Federal Loans and Less Than Full-Time Enrollment/Schedule of Reductions

Issue/Question

Will my Federal Direct Loans change if I'm not enrolled full-time?

Environment

  • Financial Aid

Resolution

The One Big Beautiful Bill Act (OB3) was approved by Congress on July 4, 2025, and includes changes to Federal Student Aid beginning with the 2026-2027 academic year. One of these changes affects how Federal Direct Loans are awarded when students are enrolled less than full-time. This page provides an overview of how Federal Direct Loans may change when you are enrolled less than full-time (undergraduate: 12 credit hours; graduate: 6 credit hours).

BHSU is closely monitoring the implementation of these changes. While some information is currently available, many provisions require additional guidance from the U.S. Department of Education. The summary below reflects what is known at this time and is subject to change as U.S. Department of Education releases final regulations and guidance. We will continue to update this information as guidance is provided.

Environment

What is changing?

The new "Schedule of Reductions (SOR)” introduces rules for Federal Direct Subsidized and Unsubsidized Loans when students are not enrolled full-time in the Fall and Spring semesters. 

Key points to understand:

  • Undergraduate Adjusted Loan Amounts:
    If you are enrolled less than full-time (fewer than 12 credit hours that count toward your program of study) during a semester (for example, enrolled in 9 credit hours for a semester), your federal loan eligibility may be reduced proportionally based on your enrollment rather than awarding the full annual loan limit.

  • Graduate Adjusted Loan Amounts:
    If you are enrolled less than full-time (fewer than 6 credit hours that count toward your program of study) during a semester (for example, enrolled in 3 credit hours for a semester), your federal loan eligibility may be reduced proportionally based on your enrollment rather than awarding the full annual loan limit.

  • Enrollment Changes Matter:
    Changes in your enrollment status (such as dropping courses, withdrawing, or attending less than full-time) may result in the recalculation of your loan amounts and affect future disbursements.

What is BHSU doing?

2026-27 Financial Aid Offers are packaged based on full-time enrollment. Anticipated aid (aid that appears on your account prior to disbursement) shown on your SDePay statements and current activity will reflect full-time enrollment.

Prior to aid disbursement, the Student Financial Aid Office will review your actual enrollment. At that time, if you are not enrolled at a full-time status, your loans will be adjusted to the loan amount associated with the SOR. 

After the add/drop period ends at census, the Student Financial Aid Office will do a review of your actual enrollment and make adjustments so that your semester-specific loans reflect your actual enrollment at census.

Less than full-time enrollment may also affect the following funds, including but not limited to: Pell Grant, SEOG, and BHSU Scholarships.

What can you do?

We encourage you to:

  • Review your financial aid offer carefully.

  • If you know you will not be enrolled full-time, feel free to reach out and we can review your financial aid to estimate any SOR adjustments.

  • Monitor your disbursement dates and amounts.

  • If you receive a refund but also dropped a class, we strongly recommend not spending those funds until your account has been settled.

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