Beginning with the 2026–27 academic year, the amount you can borrow in federal student loans will depend on the number of credit hours you are enrolled in. If you are enrolled less than full-time, your annual federal loan limit will be reduced based on your enrollment. This federal requirement is called the Schedule of Reductions (SOR).
The Schedule of Reductions applies to Federal Direct Subsidized Loans, Federal Direct Unsubsidized Loans, and Graduate PLUS Loans for students who remain eligible to borrow them. Parent PLUS Loans are not subject to the Schedule of Reductions.
Your enrollment can affect how much you are eligible to borrow for the academic year and, in some cases, how much loan eligibility remains for a future semester. Understanding this before you add or drop courses can help you make informed decisions about your schedule and how you plan to pay for college.
Use this page to:
- Understand how your credit hours determine your enrollment intensity
- See how less-than-full-time enrollment can reduce your annual federal loan limit
- Estimate your federal loan eligibility at different enrollment levels
- Compare how your loan eligibility could change if you add or drop a course
- Understand what may happen if your fall and spring enrollment are different
The examples and estimates on this page can help you understand how the Schedule of Reductions may apply to you. Your actual federal loan eligibility depends on your individual financial aid and enrollment information.
Understand Your Enrollment Intensity
Your enrollment intensity compares the number of credit hours you are enrolled in with the number of credit hours considered full-time. Beginning with the 2026–27 academic year, your enrollment intensity is used to determine your federal Direct Loan eligibility when you are enrolled less than full-time.
For undergraduate students, 12 credit hours is considered full-time enrollment. Your enrollment intensity is calculated by dividing the number of credit hours you are enrolled in by 12 and rounding to the nearest whole percentage.
For example, if you are enrolled in 9 credit hours:
9 credit hours ÷ 12 full-time credit hours = 75% enrollment intensity
Undergraduate Enrollment Intensity
| Credit Hours | Enrollment Intensity |
|---|---|
| 12 or more | 100% |
| 11 | 92% |
| 10 | 83% |
| 9 | 75% |
| 8 | 67% |
| 7 | 58% |
| 6 | 50% |
Graduate and professional students have different full-time enrollment standards. Your enrollment intensity is based on the full-time enrollment standard that applies to your program.
Planning to Take Fewer Courses?
You must be enrolled at least half-time to receive a federal Direct Loan.
For undergraduate students, half-time enrollment is 6 credit hours during fall and spring. Graduate and professional enrollment requirements may be different.
If you are enrolled less than half-time when your federal Direct Loan is scheduled to disburse, you will not be eligible to receive that loan disbursement.
Example: First-Year Dependent Undergraduate Student
A dependent first-year undergraduate student can typically borrow up to $5,500 in federal Direct Subsidized and Unsubsidized Loans during an academic year.
If the student plans to enroll in 9 credit hours in the fall and 9 credit hours in the spring, they would complete 18 credit hours during the academic year. Full-time enrollment for the same academic year would be 24 credit hours.
Determine Enrollment Intensity
Divide the student's enrolled credit hours by the number of credit hours considered full-time for the academic year.
18 enrolled credit hours ÷ 24 full-time credit hours = 75% enrollment intensity
Apply the Enrollment Intensity to the Annual Loan Limit
Multiply the student's annual federal Direct Loan limit by their enrollment intensity.
$5,500 annual loan limit × 75% = $4,125 maximum annual loan eligibility
In this example, enrolling in 9 credit hours each semester reduces the student's maximum annual federal Direct Loan eligibility from $5,500 to $4,125.
Remember, This Is Your Maximum
The Schedule of Reductions determines the maximum federal Direct Loan amount you may be eligible to borrow. It does not guarantee that you will receive that amount.
Your actual loan eligibility may be lower based on your cost of attendance, other financial aid, previous borrowing, remaining annual or aggregate loan eligibility, and other federal eligibility requirements.
You also do not have to borrow the full amount you are eligible to receive. Consider borrowing only what you need.
Estimate Your Federal Direct Loan Eligibility
Use the tables below to compare how different enrollment levels may affect your maximum annual federal Direct Loan eligibility.
These examples assume you are enrolled in the same number of credit hours during the fall and spring semesters. Your actual annual loan eligibility may be different if your enrollment changes between semesters.
Dependent Undergraduate Students
| Credit Hours Per Term | Enrollment Intensity | First Year | Second Year | Third Year and Above |
|---|---|---|---|---|
| 12 or more | 100% | $5,500 | $6,500 | $7,500 |
| 11 | 92% | $5,060 | $5,980 | $6,900 |
| 10 | 83% | $4,565 | $5,395 | $6,225 |
| 9 | 75% | $4,125 | $4,875 | $5,625 |
| 8 | 67% | $3,685 | $4,355 | $5,025 |
| 7 | 58% | $3,190 | $3,770 | $4,350 |
| 6 | 50% | $2,750 | $3,250 | $3,750 |
Independent Undergraduate Students
| Credit Hours Per Term | Enrollment Intensity | First Year | Second Year | Third Year and Above |
|---|---|---|---|---|
| 12 or more | 100% | $9,500 | $10,500 | $12,500 |
| 11 | 92% | $8,740 | $9,660 | $11,500 |
| 10 | 83% | $7,885 | $8,715 | $10,375 |
| 9 | 75% | $7,125 | $7,875 | $9,375 |
| 8 | 67% | $6,365 | $7,035 | $8,375 |
| 7 | 58% | $5,510 | $6,090 | $7,250 |
| 6 | 50% | $4,750 | $5,250 | $6,250 |
What Do These Amounts Include?
The amounts shown are the maximum combined Federal Direct Subsidized and Unsubsidized Loan amounts for each grade level.
