Officially known as the "Schedule of Reductions," this loan proration rule means that your maximum Direct Loan limit will be reduced in direct proportion to how many credits you take. If you take fewer classes than a full-time course load, your loan limit will be lowered to match your exact enrollment level, rounded to the nearest whole percentage point.

Important Disclaimer: The loan limits shown below are maximum federal allowances. Your actual loan amount cannot exceed your school's official Cost of Attendance (COA) minus any other financial aid you receive. Additionally, all students are subject to lifetime maximum aggregate limits. Once you reach this lifetime cap, you cannot receive additional federal student loans. You can learn more about aggregate limits on the Federal Student Aid website under Loan Limits.  Please be prepared; less than full-time enrollment will delay the release of loan funds to your student account.

How it Works:  

Below, we have provided example scenarios using the most common hours of enrollment. Use the buttons to select your student type to learn more.

Undergraduate Students

Before we look at the specific scenarios, let's break down two important terms you will see in the tables below that determine your maximum loan amount:

• Dependency Status: When you fill out your Free Application for Federal Student Aid (FAFSA), you are classified as either an Independent or Dependent student based on specific criteria (such as your age, marital status, whether you have dependents, or if you are a veteran). Dependent students are typically required to provide parent information on the FAFSA. Independent students—and dependent students whose parents are denied a Parent PLUS loan—are eligible for higher overall maximum loan limits.
• Grade Level: Your college grade level is determined by the number of college credits you have successfully completed that apply to your degree, not just how many years you've been taking classes. The federal definitions classify undergraduates into levels such as 1st Year (Freshman), 2nd Year (Sophomore), 3rd Year (Junior), 4th Year (Senior), and 5th Year/Other. As you progress to higher grade levels, your annual loan limit increases.

For undergraduate students, 24 credit hours for the academic year is considered Full-Time. To be eligible for a federal student loan disbursement, you must be enrolled at least half-time, which is 6 or more credit hours per semester for undergraduates. Your annual loan limit will be calculated based on the 24-hour standard.

Scenario 1: 12 or more hours Fall + 12 or more hours Spring (24+ hours total = 100% of Limit)

Explanation: The calculation will be exactly the same for any hours above 12, as long as both semesters are 12 or more hours. Whether you take exactly 12 hours or 15+ hours each term, you will meet the 24-hour standard for the academic year and receive your full 100% annual maximum.

Scenario 2: 12 hours Fall (drops to 9) + 12 hours Spring (21 hours total = 88% of Limit)

Explanation: When you start the Fall semester enrolled in 12 hours, your Fall loan disbursement happens before dropping to 9 hours, so you receive the full-time amount for the Fall term. However, by dropping to 9 hours, your expected total hours for the year drops to 21 hours. 21 ÷ 24 equals 87.5%, which rounds to an 88% annual limit. The Department of Education does not require you to pay back the Fall money immediately, but to ensure you do not exceed your new 88% limit for the whole year, the financial aid office must reduce your projected Spring disbursement to make up the difference.

Scenario 3: 12 hours Fall + 9 hours Spring (21 hours total = 88% limit)

Explanation: Because you are full-time in the Fall, you are awarded full time amounts for the Fall and Spring, and receive your standard full-time disbursement for the fall term. The Spring disbursement is then adjusted once you have enrolled for the semester based on 9 hours of enrollment to ensure you don't exceed your 88% limit for the year.

Scenario 4: 9 hours Fall + 12 hours Spring (21 hours total = 88% limit)

Explanation: Because you are in 9 hours in the Fall, you are awarded prorated amounts for the Fall and Spring, and receive your scheduled disbursement for the Fall term. The Spring disbursement is then increased once you have enrolled for the semester based on full-time enrollment.

If you have any questions about how your specific class schedule will impact your financial aid, please reach out to the Financial Aid Office! We are here to help you plan your year.