Federal Limitations on Financial Aid
Pell Grants
The federal government limits the amount of lifetime Pell Grant funding that a student may receive. An undergraduate student is eligible to receive six, full-time years of Pell Grant. The Department of Education monitors each student’s Pell Lifetime Eligibility Usage (PLEU) and measures the student’s usage in percentages. Once a student has used 600% of their PLEU, he/she is no longer eligible to receive additional Pell Grant awards.
Subsidized Federal Direct Loans
Additionally, the federal government limits the time period in which a student can receive subsidized Direct Student Loans. For first-time borrowers on or after July 1, 2013, there is a limit on the maximum period of time (measured in academic years) that a student can receive subsidized Direct Loan funding. If the student is considered a first-time borrower under this provision, the student may not receive subsidized Direct Loans for more than 150% of the published length of his/her program of study. Beginning in the 2014/15 academic year, the Department of Education began monitoring affected borrowers and their Subsidized Loan Eligibility Usage (SLEU). Once a student borrows subsidized loans for a period of time equal to 150% of the length of his/her program of study, the student is no longer eligible for the federal student loan interest subsidy. This loss of subsidy includes restrictions on continued subsidized loan borrowing as well as the removal of the subsidized status on previous borrowed loans. Students exceeding the 150% SLEU limitation may continue to borrow from the unsubsidized Direct Loan program.