Federal Student Loan Schedule of Reductions (SOR)
What Is the Schedule of Reductions (SOR)
The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, introduced major changes to federal student aid programs. Several provisions affecting student loans became effective July 1, 2026. Among the most significant changes is the introduction of the Schedule of Reductions (SOR), which requires federal student loan eligibility to be reduced based on enrollment level.
Beginning with the 2026 fall term, annual federal student loan amounts will be reduced based on enrollment. Full-time students (12 or more credits) will receive a full loan amount, but part-time students (6-11 credits) will receive a proportional total loan amount. Students must enroll at least half-time to be eligible for federal direct loans.
Student Loan Amount Notifications
Students will initially be awarded with an expectation of full-time enrollment.
DMACC will monitor enrollments and periodically update student loan eligibility through the 15th day of the term. Students should not expect immediate or ‘live’ updates to award packages based on changes made to their course schedule. It will take the financial aid office staff additional time to manually review and update the student loan amount to match the enrollment level.
Student Loan Disbursements
At time of loan disbursement (or financial aid refunds), the total eligible credits will be evaluated and the loan amount adjusted based on actual enrollment.
For example, if enrolled in 12 credits, the student will receive 100% of the expected loan. However, if enrolled in 9 credits, the student will receive a lesser amount. The amount will vary based on the individual student’s eligibility.
Changes to enrollment
The impact of dropping, failing to start, or withdrawing courses will be considered when calculating loan eligibility. It is strongly advised that students discuss impacts of withdrawing or dropping a course with the financial aid office.
Adding courses after the add/drop period will not result in an increase in loan amount in the same term. Adjustments to increase credits will be made, if necessary, in the next term.
It is strongly recommended to discuss course changes, when they affect the total number of credits, with an academic advisor or member of the financial aid office prior to making the change.
SOR calculation steps and examples:
Step 1: Determine borrower’s initial maximum for each loan type for their loan period
Step 2: Divide total enrolled credits (x) by total full-time credits (24)
Step 3: Apply equal disbursement over terms in academic year
Example 1 - Same fall and spring enrollment
John is a freshmen student eligible for $3,500 of subsidized loan
John will be enrolled in 9 credits for the fall semester and estimate 9 credits for the spring term. A total of 18 credits. Full-time enrollment would be 24 total credits.
| Step 1: Determine max loan | $3,500 |
| Step 2: SOR percentage | A) 18/24 = .75 or 75% B) 75% x $3,500 = $2,625 max loan for year |
| Step 3: Equal disbursement |
Fall = 9 credits Spring = 9 credits |
DMACC divides loan disbursments equally across terms.
Example 2 - Different fall and spring enrollment
Jane is a freshmen student eligible for $3,500 of subsidized loan
Jane will be enrolled in 9 credits for the fall semester; but estimate Jane will be in 6 credits for the spring term. A total of 15. Full-time enrollment would be 24 total credits.
| Step 1: Determine max loan | $3,500 |
| Step 2: SOR percentage | A) 15/24 = .625 or 63% B) 63% x $3,500 = $2,205 max loan for year |
| Step 3: Equal disbursement |
Fall = 9 credits Spring = 6 credits |
Even though Jane is attending different amount of credits each term the loan amounts are split equally among the whole year.
Example 3 - Withdrawing from a course durning fall term
John is a freshmen student eligible for $3,500 of subsidized loan
John originally enrolled in 9 credits for the fall semester but withdrew from one 3 credit course. John is enrolled in 9 credits for spring term. A total of 15 credits.
John’s fall enrollment with the dropped course is now considered to be 6 credits, not 9. John was overpaid in fall. The difference will be made with the spring disbursement.
| Step 1: Determine max loan | $3,500 |
| Step 2: SOR percentage | A) 15/24 = .625 or 63% B) 63% x $3,500 = $2,205 max loan for year |
| Step 3: Equal disbursement |
Fall = 6 credits (formerly 9) Spring = 9 credits |
| Payment adjustments |
Fall Spring |
| Verify payments equal max loan |
$1,313 + $892 = $2,205 |
Frequently Asked Questions
The SOR is a federal requirement that reduces annual federal student loan eligibility when a student is enrolled part-time (6-11 credits).
12 or more credits per semester = full-time
24 or more credits per academic year
8 or more credits during summer term
DMACC will not adjust a loan that is already disbursed for the term.
However, future disbursements will be impacted and you may receive less than originally calculated. Future eligibility and disbursements will be adjusted to account for your new total enrollment.
No. Enrollment will be calculated at time of disbursement. Adding a late-start course will not increase the loan amount. Adjustments for changes in enrollment will be made during disbursement in the next term.
Possibly. If you drop a course in fall term after disbursement and, for example, end with 6 credits instead of 9, you may be able to add a course in spring term to re-establish your annual total enrolled credits.
No. Students enrolled less than half-time are not eligible to receive federal direct loans. At DMACC students must be enrolled in at least 6 credits during fall and spring and 4 credits in summer to receive student loans.
SOR does not apply toward federal and state grants. However, students enrolled less than full time (12 credits fall/spring, 8 credits for summer) will be subject to a proration on an individual semester basis.
Yes. Using excess financial aid to allowed items at the bookstore prior to start of term is allowed. However, if students reduce enrollment after making purchases their loan amount may also be reduced leaving less excess aid to pay for bookstore items. Any remaining charges will be the responsibility of the student.
Yes. The student is held responsible for charges not covered by financial aid or for any balance created due to return of unearned financial aid.
Students may contact the DMACC financial aid office to discuss loan impacts of their enrollment decisions.