How many credit hours do I need to be enrolled in to be considered a full-time student for Direct Loan eligibility?
Undergraduate – A minimum of 12 financial aid-eligible credit hours per term is considered full-time, which means 24 hours over the course of the fall and spring term is needed to be considered full-time during the academic year.
Graduate/Professional/Doctoral – A minimum of 9 financial aid-eligible credit hours per term is considered full-time, which means 18 hours over the fall and spring terms are needed to be considered full-time during the academic year.
Summer Enrollment – 12 financial aid-eligible credit hours for undergraduates and 9 for graduate/professional/doctoral students are needed to be considered full-time.
What happens to my Federal Direct Loan eligibility if I change my schedule to less than full-time before my loan is disbursed?
If you are an undergraduate enrolled for 12 financial aid-eligible credit hours in the fall term and reduce your schedule to less than full-time before your fall loan is disbursed, EKU will have to reduce your fall loan based on the new rules.
For example:
Direct Subsidized Loan:
| Step 1: Maximum Subsidized Annual Loan Limit | $3,500 | ||
| Step 2: SOR Percentage | 21/24 = 88% (.875 rounded to nearest whole percentage) = 3,080 | ||
| Step 3: | Fall = 9 | Spring = 12 | |
| Revised Disbursement | $1,330 ($3,080 – $1,750 from spring) | $1,750 ($3,500/2) | |
Direct Unsubsidized Loan:
| Step 1: Maximum Unsubsidized Annual Loan Limit | $2,000 | ||
| Step 2: SOR Percentage | 21/24 = 88% (.875 rounded to nearest whole percentage) = $1,760 | ||
| Step 3: | Fall = 9 | Spring = 12 | |
| Revised Disbursement | $760 ($1,760 – $1,000 from spring) | $1,000 ($2,000/2) | |
In this example, if you end up taking more than 12 hours in the spring, then your spring loans could be increased if the total of your fall and spring hours equals at least 24.
This example serves as general guidance. Individual loan eligibility can vary depending on other eligibility factors associated with a student’s record.
The same rules apply to graduate/professional/doctoral students, but the financial aid eligible hours are based on 9 in the fall and spring terms and 18 between the two.
What happens to my Federal Direct Loan eligibility if I change my schedule to less than full-time after my loan is disbursed?
Loan reductions for less than full-time enrollment are calculated based on the academic year minimum, not the term. Undergraduate students who complete 24 financial aid-eligible credit hours between the fall and spring terms are considered full-time for the academic year. Those who do not, are subject to having their loans reduced.
For example, let’s say you are an undergraduate who enrolled for 12 hours in the fall and we assume you enrolled 12 hours in the spring, for a total of 24 hours, which is 100% of the minimum requirements to be full-time in an academic year. Let’s also assume you are a freshman, and the fall portions of your loans disbursed. At the time of disbursement, your loans looked like:
After the fall disbursement, you drop or withdraw from 12 hours to 9 hours. That means you are now on pace to complete 21 hours (9 in fall and 12 in spring) of 24, or 88% (rounded) of the minimum full-time hours. You are subject to the Schedule of Reduction (SOR). The adjustments will be as follows:
Direct Subsidized Loan:
| Step 1: Maximum Subsidized Annual Loan Limit | $3,500 | ||
| Step 2: SOR Percentage | 21/24 = 88% (.875 rounded to nearest whole percentage) = 3,080 | ||
| Step 3: | Fall = 9 | Spring = 12 | |
| Revised Disbursement | $1,750 ($3,500/2) | $1,330 ($3,080 – $1,750 from fall) | |
Direct Unsubsidized Loan:
| Step 1: Maximum Unsubsidized Annual Loan Limit | $2,000 | ||
| Step 2: SOR Percentage | 21/24 = 88% (.875 rounded to nearest whole percentage) = $1,760 | ||
| Step 3: | Fall = 9 | Spring = 12 | |
| Revised Disbursement | $1,000 ($2,000/2) | $760 ($1,760 – $1,000 from fall) | |
If, in the spring you end up actually enrolling in 15 hours or more to bring your total between the two terms back up to 24, then no adjustment would be made to your spring loan disbursements.
Will my Parent PLUS Loan be reduced if I am enrolled for less than full-time?
Students who are less than full-time often have a Cost of Attendance that is lower than that of full-time students. A reduced Cost of Attendance can impact Parent PLUS Loan eligibility.
With that backdrop. Parent PLUS Loans are not reduced the same way as Direct Subsidized Loans, Direct Unsubsidized Loans, and Graduate PLUS Loans for less than full-time enrollment.
