Federal Direct Loans & Enrollment Status

Beginning with the 2026-2027 aid year, loans will be proportionally reduced for students enrolled less than full-time, also known as the Schedule of Reductions (SOR). Students must be enrolled at least half-time (6 hours undergraduate, 3 hours graduate) to be eligible for federal loan funds. Check our Federal Financial Aid Updates page for a high-level overview of the changes made under the One Big Beautiful Bill (OBBBA) and how they may affect your financial aid.

Full-Time Term/Academic Year Definition to Receive Full Loan Eligibility

Undergraduate Students: Must take at least 12 credits over a single term, at least 24 credit hours over the course of the fall and spring terms
Graduate Students: Must take at least 6 credits over a single term, 12 credits over the fall and spring terms

NOTE: Students in Dissertation or Thesis hours are considered to be enrolled full-time despite being enrolled in less than 6 hours within a semester.

Loan Types Reduced for Less Than Full-Time Enrollment

Federal Direct Subsidized
Federal Direct Unsubsidized
Graduate PLUS loans

Annual Federal Direct Loan Limits

Freshman Year Total: $5,500 (not more than $3,500 can be subsidized)
Sophomore Year Total: $6,500 (not more than $4,500 can be subsidized)
Junior or Senior Year Total: $7,500 (not more than $5,500 can be subsidized)

A school year includes the fall, spring, and summer semesters. UWF initially offers financial aid for the fall and spring semesters. If you need help paying for the summer semester, check out our Summer Financial Aid page for more information.

Freshman Year Total: $9,500 (not more than $3,500 can be subsidized)
Sophomore Year Total: $10,500 (not more than $4,500 can be subsidized)
Junior/Senior Year Total: $12,500 (not more than $5,500 can be subsidized)

Up to $20,500 total in unsubsidized loan funding. Subsidized loans are not available for graduate students.
If considered under the limited exception and eligible for Graduate PLUS loans, students may borrow up to their remaining cost of attendance.

Examples of Schedule of Reduction (SOR) Calculations

A dependent junior is typically eligible for up to *$3,750 in the fall and spring semesters in federal direct loans. If the student enrolls in 6 hours:

6 hours ÷ 12 hours = 50%
$3,750 × 50% = $1,875

*A school year includes the fall, spring, and summer semesters. UWF initially offers financial aid for the fall and spring semesters. If you need help paying for the summer semester, check out our Summer Financial Aid page for more information.

A graduate student is typically eligible for up to *$10,250 in the fall and spring semesters in unsubsidized loans. If the student enrolls in 3 hours:

3 hours ÷ 6 hours = 50%
$10,250 × 50% = $5,125

Additional Information

Limited Exceptions, also known as Legacy Provisions, are not considered for Schedule of Reductions (SOR). SOR applies to all students who borrow federal student loans.
Students are required to be enrolled at least half-time (6 hours for undergraduate, 3 hours for graduate).
Only financial aid eligible hours (i.e. degree applicable hours) are factored into the Schedule of Reductions calculation.
If a student accepts less than their full eligibility in loan funding and enroll full-time, the calculation will be done on what a student is fully eligible for.
- Example: A student is eligible for $5,500 in federal student loans, but only accepts $3,500. The Schedule of Reductions calculation will be completed on $5,500 instead of the $3,500.
  - Note: If the SOR calculated amount is more than the student wants to accept, we will certify the amount the student requested.
Withdrawing from a course(s) after loan funding has disbursed could impact a student’s loan eligibility for a subsequent semester. If you have federal loan funding and are considering withdrawing from a course, reach out to finaid@uwf.edu to discuss how your federal loan funds may be impacted.
Federal Direct Loans must be repaid with interest. Students are encouraged to borrow only the amount needed to pay for eligible educational expenses.

FAQs

Federal student loans will be proportionally reduced for students enrolled less than full time between the end of the add/drop period and disbursement.

The Schedule of Reductions (SOR) is calculated based on the initial maximum eligibility (before borrower choice), not the amount the borrower chooses to accept.

Note: If the SOR calculated amount is more than the student wants to accept, we will certify the amount the student requested.

Withdrawing from a course(s) could impact your eligibility for loan funding in subsequent semesters within the same aid year. For questions regarding if withdrawing from a course(s) will impact your loan eligibility, please contact our office at finaid@uwf.edu.

No, there are no exceptions to the Schedule of Reductions.
For undergraduate students, if fall is your final semester before graduation, your student loans may be prorated (reduced) based on the historical loan proration rules.

No, only withdrawals. Like withdrawals, receiving an I (Incomplete) or F (Failing) could, however, impact your Satisfactory Academic Progress standing.

Your loan amount will be adjusted (reduced) based on the credit hours you are actively participating in. Once your later-starting courses begin and your attendance is confirmed, you may be eligible for additional loan funding.

Your loan amount will be adjusted (reduced) based on the credit hours you are actively participating in. If you drop a later-starting course and do not end up enrolled full-time, your loan amount will not be increased.

No. The SOR calculation will only apply to Federal Direct Subsidized, Federal Direct Unsubsidized, or Graduate PLUS loans.

Per the ED, institutions are required to apply the SOR formula to a student’s initial maximum loan eligibility, which is the student’s loan eligibility after all other Title IV criteria are considered. Therefore, a student’s loan funding would be proportionally reduced from their remaining loan eligibility versus the student’s typical annual loan limit.