Federal Direct Loan Proration

What is loan proration?:

Federal direct loans are offered at the beginning of an academic year and are based on expected full time enrollment. Per federal regulations, institutions are required to prorate loans for graduating undergraduate students when their final period of enrollment is less than a full academic year. This means, that graduating undergraduate students who only attend one semester of the academic year will have their federal direct loans prorated (adjusted) based on enrollment. This most often affects students who graduate in December.

Attention Spring 2024 Graduates!

Do you anticipate graduating after the Spring 2024 semester? The Loan proration form for the Spring 2024 semester will open in January 2024. Please check back for updates.

How is it calculated?:

The formula provided by the federal government is below.

 Federal Direct Loan Proration Formula

                   Credit Hours Enrolled

_____________________________________________        x Annual Direct Loan Limit

       Credit Hours in an Academic Year (24)

In some cases, this proration may result in reduced loan eligibility, while enrollment could also result in increased loan eligibility.

 Annual Federal Direct Loan Limits for Undergraduate Students

If dependent, your annual subsidized and unsubsidized Direct Loan eligibility is as follows:

 
Senior
Subsidized
$5,500
Unsubsidized
$2,000
Total
$7,500

 

If independent (or Dependent with a Parent PLUS Loan denial), your annual subsidized and unsubsidized Direct Loan eligibility is as follows:

 
Senior
Subsidized
$5,500
Unsubsidized
$7,000
Total
$12,500

Please note, you cannot borrow over the loan amounts listed above in an academic year.

See below for common loan proration amounts for Dependent and Independent undergraduate students. Per federal regulations, we cannot exceed federal direct aggregate loan limits. Loan amounts could be impacted by a student's borrowing history and total aggregate loan limit(s). Visit studentaid.gov to learn more about aggregate loan limits. If additional funds are needed, students can explore additional loan options at stockton.edu/finaid.

 Loan Proration Amounts Based on Credits Enrolled

Credits Enrolled Subsidized Loan Unsubsidized Loan Total Dependent Student
8 $1,833 $666  $2,500
12 $2,750 $1,000  $3,750
16 $3,666 $1,333  $5,010
20 $4,583 $1,666  $6,250

 

Credits Enrolled Subsidized Loan Unsubsidized Loan Total Independent Student
8  $1,833  $2,333  $4,166
12  $2,750  $3,500  $6,250
16  $3,666  $4,666  $8,344
20  $4,583 $5,833  $10,416

Once the institution performs the calculation to determine a graduating student’s eligibility, the new amount of the loan will be applied to the student’s account.

If the calculation results in additional funds offered that the student does not wish to utilize, they can complete a loan change request through the goStockton portal. Click here to learn how to complete a loan change.

If the calculation results in reduced loan eligibility and funds have already disbursed, this may result in a bill with the Bursar's Office. Monitor your bill on the goStockton portal for updates.

*Please note: This rule only applies to undergraduate students. Graduate and Professional Students are not affected.

Examples:

A senior dependent undergraduate student who is completing their degree program in the Fall semester and is enrolled in 8 credits will be eligible for $2,500 in federal direct loans for the semester.

Formula: 

                   Credit Hours Enrolled (8)

_____________________________________________     x Annual Direct Subsidized/Unsubsidized Loan Limit ($7,500) = $2,500

       Credit Hours in an Academic Year (24)


A senior dependent undergraduate who is completing their degree program in the Fall semester and is enrolled in 20 credits will be eligible for $6,250 in federal direct loans for the semester.

Formula:

                  Credit Hours Enrolled (20)

_____________________________________________     x Annual Direct Subsidized/Unsubsidized Loan Limit ($7,500) = $6,250

       Credit Hours in an Academic Year (24)