Schedule of Reduction (SOR)
What Is the Schedule of Reductions?
Beginning July 1, 2026, Federal Direct Loans will be reduced based on the number of credits a student is enrolled in or academically engaged with. This process is called the Schedule of Reductions (SOR).
Similar to the Pell Grant, students will now be offered the maximum amount of Federal Direct Loan funding per year based on full-time enrollment. Full-time students will receive their full annual loan amount. Students enrolled less than full-time will receive a proportionally reduced amount based on their actual enrollment.
Full-Time Enrollment Requirements
To be considered full-time for financial aid purposes, undergraduate students must be enrolled in or academically engaged with the following number of credits:
| Fall/Spring | Summer | |
|---|---|---|
| Undergraduate Students | 12 Credits | 12 Credits |
Annual Loan Limits
The tables below show the maximum Federal Direct Loan amounts available per academic year. Your actual offer may differ based on your Cost of Attendance and total lifetime borrowing history. To view your lifetime borrowing history, log in to your studentaid.gov account.
Dependent Undergraduate Students
| 0–30 Earned Credits | 31+ Earned Credits | |
|---|---|---|
| Subsidized | $3,500 | $4,500 |
| Unsubsidized | $2,000 | $2,000 |
| Total | $5,500 | $6,500 |
Independent Undergraduate Students
| 0–30 Earned Credits | 31+ Earned Credits | |
|---|---|---|
| Subsidized | $3,500 | $4,500 |
| Unsubsidized | $6,000 | $6,000 |
| Total | $9,500 | $10,500 |
How Reductions Are Calculated
If a student enrolls full-time and stays full-time, they receive the full annual loan limit — no reduction needed.
If total enrollment for the academic year falls short of full-time, loans are reduced proportionally. Full-time for the academic year equals 24 credit hours (12 per semester). A student’s loan eligibility is calculated as:
Credits enrolled ÷ 24 = Enrollment intensity (percentage of full-time loan limit received)
Example
A first-year student enrolls in 6 credits in the fall and 6 credits in the spring — 12 total for the year. Since full-time is 24 credits:
12 ÷ 24 = 50% enrollment intensity
That student is eligible for 50% of their annual loan limit, not the full amount.
Half-Time Enrollment Minimum
Students must be enrolled at least half-time per semester to receive any Federal Direct Loan funding. Half-time enrollment requirements are as follows:
| Fall/Spring | Summer | |
|---|---|---|
| Undergraduate Students | 6 Credits | 6 Credits |