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Federal Direct Student Loans

New Federal Loan Regulations

Effective 2026-2027 Aid Year

 

Starting July 1, 2026 (2026–27 aid year), the One Big Beautiful Bill (OBBB) Act introduces changes to federal student aid, including:

  • New federal loan limits
  • New loan repayment options
  • Updated eligibility requirements
  • Prorated federal loan amounts for students enrolled less than full-time

For more information, visit: One Big Beautiful Bill Updates

Understanding Financial Aid enrollment and Federal loan eligibility changes:

A minimum of 6 degree/certificate-applicable units per term (or 6+ Financial Aid (FA) contract units) is still required to apply for and receive a federal student loan.

Beginning with the 2026–27 aid year:

  • 12 financial aid-eligible credit units per term are considered full-time for that term.
  • 24 financial aid-eligible credit units between the fall and spring terms are required to be considered full-time for the academic year.
  • Loan reductions for less than full-time enrollment is calculated based on the academic year minimum, not the term.
  • Winter units completed with a grade of D or better will be included in the Spring term when the student is enrolled in both Winter and Spring. Winter-only enrollment is not eligible for federal loans or grants.
  • Summer enrollment is not included when determining annual federal loan eligibility for the fall and spring aid year.

Federal loans will be prorated based on a student's projected enrollment for the academic year.

How Loan Proration Works

If you are enrolled in 12 eligible units for the fall but reduce your enrollment to less than full-time before your fall loan is disbursed, your federal loan eligibility will be recalculated under the new federal regulations.

Example

Suppose you:

  • Enroll in 9 units for the fall (or reduce to 9 units before your loan is disbursed).
  • In most cases, GCC anticipates that you will enroll in 12 units in the spring.
  • Your total projected enrollment is 21 units (9 fall + 12 spring) = 88% (rounded) of the required 24 credit units.
  • Your annual loan eligibility will be reduced to 88% of the full-time loan amount and divided evenly between the fall and spring terms.
  • If you later increase your spring enrollment so your combined fall and spring enrollment reaches 24 eligible units, your spring loan may be increased to restore your full annual eligibility.

Schedule of Reduction (SOR)

Loan reductions for less than full-time enrollment are calculated based on the academic year minimum, not the individual term.

  • Undergraduate students who complete 24 financial aid-eligible credit units between the fall and spring terms are considered full-time for the academic year. 
  • Students who complete fewer than 24 financial aid-eligible credit units during the fall and spring terms are subject to the federal Schedule of Reduction (SOR), which may reduce their annual loan eligibility. In some situations, students may be required to repay funds to Glendale Community College.

Example of an SOR Adjustment

Assume you are:

  • An undergraduate student
  • A dependent sophomore
  • Originally enrolled in 12 units for both fall and spring (24 total units)

Your original annual loan award would be:

Term

Subsidized

Unsubsidized
Fall (disbursed) $2,250 $1,000
Spring (anticipated) $2,250 $1,000

After your fall loan is disbursed, you reduce your fall enrollment from 12 units to 9 units.

Your projected annual enrollment becomes 21 units, or approximately 88% of the required 24 units.

Your loans are recalculated as follows:

Loan

Original

88% Adjusted

Result
Fall Subsidized (already disbursed) $2,250 $1,980 No reduction to disbursed funds
Fall Unsubsidized (already disbursed) $1,000 $880 No reduction to disbursed funds
Spring Subsidized $2,250 $1,980 Reduced by $270
Spring Unsubsidized $1,000 $880 Reduced by $120

 If, in the spring, you enroll in enough units to bring your total between the two terms back up to 24 financial aid-elgibible units, you may be eligible to receive an increase in your spring loan disbursement so that your total loan for the academic year equals the original full-time amount.

Adding Classes After Loan Awarding

Loan adjustments for additional enrollment occur only before loans are awarded or disbursed.

Once loans have been awarded or disbursed:

  • Loans will not be adjusted to include late-added classes.
  • Any remaining loan eligibility may be applied to a future spring loan award, if applicable.
  • Summer loan eligibility is calculated separately based only on the summer cost of attendance.

Single-Term Loan Awards

Beginning with the 2026–2027 academic year, students may no longer receive their full annual federal loan limit in a single term when the single-term calculation is used.

A student may receive more than half of the annual loan limit in a single term only if the student is recouping funds from a Schedule of Reduction (SOR) adjustment that has already taken place for the prior term within the same aid year.

Lifetime Loan Limit Changes

All students have a new lifetime maximum of $257,500 for all federal student loans combined, including the Graduate PLUS Loan.

This lifetime limit includes Direct and FFEL loan types:

  • Subsidized Loans
  • Unsubsidized Loans
  • Graduate and Professional PLUS Loans

The lifetime limit includes all eligible federal loans received, regardless of whether any amounts have been repaid or discharged.

Important Information

  • The requirements listed on this website may not include all borrower requirements and responsibilities. It is borrower's responsibility to comply with all applicable federal, state, institutional, and financial aid regulations and requirements.
  • The loan policies, procedures and examples outlined on this page are subject to change as new federal regulations and/or GCC policies are implemented. This information may not include all requirements or situations.
  • This website will be updated as new policies and guidance become available.
  • Students are encouraged to contact the Financial Aid Office with any questions regarding their eligibility or loan requirements.