6How SFP handles loan limits for less than full-time enrollment

For term-based programs, Oracle Student Financial Planning (SFP) prorates a student’s annual Direct Loan eligibility by applying the configured schedule of reductions (SOR) percentage, which reflects the student’s percentage of full-time enrollment.

This ensures the student’s academic year award doesn’t exceed the adjusted loan limit when the student enrolls less than full time. Disbursed amounts are maintained when enrollment changes occur during a payment period. Changes are applied to future anticipated disbursements when applicable.

This applies to Direct Loans (Subsidized, Unsubsidized, Grad PLUS, and Unsubsidized Medical) but not to nonterm program types.

High-level baseline configuration calculation

This calculation is performed after standard eligibility.

Before applying the schedule of reductions percentage, SFP evaluates all standard Direct Loan eligibility rules such as grade level, remaining aggregate eligibility, unpackaged amount, and overlapping loans. SFP also determines whether a loan limit exception applies, which drives whether the One Big Beautiful Bill (OBBB) versus pre-OBBB limits are used.

SFP:

• Calculates the academic year schedule of reductions percentage: (Academic year enrolled credits ÷ academic year full-time credits) × 100

• Rounds the schedule of reductions percentage to the nearest whole percent.

• Calculates the SOR annual loan limit by applying the rounded schedule of reductions percentage to the applicable maximum annual loan eligibility.

• Calculates the schedule of reductions percentage using the enrolled credits and full-time credits for the term or equivalent period, for periods of enrollment that are less than a full academic year.

• Distributes the adjusted annual loan limit across the applicable payment periods.

Note: The schedule of reductions percentage is independently calculated per loan. For example, Direct Subsidized and Unsubsidized Loans aren't prorated as a combined total. For Grad PLUS Loans, the schedule of reductions percentage is applied to the unpackaged amount (cost of attendance (COA) - higher priority aid) to determine the adjusted annual eligibility.

Remaining eligibility and disbursement timing

The schedule of reductions percentage must be evaluated at the time of disbursement. SFP doesn't recalculate the SOR percentage for a disbursement after it has already disbursed.

When calculating term-enrolled credits for the SOR percentage, SFP excludes withdrawn credits.

If enrollment is updated midterm after the term is fully disbursed, SFP recalculates and applies changes to future anticipated disbursements only. If an enrollment change occurs after a valid disbursement, SFP recalculates the adjusted annual loan limit and subtracts amounts already disbursed to determine remaining loan eligibility for future disbursements. Enrollment above full time doesn't increase the student’s eligibility above the applicable maximum loan limit.

Rounding

SOR percentages are rounded to the nearest whole percentage using standard rounding rules.