How will my Grad PLUS Loan be adjusted for being enrolled less than full-time?
Graduate PLUS Loans are considered student loans, which means they are subject to the Schedule of Reduction (SOR). Once a student’s full-time eligibility is calculated, it will be adjusted based on the SOR and how many hours the student is on pace over the course of the academic year to complete compared to the 18 hour minimum.
I am a parent of a current student who has received Parent PLUS Direct Loans at EKU. Can I continue borrowing from this program?
To continue borrowing under the current rules, you must be considered a legacy borrower. (add link to legacy borrower section)
Can I lose my legacy status by changing majors?
Undergraduate legacy borrowers will NOT lose eligibility if they change majors to a different undergraduate program after July 1, 2026 as long as they remain at the same degree level. For example, if a student pursuing a Bachelor of Science degree in Nursing switches to a Bachelor of Arts degree in Communication Studies, they would NOT lose their legacy status, but a student pursuing an Associate of Applied Science in Nursing WOULD lose their legacy status if they switched to the Bachelor of Science in Nursing.
Also keep in mind that changing majors may extend the student’s time to complete their degree, exceeding the 3-year maximum allowed for legacy status. If that occurs, parents may lose access to the Federal Parent PLUS Direct Loan program under the pre-July 1, 2026, rules before the student graduates.
Graduate legacy borrowers will lose eligibility if they change to a different graduate or professional program after July 1, 2026.
My student is a transfer student to EKU starting after July 1, 2026, and he has had a Federal Direct Loan in the past. Will I qualify as a legacy borrower for Parent PLUS Direct Loans at EKU?
No. Legacy borrower rules require enrollment in the same degree program at the same institution. If he begins enrollment at EKU in a new degree program after July 1, 2026, you will not qualify as a legacy borrower to continue using the Parent PLUS Direct Loans under the pre-July 1, 2026 rules.
Additionally, any amount of Parent PLUS Loans you borrowed at previous institutions before arriving at EKU will count towards your $65,000 lifetime limit for loans in this program, as you will be under the new rules.
For example, if you borrowed $50,000 in Parent PLUS Loans at prior institutions, you will only have $15,000 remaining during your time at EKU ($65,000 – $50,000). If you borrowed $65,000 or more at prior institutions, then you will have no remaining eligibility while enrolled at EKU.
How can I calculate the remaining time I have to receive Parent PLUS Loans under the legacy status?
Undergraduate degree programs at EKU have a 4 year published program length. This means the programs are designed to be completed in no more than 4 years on a full-time basis. To calculate your remaining eligibility, EKU must use this as the maximum time allowed to receive Parent PLUS Loans under this status.
Example 1:
The student is in an undergraduate program that has a published program length of 4 years
The student completes his first year at the end of 2025-26 and is scheduled to return for his 2nd year in 2026-27
According to the program length, he should be enrolled:
2025-26 – Year 1
2026-27 – Year 2
2027-28 – Year 3
2028-29 – Year 4 (graduate)
Parents borrowed $20,000 in Parent PLUS Loan funds for the 2025-26 year
4 year program – 1 year of attendance = 3 years remaining under the current Parent PLUS Loan rules
Example 2:
The student is in an undergraduate program that has a published program length of 4 years
The student completes his third year at the end of 2025-26 and is scheduled to return for his 4th year in 2026-27
According to the program length, he should be enrolled:
2023-24 – Year 1
2024-25 – Year 2
2025-26 – Year 3
2026-27 – Year 4 (graduate)
Parents borrowed $60,000 in Parent PLUS Loan funds by the end of the 2025-26 year
4 year program – 3 years of attendance = 1 year remaining under the current Parent PLUS Loan rules
Example 3:
The student is in an undergraduate program that has a published program length of 4 years
The student completes his fourth year at the end of 2025-26, but needs to return for a 5th year in 2026-27 to complete his program
According to the program length, he should be enrolled:
2022-23 – Year 1
2023-24 – Year 2
2024-25 – Year 3
2025-26 – Year 4 (should have graduated, but needs to return for one more year)
2026-27 – Year 5 (graduate)
Parents borrowed $80,000 in Parent PLUS Loan funds by the end of the 2025-26 year
4 year program – 4 years of attendance = 0 years remaining under the current Parent PLUS Loan rules
This student will return in 2026-27 with no eligibility for additional Parent PLUS Loans because they already borrowed more than the new $65,000 limit
If the student had only borrowed $40,000 prior to 2026-27, then the student would return with $25,000 remaining ($65,000 – $40,000) and be capped at borrowing no more than $20,000 in any given academic year
My student is beginning at EKU in the Fall 2026 semester. How much can I borrow from the Federal Parent PLUS Direct Loan program?
