Schedule of Reductions

New Federal Loan Rules for 2026–27

Federal Direct Loan Schedule of Reductions (SOR)

Beginning July 1, 2026, federal law changed how much students can borrow in federal Direct Loans when they are enrolled less than full-time. This change is called the Schedule of Reductions (SOR).

Your total enrollment for the semester determines how much of your federal Direct Loan you may receive.

  • Full-time (12 or more credits): You may receive the full loan amount you are eligible for.
  • Part-time (6–11 credits): Your loan amount is reduced based on your enrollment.
  • Less than part-time (fewer than 6 credits): You are not eligible to receive a Direct Loan.

Important: You must be enrolled in at least 6 credit hours that are required for your program of study to receive a direct loan.

Your loan may not be applied to your student account all at once.

To receive a loan disbursement, you must be actively attending at least 6 credits that are required for your program of study.

This is important if your classes are offered in different parts of the semester.

Example:

You are enrolled in:

    • 6 credits during Fall 1
    • 6 credits during Fall 2

You are enrolled in 12 credits for the semester, so you may be eligible for the full loan amount based on your other eligibility requirements.

However, you will not receive the entire loan at the beginning of Fall 1.

Your loan will be divided into two disbursements based on when you begin attending your classes.

Adding or dropping a class can change your loan eligibility or future loan disbursements.

For example, if you drop a class and your enrollment decreases, your loan amount may also decrease.

If your loan has already been disbursed, you may have to repay part of the loan to TTC.

Contact Financial Aid first before you drop a class.

We can help you understand how the change may affect your student loan and other financial aid.

Because your total semester enrollment determines how much loan you can receive and your class schedule determines when your loan is applied to your account, your entire loan may not be available at your first disbursement.

Plan your expenses carefully.

Do not assume that your full loan amount will be available at the beginning of the semester.

Need help creating a budget?

Use CashCourse to create a budget and plan your expenses throughout the semester. Visit CashCourse and enter TTC's registration code: 2545

Legacy Borrowers

Some students and parents may be allowed to keep the previous federal loan limits for a limited time. This is called the legacy borrower exception.

The exception may apply to you if you were already enrolled in your program and had a federal loan disbursed for that program before July 1, 2026.

 

If you qualify, you may continue to use the previous loan limits instead of the new limits during your exception period.

This can affect:

  • Your total federal student loan limits — the total amount you can borrow over your lifetime.
  • Parent PLUS loan limits — the amount a parent can borrow each year and the total amount a parent can borrow for a dependent student.

The exception does not mean that all old loan rules apply to you. Other new federal loan rules may still apply.

Your exception will end when you are no longer eligible under federal rules or when your allowed exception period ends.

 

Changing your program of study may affect your legacy borrower status.

If you are a legacy borrower considering changing your program, contact Financial Aid before making the change.

You do not need to determine whether you qualify on your own. TTC will use federal information to determine which loan limits apply to you.

 

Learn More

For more information about federal Direct Loans and borrowing limits, visit Federal Student Aid – Direct Subsidized and Unsubsidized Loans.

Questions?

If you are thinking about dropping a class, changing your program, or changing your enrollment, contact Financial Aid before making the change.