Federal Loan Updates

In this Section

Big changes are coming to federal financial aid student loans beginning in Fall 2026.

Starting July 1, 2026 new federal rules will reshape how students and families pay for higher education, especially those who rely on federal student loan programs. These updates affect how much aid you can receive in Direct Student Loan programs, based on your enrollment status throughout the academic year.

This is known as the Schedule of Reduction for Direct Student loans. These changes are part of the federal legislation known as the One Big Beautiful Bill Act signed into law on July 4, 2025.

What Students Should Know

  • If you’re a part-time student (taking fewer than 24 credit hours per academic year), FRCC will be required to recalculate your eligible loan amounts.
  • Course withdrawals, drops, unsuccessful completion of attempted credits will also cause recalculations of your eligible loan amounts.
  • General Federal Direct Loan eligibility still requires enrollment in at least 6 credits per semester that apply to your declared program.

Key Changes

Loan amounts for part-time students will be recalculated

  • All student loans borrowed for the Fall 2026 semester and beyond will be subject to loan adjustments if students are enrolled less than full-time for the academic year.
  • The Office of Financial Aid will be required to recalculate a student’s annual loan limit downward if they are less than full-time, which is 24 hours for the academic year. This may result in lower student loan aid for part-time students.
    • Full-time enrollment will be assumed for future semesters not yet open for registration.
  • Loans will be recalculated at the time of disbursement based off your enrollment at that time.
  • If your enrollment changes during the semester the loan was intended for, it may result in receiving less loan funds in your next term of enrollment.
  • All student loans will be subject to proration, which may result in a reduction of your loans, starting in the Fall 2026 semester and beyond.

Additional FAQs

Will taking courses part-time reduce the amount of Direct Loans I can borrow?

Yes. Your loan eligibility is adjusted based on enrollment level. If you drop below 12 credits in a semester, 24 credits across the academic year, FRCC will be required to make loan reductions to your eligibility.

Why was my Direct Loan reduced?

Federal rules require us to adjust your loan if you are no longer enrolled in full-time credits, if you withdraw from courses, or do not otherwise attend through the full scheduled dates of an attempted course.

What if my enrollment decreases after my loan is disbursed?

Your total loan eligibility for the year may decrease. As a result, you could receive less loan funding next term or may need to repay part of what you already received.

What if I reduce my enrollment to less than full-time prior to my loans being disbursed?

Your loan will be adjusted per how many credit hours you are enrolled in at the time of disbursement.

What happens if I withdraw from all my classes?

Your financial aid will be reviewed to determine how much you earned. You may have to repay some of your loan.

Will I owe money if my loan is reduced?

Possibly. If your loan has already been applied to your student account, you may owe the college if part of the loan must be returned.

How will my Federal Direct Loan eligibility change if I change to less than full-time enrollment after my loan is disbursed?

Your loan eligibility may change next term depending on your credit hours

How will I know if my loan changes?

Through your Ewolf student portal or the Financial Aid Office will notify you if your loan amount changes.

What if I am only registered in 4 credits for a semester?

You are considered less than ½ time and would not be eligible for loans that term, 6 credits per semester is the minimum enrollment level for Direct Loan eligibility

Can I keep my full loan if I drop classes?

Not always. Your loan amount depends on your enrollment and when you drop or withdraw. Your loan amount may be adjusted if your loan was disbursed at fulltime credit hours.

What if I need more loan funding than is available through the FAFSA?

There are alternative loan lenders that offer private student loans.

Should I contact Financial Aid before dropping a class?

Yes. We can explain how dropping a class may affect your financial aid before you make your decision.

Who can I contact if I have further questions?

Contact the Financial Aid Office.

Questions?

Feel free to reach out to our team.

 

Boulder County Campus

303-404-5250 | Email

Fax: 303-678-3693

 

Larimer Campus

970-204-8376 | Email

Fax: 970-204-8445

 

Westminster Campus

303-404-5250 | Email

Fax: 303-439-9454