Federal Direct Loan Proration Policy

LOAN PRORATION

Loan proration impacts undergraduate students applying for graduation who are receiving Federal Direct Subsidized and Unsubsidized Loans.

Federal regulations require schools to prorate the Federal Direct Loan amounts for graduating undergraduate students when their final period of enrollment is less than a full academic year. The loan limit proration determines the maximum loan amount that a student may borrow for the final term of study based on the degree they are earning.

Graduating undergraduate students who are only attending one semester of the academic year will have their Federal Direct Loans prorated based on the number of credit hours they are enrolled.

Note: Graduate and professional students are excluded from the loan proration requirement.

LOAN PRORATION AMOUNT CHART

The chart below provides an estimate on the proration amount of the loan with consideration of the hours enrolled, degree type, and dependency status as defined by the student’s FAFSA. Other factors considered are: annual loan limits, lifetime amounts used, the Expected Family Contribution (EFC) from the FAFSA, and other aid awarded. Proration will occur prior to the first scheduled disbursement date for the graduating semester.