Loss of Subsidized Loan Eligibility

Loss of Subsidized Loan Eligibility for Graduate and Professional Students

Effective for loans made for periods of enrollment (loan periods) beginning on or after July 1, 2012, graduate and professional students are no longer eligible to receive Federal Direct Subsidized Loans. (The terms and conditions of Direct Subsidized Loans received by any student for loan periods beginning before July 1, 2012, for either graduate or undergraduate study, are not affected by this change.)

The annual loan limit for graduate and professional students remains unchanged at $20,500, but this amount will now be limited to Direct Unsubsidized Loans, as shown in the following chart:

Annual Loan Limits for Graduate/Professional Students
	Loans for loan periods beginning before July 1, 2012		Loans for loan periods beginning on or after July 1, 2012
	Subsidized Loan Maximum	Unsubsidized Loan Maximum	Subsidized Loan Maximum	Unsubsidized Loan Maximum
All Graduate and Professional Students	$8,500	$20,500, less any subsidized amount received	$0	$20,500

Note: The aggregate loan limit for graduate and professional students remains unchanged at $138,5000, not more than $65,000 of which may be in subsidized loans.