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 Fall 2024 Graduates!
Do you anticipate graduating after the Fall 2024 semester? In order to be considered for graduation, you must apply.
After the Oct. 1 deadline to file fall 2024 graduation application without financial penalty, we will begin processing loan prorations.
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, new loan amounts will be calculated. Downward adjustments will be made automatically.
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.
Our office will email students who could be eligible for additional funds as a result of federal direct loan proration. These students can email finaid@stockton.edu to learn more about their additional loan eligibility and to request an increase.
*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)
