Beginning with the 2026–2027 academic year, annual federal student loan amounts will be determined by a student’s level of enrollment (the number of units you complete). This policy is referred to as the Schedule of Reduction for Loans.
What is loan proration based on enrollment level?
The Student Loan Schedule of Reduction (SOR), or loan proration, is a determination of how much you can borrow if you are enrolled less than full time. Your federal student loan offer will be based on the number of units you take. If you enroll less than full time, your loan offer will be prorated based on your actual unit load. This change went into effect for the 2026–27 academic year.
All federal student loans are prorated based on enrollment. Loan reduction applies to any undergraduate, graduate, and professional school students who are enrolled less than full time and take out federal loans. Parent PLUS loan amounts are not affected by the SOR.
How does loan proration affect financial aid disbursements?
Loan proration applies to all undergraduate, graduate, and professional school students who are taking out any federal student loan (Parent PLUS loan amounts are not affected).
Financial aid disbursements and re-assessing enrollment:
- If a student is not enrolled full-time (12 units for most students) for the fall semester by August 16, 2026 at 5 p.m., their federal loan(s) will be placed on hold to allow time to add more units. Other aid will still be disbursed. Waitlisted units do not count as enrolled units.
- If a student increases their unit load to full-time (12 units for most students) before the start of instruction on August 26, 2026, the full amount of their accepted federal student loans will be disbursed within 1-3 days.
- If a student is not enrolled full-time by the start of instruction on August 26, 2026, and their loan has yet to be disbursed, loans will be prorated based on actual units of enrollment and disbursement at that time.
What will trigger a federal student loan reduction in financial aid?
The SOR policy requires a reduction in your federal loan if you are not enrolled full time. The reduction in loan amounts will be based on unit load for the entire academic year.
What is considered full-time enrollment for financial aid?
Full-time enrollment for financial aid purposes is defined for most students as 24 units during the fall and spring semesters combined, or 12 units per semester; this varies by program for some graduate programs. Enrollment hours are determined by the student’s program and the Office of the Registrar.
Note: While the 12-unit requirement applies for financial aid and federal student loans, some undergraduate students may have higher minimum course loads required by their college to meet undergraduate enrollment expectations.
“Full time” is cumulative for the academic year: If students are enrolled in less than 12 units in the fall, they can still take additional units in the spring to meet the 24 credit full-time requirement. Loans will be adjusted accordingly at the time of spring disbursement, based on the total enrollment change.
Will loans be adjusted if enrollment changes during the fall or spring semester?
Yes, federal student loans will be adjusted if enrollment increases or decreases over the course of the academic year.
Dropping classes can decrease federal student loan amounts: If a student is enrolled full-time at the time of financial aid disbursement, but then drops below full-time after disbursement, their loans will be adjusted to match their level of enrollment at the time of the next loan disbursement. Loans will be prorated based on their enrollment for the academic year at the time of spring financial aid disbursement.
Adding classes can increase federal student loan amounts: Students can add classes during the Adjustment Period of enrollment to increase unit loads, or take additional units in the spring to reach a cumulative 24 units for the academic year.
When do students need to be enrolled in a full-time unit load to avoid changes in financial aid?
If possible, all students should be enrolled full-time by financial aid disbursement on August 17, 2026 to not be impacted. The following are key dates that you should be aware of for federal student loan disbursement.
By August 16, 2026 at 5 p.m.: If you are not enrolled full-time for the fall semester by August 16 at 5 p.m., your federal loan (s) will not disburse on August 17 and will instead be placed on hold to allow time to add more units. Other aid will not be affected. If you have enrolled full-time, you will receive your full federal student loan as expected.
Between August 17 and August 26, 2026: If you are able to enroll full-time before the start of instruction on August 26, 2026, your federal loan (s) will automatically be released (with 1-3 days processing time).
By August 26, 2026: If you are still not enrolled full-time by the start of instruction on August 26, 2026, a reduced/prorated loan will disburse based on actual enrolled units at that time.
Between August 26, 2026 and the add/drop deadline (September 16, 2026 for undergraduate students and September 25, 2026 for graduate students): If you are able to increase your enrollment to full-time between the start of instruction on August 26, 2026 and the add/drop deadline, your loan eligibility will be re-evaluated and updated.
Reducing enrollment (any point during the fall semester): Please note that any drops in enrollment during the fall semester will result in decreased federal loan disbursement for the spring semester, even if they occur after the add/drop or census dates. You must enroll in, and stay enrolled in, 24 units per academic year (fall and spring) to qualify for your highest possible federal student loan offer.
What happens to students on a waitlist for a class they need to reach full-time enrollment?
If you are on a waitlist, we recommend that you follow the advice in What to Do When You’re on a Waitlist, like setting up a swap for a backup class or checking for reserved seats. You may also speak to your academic advisor to explore additional course options for the semester.
Short-term emergency loans are also available for students who may need access to funds on a short-term basis while they work to reach full-time enrollment status. For example, if you are not enrolled in 12 units by the time financial aid disbursement begins (approximately 10 days before the start of instruction), and need to pay your off-campus rent before your loan eligibility is re-assessed on the first day of instruction. Applications for short-term emergency loans open on the first day of the semester, August 19, 2026.
What resources are available for students who cannot enroll full time?
If you have circumstances that prevent you from enrolling full time, we understand that this policy change creates added challenges for you. Unfortunately, there are no exceptions in the law for any students with reduced course loads. If you are impacted by changes in financial aid, please refer to the resources below.
- The Center for Financial Wellness provides one-on-one financial counseling and can help you establish a budget and navigate questions like how much to borrow. You can also review their resources on managing debt and tips for borrowing.
- If you are a student parent, reach out to the Student Parent Center for resources and counsel.
- For help with general accommodations and services, reach out to the Disabled Students’ Program.
What are other sources of funding for students with reduced federal loans?
We encourage you to explore other financing options that are available outside of federal loans. If you cannot enroll full time, we encourage you to look into these options (such as outside scholarships or private loans) as soon as possible. For ideas and inspiration, read one student’s advice on how to search for outside scholarships.