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2020-06-02
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Can you lose subsidy status?
Note that if you enroll in a longer program after previously losing your subsidy, you may become eligible for additional subsidized loans up to your new, longer, subsidy limit. However, you are still responsible for interest that is accruing on your previous loans that lost the subsidy.
What is loss of subsidy?
Loss of Subsidy-The borrower has one or more Direct Stafford Subsidized (SLA Eligible) (D0) and/or Direct Consolidation Subsidized (SLA Eligible) (D9) loans that have lost interest subsidy. Reaffirmation(s)-The borrower has an active reaffirmation on one or more loans.
How long can you receive subsidized loans?
Four-year students can get subsidized loans for six years, while two-year students can get them for three years. The 150% subsidized loan limit puts a clock on how long you're eligible to receive taxpayer-subsidized federal student loans, and it's based on the amount of time it takes to get a degree.
How does interest subsidy work?
If your monthly student loan payment doesn't cover all the interest that accrues on your loan, the student loan interest subsidy kicks in. The government will pay for 100% of accruing interest on subsidized loans for the first three years. After three years, they will pay for half of the accruing interest.
What is a subsidized interest rate?
Interest rates: The current APR for undergraduate subsidized and unsubsidized loans is 4.45% (between July 2017 and July 2018), according to the U.S. Department of Education. The unsubsidized graduate degree loan interest rate is 6.00%.
Can you get financial aid back after losing it?
If a student loses financial aid for a failure to maintain satisfactory academic progress, the student may be able to regain eligibility by getting better grades. The student will be ineligible for all forms of federal student aid, including all types of federal education loans.
What do you do if you lose your financial aid?
Talk to your financial aid office. Your first step should be starting a dialogue with your financial aid office. Apply for private scholarships. Appeal your award. Max out your federal student loans. Consider taking out a private loan.
Does financial aid suspension expire?
Suspension does not expire over the passage of time. If I am placed in a Suspension status, what aid is affected? While you are on Suspension, you are not eligible to receive HOPE Grant and Scholarship, Well Grant, Supplement Educational Opportunity Grant, Work Study, and Subsidized/Unsubsidized loans.
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