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The 26-27 FAFSA is open and can be completed at for the 2026-2027 academic year. The priority deadline for °®¶¹´«Ã½Èë¿Ú and Maryland State Financial Aid is March 1, 2026.

Federal Student Loan Schedule of Reductions (SOR)

(New Federal Student Loan Rules Beginning 2026-2027)

What Changed?

Beginning with the 2026-27 academic year, federal law requires colleges to reduce a student's Direct Loan eligibility when the student is not enrolled full-time for the academic year. This new requirement is called the Schedule of Reductions (SOR). Small schedule changes can have significant financial consequences.

Before vs. Now

What Counts as Full-Time?

Important Semester/Term Enrollment Thresholds

Why This Matters

Dropping/Withdrawing from a class can:

✅ Reduce future loan eligibility – which may result in a higher “out of pocket” cost for the following semester (our office will not be adjusting already disbursed loans)

✅ Reduce a future loan disbursement – even within the same semester/term

✅ Prevent a future loan disbursement if enrollment falls below half-time

Examples

#1: Student Drops/Withdraws From One Class

Scenario: A dependent junior has a full-time federal annual Direct Loan limit of $7,500.

*Calculation:  21 ÷ 24 = 88%        New annual loan eligibility: $7,500 × 88% = $6,600

Impact: The student loses approximately $900 in annual loan eligibility – which will be taken from Spring

Can the Student Get the Full Loan Back?
Yes, sometimes.
If the student later enrolls in:

• Fall = 9 credits
• Spring = 15 credits

Total = 24 credits
The student again meets the full-time academic-year requirement and may regain eligibility for the full annual loan amount, assuming all other aid requirements are met.

#2: Student Plans to Enroll On a Less-Than-Full-Time Basis

Scenario: A dependent junior has a full-time federal annual Direct Loan limit of $7,500 ($5,500 subsidized, $2,000 unsubsidized).

*Calculation:  15 ÷ 24 = 63%        New annual loan eligibility: $7,500 × 63% = $4,725

Frequently Asked Questions

Q: Are ALL federal loans affected?

No. The Schedule of Reductions applies to: Direct Subsidized Loans, Direct Unsubsidized Loans (undergraduate and graduate), and Graduate PLUS Loans. It does not apply to Parent PLUS Loans.

Q: If my loan is reduced, am I paying the money back twice?

No. We would reduce a future disbursement within the same academic year. This results in a reduction of the overall amount of loan money requested during the academic year and may result in a higher out of pocket cost.

Q: What if I have federal aid (grants and/or loans) and withdraw from all classes?

A separate federal calculation called Return of Title IV Funds (R2T4) may be required.
This may result in: financial aid being returned, reduced eligibility, and a balance owed to the university.
Students should always consult Financial Aid before withdrawing.

The One Big Beautiful Bill Act (OBBB Act), signed into law in July 2025, introduces significant changes to Parent PLUS and Grad PLUS loans that take effect starting July 1, 2026, for new borrowers and new programs.

Parent PLUS Loans

Beginning July 1, 2026, Parent PLUS loans will have annual limits of $20,000 per student and a lifetime aggregate limit of $65,000 per student, regardless of whether one or more parents are borrowing on behalf of their student. This contrasts with previous regulations that permitted borrowing up to the full cost of attendance.

Legacy Provision: If a student has a Parent PLUS Loan disbursed before July 1, 2026, while enrolled in a credentialed academic program, the parent can continue to borrow from the Parent PLUS Loan program up to three additional academic years or until their program ends, whichever comes first.

Expected Time to Credential: To continue borrowing under the legacy provision after July 1, 2026, ED stated that the student needs to remain continuously enrolled in the same program of study. A student who changes majors within the same degree shall be considered to be enrolled in the same program of study.

Grad PLUS Loans

Beginning July 1, 2026, Federal Direct Graduate PLUS Loans will be discontinued for new borrowers. Graduate students will be limited to Direct Unsubsidized Loans with annual caps of $20,500 and a lifetime aggregate limit of $100,000.

Legacy Provision: Students who receive a Direct Unsubsidized Loan or Grad PLUS loan disbursement before July 1, 2026, while enrolled in a credentialed academic program, may be able to continue borrowing up to the full cost of attendance for their program of study for up to three additional academic years or until their program ends, whichever comes first. If students start a new program of study after July 1, 2026, Grad PLUS Loans will no longer be available for that program.

Expected Time to Credential: To continue borrowing under the legacy provision after July 1, 2026, ED stated that the student needs to stay enrolled in the same academic program with the same major at the same school.

Stay Informed

As policies may continue to evolve, stay informed at .

Heads up to former °®¶¹´«Ã½Èë¿Ú federal student loan borrowers - °®¶¹´«Ã½Èë¿Ú has partnered with . Attigo’s number one goal is to provide expert support and guidance to help former °®¶¹´«Ã½Èë¿Ú students understand their federal student loans as well as available repayment options. It’s available at no cost to you, and they’ll never ask for personally identifiable information.

