New Federal Loan Regulations
Effective 2026-2027 Aid Year
Starting July 1, 2026 (2026–27 aid year), the One Big Beautiful Bill (OBBB) Act introduces changes to federal student aid, including:
- New loan repayment options
- Updated eligibility requirements
- Prorated federal loan amounts for students enrolled less than full-time
For more information, visit: One Big Beautiful Bill Updates
Understanding Financial Aid Enrollment and Federal Loan eligibility changes:
A minimum of 6 degree/certificate-applicable units per term (or 6+ Financial Aid (FA) units) is still required to apply for and receive a federal student loan.
Beginning with the 2026–27 Aid Year:
- 12 financial aid-eligible units per term are considered full-time for that term.
- 24 financial aid-eligible units between the fall and spring terms are required to
be considered full-time for the academic year.
- Loan reductions for less than full-time enrollment is calculated based on the academic
year minimum, not the term.
- Summer enrollment is not included when determining annual federal loan eligibility for the fall and spring aid year.
Federal loans will be prorated based on a student's projected enrollment for the academic year.
If you are enrolled in 12 financial-eligible units for the fall but reduce your enrollment to less than full-time before your fall loan is disbursed, your federal loan eligibility will be recalculated under the new federal regulations.
Example
Suppose you:
- Enroll in 12 units for the fall
- Reduce to 9 units before your loan is disbursed.
In most cases, Cerritos College anticipates that you will enroll in 12 units in the spring. - Your total projected enrollment is 21 units (9 fall + 12 spring) = 88% (rounded) of
the required 24 credit units.
- Your annual loan eligibility will be reduced to 88% of the full-time loan amount and
divided evenly between the fall and spring terms.
- If you later increase your spring enrollment so your combined fall and spring enrollment reaches 24 eligible units, your spring loan may be increased to restore your full annual eligibility.
Loan reductions for less than full-time enrollment are calculated based on the academic year minimum, not the individual term.
- Undergraduate students who complete 24 financial aid-eligible units between the fall and spring terms are considered full-time for the academic year.
- Students who complete fewer than 24 financial aid-eligible units during the fall and spring terms are subject to the federal Schedule of Reduction (SOR), which MAY REDUCE THEIR ANNUAL LOAN ELIGIBILITY.
Example of an SOR Adjustment
Assume you are:
- An undergraduate student
- A dependent sophomore
- Originally enrolled in 12 units for both fall and spring (24 total units)
Your original annual loan award would be:
| Term | Subsidized | Unsubsidized |
|---|---|---|
| Fall (disbursed) | $2,250 | $1,000 |
| Spring (anticipated) | $2,250 | $1,000 |
After your fall loan is disbursed, you reduce your fall enrollment from 12 units to 9 units.
Your loans are recalculated as follows:
| Loan Type/Semester | Amount | Comments |
|---|---|---|
| Fall Subsidized (already disbursed) | $2,250 | No reduction to disbursed funds |
| Fall Unsubsidized (already disbursed) | $1,000 | No reduction to disbursed funds |
| Spring Subsidized | $1,980 | Reduced by $270 (Due to dropping 3 units for Fall) |
| Spring Unsubsidized | $880 | Reduced by $120 (Due to dropping 3 units for Fall) |
If, in the spring, you enroll in enough units to bring your total between the two terms back up to 24 financial aid-eligible units, you may be eligible to receive an increase in your spring loan disbursement so that your total loan for the academic year equals the original full-time amount.
Note: If the student withdraws from all eligible courses they will be subject to Federal Return of Title IV AID Calculations.
Beginning with the 2026–2027 academic year, students may no longer receive their full annual federal loan limit in a single term when the single-term calculation is used.
Additional Information
- The requirements listed on this website may not include all borrower requirements and responsibilities. It is borrower's responsibility to comply with all applicable federal, state, institutional, and financial aid regulations and requirements.
- The loan policies, procedures and examples outlined on this page are subject to change
as new federal regulations and/or Cerritos College policies are implemented. This
information may not include all requirements or situations.
- This website will be updated as new policies and guidance become available.
- Students are encouraged to contact the Financial Aid Office with any questions regarding their eligibility or loan requirements.