Direct Loan 150% Rule (SULA)
First-time Direct Loan borrowers (first-time borrowers are students with no outstanding federal student loan debts as of July 1, 2013) are limited in the amount of time they can receive a Direct Subsidized Student Loan. Borrowers may receive Direct Subsidized Loans for NO MORE THAN 150% of the length of the student’s current academic program (example 3 years for a 2-year program). Students in a program less than one year in length are subject to loan proration (example Phlebotomy).
Once a student has reached the 150%-time limit, they will not be eligible for any further subsidized loans. NOTE: If a student has reached 150%-time limit, or enrolls in a program of shorter length, and they continue to enroll, they will lose the future interest subsidy on the subsidized loans they have borrowed in the past.
Students who have reached the 150%-time limit will remain eligible for Direct Unsubsidized Loans. The SULA (Subsidized Usage Limit Applies) will be monitored closely by the Department of Education and the BTC Financial Aid Office.