Beginning with the 2026–2027 academic year, federal loan amounts for students enrolled less than full-time will be reduced based on their enrollment level. A student’s federal loan eligibility will be determined by the number of credit hours that are required for a student’s declared program of study. This federal requirement is referred to as the Schedule of Reductions (SOR).
The SOR applies to both undergraduate and graduate students and affects Federal Direct Subsidized Loans and Federal Direct Unsubsidized Loans. Parent PLUS Loans for dependent undergraduate students are not subject to SOR.
Loan Reduction for Less-Than-Full-Time Enrollment:
Students who enroll full-time (36 credit hours required for their declared program of study) and remain enrolled full-time throughout the academic year are eligible to receive the full annual federal student loan limit for which they qualify.
Students who enroll less than full-time, or who drop below full-time enrollment during the academic year, may have their federal student loan eligibility reduced proportionally based on their enrollment level.
Example: If full-time enrollment is defined as 36 credit hours required for a student’s declared program of study (12 credit hours each in the Fall, Winter, and Spring terms), and a student enrolls in 22 hours required for a student’s declared program of study for the academic year, the student would be eligible for 61% of their annual federal loan limit:
22 credit hours ÷ 36 credit hours = 61%
Therefore, a student eligible for an annual federal loan limit of $7,500 would be eligible to borrow approximately $4,575 ($7,500 X 61%) based on this enrollment level.
Example: A student who drops to 9 credits in the fall semester and maintains 12 required credit hours for a student’s declared program of study for the winter and spring terms will be 3 credits short of being considered full-time for the academic year. Due to this 3-credit shortage, the student’s federal loans must be reduced.
33 credit hours ÷ 36 credit hours = 92%
Therefore, a student eligible for an annual federal loan limit of $7,500 would be eligible to borrow approximately $6,900 ($7,500 * 92%) based on this enrollment level.
Example: A student who drops (or initially enrolls in) 6 credits in fall semester and maintains 15 required credits for a student’s declared program of study for the winter and spring semester will be considered full-time for the academic year. Since the student met the full-time requirements of 36 required credit hours for a student’s declared program of study for the academic year, their loans do not have to be reduced.
6 credit hours fall + 15 credit hours winter + 15 credit hours spring = 36 hours over the academic year, no loan reduction is required.
How Will My Loan Eligibility Be Determined?
Prior to financial aid disbursement, the Student Financial Aid Office will review each student’s enrollment. If a student is enrolled less than full-time in hours required for a student’s declared program of study for their degree, they will receive an email confirming their enrollment status and asking them to verify that their enrollment is correct.
Students will be encouraged to complete a Verification of Enrollment form indicating their anticipated enrollment for the academic year. Once the completed form is received, the student’s federal loan eligibility will be adjusted, if necessary, to reflect the loan amount associated with the Schedule of Reductions (SOR) based on their anticipated enrollment.
If a student does not complete the Verification of Enrollment form, future terms will be estimated based on 12 credit hours of enrollment. Students will be notified by email if a Schedule of Reductions adjustment is made to their federal student loan eligibility.
Changes to Enrollment
Changes in enrollment, including dropping a course, failing to begin a course, or withdrawing from a course, may affect a student’s federal student loan eligibility under the Schedule of Reductions (SOR).
Students who have Federal Direct Stafford Loans are strongly encouraged to consult with the Student Financial Aid Office before dropping or withdrawing from a course to understand how the change in enrollment may affect their financial aid eligibility. Please remember credit hours must be required for a student’s declared program of study. Hours towards a minor or a certificate are not considered as hours required for a student’s declared program of study.
Reminder: The Schedule of Reductions (SOR) applies only to Federal Direct Subsidized Loans and Federal Direct Unsubsidized Loans.