$$ FINANCIAL AID POLICY UPDATE - PART TIME ENROLLMENT & STUDENT LOANS
Effective with 2026-27 loan periods (starting 7/26 and after), if you drop below full-time status (e.g., taking 9 credits instead of 12), your loan amount will be reduced in direct proportion to those credits, rounded to the nearest percentage point.
A new federal Schedule of Reductions (SOR) policy mandates that federal student loans are directly prorated based on your enrollment credits. Dropping below 12 credits triggers a proportional loan reduction, meaning falling to 9 credits lowers your loan eligibility by 25% (9 credits is 75% of 12 credits).
- Proportional Reductions: Loans are adjusted in direct correlation to your enrolled credits (rounded to the nearest percentage point) if you drop below full-time status.
- Disbursement: If you drop credits before funds are disbursed, your loan is reduced right away.
- End-of-Quarter Reviews: Your enrollment is checked both before disbursement and at the end of the quarter. Dropping classes, withdrawing (W) or (WF), or ceasing attendance (i.e. overcut) can force a recalculation, which could reduce your future disbursements. If you have a F grade and actively participated in the class and exams were completed it would not impact you as that would be considered ‘earning’ the F grade. NP grades: if you are active in the course and/or Health Center it is also an ‘earned’ grade.
Overall Impact: You would have less funds available for living expenses.
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