Proration of Direct Loans for Graduating Seniors
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 they are enrolled. Prorating limits the amount of subsidized/unsubsidized loans that a graduating senior may borrow for their final semester based on the following formula:
Loan Proration Formula:
- Offered loans are initially calculated based on a projected full-time cost of attendance for the fall and spring semesters.
- After the Drop/Swap/Add period, Federal Direct Stafford loans are recalculated and prorated based on the student’s actual enrollment.
Note: The actual loan amount may be also impacted by the student’s total aggregate loan limit.
- Private and Federal Direct PLUS (Parent Loan for Dependent Students) loans may be available to supplement the student’s expenses.
Exceptions: Loan proration requirements do not apply to graduate or professional certificate students.