Changes to student loans under One Big Beautiful Bill Act (OB3)
What Is the Schedule of Reductions (SOR)
The One Big Beautiful Bill Act (OB3), signed into law on July 4, 2025, introduced major changes to federal student aid programs. Several provisions affecting student loans became effective July 1, 2026. Among the most significant changes is the introduction of the Schedule of Reductions (SOR), which requires federal student loan eligibility to be reduced based on enrollment level.
Beginning with the Fall 2026 term, annual federal student loan amounts will be reduced based on enrollment. Students enrolled in classes on a less than full-time basis during that award year will see a reduction in how much they will be permitted to borrow in Federal Direct Student Loans. For federal student loan purposes, full-time enrollment at ACC is defined as 24 or more credit hours per award year. Additionally, full-time enrollment in a single semester is defined as 12 or more credit hours. Students taking under 6 credits will not be eligible for federal loans.
Student Loan Amounts
Students will initially be awarded with an expectation of full-time enrollment based on the annual loan limits. The full-time eligibility is what is offered on the Financial Aid Offer letter.
ACC will monitor enrollments and make adjustments to students’ loans as of the day the loans pay out to students’ account. Students should not expect immediate or ‘live’ updates to award packages based on changes made to their course schedule until disbursement day. It will take the financial aid office staff additional time to manually review and update the student loan amount to match the enrollment level.
Student Loan Disbursements
At time of loan disbursement (when the funds pay toward the bill), the total eligible credits will be evaluated and the loan amount adjusted based on actual enrollment.
If enrolled in 12 credits, the student will receive 100% of the accepted loan amounts. However, if enrolled in 9 credits, the student will receive a lesser amount. The amount will vary based on the individual student’s eligibility.
Changes to Enrollment
The impact of dropping, failing to start, or withdrawing courses will be considered when calculating loan eligibility for the current or future semesters of each financial aid year. It is strongly recommended to discuss course changes, when they affect the total number of credits, with an academic advisor or member of the Financial Aid Office prior to making the change.
Dropping or Withdrawing from a Course
Before your loans pay:
- Your enrollment status is recalculated immediately
- Your loan amount is reduced to match your new (lower) enrollment level
After your loans pay:
- ACC must recalculate your annual maximum loan eligibility based on your new enrollment
- You may lose a portion of your next semester’s loans if your enrollment the next semester does not make up the credits
Example: A student’s Fall 2026 loans disbursed based on 12 credit hours of enrollment, but the student withdraws from a 3-credit hour course during the semester.
- If the student enrolls in 12 credit hours in Spring 2027, the total credits to be used to calculate the student’s Spring 2027 loan eligibility will be reduced to 9 and student’s total credits for 2026-2027 will be 21 because of the withdrawal.
- If the student enrolls in 15 credit hours in Spring 2027, the total credits to be used to calculate the student’s Spring 2027 loan eligibility will be 12 and the student’s total credits for 2026-2027 will be 24 even with the withdrawal.
In some cases, depending on your enrollment levels in both semesters, the loan disbursement for the next semester may be cancelled entirely
Example: A student’s Fall 2026 loans paid out based on 6 credit hours of enrollment but the student drops from a 3-credit hour course before the drop deadline for that course.
- If the student enrolls in 6 credit hours in Spring 2027, the total credits to be used to calculate the student’s Spring 2027 loan eligibility will be reduced to 3 and student’s total credits for 2026-2027 will be 6 because of the withdrawal. At 3 credits in Spring 2027, the student will not be eligible for student loans.
Adding courses
Adding courses after the loans have paid toward a student’s account at a lower enrollment level will not automatically increase the loan amount. Students will need to request the additional funds using Direct Loan Increase Form available on our website.
What To Know About Federal Student Loans (FAQs)
The SOR is a federal requirement that reduces annual federal student loan eligibility when a student is enrolled less than full-time.
24 or more credits per academic year, 12 or more credits per semester.
ACC will not adjust a loan that is already disbursed for the term.
However, future disbursements will be impacted and you may receive less than originally calculated. Future eligibility and disbursements will be adjusted to account for your new total enrollment for the academic year.
Yes, but the loan will not adjust automatically. You will need to request the additional funds using our Direct Loan Increase Form.
Yes, it is possible but strongly depends on the availability of classes that are required for your major in future semesters.
No. In order to be eligible for student loans in any semester, students must be enrolled in a minimum of 6 credit hours.
Yes. Students are responsible for making sure their balance at ACC is paid in full each semester which includes any remaining balance after financial aid pays. Be sure to pay attention to any notices you receive about balances and due dates.
