How the "One Big Beautiful Bill Act" (OB3) Changes Your Federal Loans

Starting with the 2026–27 academic year, a new federal law changes how much you can borrow in Direct Subsidized and Unsubsidized Loans if you are not enrolled full time. This page explains what's changing, who it affects, and, most importantly, how a schedule change during the semester could affect money you've already received.

This page reflects our current understanding of the law. Some details are still being finalized by the U.S. Department of Education, and we will update this page as new guidance arrives.

The short version

  • Your federal loan amount is now tied directly to how many credit hours you're enrolled in, not just whether you meet a minimum.
  • This applies whether you plan your schedule as part time from the start, or you start full time and later drop to part time.
  • If your enrollment drops after your loan has already paid out, your loan amount can be reduced retroactively, and you may have to repay FSU for money you've already received.

1. If you enroll less than full time

Full-time enrollment is 12 credit hours per semester for undergraduates and 9 for graduate students. If you're enrolled below that, your annual loan limit is automatically reduced to match your enrollment, not your class year or degree level. This happens whether you're a new student planning a part-time schedule or a continuing student who has borrowed at this level before.

For example: if a full-time student would qualify for $5,500 for the year, a student in the same program enrolled at half time for both semesters would qualify for about $2,750 for the year, roughly half, matching the reduced enrollment.

2. If you start full time and then drop to part time

The same rule applies even if you started the semester enrolled full time. If you drop one or more classes and your enrollment falls below full time, your loan eligibility for the rest of the loan period is recalculated based on your new, lower enrollment, even if your loan already disbursed at the full-time amount.

3. If this happens after your loan has already paid out

This is the part students most need to understand:

If you drop below full time after your loan money has already been disbursed to your account, your loan amount is recalculated based on your new enrollment, and the difference is not simply forgiven. If FSU has already refunded loan money to you (for example, to help cover rent, books, or other expenses) and your enrollment drop reduces how much loan you were actually eligible for, you will owe FSU the difference between what you received and what your reduced eligibility allows.

In practice, that means:

  • Your loan disburses based on your enrollment at the time.
  • Any credit balance is refunded to you, often the same day.
  • If you later drop a class and fall below full time, your loan eligibility is reduced to match.
  • The reduced amount comes off your student account as a balance owed, even though you already received the refund.

Bottom line: dropping a class doesn't just change your schedule. It can create a balance you owe FSU, even weeks after you received a refund. Before you drop any class, talk to your financial aid counselor about whether it will affect a loan that has already disbursed.

Why your refund might be delayed

To help prevent the situation above, we've changed how we handle credit balances for students who have a federal loan and recently dropped a class. If dropping a class would normally create a credit balance on your account, and you have a loan for the term, we will review your account before refunding that credit balance to you. This review checks whether your loan eligibility has changed because of the drop.

If your loan amount needs to be reduced, we will apply that reduction first, then refund whatever credit balance remains to you. This may take a few extra business days compared to a typical refund. The goal is to prevent you from receiving a refund that includes loan money you're no longer eligible for, which would otherwise become a balance you owe us later.

If you drop a class and notice your refund hasn't arrived as quickly as expected, this review is likely why. You can check your student account or contact our office for the status.

What you can do

  • Before you drop a class, contact the Office of Financial Aid to ask whether it will change your loan eligibility for the term.
  • If you've already dropped below full time, check your student account regularly for a balance and reach out to our office if you have questions about what you owe and why.
  • If you're planning a part-time schedule from the start, ask your financial aid counselor what your prorated loan amount will be before you rely on it in your budget.

Who this doesn't apply to

Parent PLUS Loans are not prorated under this rule. Some continuing borrowers may also qualify for legacy provisions that protect their existing loan limits for a limited time. Ask your financial aid counselor if this applies to you.

Questions?

Contact the Office of Financial Aid or the Office of Student Finance if you have questions about how this affects your specific enrollment or account.