ED Clarifies Calculation of “Expected Time to Credential” for New Loan Limits

Federal Student Aid staff recently announced that they’re now calculating “expected time to credential,” which determines how long students grandfathered into the Grad PLUS and Parent PLUS loan programs can keep accessing those uncapped loans, based on credit hours completed rather than enrollment time, as many financial aid experts previously understood. This guidance would affect whether students who were enrolled prior to the new loan limits taking effect can still finance the remainder of their studies. An ED spokesperson called the formula “not anything new,” however, the Department hasn’t specified when the updated definition was documented and experts note the final rule’s text and a May FAQ both appear to describe a date-based standard. While a credit-hour approach could better protect part-time students, NASFAA flagged concerns about students who took extra credits but still lack required courses and about guidance shifting in August after many campuses have already started the term, reports Inside Higher Ed.