Federal Student Aid Changes Effective July 1, 2026

Beginning with the 2026–27 aid year, federal law requires schools to reduce annual Federal Direct Student Loan limits when a student is enrolled less than full time over the academic year. This calculation is called the Schedule of Reduction, or SOR.

Previously, a student who remained enrolled at least half time could generally receive the full annual loan limit. Under the new rule, half-time enrollment may allow a student to remain eligible for a loan, but it does not necessarily allow the student to receive the full annual amount.

The Schedule of Reduction applies to:

• Direct Subsidized Loans;
• Direct Unsubsidized Loans; and
• Graduate PLUS Loans received by eligible legacy borrowers.

It does not apply directly to Parent PLUS Loans.

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Detroit Mercy first determines the number of financial aid-eligible credits the student is expected to complete during the academic year.

The general calculation is:

That percentage is then applied to the annual loan limit that would otherwise apply to the student.

Full-time academic-year enrollment

The resulting calculation provides a maximum annual loan limit. A student’s actual eligibility may be lower because of cost of attendance, other aid, remaining annual or aggregate eligibility, or another federal requirement.

Example 1: Undergraduate student

A dependent junior may otherwise be eligible for up to $7,500 in annual Federal Direct Loans.

The student enrolls in:

• Fall: 9 credits
• Winter: 12 credits
• Total: 21 credits

A full-time undergraduate academic year is 24 credits.

21 ÷ 24 = 87.5%

The student may be eligible for approximately 87.5% of the applicable annual Direct Loan limit:

$7,500 × 87.5% = $6,562.50

This example is for illustration only. The subsidized and unsubsidized portions and the student’s actual eligibility may differ.

Example 2: Legacy graduate borrower with Graduate PLUS

A legacy graduate borrower has:

• up to $20,500 in Direct Unsubsidized Loan eligibility; and
• potential Graduate PLUS eligibility for remaining costs.

The student enrolls in:

• Fall: 6 credits
• Winter: 9 credits
• Total: 15 credits

A full-time academic year for most Detroit Mercy graduate programs is 18 credits.

15 ÷ 18 = 83.33%

The student’s Direct Unsubsidized Loan limit may be reduced to approximately:

$20,500 × 83.33% = approximately $17,083

The Schedule of Reduction also applies to the student’s Graduate PLUS eligibility. Detroit Mercy will calculate the available Graduate PLUS amount after considering the student’s reduced loan eligibility, cost of attendance, other financial aid, and all applicable federal requirements.

Because Graduate PLUS eligibility depends on more than the annual Direct Unsubsidized Loan limit, this example should not be used to calculate an exact Graduate PLUS amount.

Example 3: New professional borrower

A new borrower in an eligible professional program may otherwise qualify for up to $50,000 in annual Direct Unsubsidized Loans.

The student enrolls in:

• Fall: 9 credits
• Winter: 9 credits
• Total: 18 credits

For a professional program with a 24-credit full-time academic year:

18 ÷ 24 = 75%

The student’s maximum annual Direct Unsubsidized Loan limit may be reduced to:

$50,000 × 75% = $37,500

The actual amount may be lower based on cost of attendance, other financial aid, aggregate borrowing, or other eligibility requirements.

Possibly. Students must generally be enrolled at least half time to receive a Federal Direct Loan.

Beginning with the 2026–27 aid year, remaining at least half time does not necessarily make a student eligible for the full annual loan limit. If the student is enrolled less than full time, the annual loan limit may be reduced under the Schedule of Reduction.

Detroit Mercy must review loan eligibility before making each loan disbursement. The University will use the student’s enrollment for the academic year, including completed enrollment and expected enrollment in remaining terms, to determine the applicable annual loan limit.

Eligibility may be recalculated when enrollment changes.

If the change causes you to be enrolled less than full time or reduces your expected academic-year enrollment, Detroit Mercy may be required to reduce your annual loan eligibility before the funds are disbursed.

This may reduce the amount credited to your student account and may increase the amount you owe.

Detroit Mercy must recalculate your annual loan eligibility using your revised academic-year enrollment.

Depending on the timing and amount of the reduction:

• a future loan disbursement may be reduced;
• a future disbursement may be canceled;
• an increase in enrollment during a later term may restore some eligibility; or
• the recalculation may result in a balance owed to Detroit Mercy.

Withdrawing from all courses may also require a separate Return of Title IV Funds calculation.

Not in every situation. The outcome depends on your revised annual loan eligibility, the amount already disbursed, your remaining scheduled disbursements, and other federal requirements.

In some cases, the reduction can be applied to a future disbursement. In other cases, a reduction may affect funds already credited to the student’s account.

Contact the Office of Scholarship & Financial Aid for an individual review.

Possibly. If you add financial aid-eligible credits during a later term and your total academic-year enrollment increases, Detroit Mercy may be able to recalculate your annual loan eligibility.

Additional eligibility is not guaranteed and remains subject to cost of attendance, annual and aggregate loan limits, and other federal requirements.

It may.

For students whose programs do not require summer enrollment, financial aid-eligible summer credits may be included when determining total enrollment for the academic year.

