The Working Families Tax Cuts Act, also known as the One Big Beautiful Bill Act (OBBBA), was signed into law on July 4, 2025, and made significant changes to federal student aid programs. Many of the student loan provisions take effect beginning July 1, 2026. While not all students will be impacted, some Sinclair students and families may notice changes to federal loan eligibility, borrowing limits, and repayment options beginning with the 2026-27 academic year.
Beginning with the Fall 2026 semester, federal law requires schools to reduce Direct Loan eligibility for undergraduate students enrolled less than full time.
Under the new law, your annual loan eligibility is based on your enrollment level. Full-time enrollment is defined as 12 credit hours per semester, 24 credit hours in the academic year. Students must still be enrolled in 6 or more credit hours each term in the loan period to qualify for loan funding.
Prior to each loan disbursement, Sinclair will calculate your eligible loan amount using the federal Schedule of Reduction (SOR) formula listed below. Your federal loan will be reduced when disbursed into your student account.
Important: If you drop classes or reduce your enrollment after receiving a Direct Loan, your remaining loan eligibility for future semesters may be reduced or eliminated.
Sinclair has developed a Schedule of Reduction calculator to help estimate your federal loan eligibility based on your planned enrollment. You can access the calculator here. Formulas and examples will be listed at the bottom of this page to assist you in determining your eligibility.
Beginning July 1, 2026, new Parent PLUS borrowers are subject to federal borrowing limits.
These limits apply per student, regardless of the number of parents borrowing. For example, if two parents borrow on behalf of the same student, the combined amount borrowed cannot exceed the annual or lifetime limit.
Some Parent PLUS borrowers may continue borrowing under the previous federal rules. Generally, this applies if:
Eligible legacy borrowers may continue borrowing up to the student's cost of attendance (minus other financial aid) for up to three academic years or until the student completes the program, whichever occurs first, provided the student remains continuously enrolled in the same program.
There are a few numbers you will need to know to utilize the Schedule of Reductions calculator or formulas.
These numbers can be found in your financial aid portal, located in your my.sinclair.edu (opens in a new window) .
Divide your enrolled credit hours for the semester by 12.
Divide your total Fall and Spring credit hours by 24.
Pay close attention during this step to use the correct loan amounts. If you are only attending one semester, use that semester-specific loan amount. If you are attending both semesters, make sure you use the Total Awarded Amount.
If you have multiple loans, such as a subsidized loan and an unsubsidized loan, you will need to apply this step to both loan amounts, separately.
Multiply the applicable loan amount by your enrollment percentage to estimate your reduced loan amount.
If your enrollment level in each semester is unequal, your loan will be proportionally distributed to match each term’s enrollment level.
Beginning July 1, 2026, the One Big Beautiful Bill Act (OBBBA) changes the federal student loan repayment options available to borrowers. The repayment plans available to you depend on whether you are considered a current borrower or a new borrower.
A current borrower is generally a student who first borrowed federal Direct Loans before July 1, 2026, and who does not receive a new federal Direct Loan that changes their repayment eligibility under federal transition rules.
Current borrowers may remain eligible for existing federal repayment plans, including:
Current borrowers should continue monitoring StudentAid.gov (opens in a new window) for updates, as federal guidance and transition rules continue to evolve.
If you receive your first new federal Direct Loan on or after July 1, 2026, you will generally have two repayment options:
The Tiered Standard Repayment Plan is a new fixed-payment repayment plan. Monthly payments are not based on income, and the repayment period is determined by the total amount borrowed. Depending on your loan balance, repayment terms may be 10, 15, 20, or 25 years.
The Repayment Assistance Plan (RAP) is a new income-based repayment plan created by the OBBBA. Monthly payments are based on your income, and borrowers who meet all federal program requirements may qualify for forgiveness of any remaining eligible loan balance after completing the required repayment period.
Beginning with the 2026–27 academic year, new federal rules reduce the amount of federal student loans a student is eligible to receive when the student is enrolled less than full time. This is called Schedule of Reductions, or SOR.
All students receiving federal Direct Subsidized and/or Direct Unsubsidized Loans may be affected if their enrollment for the academic year is less than full-time.
No. SOR is a federal student loan rule. SOR itself does not reduce your Federal Pell Grant or Sinclair scholarships. Other financial aid programs may have their own enrollment requirements and proration policies.
No. SOR does not apply to Parent PLUS Loans.
For undergraduate students, 12 or more credit hours in a semester is full time. Six credit hours is half time for federal Direct Loan eligibility. A student enrolled in fewer than 6 credit hours cannot receive a Direct Loan disbursement for that term.
If you are enrolled less than full time, SOR will reduce your annual federal Direct Loan eligibility. The amount available each term may vary based on how many credits you are taking that term.
