Less Than Full-Time Loan Adjustments

One Big Beautiful Bill Act Information

On July 4, 2025, the President signed the final version of the One Big Beautiful Bill Act (OBBBA) (H.R. 1) which included some substantial changes to federal student aid. We’re currently reviewing what this legislation means and are still waiting on additional guidance from the U.S. Department of Education in several areas. This information is subject to change as we receive additional information and guidance from the Department of Education. You can read more about the changes here.

One of the provisions in the bill is that borrowers enrolled less than full-time will only be able to borrow a prorated maximum loan offer based on enrolled hours.

The information provided below reflects the most current guidance available regarding less than full-time loan reductions. As additional federal guidance becomes available, this information will be updated accordingly.

Full-Time Academic Year Definition: To be considered full-time during the academic year

• Undergraduate Students: Must take 24 credit hours over the course of the fall and spring terms
• Graduate Students: Must take 18 credits over the fall and spring terms
• Professional Students: Must take 24 credit hours over the course of the fall and spring terms

Half-Time Enrollment: You must be enrolled at least half-time to receive offered loans in a given semester.

Less Than Full-Time Enrollment: Starting with 2026-2027 if you will not be enrolled full-time for the full academic year based on the above definition your Federal Loan will need to be adjusted. This is called a Schedule of Reduction (SOR) change. The formula used to calculate the reduction is as follows:

This adjustment applies to all undergraduate, graduate, and professional student Direct Loan borrowers with Direct Subsidized, Direct Unsubsidized, and/or Graduate PLUS loans (even those considered legacy (or interim exception) borrowers who borrowed prior to July 1, 2026). This is only for students, so Parent PLUS loans are not subject to these adjustments.