For programs that require summer enrollment, the required summer term may be included in both the student’s expected enrollment and the full-time academic-year standard.

No. Parent PLUS Loans are not directly reduced under the Schedule of Reduction.

However, less-than-full-time enrollment may reduce the student’s cost of attendance, which may reduce the amount a parent is eligible to borrow.

The examples on this page are estimates and are intended to explain how the Schedule of Reduction works. They do not account for every individual eligibility factor.

Contact the Office of Scholarship & Financial Aid before changing your enrollment. We can review your record and explain how a change may affect your financial aid offer.

The formula above reflects the academic-year approach already being used in current institutional guidance, while official FSA guidance confirms that SOR applies independently of legacy status.

Borrowers may remain eligible for certain existing repayment plans or may elect the new Repayment Assistance Plan, depending on their loan history and federal eligibility.

Borrowers currently enrolled in SAVE, PAYE, or Income-Contingent Repayment will be required to transition to an available repayment plan by the federal deadline.

The available repayment options generally will be:

1. the new Tiered Standard Repayment Plan; or
2. the Repayment Assistance Plan.

All eligible federal loans generally must be repaid under the same repayment plan.

Parent PLUS repayment options are more limited.

Parents who receive no new Parent PLUS Loan on or after July 1, 2026, may retain access to certain existing repayment options, depending on their loan history and eligibility.

A parent who receives a new Parent PLUS Loan on or after July 1, 2026, will generally be limited to the applicable standard repayment option.

• Complete the FAFSA each year, even if you are unsure whether the new Pell Grant rules will affect you.
• Review your financial aid offer and confirm that the courses in which you are enrolled apply to your program.
• Contact the Office of Scholarship & Financial Aid before dropping or withdrawing from a course.
• Remember that half-time enrollment may preserve basic loan eligibility but may not preserve the full annual loan amount.

• Determine whether you are a new borrower or may qualify for the legacy provision.
• Review the annual loan limit applicable to your program.
• Students in eligible professional programs may qualify for up to $50,000 in annual Direct Unsubsidized Loans.
• New borrowers are not eligible for Graduate PLUS Loans.
• Legacy borrowers with Graduate PLUS eligibility remain subject to the Schedule of Reduction.
• Contact Financial Aid before changing your enrollment or academic program.

• Determine whether you qualify for the Parent PLUS legacy provision.
• New annual and aggregate Parent PLUS limits may affect how much you can borrow.
• Parent PLUS Loans are not subject directly to SOR, but a reduced cost of attendance may affect eligibility.
• Review payment-plan and private-loan options early if Parent PLUS will not cover the student’s remaining balance.

• Your annual Federal Direct Student Loan limit may be reduced.
• Changes made before a disbursement may reduce that disbursement.
• Changes made after a disbursement may affect future disbursements or create a balance.
• Contact Financial Aid before adding, dropping, or withdrawing from courses.

• Review whether you will receive any new federal loans on or after July 1, 2026.
• Your available repayment plans may depend on the dates of your loans.
• Borrowers in SAVE, PAYE, or ICR should monitor federal instructions regarding required plan transitions.
• Review current options through StudentAid.gov or your federal loan servicer.

For purposes of these changes, a new borrower generally includes a person who receives a first federal loan on or after July 1, 2026.

For graduate and professional students, the rules may also treat a borrower as new when the student begins a different program of study after July 1, 2026, even if the student borrowed previously for another program.

A student may qualify for the legacy borrower provision if the student was enrolled in the applicable program as of June 30, 2026, and received a Federal Direct Loan for that program before July 1, 2026.

Legacy eligibility is tied to the specific program and does not exempt the borrower from every new federal requirement.

It depends on whether you are an undergraduate, graduate, or professional student.

An undergraduate student may retain legacy eligibility after changing majors if the student continues to meet federal requirements. However, changing majors does not restart or extend the applicable legacy period.

A graduate or professional student who changes to a different degree program after July 1, 2026, generally will not retain legacy eligibility for the new program.

Contact the Office of Scholarship & Financial Aid before changing your program.

Under current federal guidance, the following programs may be eligible for up to $50,000 annually in Federal Direct Unsubsidized Loans:

• Juris Doctor (JD)
• Doctor of Dental Surgery (DDS)
• Doctor of Optometry (OD)
• Clinical Psychology (PhD)
• Master of Science in Nursing (MSN)
• Doctor of Nursing Practice (DNP)
• Nurse Anesthesia
• Physician Assistant

The designation of some graduate health programs is temporary and may change based on ongoing federal litigation or future guidance.

Students may consider:

• Federal Direct Unsubsidized Loans;
• scholarships or employer assistance;
• personal or family resources;
• Detroit Mercy’s payment plan; or
• private education loans.

Detroit Mercy provides ELMSelect  to assist students in comparing private education loan options. Students may select any eligible lender.

OBBBA does not automatically change Detroit Mercy scholarship eligibility. However, enrollment changes may affect institutional or state aid under the separate requirements of those programs.

Students should review the terms of each scholarship and contact the Office of Scholarship & Financial Aid before changing enrollment.