2026-27 Loan Changes
Important: Being enrolled less than full-time does not automatically mean you have lost your Federal Direct Loan. If you are enrolled at least half-time, you may still qualify for a loan, but your annual loan limit may need to be reduced based on your enrollment.
2026-27 Federal Student Loan Changes
Federal student loan rules changed beginning with the 2026–27 academic year. These changes may affect how much some students and parents can borrow.
Loan Reduction for Less-Than-Full-Time Enrollment
Beginning with the 2026–27 academic year, federal rules require colleges to reduce the annual Federal Direct Loan limit for some students who attend less than full-time. This calculation is called the Schedule of Reductions (SOR).
If you are enrolled less than full-time, you may still qualify for a Federal Direct Loan if you meet all eligibility requirements, including being enrolled at least half-time for a Direct Loan disbursement. However, the maximum amount you may borrow for the academic year may be reduced.
How is the SOR percentage calculated?
For a standard Fall and Spring academic year at PTC, 12 credits per semester is considered full-time for this calculation. A full Fall/Spring academic year is 24 credits.
(Fall Credits + Spring Credits) ÷ 24 = SOR Percentage
The result is rounded to the nearest whole percentage point and used to determine the reduced annual Direct Loan limit.
SOR Enrollment Examples
Fall | Spring | AY Credits | SOR % | Result |
|---|---|---|---|---|
12 | 12 | 24 | 100% | No enrollment-based reduction |
9 | 12 | 21 | 88% | Annual loan limit may be reduced |
6 | 12 | 18 | 75% | Annual loan limit may be reduced |
9 | 15 | 24 | 100% | No enrollment-based reduction |
Full-time status for undergraduate students is 24 credits for the academic year (12 per semester)
Detailed Dollar Example
Example: 9 Fall Credits + 12 Spring Credits
9 + 12 = 21 planned academic-year credits
21 ÷ 24 = 87.5%
Rounded SOR percentage = 88%
If the student's applicable annual Direct Subsidized Loan limit is $5,500:
$5,500 × 88% = $4,840 reduced annual loan limit
9 Fall / 15 Spring Example
A student who drops to 9 credits in the fall semester and increases their enrollment to 15 credits for the spring semester will be considered full-time for the academic year. Since the student met the full-time requirements for the academic year, their loans do not have to be reduced.
Frequently Asked Questions
- Does being part-time mean I lose my student loan?
No. Being enrolled less than full-time does not automatically mean you lose your Federal Direct Loan. If you remain at least half-time and meet the other eligibility requirements, you may still qualify. However, your annual loan limit may need to be reduced based on your enrollment.
- What if I am below half-time?
Credits from a below-half-time term may still be included when the academic-year SOR percentage is calculated. However, undergraduate students generally must be enrolled at least half-time (6 credits at PTC) to receive a Federal Direct Loan disbursement for that term.
- What if my enrollment changes?
Your Federal Direct Loan eligibility may need to be reviewed again if you add or drop classes. A change in enrollment can affect your annual loan limit and future loan disbursements. Before changing your schedule, contact the Financial Aid Office if you have questions about how the change may affect your aid.
- Why might my loan amount be different from another student's?
Federal student loan eligibility is individual. Your amount may depend on your grade level, dependency status, loan type, enrollment, remaining annual and aggregate loan eligibility, cost of attendance, other financial aid, and other federal eligibility requirements. Examples on this page are for illustration only and do not guarantee a specific loan amount.
- What do I need to do?
Continue to monitor your student account and financial aid information in Pathway. If the Financial Aid Office needs additional information from you, we will contact you. If you are considering dropping a class, contact the Financial Aid Office before making the change if you want to understand how it may affect your Federal Direct Loan.
Parent Plus Loan Changes
Parent PLUS Loans are for parents of dependent undergraduate students.
The One Big Beautiful Bill Act (H.R.1), signed into law by President Trump on July 4, 2025. For students, families, and institutions like PTC, this bill is significant because it changes some rules related to the federal aid (Title IV) programs. Some of those changes impact Federal Direct Parent PLUS Loans available to undergraduate students.
As of the development of this webpage, these changes are scheduled to go into effect July 1, 2026, and/or with the 2026-27 Free Application for Federal Student.
Current Limits (before July 1, 2026)
- Annual Limit: Determined by the formula of “Cost of Attendance – Other Aid (i.e. grants, scholarships, other loans)”
- Aggregate Limit: No limit
- Eligibility is based on student enrollment and a minimal credit check of the parent applicant
Changes Effective July 1, 2026
- Annual Limit: $20,000 per student (combined from all parents)
- Aggregate Limit: $65,000 per student
- Legacy Provision: Students with any existing Direct Loan may continue borrowing for up to 3 years or for the remainder of their expected time to complete the program, within the published length of time to do so, whichever is less.
- New Borrowers: Must seek alternative funding if limits are exceeded