Undergraduate Loan Proration Examples
For both undergraduate and graduate students enrolled less than full-time, federal law requires institutions to prorate annual loan amounts based on their enrollment status, starting July 1, 2026. This means your loan eligibility will be reduced proportionally if you are enrolled less than full-time. This rule applies to all students, including those who qualify under the Legacy Provision.
Currently, undergraduate students are considered full-time at 12 credit hours per term during the Fall and Spring semesters.鈥� The following are a few examples which show how undergraduate student federal loan eligibility may change based on number of credits enrolled.
FAQs
How will loan eligibility change for part-time students?
Starting July 1, 2026, loan amounts will be prorated based on enrollment status. Students enrolled less than full-time will receive reduced loan eligibility proportional to their enrollment level.
Does loan proration apply to all students?
Yes. This rule applies to both undergraduate and graduate students, including those under legacy provisions.
Do Parent PLUS Loans have to be prorated?
No, Parent PLUS Loans do not have to be prorated. While the One Big Beautiful Bill Act (OBBBA) requires most other federal student loans to be reduced in proportion to a student's enrollment status (if enrolled less than full-time), Parent PLUS Loans are exempt from these proration adjustments.
Examples
Undergraduate students are considerd full-time at 12 credits per Fall and Spring semester totaling 24 credits. If a student is enrolled in 24 credits between Fall and Spring semester, they are considered at 100% full-time enrollment for the academic year.
A dependent student has a maximum annual federal loan eligibility of $5,500, which is typically divided qevenly between the Fall and Spring semesters. This equals $2,750 per semester for a full-time student.
- Maximum Loan Eligibility:
- $3,500 Subsidized Loan
- $2,000 Unsubsidized Loan
Example 1: Full-Time Enrollment in Fall and Spring
An undergraduate students enroll in 15 credits for the Fall semester and 12 credits for the Spring semester.
Because the student is enrolled in a total of 27 credits for the academic year, the student meets 100% full-time enrollment, and loan proration is NOT required this student will qualify for the maximum loan eligibility.
- Fall = $2,750
- Spring = $2,750
Example 2: Full-Time Enrollment Fall and Three Quarter-Time Enrollment Spring
An undergraduate student enrolls in 15 credits for the Fall semester and drops to 9 credits in the Spring semester.
Even though the student is not enrolled full-time in the Spring semester, because the student has 24 credits total for the academic year, the student meets 100% full-time enrollment, and loan proration is NOT required this student will qualify for the maximum loan eligibility.
- Fall = $2,750
- Spring = $2,750
Example 3: Full-Time Enrollment Fall and Part-Time Enrollment Spring
An undergraduate student enrolls in 15 credits for the Fall semester and drops to 6 credits in the Spring semester. Full-time enrollment for the academic year is considered 24 credits (12 credits each semester).
Because the student is enrolled in only 21 total credits out for 24 full-time credits for the academic year, or approximately 88% of full-time
enrollment federal loan eligibility must be reduced proportionally.
As a result, the students鈥� adjusted annual loan eligibility would be reduced from
$5,500 to $4,840.
- Fall = $2,420
- Spring = $2,420
Example 4: Part-Time Enrollment in Fall and Three Quarter-Time Enrollment in Spring
An undergraduate student enrolls in 6 credits for the Fall semester and 9 credits for the Spring semester. Full-time enrollment for the academic year is considered 24 credits (12 credits each semester).
Because the student is enrolled in only 15 credits out for 24 full-time credits for the academic year, or approximately 63% of full-time
enrollment federal loan eligibility must be reduced proportionally.
As a result, the students鈥� adjusted annual loan eligibility would be reduced from
$5,500 to: $3,465.
- Fall = $1,732 Subsidized Loan
- Spring = $1,733 Unsubsidized Loan