Separate limits apply to how much of your loan eligibility may be offered as a Direct Subsidized Loan. Your Financial Aid Offer in MyUI will show the loan types and amounts you are eligible to receive.
Independent students, and some dependent students whose parents are unable to obtain a Parent PLUS Loan, may be eligible for additional Direct Unsubsidized Loan amounts.
Graduate and Professional Student Loan Eligibility
Graduate and professional students are also subject to the Schedule of Reductions when enrolled less than full-time. Your enrollment intensity is applied to the annual federal Direct Unsubsidized Loan limit that applies to you.
The estimates below assume you are enrolled in the same number of credit hours during the fall and spring semesters. If your enrollment changes between semesters or your program follows a different academic calendar, your annual loan eligibility may be different.
Graduate Students
For graduate students, 9 credit hours is considered full-time enrollment during the fall and spring semesters. You must be enrolled in at least 5 credit hours to be considered half-time.
| Credit Hours Per Term | Enrollment Intensity | Maximum Annual Direct Unsubsidized Loan |
|---|---|---|
| 9 or more | 100% | $20,500 |
| 8 | 89% | $18,245 |
| 7 | 78% | $15,990 |
| 6 | 67% | $13,735 |
| 5 | 56% | $11,480 |
Professional Students
Full-time enrollment standards vary by professional program at the University of Iowa. Use the table below that matches the full-time enrollment standard for your program.
These estimates are based on the $50,000 maximum annual federal Direct Unsubsidized Loan limit for professional students subject to the federal loan limits effective July 1, 2026.
12 Credit Hours Considered Full-Time
| Credit Hours Per Term | Enrollment Intensity | Maximum Annual Direct Unsubsidized Loan |
|---|---|---|
| 12 or more | 100% | $50,000 |
| 11 | 92% | $46,000 |
| 10 | 83% | $41,500 |
| 9 | 75% | $37,500 |
| 8 | 67% | $33,500 |
| 7 | 58% | $29,000 |
| 6 | 50% | $25,000 |
10 Credit Hours Considered Full-Time
| Credit Hours Per Term | Enrollment Intensity | Maximum Annual Direct Unsubsidized Loan |
|---|---|---|
| 10 or more | 100% | $50,000 |
| 9 | 90% | $45,000 |
| 8 | 80% | $40,000 |
| 7 | 70% | $35,000 |
| 6 | 60% | $30,000 |
| 5 | 50% | $25,000 |
9 Credit Hours Considered Full-Time
| Credit Hours Per Term | Enrollment Intensity | Maximum Annual Direct Unsubsidized Loan |
|---|---|---|
| 9 or more | 100% | $50,000 |
| 8 | 89% | $44,500 |
| 7 | 78% | $39,000 |
| 6 | 67% | $33,500 |
| 5 | 56% | $28,000 |
Not sure which full-time enrollment standard applies to your program? Review the University of Iowa's enrollment status requirements.
Do You Qualify for the Legacy Exception?
Some continuing graduate and professional students may qualify for a temporary exception to the new federal loan limits.
If you were enrolled in your current program on June 30, 2026, and received a federal Direct Loan for that program before July 1, 2026, you may qualify for the legacy exception during your remaining expected time to credential.
Graduate and professional students who qualify for this exception generally retain the previous $20,500 annual Direct Unsubsidized Loan limit and may continue to be eligible for Graduate PLUS Loans.
The Schedule of Reductions still applies when an eligible legacy borrower is enrolled less than full time, so your maximum annual loan eligibility may still be reduced based on your enrollment.
Understand What Happens if Your Schedule Changes
Adding or dropping courses can change your enrollment intensity and may affect your federal student loan eligibility. When you make the change matters.
Before Your Federal Loans Are Disbursed
Your federal Direct Loan eligibility is based on your eligible enrollment when your loan is scheduled to disburse. If you reduce your enrollment before your loan is disbursed, your loan amount may also need to be reduced.
If you drop below half-time enrollment before your loan is disbursed, you will no longer be eligible to receive that federal Direct Loan disbursement.
After Your Federal Loans Are Disbursed
Once your federal Direct Loans for the semester have disbursed, dropping a course will not reduce the loans already disbursed for that semester because of the Schedule of Reductions.
However, your enrollment change may affect how much of your annual loan eligibility remains available for a future semester.
If Your Fall and Spring Enrollment Are Different
Federal Direct Loans have annual borrowing limits. Because the Schedule of Reductions applies to your annual loan limit, your enrollment in one semester can affect how much loan eligibility remains for another semester.
If your enrollment for a future semester is lower than originally planned, your loan for that semester may be reduced before it is disbursed.
If your enrollment increases, you may become eligible for additional federal Direct Loan funds, up to your applicable annual loan limit and other financial aid eligibility requirements.
Before Dropping a Course
Changing your enrollment may affect your current or future financial aid.
Contact our office before changing your schedule if you have questions about how dropping a course could affect your aid.
Reviewing the potential impact before you make a change can help you avoid an unexpected reduction in your financial aid.
Enrollment Changes Can Affect More Than Your Loans
The Schedule of Reductions is only one way a change in your enrollment may affect your financial aid.
Depending on the types of financial aid you receive, adding or dropping courses may also affect:
- Federal Pell Grant eligibility
- Institutional and other grant eligibility
- Scholarships with enrollment requirements
- Your cost of attendance
- Satisfactory Academic Progress
- Your current or future financial aid eligibility
Before changing your schedule, review your Financial Aid Offer in MyUI so you know which types of aid you are receiving. If you are unsure how an enrollment change may affect your aid, contact the Office of Student Financial Aid.