Federal Financial Aid Changes

For new students (who have never previously attended college OR borrowed federal loan funding):

• Undergraduate student loan limits are unchanged from previous years
• Undergraduate dependent students whose parents are interested in borrowing a federal Parent PLUS Loan (application process HERE) have an annual limit of up to $20,000 per dependent student and a total aggregate (borrowing) limit of $65,000.
• Undergraduate students who are less than full-time (enrolled in 6-11 credit hours): federal loan eligibility will now be calculated based on the percentage of full-time credit hours. For single-semester loans, the number of enrolled hours, divided by 12, determines the percentage of the annual loan limit.
• Example: Student A is enrolled in seven (7) credit hours as a freshman: 7 / 12 = 58 percent. $2750 x 58% = $1595 of federal loan eligibility for the Fall 2026 term.
• The annual formula divides the number of credit hours enrolled for the academic year by the number of credits considered full-time, which is 24 for undergraduates.
• Undergraduate students enrolled in fewer than 6 credit hours are not eligible for Federal Direct Student Loans.

For continuing (or "legacy") undergraduate students who have previously borrowed federal loan funding:

• Undergraduate full-time students (12 credit hours or more, per term): loan limits are unchanged and still require a completed FAFSA annually.
• Undergraduate students who are less than full-time (6-11 credit hours enrolled): their federal loan eligibility will now be calculated based on the enrollment percentage of full-time credit hours (defined as total hours / 12 = percent of the annual loan limit, by term).
  • Example: Student A is enrolled in seven (7) credit hours as a freshman: 7 / 12 = 58 percent. $2750 x 58% = $1595 of federal loan eligibility for the Fall 2026 term.
• Undergraduate students enrolled in fewer than 6 credit hours are not eligible for Federal Direct Student Loans.

For undergraduate dependent students whose parents wish to pursue a Parent PLUS Loan:

The PLUS loan for legacy students will be available for up to 3 years, starting July 1, 2026, or until the student earns their degree, whichever comes sooner.

View Parent PLUS Loan Info

The requirement to adjust loans for less-than-full-time enrollment applies to all undergraduate, graduate and professional student Direct Loan borrowers with Subsidized, Unsubsidized and Graduate PLUS loans (even those considered “legacy” borrowers). Parent PLUS loans are not subject to the requirement and are not adjusted.

The formula used to calculate direct loan reductions for less than full-time enrollment is as follows:

Number of credit hours enrolled for the academic year / Number of credit hours considered full-time for that academic year program of study X 100 = reduced annual loan percentage

Reduction Examples

Loan Reduction Needed Example: If a student is not enrolled full-time for the fall semester, a reduction is required.

• Fall hours = 6 hours Spring hours = 12 hours Full-time = 24 hours for fall and spring
• Annual Unsubsidized Loan Limit = $7,500
• Calculation: 18 hours / 24 hours X 100 = 75%
  • $7,500 X 75% = $5,625 >> $1,875 fall disbursement & $3,750 spring disbursement.

Loan Adjustment Needed for Spring: When a student’s enrollment changes after their fall loan disburses, then the reduction will be applied to the spring semester disbursement. Reducing fall semester enrolled hours after receiving Direct Loan disbursements will likely reduce or eliminate spring Direct Loan eligibility, except when the student remains full-time.

• Fall hours = 12 hours at disbursement, but later withdrew from all courses | Spring hours = 12 hours
• Full-time = 24 credit hours
• Annual Unsubsidized Loan Limit = $7,500
• Original calculation: 24 hours / 24 hours X 100 = 100%
  • $7,500 X 100% = $7,500 >> $3,750 fall disbursement & $3,750 spring disbursement
• Reduced loan: 12 hours / 24 hours = 50%
  • $7,500 X 50% = $3,750 >> $3,750 fall disbursement & $0 spring disbursement.

For new students enrolled in a graduate program who have not previously borrowed federal funding towards this program:

• Unsubsidized Federal Loan annual limit of $20,500 is unchanged from previous years.
• Students' total aggregate (borrowing) loan limit toward their new program is $100,000 (not inclusive of their undergraduate loan borrowing or any previously paid loan balances)
• Graduate PLUS loans are not available to new students or to students who have not previously borrowed a federal loan within their current program before July 1, 2026.

For continuing (or "legacy") graduate students who have previously borrowed federal loan funding:

• Full-time graduate students enrolled in their college/program (confirm with your advisor or program): Unsubsidized Federal Loan limit annually - $20,500 - is unchanged from previous years.
• Less-than-full-time graduate students: federal loan eligibility calculated using the formula below:
  • Example: Student B is a graduate student enrolled in five (5) credit hours (and their program considers 9 credit hours to be full-time): 5 hours / 9 hours - FT status = 55.5 percent
  • Student B is eligible for 55.5% of their annual loan limit, for the term, which is $10,250 x .56 = $5,740.

Graduate PLUS Loans

Graduate students who are considered legacy students may continue to apply for and obtain a Graduate PLUS loan. The provision for legacy students has a time limit of three (3) academic years or the completion of their program, whichever comes first.

View PLUS Loan Info

The requirement to adjust loans for less than full-time enrollment applies to all undergraduate, graduate and professional student Direct Loan borrowers with Subsidized, Unsubsidized and Graduate PLUS (even those considered “legacy” borrowers).

The formula used to calculate direct loan reductions for less than full-time enrollment is as follows:

Number of credit hours enrolled for the academic year / Number of credit hours considered full-time for that academic year program of study X 100 = reduced annual loan percentage

Reduction Examples

Loan Reduction Needed Example: When a student is never enrolled full-time (9 hours in this case) for the fall semester, then a reduction is required.

• Fall hours = 6 hours Spring hours = 6 hours Full-time = 18 hours for fall & spring
• Annual Unsubsidized Loan Limit = $20,500
• Calculation: 12 hours /18 hours X 100 = 67%
• $20,500 X 67% = $13,735 >> $6,868 fall disbursement & $6,867 spring disbursement.

Loan Adjustment Needed for Spring: When a student’s enrollment changes after their fall loan disburses, then the reduction will be applied to the spring semester disbursement. Reducing fall semester enrolled hours after receiving Direct Loan disbursements will likely reduce or eliminate spring Direct Loan eligibility, except when the student remains full-time.

• Fall hours = 6 hours but withdrew from a 3-hour course | Spring hours = 6 hours
• Full-time = 18 credit hours
• Annual Unsubsidized Loan Limit = $20,500
• Original calculation: 12 hours / 18 hours X 100 = 66.7%
  • $20,500 X 67% = $13,735
  • >> $6,868 fall disbursement & $6,867 spring disbursement
• Reduced loan: 9 hours / 18 hours = 50%
  • $20,500 X 50% = $10,250
  • >> $6,868 fall disbursement & $3,382 spring disbursement.