Date Posted: June 9, 2026
Southern Crescent Technical College is informing students of important changes to Federal Direct Loan regulations that will take effect beginning Fall Semester 2026.
Under new regulations established by the U.S. Department of Education, Federal Direct Loan eligibility will now be prorated based on a student’s enrollment level. As a result, students enrolled less than full-time may receive reduced loan funding.
To remain eligible for Federal Direct Loans, students must maintain enrollment in at least six credit hours. Students who drop, withdraw from, or otherwise change their course schedules may experience changes to their financial aid eligibility and loan amounts.
SCTC encourages all students to carefully consider the financial implications of enrollment changes and to consult with the Office of Financial Aid and Veteran Services before making any adjustments to their class schedules.
“Understanding how enrollment impacts financial aid is essential for student success,” said Amanda Abernathy, Executive Director of Financial Aid at SCTC. “We encourage students to seek guidance before withdrawing from classes to ensure they are aware of how those decisions may affect their financial aid eligibility.”
Students with questions regarding these changes are encouraged to contact the Office of Financial Aid and Veteran Services at financialaid@sctech.edu.
FREQUENTLY ASKED QUESTIONS
What is changing?
Beginning with the 2026-2027 academic year, federal regulations require colleges to prorate Federal Direct Loan eligibility based on enrollment level.
What does prorated mean?
Prorated means your federal student loan eligibility may be reduced if you are enrolled less than full-time.
Can I still receive loans if I am enrolled part-time?
Yes. Students enrolled at least half-time (6 credit hours) may still qualify for Federal Direct Loans. However, the amount may be lower than previous years.
How will my enrollment affect my loans?
Estimated Percentage of Annual Loan Eligibility
- 12+ Credit Hours = 50.00%
- 11 Credit Hours = 45.83%
- 10 Credit Hours = 41.67%
- 9 Credit Hours = 37.50%
- 8 Credit Hours = 33.33%
- 7 Credit Hours = 29.17%
- 6 Credit Hours = 25.00%
- 1–5 Credit Hours = Not Eligible
Can dropping or withdrawing from a class affect my loans?
Possibly. Enrollment changes may affect your current or future federal student loan eligibility.
Should I talk with Financial Aid before withdrawing?
Absolutely. Before dropping or withdrawing from a course, students should consult with the SCTC Financial Aid Office to understand the potential impact on their aid eligibility.
Will this affect Pell Grants?
No. These changes apply specifically to Federal Direct Loans. Pell Grant eligibility is calculated separately.