Loan Proration
Understanding Your Changes to Federal Loan Limits
Effective beginning July 1, for the 2026-2027 academic year.
Welcome! If you are planning to use federal student loans to help pay for your education, there are changes you should know about. Below is a guide to understanding loan proration rules, the maximum loan limits, and how they might impact your financial aid. For more complete information about the changes and updates, please review the information on the Federal Student Aid website.
A Note About Credit Hours (Units): Please note that the credit "hours" referred to below are known as "units" in Workday Student. These hours/units are only included in your financial aid calculations if they apply towards your official program of study.
What is Loan Proration?
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.
A Note about Federal Loan Fees
Federal loan fees, also known as "origination fees," are a small percentage of your total loan amount that the Department of Education charges to help defray the costs of the federal student loan programs. This fee is deducted proportionately from each loan disbursement before the money is sent to your school. This means the actual "net" amount credited to your student account to pay for your classes will be slightly less than the gross disbursement amounts listed below.
Please note that the disbursement amounts shown in the tables below are before federal loan fees are taken out.
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.
| Grade Level & Dependency | Total Annual Max: Subsidized/Unsubsidized Loan | Fall Disbursement | Spring Disbursement |
|---|---|---|---|
| 1st Year Dependent | $5,500 | $2,750 | $2,750 |
| 1st Year Independent | $9,500 | $4,750 | $4,750 |
| 2nd Year Dependent | $6,500 | $3,250 | $3,250 |
| 2nd Year Independent | $10,500 | $5,250 | $5,250 |
| 3rd Year Dependent | $7,500 | $3,750 | $3,750 |
| 3rd Year Independent | $12,500 | $6,250 | $6,250 |
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.
| Grade Level & Dependency | Adjusted Annual Max: 88% | Fall Disbursement (100%) | Spring Disbursement (reduced) |
|---|---|---|---|
| 1st Year Dependent | $4,840 | $2,750 | $2,090 |
| 1st Year Independent | $8,360 | $4,750 | $3,610 |
| 2nd Year Dependent | $5,720 | $3,250 | $2,470 |
| 2nd Year Independent | $9,240 | $5,250 | $3,990 |
| 3rd Year Dependent | $6,600 | $3,750 | $2,850 |
| 3rd Year Independent | $11,000 | $6,250 | $4,750 |
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.
| Grade Level & Dependency | Adjusted Annual Max: 88% | Fall Disbursement (100%) | Spring Disbursement (reduced) |
|---|---|---|---|
| 1st Year Dependent | $4,840 | $2,750 | $2,090 |
| 1st Year Independent | $8,360 | $4,750 | $3,610 |
| 2nd Year Dependent | $5,720 | $3,250 | $2,470 |
| 2nd Year Independent | $9,240 | $5,250 | $3,990 |
| 3rd Year Dependent | $6,600 | $3,750 | $2,850 |
| 3rd Year Independent | $11,000 | $6,250 | $4,750 |
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.
| Grade Level & Dependency | Adjusted Annual Max: 88% | Fall Disbursement (proportional) | Spring Disbursement (proportional) |
|---|---|---|---|
| 1st Year Dependent | $4,840 | $2,090 | $2,750 |
| 1st Year Independent | $8,360 | $3,610 | $4,750 |
| 2nd Year Dependent | $5,720 | $2,470 | $3,250 |
| 2nd Year Independent | $9,240 | $3,990 | $5,250 |
| 3rd Year Dependent | $6,600 | $2,850 | $3,750 |
| 3rd Year Independent | $11,000 | $4,750 | $6,250 |
Scenario 5: 9 hours Fall + 9 hours Spring (18 hours total = 75% limit)
Explanation: Because your credits are split evenly across both semesters on a part-time basis, your prorated loan limit is divided equally (18 ÷ 24 = 75%).
