interest while they are in school. Try explaining that to students!
The reporting required is kind of a pain. Grad schools, which can’t award subsidized loans, had to comply with the reporting requirements because … drum roll … Congress didn’t specifically exempt them from having to do so.