If you are enrolled in and complete at least 12 credit hours in both Fall and Spring, SOR will not reduce your annual Direct Loan limit based on enrollment. Your actual eligibility can still be limited by other federal aid rules.
If your enrollment for the academic year is less than full time, your annual Direct Loan eligibility may be reduced. The exact amount depends on your enrollment and your individual federal loan eligibility.
No. You must be enrolled at least half time, which is 6 credit hours, to receive a federal Direct Loan disbursement.
Sinclair uses a proportional method when SOR applies. If you take more credits in one term than another, more of your available annual loan eligibility may be assigned to the term in which you are taking more credits.
Sinclair now offers eligible students the maximum federal Direct Loan amounts they may be eligible to borrow. Sinclair’s previous packaging approach initially offered some students less than their full annual limit, and those students had to request their full annual limit if they wanted it.
Your federal student loan amount may have been adjusted based on your enrollment under the new SOR rules. Self-Service will show the SOR-adjusted amount you are eligible to receive. A decrease does not necessarily mean you lost all financial aid; it may mean your federal student loan eligibility changed based on your enrollment.
Not always. Sinclair may initially offer loans assuming full-time enrollment. Your loan amount can change when your actual enrollment is evaluated, your enrollment changes, or other information affecting your federal aid eligibility changes.
Your FAFSA is only one part of determining federal student aid eligibility. Beginning in 2026–27, your enrollment can also affect your annual Direct Loan limit under SOR. Your loan can therefore change even when your FAFSA information has not changed.
Sinclair uses your enrollment to evaluate your loan eligibility under SOR each time your loan is disbursed to your student account.
Yes. If you are already registered for the class when your enrollment is evaluated, the registered credits count even if the class has not started yet.
If your enrollment changes before your loan disburses, your loan eligibility will be reevaluated using your updated enrollment.
A drop after your loan disburses generally will not change your loan eligibility for the current term solely because of the late drop. However, the enrollment change may affect your loan eligibility in future terms.
If adding the class increases your enrollment, you may be able to request a review of your federal student loan eligibility. Additional loan eligibility for the current term is not automatic and depends on your remaining eligibility and applicable federal requirements. However, the change in enrollment will automatically be considered for any future loan disbursements.
No. The amount offered is the maximum you may be eligible to borrow based on the information available at that time. You should borrow only what you need. Federal student loans must be repaid with interest.
Yes. You can choose to accept less than the full amount offered in Student Finance Self-Service.
If you still have remaining federal loan eligibility, you may be able to request additional loan funds later. Your eligibility at that time will depend on factors such as your enrollment, annual loan limits, and other federal aid requirements.
Generally, no. Sinclair now offers eligible students up to their maximum federal Direct Loan eligibility. A Loan Change Request may still be needed after you have acted on your award if you want to make a later change, such as requesting additional eligible funds, reducing a loan, or canceling a loan.
Yes. Accepting a loan does not guarantee that the full accepted amount can be disbursed. Federal eligibility requirements, including SOR, can limit the amount you are eligible to receive.
No. Federal Direct Loans have annual borrowing limits. The amount you use during Fall 2026 and Spring 2027 affects how much loan eligibility may remain for Summer 2027.
If you accept and receive your full annual Direct Loan eligibility during Fall and Spring, you may have no remaining loan eligibility for Summer 2027.
If you expect to attend Summer 2027 and will need federal student loans, consider accepting less than the full amount available for Fall and Spring. There is no single amount that every student should reserve because annual loan limits and individual financial needs vary. You will also want to avoid changing your enrollment after loan funds have been disbursed. This could affect future eligibility as well.
Consider your likely expenses for the full academic year before borrowing the maximum available in Fall and Spring. You do not have to accept all loan funds offered to you.
Sinclair is still finalizing detailed Summer 2027 SOR processing. Historically, summer loan eligibility has been determined after students register for summer. Sinclair will provide additional information before Summer 2027 registration begins.
If your financial aid no longer covers your full balance, review your account and payment options as soon as possible. You may make a payment or enroll in an available payment plan. You can also review additional financing options, including private loans and PLUS Loans, on Sinclair’s financial aid website.
Depending on your circumstances, other options may be available. A parent of a dependent undergraduate student may consider a federal Parent PLUS Loan. Students may also review private education loan options. Borrow carefully and compare terms, interest rates, repayment requirements, and protections before choosing additional debt.
Contact the Welcome Center if you have questions about your federal student loan eligibility or the amount displayed in Self-Service. Staff can review your enrollment and financial aid information and determine whether additional review is needed.
Glossary of key financial aid terms.
Review federal updates and information from Federal Student Aid.
Learn more about making informed federal student loan borrowing decisions.