Effective July 1, 2026, the One Big Beautiful Bill Act changed the annual and aggregate limits for the Federal Parent PLUS Direct Loan program. Even though this is a parent loan and the student has no legal responsibility to repay it, the annual and aggregate limits are based on a student’s eligibility, not the parents.
My student has been attending EKU before July 1, 2026, but has never borrowed from a Federal Direct Loan program, nor have I borrowed from the Federal Parent PLUS Direct Loan program. Since he is a current student, can I be considered a legacy borrower for the Federal Parent PLUS Direct Loan program?
No. You do not meet the definition of a “legacy borrower”.
Can my spouse and I both apply for $20,000 per year for our student?
No. Congress set the limit based on the student, not the parent borrower. A student can have no more than $20,000 per year in Federal Parent PLUS Direct Loan.
If I borrow $20,000 per year for my student and the lifetime aggregate is $65,000, I will not have $20,000 of eligibility after my student’s third year. How do I pay for their last year, or more?
We strongly encourage students to be on a track to graduate in four years or less. Most undergraduate degree programs require a minimum of 120 credit hours to complete. A student must average at least 15 credit hours a semester to accumulate 120 credits in four years. Encouraging your students to be on pace for a four-year degree will reduce the need to borrow.
Even with that, you will only have $5,000 remaining in year four if you borrowed $20,000 each of the prior three years. The options are:
Why does it matter if my program is considered a “graduate” or “professional” program?
Effective July 1, 2026, the Federal Direct Unsubsidized Loan limits are different for non-legacy graduate and professional students. Before this, the limits were the same.
Graduate Students
Professional Students
Am I losing any financial aid eligibility if my program is considered “graduate” and not “professional”?
If your program is still considered a graduate program, then nothing has changed with your maximum annual Federal Direct Unsubsidized Loan. That figure remains $20,500. The award year at EKU includes the fall, spring and summer terms, in that order.
This applies to all EKU graduate programs, except the Clinical Psychology Psy.D. program, which meets the federal definition of a “professional” program.
Is there an appeal process to have a program designated as “professional” if it is not eligible at this time?
Unfortunately, no. The statute and subsequent regulations set the standard for defining a “professional” program. There are no avenues to have a program that does not meet those standards reclassified as “professional.”
I am a current student who has received Graduate PLUS Loans for my EKU program. Can I continue receiving them to complete my degree?
Effective July 1, 2026, the One Big Beautiful Bill Act eliminated the Federal Graduate PLUS Loan for all students who had not borrowed a Direct Loan at EKU before that date. Under certain rules, the law allows current borrowers to continue borrowing from the program.
If you meet the criteria to be considered a legacy borrower (add link to legacy section), then you can continue using the Federal Graduate PLUS Loan Program.
I am a current EKU undergraduate student who has borrowed Direct Loans at EKU. I will complete my undergraduate degree in the 2025-26 school year and begin graduate studies at EKU in August 2026. Will I be considered a legacy borrower for the Federal Graduate Plus Loan when I start that program?
No, you cannot be considered a legacy borrower because you are starting a new program after July 1, 2026.
What happens to my legacy borrower status if I withdraw from a semester or take a semester off?
Legacy borrowers must be continuously enrolled. For example, legacy borrowers will lose their legacy status if they:
Note: Summer is excluded from the continuous enrollment requirement, so a borrower will not lose eligibility for not taking classes in the summer.
I will be a first-year graduate student after July 1, 2026. What loan options are available to me if the Federal Graduate PLUS Loan no longer exists for new graduate students or new borrowers?
The Federal Direct Unsubsidized Loan remains available for all graduate students. Other loan options may be available through private/alternative loans lenders.
How can I calculate the remaining time I have to receive Grad PLUS Loans under the legacy status?
Graduate, professional and doctoral programs have varying program lengths. For example, if you are in a program with a 2 year published program length, this means the program is designed to be completed in no more than 2 years on a full-time basis. To calculate your remaining eligibility, EKU must use this as the maximum time allowed to receive Grad PLUS Loans under this status.
Example 1:
Example 2:
This student will return in 2026-27 with no Graduate PLUS eligibility, as the Gradruat PLUS Loan program has been eliminated for non-legacy borrowers. The student may still have unsubsidized loan eligibility remaining if they have not reached the $100,000 graduate aggregate limit and/or the $257,500 lifetime limit.