What Does 'SULA Eligible' Mean?

If you've looked on your NSLDS and you're a new student, you will probably have seen the phrase 'SULA ELIGIBLE'. But what is SULA? And how are you eligible?

SULA is another wonderful acronym that stands for 'Subsidized Usage Limit Applies'. This is in reference to the Dept of Ed's new 150% rule for Subsidized loans. For any new student who had no prior student loan indebtedness on July 1, then you will fall into this category. If you had no loan indebtedness, then you will be tracked by the Dept of Ed for as long as you are enrolled to make sure you complete your program in 150% of the published length of the program. If you do not complete in this timeframe, then you will lose the interest subsidies on your Subsidized loan and your interest will accrue as though it were an Unsubsidized loan.

Since this only affects students with no prior student loan indebtedness on July 1, students with prior student loan indebtedness won't be tracked. If in the future you pay off your loans completely, then return to school, then you will be tracked.

So, being SULA eligible doesn't mean you are eligible for anything cool or helpful: it just means you are being tracked to make sure you complete in 150% of the normal length of the program. And really, for your own benefit, you should complete in that timeframe. If you are fulltime the entire time, and you go beyond the 150%, then you aren't meeting Satisfactory Academic Progress. Also, financially, if you lose your interest subsidies, then you are only hurting your pocket and will be owing money that you could've avoided had you completed earlier.

Another friendly post from your friends at Metro Business College!