Important Changes

Beginning July 1, 2026, Federal Direct Loans will be reduced based on the number of credits a student is enrolled in. This process is called the Schedule of Reductions (SOR).

With the new Federal Direct Loan SOR requirement, full-time students will receive the full amount of their annual loan offer. If a student is enrolled less than full-time, they will not be eligible to receive the full-time amount of loans offered to them. Instead, the university will calculate the amount of loan funding the student is eligible to receive based on the number of credits they are enrolled in.

  • What is my loan eligibility if I am not enrolled full-time?

    Your annual loan limit is multiplied by the percentage of a full-time load you are taking. This is called the Schedule of Reductions(SOR).

    Undergraduate Example: Full-time is 24 credits per year, and you take 12 credits (half-time), you are eligible for 50% of your annual limit.

    Graduate Example: Full-time is considered 16 credits for a full year. If you take 8 credits, you are only eligible for 50% of the $20,500 limit, which is $10,250.

  • What is a legacy borrower or interim exemption?

    A student who takes out any Direct Loan before July 1, 2026, can continue to borrow under the old rules for the “3-year or until program completion” period under the old regulations, as long as they remain in the same program at the same school where they first borrowed the loan.

    If a student completes their program, withdraws, changes their program, takes a leave of absence or enrolls in a new program, they will no longer be eligible for the interim exemption and will now fall under the new rules.

In order to qualify to receive federal direct student loans, a valid FAFSA must be on file, and a student must be enrolled in and attending class for a minimum number of credits defined as at least half-time:

Fall Spring Summer
Undergraduate 6 6 6
Graduate, Doctorate 4 4 4

Direct Loan Limits

The federal government sets limits on the amount of money a student can borrow. Catholic University awards students that have filed the FAFSA the maximum amount eligible under such limits. The annual limit applies to the most a student can borrow in an academic year, while the aggregate limit applies to the maximum a student can borrow in a lifetime. Independent students and dependent students whose parent is denied a Federal Direct PLUS loan are eligible for an additional Federal Direct Unsubsidized Loan.

Below is a chart of annual and aggregate loan limits for the Federal Direct Loan Program

Annual Limits for Federal Direct Loans
Dependent Undergraduate
Completed Credits Subsidized Unsubsidized Total
Freshman 0-29 $3,500 $2,000 $5,500
Sophomore 30-59 $4,500 $2,000 $6,500
Junior & Senior 60+ $5,500 $2,000 $7,500
New Parent PLUS $20,000

Independent Undergraduate

Completed Credits Subsidized Unsubsidized Total
Freshman 0-29 $3,500 $6,000 $9,500
Sophomore 30-59 $4,500 $6,000 $10,500
Junior & Senior 60+ $5,500 $7,000 $12,500
Graduate
Unsubsidized Total
Graduate $20,500 $20,500 
Aggregate Limits for Federal Direct Loans

The aggregate limit on federal student loans is the total cumulative maximum amount you can borrow in undergraduate or graduate Direct Subsidized and Unsubsidized Loans. Once you reach this cap, you are no longer eligible to receive additional federal loans unless you pay down your existing loan principal.

Subsidized Total
Dependent Undergraduate $23,000 $31,000
Independent Undergraduate $23,000 $57,500
Graduate (Continueing/Legacy) N/A $138,500
New Graduate after July 1, 2026 $100,000
New Lifetime Limits for Federal Direct Loans
This is the maximum amount a borrower can receive, regardless of any amounts paid or discharged, in any combination of subsidized, unsubsidized, and PLUS loans for graduate or professional study. 
Total
All Borrowers $257,500
New Parent PLUS Borrowers $65,000 per dependent student