Beginning with the 2026–2027 award year, federal law requires colleges to reduce Federal Direct Loan eligibility for students enrolled in fewer than 12 eligible credit hours.
This requirement is called the Direct Loan Schedule of Reductions (SOR).
The new requirement affects the maximum amount a student may borrow through:
In previous years, students enrolled in at least six credit hours could often receive up to their full annual Direct Loan limit. The actual amount depended on factors such as:
Beginning with the 2026–2027 award year, students enrolled in fewer than 12 eligible credit hours will have their Direct Loan eligibility reduced based on their enrollment.
Students must continue to be enrolled in at least six eligible credit hours to qualify for a Federal Direct Loan.
Hillsborough College will review the number of eligible credit hours in which you are enrolled and calculate your loan eligibility based on your enrollment level.
The general calculation is:
Eligible credits enrolled ÷ annual full-time credits = percentage of annual loan eligibility
For fall and spring enrollment, 24 credits generally represent a full-time academic year.
Example
A first-year dependent undergraduate student may qualify for an annual Federal Direct Subsidized Loan of up to $3,500.
If the student enrolls in six eligible credits for the fall term:
6 eligible credits ÷ 24 annual full-time credits = 25%
$3,500 × 25% = $875
The student’s maximum Subsidized Loan eligibility under the Schedule of Reductions would be $875, before any other required financial aid calculations or adjustments.
This example does not guarantee that the student will receive $875. The final loan amount will depend on the student’s overall financial aid eligibility, cost of attendance, financial need, remaining loan eligibility, and other federal requirements.
Only courses that apply toward your eligible degree or certificate program may be counted when determining federal financial aid eligibility.
Courses that do not apply toward your program of study may not be included when Hillsborough College calculates your enrollment level or Direct Loan eligibility.
Your Direct Loan eligibility may be reviewed and adjusted when:
If your enrollment decreases after a loan has been offered or accepted, the loan may be reduced before it is disbursed.
If your loan has already been disbursed, an enrollment change may affect your future loan eligibility or result in a balance owed to Hillsborough College.
To help avoid unexpected loan reductions:
Important: Withdrawing from a course after your loan has been disbursed may change your enrollment status, reduce your future loan eligibility, or result in a balance owed to the College.
Additional Eligibility Requirements
The Schedule of Reductions does not replace any other federal financial aid requirements. Students must continue to:
Borrow Responsibly
Federal Direct Loans must be repaid with interest. Students are encouraged to borrow only the amount needed to pay for eligible educational expenses.
**This update is pending final guidance from the US Department of Education and is subject to change**