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What Is the Schedule of Reductions (SOR)
The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, introduced major changes to federal student aid programs. Several provisions affecting student loans became effective July 1, 2026. Among the most significant changes is the introduction of the Schedule of Reductions (SOR), which requires federal student loan eligibility to be reduced based on enrollment level.
Beginning with the 2026 Fall term, annual federal student loan amounts will be reduced based on enrollment. Full-time students (12 or more credits) will receive a full loan amount, but part-time students (6-11 credits) will receive a proportional total loan amount. Students must enroll at least half-time to be eligible for federal direct loans.
Student Loan Anticipated Award Amount
Students will initially be awarded based on an expectation of full-time enrollment (12 credits for Fall and 12 credits for Spring). Changes in actual enrollment may impact final award amounts, disbursements, and student refunds.
Student Loan Disbursements
At time of loan disbursement (or financial aid refunds), the total eligible credits will be evaluated and the loan amount adjusted based on actual enrollment.
For example, if enrolled in 12 credits, the student will receive 100% of the expected loan. However, if enrolled in 9 credits, the student will receive a lesser amount. The amount will vary based on the individual student’s eligibility.
Changes to Enrollment
The impact of dropping, failing to start, or withdrawing courses will be considered when calculating loan eligibility. It is strongly advised that students discuss impacts of withdrawing or dropping a course with the financial aid office.
Adding courses after the add/drop period will not result in an increase in loan amount in the same term. Adjustments to increase credits will be made, if necessary, in the next term.
It is strongly recommended to discuss course changes, when they affect the total number of credits, with an academic advisor or member of the financial aid office prior to making schedule changes.
Frequently Asked Questions
What happens if I drop classes or do not begin a late-start class?
Bergen CC will not adjust a loan that is already disbursed for the term. However, future disbursements will be affected, and you may receive less than originally calculated. Future eligibility and disbursements will be adjusted to account for your new total enrollment.
After the First disbursement, can I add a course to increase my loan in the same term?
No. Enrollment will be calculated at time of disbursement. Adding a late-start course will not increase the loan amount. Adjustments for changes in enrollment will be made during disbursement in the next term.
Can I avoid a reduction by making up credits later?
Possibly. If you drop a course in fall term after disbursement and, for example, end with 6 credits instead of 9, you may be able to add a course in spring term to re-establish your annual total enrolled credits.
Am I liable for charges on my Bergen CC account that my aid, or adjusted aid do not cover?
Yes. The student is held responsible for charges not covered by financial aid or for any balance created due to return of unearned financial aid.
Can I still purchase books and supplies at the bookstore?
Yes. Using excess financial aid to purchase items at the bookstore prior to start of term is allowed. However, if students reduce enrollment after making purchases their loan amount may also be reduced leaving less excess aid to pay for bookstore items. Any remaining charges will be the responsibility of the student.
What can I do if my federal direct loans are reduced but I need additional money for living expenses (for example, Nursing students enrolled in 8 credits with clinical)?
Some programs, like Nursing, require a semester of 8 academic credits which also include clinical work and make it difficult to work. Unfortunately, federal loan disbursements will be reduced based on actual enrollment which leaves less money available to be used for living expenses. In such cases, students may apply for private alternative loans. For more information, please go to ELMSelect | Unbiased Private Student Loan Comparison Tool