Less Than Full-Time Loan Adjustments
One Big Beautiful Bill Act Information
On July 4, 2025, the President signed into law the One Big Beautiful Bill Act (OBBBA) (H.R. 1). GTCC is actively reviewing the financial aid provisions included in this legislation and monitoring guidance issued by the U.S. Department of Education.
While additional federal guidance is still being released, students should be aware that several changes to federal student loan eligibility and borrowing limits are scheduled to take effect beginning July 1, 2026, unless otherwise specified by federal regulations.
One significant change impacts students who are enrolled less than full-time during the academic year and receive federal student loans.
Full-Time Academic Year Definition
To be considered full-time for federal loan purposes during the academic year, students must complete the following credit hours across the fall and spring terms:
Undergraduate Students
- 24 credit hours during the academic year
Graduate/Professional Students
- 18 credit hours during the academic year
Half-Time Enrollment Requirement
Students must be enrolled at least half-time in a semester (or starting quarter for quarter-based programs) to receive federal student loans.
Minimum Half-Time Enrollment Requirements
Undergraduate Students
- 6 credit hours per semester
Graduate/Professional Students
- 4.5 credit hours per semester
Less Than Full-Time Enrollment (Schedule of Reduction)
Beginning with the 2026–2027 academic year, federal regulations require loan eligibility to be adjusted for students who do not enroll full-time for the full academic year as defined above.
This adjustment is known as a Schedule of Reduction (SOR). Under the SOR requirement, a student's annual federal loan eligibility must be reduced proportionally based on the number of credit hours in which the student is enrolled during the academic year. The formula used to calculate the reduction is as follows:
Who Is Affected?
The Schedule of Reduction applies to students receiving:
- Direct Subsidized Loans
- Direct Unsubsidized Loans
- Graduate PLUS Loans
This requirement applies to:
- Undergraduate students
- Graduate students
- Professional students
Important: The Schedule of Reduction applies even to students who previously borrowed federal student loans before July 1, 2026.
Parent PLUS Loans
Parent PLUS Loans are not subject to Schedule of Reduction adjustments.
What This Means for GTCC Students
If you plan to attend GTCC less than full-time during the academic year, your federal student loan eligibility may be reduced beginning with the 2026–2027 award year. Students should carefully consider enrollment plans and contact the GTCC Financial Aid Office to understand how changes in enrollment may affect their financial aid eligibility.
Important Reminders for GTCC Students
Maintain full-time enrollment whenever possible to preserve maximum federal loan eligibility.
Notify the GTCC Financial Aid Office before dropping or withdrawing from courses.
Changes in enrollment can affect both current and future loan disbursements.
Schedule of Reduction requirements apply to:
- Direct Subsidized Loans
- Direct Unsubsidized Loans
Parent PLUS Loans are not subject to Schedule of Reduction adjustments.
Need Assistance?
GTCC Financial Aid Office
finaid@gtcc.edu
336-334-4822, Ext. 50000
Information on this page is based on current federal legislation and guidance available as of July 2026 and is subject to change pending additional U.S. Department of Education regulations or interpretations.