Federal Student Loans - Schedule of Reductions (SOR)
On July 4, 2025, the 2025 Reconciliation Bill (One Big Beautiful Bill Act) was signed into law, which includes several higher education provisions that took effect July 1, 2026. These changes impact students enrolled in the Fall 2026 semester and beyond. Below you will find additional details and examples of these changes. Please email FinancialAid@letu.edu or call 903.233.4350 if you have questions regarding the Schedule of Reductions
As of the Fall 2026 term, federal student loans for students enrolled less than full-time are subject to Schedule of Reduction (SOR) requirements.
Full time enrollment is defined at LeTourneau as:
- Undergraduate : 12+ credit hours for the Fall and Spring Terms
- Graduate: 9+ credit hours for the Fall and Spring Terms
The Schedule of Reductions (SOR) requirements apply to all Subsidized and Unsubsidized Federal Direct Loans and Graduate PLUS Loans offered under legacy provisions. Students must still be enrolled at least half-time to receive a Federal Direct Loan.
Undergraduate Student Example
- A dependent junior is typically eligible for up to $3,750 per semester in federal direct loans. If the student enrolls in 6 hours:
- 6 hours / 12 hours = 50%
- $3,750 x 50% = $1,875 for the semester being evaluated.
Graduate Student Example
- A graduate student is typically eligible for up to $10,250 per semester in unsubsidized federal direct loans. If the student enrolls in 6 hours:
- 6 hours / 9 hours = 66.67% (rounded up to 67%)
- $10,250 x 67% = $6,867 for the semester being evaluated.
How Enrollment is Determined
SOR calculations are based on enrollment in Title IV-eligible courses through the end of the applicable term.
To be considered a Title IV eligible course:
- The course must be required toward your course of study,
- You must actively participate in the course,
- Participation in the course must be documented by the instructor,
- A previously passed course (D or better) cannot be repeated for a grade more than once
For a course to count toward your enrollment level for SOR calculation purposes, you must maintain enrollment and participation through the end of the term.
Matching Enrollment to your Financial Aid Offer
Your actual enrollment level must match the enrollment level used to award your financial aid in order for funds to disburse.
- On ground Undergraduate students are awarded on an assumption of full time (12+ credit hours per semester )
- On line Undergraduate students are awarded on an assumption of three-quarter time (9+ credit hours per semester for Fall and Spring and part time for Summer)
- Graduate students are awarded on an assumption of 9+ credit hours per semester
Prior to disbursement, the Financial Aid Office will confirm if your enrollment status matches your financial aid offer enrollment status.
Enrollment Changes and Financial Aid Impact
- If you drop courses prior to or on census day, your aid (i.e. scholarships, grants, and offered loans) and your cost of attendance (student budget) are required to be reviewed and adjusted based on your updated enrollment status.
- If you drop a course after census day, adjustments will be reviewed.
- If a federal student loan has been disbursed prior to a change in enrollment, adjustments may be made to a future federal loan disbursement while within the same award year.
Course Participation Requirement
- You must be demonstrate participation in your courses to receive federal aid.
- Instructors must verify participation in every course.
- If you do not participate, your aid may be cancelled or reduced.
- If you stop participating and withdrawal (officially or unofficially), you may be required to return a portion of your Title IV aid.
- You will be notified of any adjustments made to your aid via your LeTourneau email address.
Pell Grant Eligibility Updates
Beginning July 1, 2026, the following change to Pell Grant eligibility becomes effective.
Students with a Student Aid Index (SAI) exceeding twice the maximum Pell Grant award will not be eligible to receive a Federal Pell Grant.
Legacy Provision for Loans
Parent PLUS Loan Availability
Beginning July 1, 2026, the Parent PLUS loan will have limits on borrowing.
All parents (combined) have an annual Parent PLUS loan limit of $20,000 per dependent student and a $65,000 aggregate limit per dependent student (without regard to amounts forgiven, repaid, canceled, or discharged).
Graduate PLUS Loan Availability
Beginning July 1, 2026, the Graduate PLUS loan will be eliminated for new borrowing.
Graduate & professional students newly enrolled or beginning a new program on or after July 1, 2026 will not have Graduate PLUS loans available as a financial aid option.
Legacy provision: Permits students with existing Graduate PLUS loans before July 1, 2026 who borrowed during their current program of study can continue to borrow for up to three more academic years after July 1, 2026 or the remainder of their program, whichever is less.
Graduate Federal Direct Unsubsidized Stafford Loan Limits
Beginning July 1, 2026, Federal Direct Unsubsidized Stafford Loans annual unsubsidized loan limits for graduate programs are capped at $20,500 with total borrowing (aggregate limit) capped at $100,000. This limit does not include undergraduate borrowing.
Legacy provision: students already enrolled in graduate programs who have borrowed unsubsidized loans in their current program prior to July 1, 2026, will remain eligible under the existing loan limits to borrow for up to three more academic years or the remainder of their program, whichever is less. The current annual limit for federal student loans is $20,500 and the aggregate limit is $138,500 (including federal loans received for undergraduate study).
