University Administration Building, Rooms 201 & 252
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 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 or Fails a Class?
Semester loan amounts may be reduced retroactively if a student drops or fails a course and, as a result, their enrollment falls below full-time during the 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 loan amount will reduce for that semester by 25%, even after their loan disbursed for that semester.
If a graduate student drops from 9 credit hours (full-time) to 6 credit hours (half-time), their loan amount will reduce for that semester by 50%, even after their loan disbursed for that semester.