So, if you receive a phone call or an email from , we strongly encourage you to answer/respond so you can benefit from their assistance and begin your journey to repayment success! Real guidance. No gimmicks. Just support.

• Having difficulties making your student loan payments?
  • Repayment Support: 800-815-1288 (Mon-Fri, 8:00 a.m. – 4:30 p.m. CST)
• Did you just graduate, or is your grace period getting ready to end, and you have questions or concerns about repaying your federal student loans?
  • Student Loan Success Center: 833-707-1220 (Mon-Fri, 8:00 a.m. – 4:30 p.m. CST)

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A parent PLUS loan applicant should keep the following in mind:

1. The U.S. Department of Education opens the parent PLUS loan application every April for the upcoming academic year.
2. The parent completing the application must either be the biological/adoptive/step-parent who is included on the student’s FAFSA OR the biological/adoptive parent who is not listed on the FAFSA.
   Other family members, including a step-parent who is not on the FAFSA, are not eligible to apply.
3. The parent PLUS loan is in the name of the parent applicant only, and will remain so until the loan is paid in full.
4. The parent and student should review estimated/actual costs while accounting for all sources of financial aid, to include self-pay/payment plan options, to determine the best amount to “fill the gap”.
5. If you are applying for a loan to cover the school year (Fall and Spring), make sure to double your requested loan amount if you used semester costs/aid to determine the amount you need and select the loan period of August - May.
6. You should also account for the fact that the U.S. Department of Education will deduct 4.228% from your requested amount for their “loan origination fees”. So, for every $1,000 you request, °®¶¹´«Ã½Èë¿Ú will receive payment of approximately $957.
7. If you do not specify an amount on the PLUS loan application, our office will process the loan for the maximum allowable amount.
8. If approved, you must complete the PLUS Master Promissory Note (MPN) if this is the first time you have received a PLUS loan for your student.
9. Fall bills are initially issued, via student email, in July, and Spring bills are initially issued in December. If you decide to wait until the bill is issued before applying for the PLUS loan, we highly recommend that you complete the applicationat least two weeks prior to the billing due date.
10. If you decide, after completing the PLUS loan application, that you need to increase/decrease the amount of your PLUS loan, please contact our office and we will guide you through the next steps.

Feel free to contact our office if you have any questions.

The Office of Financial Aid & Scholarships has begun offering financial aid for the 2026 summer semester.  If you are interested in learning more about summer financial aid and eligibility, please visit our Summer Session Financial Aid webpage.

MHEC has set the Maryland financial aid deadline to submit the 2026-27 FAFSA for March 1st, 2026. Students are encouraged to file the 26-27 FAFSA now and not miss their filing deadline! MHEC anticipates the first round of awards for the Guaranteed Access Grant program will not be made until late May 2026. If you submit your FAFSA on or before March 1st, MHEC will automatically consider you for the Guaranteed Access Grant program. For a complete listing of all Maryland State Financial Aid programs visit their website

As soon as you complete and submit your FAFSA, make sure to create a . This is a critical part of the financial aid process. Please make sure when you sign up that you use an email that you use all the time, because the email you put in as your MDCAPS account is the email we will use to notify you about any scholarships or grants you may be eligible to receive!

The 2026–2027 MHEC One-App, including the MSFAA section, will open on November 1, 2025. MHEC has the One-App to help streamline the process when applying for certain State scholarships and grants that require a separate application. The One-App allows students easier access to financial aid information. To get started, students log into . The One-App is also for undocumented students who are eligible for in-state tuition but are unable to complete the FAFSA (replaces the previous application called MSFAA).

For the most update to date information from MHEC please visit their website .

°®¶¹´«Ã½Èë¿Ú has numerous scholarship opportunities for students of all interests and backgrounds, including academic merit scholarships, need-based scholarships, and scholarships for specific majors and career paths. On December 1st, the opens for all current and admitted students who have submitted the FAFSA.

It all starts with the FAFSA! Filling out the FAFSA each year gives you access to federal grants, scholarships, loans and other ways to afford your education. Make sure to add °®¶¹´«Ã½Èë¿Ú’s school code: 002091.

It’s best to submit the FAFSA as soon as possible to be considered for priority aid. The FAFSA is available starting October 1 and should be submitted by March 1 for priority funding. However, some funds will be awarded on a first-come, first-serve basis.

Yes, you must fill out the FAFSA every year to apply for aid.

Scholarship funding for students who fail to meet the minimum requirements will be terminated with the exception of first-semester students. First-semester students who have achieved a minimum 2.0 GPA at the conclusion of their first semester will be permitted to receive their scholarship funding for one additional semester, after which they must meet the minimum requirements for continued scholarship eligibility. Contact the Financial Aid Office for individual questions.