One Big Beautiful Bill Act Information
Federal Direct Loan Changes for 2026-2027
Loan Borrowing Allocation
- Students may not receive more than 50% of their annual Federal Direct Loan eligibility in a single semester.
- If you do not borrow your full Fall loan eligibility during the Fall semester, or you are a new student starting in the Spring semester, you are only eligible for the Spring portion of your loan eligibility. Any unused Fall loan eligibility cannot be used in the Spring semester.
- If a parent is denied a Parent PLUS Loan and receives the additional Unsubsized Loan ($4,000 or $5,000), the additional loan amount will also be divided equally between Fall and Spring semesters. Students can no longer borrow their full year loan eligibility all in one semester.
Example:
First-Year student loan eligibility: $5,500 Annual Amount
Loan Type Fall Spring Annual Total
Subsidized $1,750 $1,750 $3,500
Unsubsidized $1,000 $1,000 $2,000
Semester Total $2,750 $2,750 $5,500
Less Than Full-Time Loan Adjustments
Beginning with the 2026-2027 academic year, federal student loan rules will change under the One Big Beautiful Bill Act (OBBBA). These changes will affect all student who use federal loans, including undergraduate and graduate borrowers.
Schools will now be required to adjust a student's Federal Direct Loan eligibilty based on their enrollment level for the academic year. This process, known as Schedule of Reductions (SOR), means that students enrolled less than full-time for a full academic year may receive a reduced loan amount based on the percentage of their enrollment. At Bellarmine, full-time is considered 12 hours per semester (24 total) for undergraduate and 6 hours per semester (12 total) for graduate.
For financial aid purposes, students will be offered aid based on the assumption of full-time enrollment for both the fall and spring semesters, unless otherwise noted. If your enrollment plans change, your financial aid eligibility may be adjusted accordingly. The Financial Aid Office may contact you by email if additional information is needed regarding your enrollment plans.
Full-Time Academic Year Definition: Full-time enrollment is determined by term and by the academic year, whereas previously it was determined by enrollment in a single term.
- Undergraduate: 24 credit hours over Fall and Spring semesters
- Graduate: 12 hours over Fall and Spring semesters
Half-Time Enrollment: Students are still required to be enrolled at least half-time in order to qualify for federal loans. The minimum number of credit hours required to be considered half-time is:
- Undergraduate: 6 credit hours
- Graduate: 3 credit hours
*Please note that only credit hours for courses required as part of the student's program of study are eligible for federal financial aid. Courses that are not required for the program cannot be included when determining federal aid eligibility.
Schedule of Reductions Examples:
The loan amounts below are for illustration purposes only. Loan amounts can vary based on grade level, dependency status, remaining loan eligibility, cost of attendance, and whether the credits are required courses towards your degree.
|
Fall Credits |
Spring Credits |
Percentage of Full-time Enrollment |
Annual Loan Eligibility |
Final Annual Loan Limit |
| 12+ credits | 12+ credits | 24/24 = 100% | $5,500 | $5,500 |
| 9 credits | 9 credits | 18/24 = 75% | $5,500 | $4,125 |
| 6 credits | 6 credits | 12/24 = 50% | $5,500 | $2,750 |
| 3 credits | 3 credits | 6/24 = 25% | $5,500 | Not eligible |
How the percentage is calculated
| Enrolled credit hours for the academic year | ÷ | Full-time credit hours for your program | × | 100 | = | Reduced annual loan limit percentage |
Before dropping or withdrawing from a course: Dropping below full-time any time through the academic year may affect your loan eligibility. Please contact the Financial Aid Office prior to any changes made to your enrollment throughout the academic year.
At time of disbursement: Financial aid will be disbursed based on actual enrollment status at the time of disbursement. If you are enrolled at less than full-time, your federal loan eligibility may be reduced proportionally based on your enrollment level.
Key Takeaway
Always check with the Financial Aid Office before dropping a course. Changes to your enrollment could reduce or change your financial aid.
Office of Financial Aid
502.272.7300