New Federal Student Loan Changes

If you are graduating in Fall 2026, your Federal Direct Subsidized and Unsubsidized Loan eligibility may be reduced due to federal loan proration rules. With less than an academic year remaining in your program, your loan eligibility may be calculated based on the remaining portion of your program. Your enrollment status and remaining credits needed to complete your program will be considered when determining your eligibility.

No. Federal loan proration is a federal requirement and cannot be appealed.

If you are an undergraduate enrolled for 12 financial aid-eligible credit hours in the Fall term and reduce your schedule to less than full-time before your Fall loan is disbursed, Western will have to reduce your fall loan based on the new rules. This example serves as general guidance. Individual loan eligibility can vary depending on other eligibility factors associated with a student’s record.

If you are an undergraduate enrolled for 12 financial aid-eligible credit hours in the Fall term and reduce your schedule to less than full-time AFTER your Fall loan is disbursed, the amount you were overpaid may be reflected by a reduction to your Spring term Federal Direct loan eligibility. This reduction is affected by the number of credits you enroll for in the Spring.

Dropping or unofficially withdrawing from a class may affect your Federal Direct Loan eligibility for the next term you attend in the academic year.

Parent PLUS loans are not reduced the same way they are for Federal Direct loans (Subsidized and Unsubsidized) if the student is less than full-time credits unless the student’s Cost of Attendence (budget) requires a reduction in eligibility.

A minimum of 12 financial aid-eligible credits per term is considered full-time in a term; however, 24 hours over the course of the Fall, Spring and Summer terms are needed to be considered full-time over the course of the academic year.