Important Updates to Federal Student Loan Eligibility Effective Fall 2026

[Todd Moravec]

Two significant changes to federal student loan eligibility are coming this
fall:

   - Federal Loan Proration for Part-Time Students (see details below)
   - Federal Loan Schedule of Reductions for Course Drops or Withdrawals
   (see details below)

If you plan to enroll part-time or are considering dropping or withdrawing
from a course, please connect with Student Financial Services (SFS)
beforehand to fully understand how these changes may affect your federal
student loans.

Visit our website
<https://www.plattsburgh.edu/cost-aid/scholarships/loan-programs.html> for
loan proration tables, reduction schedules, and more details.

*Federal Loan Proration for Part-Time Students*
Beginning Fall 2026, your annual federal loan eligibility (subsidized and
unsubsidized combined) will be prorated based on the number of aid-eligible
credits you're taking. Previously, half-time enrollment was often enough to
access your full annual loan limit. Under the new rules, your borrowing
limit will be calculated as a percentage of the annual full-time course
load.

   - Example for dependent undergraduate junior: The initial annual loan
   maximum is $7,500 based on full-time enrollment (24 or more aid-eligible
   credits). At half-time enrollment for the year (6 in fall and 6 in spring),
   a student would be eligible for 50% of that limit or $3,750 for the year.
   - Example for graduate student: The initial annual loan maximum is
   $20,500 based on full-time enrollment (24 or more aid-eligible credits). At
   half-time enrollment for the year (6 in fall and 6 in spring), a student
   would be eligible for 50% of that limit or $10,250 for the year.

*Federal Loan Schedule of Reductions for Course Drops or Withdrawals*
Beginning Fall 2026, your federal loan eligibility will be determined at
the time of disbursement. If you drop or withdraw from a course before
disbursement, your award will be recalculated using the part-time proration
rules above. If you drop or withdraw from a course after disbursement, the
amount already disbursed will not be reduced; however, future loan
disbursements will be adjusted based on your revised annual limit.

   - Example for dependent undergraduate junior: Your initial annual loan
   maximum is $7,500 ($3,750 per semester) because you are enrolled full-time
   (24 aid-eligible credits). If you withdraw from a 3-credit course in the
   fall after disbursement, SFS would be obligated to reduce your spring loan
   by $900 (from $3,750 to $2,850) if you do not add any aid-eligible courses
   in the spring.
   - Example for graduate student: Your initial annual loan maximum is
   $20,500 ($10,250 per semester) because you are enrolled full-time (24
   aid-eligible credits). If you withdraw from a 5-credit course in the fall
   after disbursement, SFS would be obligated to reduce your spring loan by
   $4,305 (from $10,250 to $5,945) if you do not add any aid-eligible courses
   in the spring.

If SFS must reduce your spring loan, you may be able to reverse that
reduction by adding aid-eligible coursework during the winter or spring
semester, bringing your annual total above 24 aid-eligible credits
(full-time equivalent), assuming you continue to meet all other eligibility
requirements.

Sincerely,
Todd

-- 

TODD MORAVEC, MHSA, MA
(He, his, him, himself)

Director of Student Financial Services
401 Kehoe Building
101 Broad Street
Plattsburgh, NY 12901
(o) 518-564-2072 <+1-518-564-2130>
plattsburgh.edu <https://www.plattsburgh.edu/>
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