Robert Farrington
August 10, 2026
The Department of Education released a 24-question FAQ this week explaining how colleges must reduce annual federal student loan limits for students enrolled less than full-time.
The document spells out the Schedule of Reductions (the math behind the cuts required by the One Big Beautiful Bill Act) and answers questions financial aid offices have been asking since ED published the final rule on May 1, 2026.
The reductions apply to any loan period that begins on or after July 1, 2026.
Why It Matters
Part-time students can no longer borrow the full annual loan amount, even at high-cost schools where they previously could. The Schedule of Reductions cuts a borrower’s annual loan limit in direct proportion to enrollment intensity, rounded to the nearest whole percent.
The FAQ’s one main example: a freshman enrolled in 12 credits against a 24-credit academic year gets 50% of the $5,500 limit, or $2,750.