Federal Direct Student Loans: Reductions Based on Enrollment Intensity (Schedule of Reductions)

Effective July 1, 2026, federal regulations require institutions to adjust Federal Direct Student Loan amounts for students attending less than full time. This policy is referred to as the Schedule of Reductions (SOR) for Federal Direct Loans. If you are enrolled less than full time, you may see a reduction in federal student loan eligibility than you would have under previous policies.

Loan proration applies to all undergraduate, graduate, and professional school students who are taking out any federal student loans. Note that Parent PLUS loan amounts are not impacted.

• Students must be enrolled at least half-time (6 units for undergraduate and 4 units for graduate) and meet all other eligibility requirements to receive a Federal Direct Student Loan disbursement.
• At the time of disbursement, your Federal Loan eligibility will be reviewed based on units enrolled. If you are enrolled in less than full-time units (12 units for undergraduate and 8 units for graduate), your Federal Loan will be reduced for the current term.
• Students enrolled for only one quarter may receive no more than one-third (⅓) of the applicable full-time annual loan limit.

Under the new SOR rules, loan amounts are calculated using your enrollment intensity, which reflects the number of units you are enrolled in compared with full-time enrollment. Note that waitlisted units do not count as enrolled units.

Enrollment intensity is the percentage of full-time enrollment at which a student is enrolled, rounded to the nearest whole percent. It is used to determine your federal Direct Loan eligibility when you are enrolled less than full-time.

For example, for undergraduate students, 12 units is considered full-time. If a student is enrolled in 8 units, the enrollment intensity would be 8 ÷ 12 × 100% = 66.7% (round to 67%).

Beginning with the 2026–27 academic year, students enrolled less than full time may receive less in federal Direct Loans based on their enrollment intensity.

What is enrollment intensity?

Enrollment intensity is the percentage of full-time enrollment at which a student is enrolled, rounded to the nearest whole percent. It is used to determine your federal Direct Loan eligibility when you are enrolled less than full-time.

For undergraduate students, 12 units is considered full-time enrollment for this purpose.

For example:

• 12 units = 100% enrollment intensity
• 9 units = 75% enrollment intensity
• 6 units = 50% enrollment intensity

Beginning with the 2026–27 academic year, students enrolled less than full time may receive less in federal Direct Loans based on their enrollment intensity.

How is my eligibility under “Schedule of Reductions (SOR)” calculated?

The numerator (units enrolled) is divided by the denominator (units required) to determine enrollment intensity.

For Undergraduate students: Students are expected to be enrolled full-time (12 units) for the full academic year (Fall: 12 units, Winter: 12 units, and Spring: 12 units = 36 units). 36 units is used as the denominator in the SOR calculation for the academic year.

If you are enrolled in less than 12 units, your enrollment intensity is recalculated, which may result in a reduction of your federal loan eligibility.

What happens to my federal loan eligibility if I drop below full time units after the loan funds have been disbursed?

If your federal Direct Loan funds have already been fully disbursed for the current term, dropping below full-time status does not retroactively reducethe funds already disbursed for that specific term. Your reduced enrollment lowers your remaining annual eligibility, meaning your subsequent term's disbursement will be proportionally reduced.

What happens if I add more units in the current term, will my federal loan eligibility be recalculated?

If your enrollment increases before the subsequent disbursement, your enrollment intensity for the current term will be recalculated and may result in an increase in your federal direct loan eligibility if it was previously reduced due to being enrolled less than full-time.

Can my loan be increased if I add more units in the subsequent terms to make up for the enrollment shortfall in the current term?

Yes. If your enrollment in the following terms makes up for the enrollment shortfall in the previous term(s), your enrollment intensity would account for those units and recalculate your loan eligibility.

As a result, your Winter and/or Spring loan amounts may be higher than the standard quarterly allocation. Your annual loan eligibility does not always have to be divided equally among Fall, Winter, and Spring.

Will loans be adjusted if enrollment changes during the Winter and Spring quarter?

Yes, federal student loans will be adjusted if enrollment increases or decreases over the course of the academic year.

Dropping classes will result in a decrease of federal student loan amounts: If a student is enrolled full-time at the time of financial aid disbursement, but then drops below full-time after disbursement, their loans will be adjusted to match their level of enrollment at the time of the next loan disbursement. Loans will be prorated based on their enrollment for the academic year at the time of subsequent term financial aid disbursement.

Adding classes can increase federal student loan amounts:Students can add classes during the current term of enrollment to increase their enrollment intensity, or take additional units in the subsequent term to reach full-time enrollment for the academic year.

When do students need to be enrolled in a full-time unit load to avoid changes in financial aid?

To avoid a reduction in loan eligibility, students are encouraged to be enrolled full-time at the beginning of the term when financial aid disburses:

Fall 2026: September 14, 2026

Winter 2027:December 28, 2026

Spring 2027: March 19, 2027

Why is my loan eligibility lower because I am graduating?

If you are expected to complete your degree before the end of the academic year, you may not be eligible for the full annual federal loan amount.

Federal law now requires loan eligibility to closely align with your remaining time to complete your degree. As a result, students who have less than a full academic year of coursework remaining may have their annual loan eligibility reduced.

Your individual eligibility depends on your remaining coursework and enrollment.

What resources are available for students who cannot enroll full time?

If you have circumstances that prevent you from enrolling full time, we understand that this policy change creates added challenges for you. Unfortunately, there are no exceptions in the policy for any students with reduced course loads. If you are impacted by changes in financial aid, please refer to the resources below.

• UCLA Financial Wellness provides one-on-one financial counseling and can help you establish a budget and navigate questions like how much to borrow.
• For help with general accommodations and services, we recommend reaching out to the UCLA Center for Accessible Education.

For additional assistance with basic needs, we encourage students to connect with:

• UCLA Basic and Essential Needs
• UCLA Basic Needs at Strathmore

What are other sources of funding for students with reduced federal loans?

We encourage you to explore other financing options that are available outside of federal loans, such as:

• BruinPay Plan(apply quarterly)
• Private Educational Loans