Direct Loan Schedule of Reduction

Federal regulations require schools to adjust Direct Loan eligibility based on a student's enrollment status. A student's loan eligibility may be reduced if enrollment changes before or after disbursement. Bridgewater State University reviews Direct Loan eligibility whenever a student's enrollment changes. Loan eligibility is assessed both before and after disbursement in accordance with federal Schedule of Reduction requirements and Return of Title IV Funds regulations. Documentation of enrollment changes and resulting adjustments is maintained in the student's financial aid record.

Enrollment Levels

Undergraduate Students

Graduate Students

Before Loan Disbursement:

If a student drops courses before a loan is disbursed, the loan amount will be adjusted to reflect the student's actual enrollment level on the date of disbursement.

After Loan Disbursement

Federal regulations require the University to review loan eligibility whenever enrollment changes after a loan has been disbursed. Under the Schedule of Reduction (SOR) requirements, a reduction in annual loan eligibility may be necessary based on the student's revised enrollment level. While the current disbursement may not be adjusted, any required reduction will generally be applied to future loan disbursements, resulting in a lower amount of loan eligibility for the spring semester.

Important: Students should contact the Financial Aid Office before dropping or withdrawing from a course, as changes in enrollment may reduce future loan eligibility and could result in a balance due to the University. 

Examples

Student Withdraws From a Course

• Loan disbursed while enrolled full-time
• Student later drops below half-time
• Financial Aid reviews loan eligibility
• A portion of the loan may be reduced or returned to the Department of Education

Complete Withdrawal

• Student withdraws from all courses after receiving aid
• Federal Return of Title IV (R2T4) calculations are completed
• Unearned aid must be returned according to federal regulations

Schedule of Reduction

Important Information

• Students must maintain at least half-time enrollment to remain eligible for most Direct Loans.
• Enrollment changes may affect future disbursements.
• Loan reductions may create a balance due with Student Accounts.
• Students should contact the Financial Aid Office before dropping or withdrawing from courses to understand the impact on their aid.

Examples

Example 1: Undergraduate Student

In this example, consider an undergraduate senior who plans to enroll in 9 credits per semester . As a senior, the student's annual Federal Direct Loan eligibility at full-time enrollment is $7,500.

Because the student is enrolled less than full-time:

• Fall Enrollment: 9 credits 
• Spring Enrollment: 9 credits 
• Total Annual Enrollment: 18 credits

The Schedule of Reduction (SOR) percentage is calculated as:
18 ÷ 24 = 0.75
0.75 × 100 = 75%

The student's adjusted annual loan eligibility is: 
$7,500 × 75% = $5,625

The student's annual Direct Loan eligibility would therefore be $5,625 , instead of the full-time annual limit of $7,500.

Example 2: Graduate Student Schedule of Reduction (SOR)

In this example, consider a graduate student who plans to enroll in 6 credits per semester. At BSU, 9 credits per semester is considered full-time enrollment for graduate students. The student's annual Federal Direct Unsubsidized Loan eligibility is $20,500.

Because the student is enrolled less than full-time:

• Fall Enrollment: 6 credits 
• Spring Enrollment: 6 credits 
• Total Annual Enrollment: 12 credits

The Schedule of Reduction (SOR) percentage is calculated as:
12 ÷ 18 = 0.6667
0.6667 × 100 = 66.67%

The student's adjusted annual loan eligibility is:
$20,500 × 66.67% = $13,674

The student's annual Direct Loan eligibility would therefore be approximately $13,674, instead of the full annual limit of $20,500 .