Note: Where a split results in 50 cents, the extra dollar is moved to the Spring semester.
| Grade Level & Dependency | Adjusted Annual Max: 75% | Fall Disbursement | Spring Disbursement |
|---|---|---|---|
| 1st Year Dependent | $4,125 | $2,062 | $2,063 |
| 1st Year Independent | $7,125 | $3,562 | $3,563 |
| 2nd Year Dependent | $4,875 | $2,437 | $2,438 |
| 2nd Year Independent | $7,875 | $3,937 | $3,938 |
| 3rd Year Dependent | $5,625 | $2,812 | $2,813 |
| 3rd Year Independent | $9,375 | $4,687 | $4,688 |
Scenario 6: 12 or more hours Fall + 0 hours Spring (12 hours total = 50% limit)
Explanation: If you are only attending for the Fall semester (for example, if you are graduating in December), your total expected enrollment for the year is 12 hours (12 ÷ 24 = 50%). You receive 50% of your annual maximum, disbursed entirely in the Fall.
| Grade Level & Dependency | Adjusted Annual Max: 50% | Fall Disbursement | Spring Disbursement |
|---|---|---|---|
| 1st Year Dependent | $2,750 | $2,750 | $0 |
| 1st Year Independent | $4,750 | $4,750 | $0 |
| 2nd Year Dependent | $3,250 | $3,250 | $0 |
| 2nd Year Independent | $5,250 | $5,250 | $0 |
| 3rd Year Dependent | $3,750 | $3,750 | $0 |
| 3rd Year Independent | $6,250 | $6,250 | $0 |
Scenario 7: 12 hours Fall + 6 hours Spring (18 hours total = 75% limit)
Explanation: You are full-time in the Fall, so you receive your standard full-time disbursement for that term. Your Spring enrollment is 6 hours, so the adjusted Spring disbursement provides the remainder of your 75% annual limit (18 ÷ 24 = 75%). Note: 6 hours is exactly half-time, so you remain eligible for the Spring disbursement.
| Grade Level & Dependency | Adjusted Annual Max: 75% | Fall Disbursement (100%) | Spring Disbursement (reduced) |
|---|---|---|---|
| 1st Year Dependent | $4,125 | $2,750 | $1,375 |
| 1st Year Independent | $7,125 | $4,750 | $2,375 |
| 2nd Year Dependent | $4,875 | $3,250 | $1,625 |
| 2nd Year Independent | $7,875 | $5,250 | $2,625 |
| 3rd Year Dependent | $5,625 | $3,750 | $1,875 |
| 3rd Year Independent | $9,375 | $6,250 | $3,125 |
Graduate Students
For graduate students, 18 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 5 or more credit hours per semester for graduates. The new standard maximum annual limit for graduate students is $20,500.
If your classes are uneven across terms, the financial aid office will distribute your funds proportionally based on the credits you take each semester.
Scenario 1: 9 hours Fall + 9 hours Spring (18 hours total = 100% 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 6 hours of enrollment to ensure you don't exceed your 83% limit for the year (15 ÷ 18 = 83.3%, rounding to 83%.)
| Total Annual Max | Fall Disbursement | Spring Disbursement |
|---|---|---|
| $20,500 | $10,250 | $10,250 |
Scenario 2: 9 hours Fall + 6 hours Spring (15 hours total = 83% 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 6 hours of enrollment to ensure you don't exceed your 83% limit for the year (15 ÷ 18 = 83.3%, rounding to 83%.)
| Adjusted Annual Max (83%) | Fall Disbursement (proportional) | Spring Disbursement (proportional) |
|---|---|---|
| $17,015 | $10,250 | $6,765 |
Scenario 3: 6 hours Fall + 6 hours Spring (12 hours total = 67% limit)
Explanation: Because your credits are split evenly across both semesters on a part-time basis, your prorated loan limit is divided equally (12 ÷ 18 = 66.6%, rounding to 67%). (Note: Where a split results in 50 cents, the extra dollar is moved to the Spring semester).
| Adjusted Annual Max (67%) | Fall Disbursement | Spring Disbursement |
|---|---|---|
| $13,735 | $6,867 | $6,868 |
Scenario 4: 6 hours Fall (drops to 3) + 6 hours Spring (9 hours total = 50% limit)
Explanation: You start the Fall enrolled in 6 hours and expect to take 6 hours in the Spring (12 hours total = 67% limit). Because you are enrolled at least half-time initially (minimum of 5 credits), your Fall loan disbursement happens before you drop to 3 hours, meaning you receive your initial expected disbursement for the Fall ($6,867). However, dropping 3 hours reduces your expected total enrollment for the year to 9 hours. Your limit drops to 50% (9 ÷ 18), making your new annual maximum $10,250. Because you already received $6,867 in the Fall, the financial aid office is required to adjust and reduce your Spring disbursement to prevent you from exceeding your new annual limit. (Note: You must still be enrolled at least half-time, which is 5 credits, in the Spring to receive any remaining disbursement).
