University Administration Building, Room B17
701 S. Nedderman Drive • Arlington, TX 76019
Less Than Full-Time Loan Reductions
The One Big Beautiful Bill Act (OBBBA), signed into law by President Trump on July 4, 2025, is significant because it changes how less than full-time enrollment impacts federal Direct Loans. These changes went into effect for the 2026-2027 aid year.
Changes for 2026-2027
Less than Full-Time Enrollment
Federal Direct Loan amounts for students who are not full-time for any given semester will be reduced. This is called a Schedule of Reduction (SoR).
For loan eligibility purposes, enrollment is determined by number of credit hours completed with a passing grade during any given semester.
Students must be enrolled at least half-time to receive a partial disbursement of a federal Direct Loan in any given semester. Federal Direct Loan disbursements will not reduce for students enrolled full-time.
See chart below for loan reduction percentages for part-time students for fall and spring semester:
| Career | Half-Time Enrollment (50% Loan Reduction) | Three-Quarter Enrollment (25% Loan Reduction) | Full-Time Enrollment (0% Loan Reduction) |
|---|---|---|---|
| Undergraduate | 6-8 Credit Hours | 9-11 Credit Hours | 12+ Credit Hours |
| Graduate | 5-8 Credit Hours | N/A | 9 Credit Hours |
| Graduate Nursing | 3-5 Credit Hours | N/A | 6 Credit Hours |
The less than full-time loan reduction policy applies to all undergraduate, graduate, and professional student federal Direct Loan borrowers utilizing Direct Subsidized Loans, Direct Unsubsidized Loans, and/or Graduate PLUS Loans.
Federal Direct Parent PLUS Loans are not subject to this less than full-time reduction.
Semester Loan Reduction Examples
See charts below for loan reduction examples based on part-time enrollment:
Example 1
| Semester Loan Amount | Semester Enrollment | Percentage Reduced | Disbursed Loan Amount1 |
| $2,750 | Half-time | 50% | $1,375 |
Example 2
| Semester Loan Amount | Semester Enrollment | Percentage Reduced | Disbursed Loan Amount1 |
| $6,250 | Three-quarter-time | 25% | $4,687 |
Example 3
| Semester Loan Amount | Semester Enrollment | Percentage Reduced | Disbursed Loan Amount1 |
| $1,000 | Full-time | 0% | $1,000 |
1A loan origination fee will be deducted from all loan disbursements.
What Happens If a Student Drops a Class?
Federal loan disbursements may be reduced retroactively if a student drops a course and, as a result, their enrollment falls below full-time during that semester. In these cases, the drop or withdrawal may cause a balance owed to UTA that the student must repay.
For example, if an undergraduate student drops from 12 credit hours (full-time) to 9 credit hours (three-quarter-time), their federal loan disbursement will reduce for that semester by 25%, even after their federal loan disbursed for that semester.
If a graduate student drops from 9 credit hours (full-time) to 6 credit hours (half-time), their federal loan disbursement will reduce for that semester by 50%, even after their federal loan disbursed for that semester.
For the Fall semester, all federal loan reductions for students who drop Fall semester classes will take place after Nov. 1.
What Happens If a Student Fails a Class?
If a student receives an ‘F’ grade due to never beginning attendance in that course, their federal loan disbursement for the next semester may be reduced.
If a student receives an ‘F’ grade that is earned and began attendance in that course, that ‘F’ grade will not negatively impact a student’s current or future federal loan disbursement, as it pertains to this Less Than Full-Time Loan Reductions policy.