Federal Direct Loan Schedule of Reductions (SOR)
The One Big Beautiful Bill Act (OBBBA) was signed into law on July 4, 2025 and requires several changes to federal student aid programs, including significant changes to Federal Direct Loan programs.
Beginning July 1, 2026, Federal Direct Loans will be prorated based on the number of credits in which a student is enrolled/academically engaged. This process is called the Schedule of Reductions (SOR).
Similar to the Pell grant, students are offered the maximum amount of Federal Direct Loan funding per year based on full-time enrollment. See below for an enrollment guide detailing the number of credits in which a student must be enrolled/academically engaged to be considered full-time for financial aid purposes.
| Fall/Spring | Summer | |
| Undergraduate Students | 12 Credits | 12 Credits |
| Graduate Students | 9 credits | 5 credits |
With the new Federal Direct Loan proration requirement, full-time students will receive the full amount of their annual loan offer. If a student is enrolled less than full-time, they will not be eligible to receive the full-time amount of loans offered to them. Instead, the university will calculate the amount of loan funding the student is eligible to receive based on the number of credits in which they are enrolled/academically engaged.
See below for annual Federal Direct Loan limits.
If dependent, your subsidized and unsubsidized Direct Loan annual eligibility is as follows:
|
|
0-31 Earned Credits
|
32-63 Earned Credits
|
64 and Above Earned Credits
|
|---|---|---|---|
|
Subsidized
|
$3,500
|
$4,500
|
$5,500
|
|
Unsubsidized
|
$2,000
|
$2,000
|
$2,000
|
|
Total
|
$5,500
|
$6,500
|
$7,500
|
If independent, your subsidized and unsubsidized Direct Loan annual eligibility is as follows:
|
|
0-31 Earned Credits
|
32-63 Earned Credits
|
64 and Above Earned Credits
|
|---|---|---|---|
|
Subsidized
|
$3,500
|
$4,500
|
$5,500
|
|
Unsubsidized
|
$6,000
|
$6,000
|
$7,000
|
|
Total
|
$9,500
|
$10,500
|
$12,500
|
Students may borrow up to $20,500 each academic year of a Federal Direct Unsubsidized Loan.
The formula we will use to determine how much of a federal direct loan a student may receive in a semester based on the number of credits in which they are enrolled is below.
First, we have to determine the Schedule of Reductions (SOR) percentage.
Credit Hours Enrolled
_____________________________________________
Credit Hours required to be full time in an academic year
= SOR
Then, we will multiply the SOR by the student's annual subsidized & unsubsidized loan limits to determine their prorated loan amount(s). This process is done separately for subsidized and unsubsidized loans if the student is eligible for both types of loans.
Annual Loan Limit x SOR = SOR Loan Limit
At minimum, students need to be enrolled at least half-time to receive any Federal Direct Loan funding.
See below for an enrollment guide detailing the number of credits in which a student must be enrolled/academically engaged to be considered half-time for financial aid purposes.
| Fall/Spring | Summer | |
| Undergraduate Students | 6 Credits | 6 Credits |
| Graduate Students | 5 credits | 3 credits |