| Adjusted Annual Max (50%) | Fall Disbursement (received 67% rate) | Spring Disbursement (reduced) |
|---|---|---|
| $10,250 | $6,867 | $3,383 |
Scenario 5: 7 hours Fall + 6 hours Spring (13 hours total = 72% limit)
Explanation: Because you are enrolled in 7 hours for the Fall, you are awarded the 7 hour amount for both the Fall and Spring semesters and receive the prorated disbursement for the Fall term. The Spring disbursement is then adjusted once you have enrolled for the semester based on 6 hours of enrollment to ensure you don't exceed your 72% limit for the year (13 ÷ 18 = 72.2%, rounding to 72%).
| Adjusted Annual Max (72%) | Fall Disbursement (proportional) | Spring Disbursement (proportional) |
|---|---|---|
| $14,760 | $7,892 | $6,868 |
Scenario 6: 6 hours Fall + 3 hours Spring (9 hours total = 50% limit)
Explanation: Because you are enrolled in 6 hours for the Fall, you are awarded the 6 hour amount for both the Fall and Spring semesters and receive the prorated disbursement for the Fall term (9 ÷ 18 = 50%. Total Limit = $10,250). The Spring disbursement is then canceled once you have enrolled for the semester based on 3 hours of enrollment.
Important Note on Half-Time Requirements: Federal student loans require you to be enrolled at least half-time (5 credits for graduate students). Because 3 credits is less-than-half-time, you are ineligible to receive a loan disbursement for that specific term.
| Adjusted Annual Max (50%) | Fall Disbursement (proportional) | Spring Disbursement |
|---|---|---|
| $10,250 | $6,868 | $0 (3 hrs is less-than-half-time) |
Scenario 7: 3 hours Fall + 6 hours Spring (9 hours total = 50% limit)
Explanation: Similar to Scenario 6, because 3 credits is less-than-half-time, you cannot receive a disbursement for the Fall semester. Because you are enrolled in 3 hours for the Fall, you are not awarded any loans for the Fall or Spring semester until you enroll for the Spring term. The Spring disbursement is then prorated based on 9 hours of total enrollment for the year (9 ÷ 18 = 50%. Total Limit = $10,250).
| Adjusted Annual Max (50%) | Fall Disbursement | Spring Disbursement (proportional) |
|---|---|---|
| $10,250 | $0 (3 hrs is less-than-half-time) | $10,250 |
Law (Professional) Students
Law school is classified as a "Professional Degree," which comes with a higher annual limit of $50,000. For Law students, 12 credit hours per semester (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.
Scenario 1: 12 hours Fall + 12 hours Spring (24 hours total = 100% limit)
| Total Annual Max | Fall Disbursement | Spring Disbursement |
|---|---|---|
| $50,000 | $25,000 | $25,000 |
Scenario 2: 12 hours Fall (drops to 9) + 12 hours Spring (21 hours total = 88% limit)
Explanation: Similar to the undergraduate example, if you start the Fall semester full-time, your Fall loan disbursement happens before you drop to 9 hours, so you receive your full $25,000 for the Fall. However, dropping to 9 hours reduces your expected total enrollment for the year to 21 hours. Your limit drops to 88% (21 ÷ 24), meaning your new annual maximum is $44,000.
| Adjusted Annual Max (88%) | Fall Disbursement (100%) | Spring Disbursement (reduced) |
|---|---|---|
| $44,000 | $25,000 | $19,000 |
Scenario 3: 6 hours Fall + 6 hours Spring (12 hours total = 50% limit)
Explanation: Because 6 hours meets the exact half-time requirement, you receive 50% of your maximum annual loan limit each semester. (12 ÷ 24 = 50%).
| Adjusted Annual Max (50%) | Fall Disbursement | Spring Disbursement |
|---|---|---|
| $25,000 | $12,500 | $12,500 |
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.