Undergraduate Direct Loan Proration
Federal regulations require schools to prorate Federal Direct Subsidized/Unsubsidized Loan amounts for graduating undergraduate students when their final period of enrollment is less than a full academic year. Loans are prorated based on the number of credit hours remaining in the student's program of study. Typically, loan proration impacts students graduating in December, but can impact other enrollment periods, also.
Types of Enrollment Periods Impacted
- Student will graduate at the end of the Fall Semester; or
- Student does not attend the Fall Semester and will graduate at the end of the Spring semester; or
- Student does not attend the Fall or Spring semester and will graduate at the end of the Summer semester.
Students are encouraged to apply for graduation through the Registrar's Office as soon as they are able in order to prevent late adjustments to financial aid packages.
Proration Formula
The federal government provides the following formula for loan proration:
Subsidized: # of Hrs enrolled / 24 x 5,500 = Prorated Amount
Dependent Unsubsidized: # of Hrs enrolled / 24 x 2,000 = Prorated Amount
Independent Unsubsidized: # of Hrs enrolled / 24 x 7,000 = Prorated Amount
| Dependent Students | |||
|---|---|---|---|
|
Registered TIV Credits* |
Subsidized Amount |
Unsubsidized Amount |
Total Sub/Unsub Amount |
| 11 | $2,521 | $917 | $3,438 |
| 10 | $2,292 | $833 | $3,125 |
| 9 | $2,063 | $750 | $2,813 |
| 8 | $1,833 | $667 | $2,500 |
| 7 | $1,604 | $583 | $2,187 |
| 6 | $1,375 | $500 | $1,875 |
| 0-5 | $0 | $0 | $0 |
| Independent Students | |||
|---|---|---|---|
|
Registered TIV Credits* |
Subsidized Amount |
Unsubsidized Amount |
Total Sub/Unsub Amount |
| 11 | $2,521 | $3,208 | $5,729 |
| 10 | $2,292 | $2,917 | $5,209 |
| 9 | $2,063 | $2,625 | $4,688 |
| 8 | $1,833 | $2,333 | $4,166 |
| 7 | $1,604 | $2,042 | $3,646 |
| 6 | $1,375 | $1,750 | $3,125 |
| 0-5 | $0 | $0 | $0 |
*Loan proration will be based on the number of enrolled required credits for the applicable term. For example, if a student is enrolled in 9 credits, but only 6 credits are required, the loan proration will be based on 6 credits. Please review the Financial Aid Tips and Reminders for more information regarding required coursework.
Federal aggregate loan limits still apply and loan proration may not exceed those limits. A students prorated amount may be impacted by their total aggregate loan limit, cost of attendance and other eligibility factors.
Direct PLUS loans and Graduate Direct loans are not impacted by proration.