Less Than Full-Time Loan Adjustments
The One Big Beautiful Bill Act (H.R.1), signed into law by President Trump on July 4, 2025, changes some rules related to Federal Aid (Title IV) programs. These changes are scheduled to go into effect July 1, 2026, and/or with the 2026–27 Free Application for Federal Student Aid (FAFSA). This means the changes will first go into effect at HCU in the Summer 2026 term.
Current Rules Before 2026–27
Full-Time Academic Year Definition: To be considered full-time for the academic year:
- Undergraduate students: Must take 24 credit hours over the course of the fall and spring terms.
- Graduate/Professional/Doctoral students: Must take 18 credits over the course of the fall and spring terms.
Half-Time Enrollment: Students must be enrolled at least in a half-time load of Financial Aid-eligible classes to receive a Federal Direct Loan in any given semester. The minimum number of credits per semester to be considered half-time is:
- Undergraduates: 6 credit hours
- Graduate/Professional/Doctoral students: 5 credit hours
Loan Amount: A student can receive the full annual Federal Direct Loan amount as long as their financial aid eligibility allows them to do so.
Changes Effective in 2026–27
Full-Time Academic Year Definition (no change from the current rules): To be considered full-time for the academic year:
- Undergraduate students: Must take 24 credit hours over the course of the fall and spring terms.
- Graduate/Professional/Doctoral students: Must take 18 credits over the course of the fall and spring terms.
Half-Time Enrollment (no change from the current rules): Students must be enrolled for at least a half-time load of financial aid-eligible classes to receive a Federal Direct Loan in any given semester. The minimum number of credits per semester to be considered half-time is:
- Undergraduates: 6 credit hours
- Graduate/Professional/Doctoral students: 5 credit hours
Less Than Full-Time Enrollment (new): Starting with the 2026–27 academic year, which begins with the Summer 2026 term at HCU, Direct Loan amounts for students who are not full-time for the full academic year will need to be adjusted. This is called a Schedule of Reduction, or SOR change. Full-time enrollment is determined by term and by the academic year, whereas, prior to this, the rules were limited to enrollment in a single term.
This adjustment rule applies to all undergraduate, graduate and professional student Direct Loan borrowers, utilizing Direct Subsidized Loans, Direct Unsubsidized Loans and/or Graduate PLUS Loans. Even those considered legacy borrowers who have borrowed from any of these loan programs prior to July 1, 2026 are subject to this rule.
Since this rule only impacts student borrowing, the Federal Direct Parent PLUS Loan is not subject to these adjustments for less-than-full-time study.
Planning Ahead
For families that may still need additional funds beyond the new OB3 limits, consider investigating the following options:
What Students Should Do
- Plan Early: Students expecting to attend less than full-time should consult with Financial Aid before borrowing.
- Monitor Enrollment: Changes to enrollment may impact future loan eligibility and disbursements.
- Explore Additional Resources: If loan eligibility is reduced, students may wish to consider scholarships, payment plans, employer tuition assistance or private educational loans (after exhausting federal options).
Disclaimer: Information on this webpage is based on currently available federal guidance regarding the One Big Beautiful Bill Act (OB3). Additional regulations, interpretations, and implementation guidance may be issued by the U.S. Department of Education. Houston Christian University reserves the right to update information as federal guidance evolves. Students should consult with the Office of Student Financial Services regarding their individual circumstances.
Information included in this publication is subject to change. Contact the Office of Financial Aid with any questions you may have about this information.