Fall Graduate Loan Proration Policy
Students Graduating in a Fall Term
Under 34 CFR 685.203(a),(b),(c), federal regulations require schools to prorate the Federal Direct Stafford Loan amount for graduating undergraduate students when their final period of enrollment is less than a full academic year. Graduating seniors who are only attending one semester of the academic year may have their Federal Direct Stafford Loans prorated based on the number of credit hours remaining in his/her program of study.
Loan Proration
Loan proration ensures a student receives the correct portion of his/her annual allotment for Direct Loans, since they will not be enrolled for a full academic year. Students are notified via two separate emails of the proration and/or change in award. Continuous notification is also indicated in Banner self-service. Students who change their schedule after loan proration is performed must contact the Office of Student Financial Aid for a re-evaluation of their eligibility.
Proration Formula
Prorating limits the amount of subsidized/unsubsidized loans that a graduating senior may borrow for their final semester based on the following formula:
Actual number of undergraduate credit hours/number of credit hours in an academic year (24) x annual federal direct Stafford loan limit ($7500 for dependent or $12500 for independent)
| December Graduates Prorated Loan Limits | ||||||
| DEPENDENT | INDEPENDENT | |||||
|---|---|---|---|---|---|---|
| Fall Hours | SUB | UNSUB | SUB + UNSUB | SUB | UNSUB | SUB + UNSUB |
| 18 | $4,125 | $1,500 | $5,625 | $4,125 | $5,250 | $9,375 |
| 17 | $3,905 | $1,420 | $5,313 | $3,905 | $4,970 | $8,875 |
| 16 | $3,685 | $1,340 | $5,025 | $3,685 | $4,690 | $8,375 |
| 15 | $3,465 | $1,260 | $4,725 | $3,465 | $4,410 | $7,875 |
| 14 | $3,190 | $1,160 | $4,350 | $3,190 | $4,060 | $7,250 |
| 13 | $2,970 | $1,080 | $4,050 | $2,970 | $3,780 | $6,750 |
| 12 | $2,750 | $1,000 | $3,750 | $2,750 | $3,500 | $6,250 |
| 11 | $2,530 | $920 | $3,450 | $2,530 | $1,820 | $4,350 |
| 10 | $2,310 | $840 | $3,150 | $2,310 | $2,940 | $5,250 |
| 9 | $2,090 | $760 | $2,850 | $2,090 | $2,660 | $4,750 |
| 8 | $1,815 | $660 | $2,475 | $1,815 | $2,310 | $4,125 |
| 7 | $1,595 | $580 | $2,175 | $1,595 | $2,030 | $3,625 |
| 6 | $1,375 | $500 | $1,875 | $1,375 | $1,750 | $3,125 |
| Sub Formula: # of Hrs enrolled/24 x 5500 = | ||||||
| Dependent Unsub Formula: # of Hrs enrolled/24 x 2000 = | ||||||
| Independent Unsub Formula: # of Hrs enrolled/24 x 7000 = | ||||||
Proration Amounts/Calculations
Annual Federal Direct Stafford Loan limits for a fall graduating senior are used in the formula above to determine the amount of subsidized/unsubsidized loans that a student may borrow for their final semester.
NOTE: Institutions are not permitted to exceed federal aggregate loan limits published by the Department of Education. Therefore, the actual loan amount may also be impacted by the student’s total aggregate loan limit(s), the cost of attendance, and other eligibility factors.