Why your federal student loan amount may change
Beginning July 1, 2026, federal student loan rules changed under the One Big Beautiful Bill Act, or OBBBA. These changes include new requirements for students enrolled less than full-time.
Because UC Davis uses a quarter system, your loan eligibility may be adjusted based on the number of units you are enrolled in during each quarter. If you are enrolled in fewer than 12 units, your loan amount may be reduced proportionally based on your enrollment.
The examples below show how these changes may affect your Direct Subsidized Loan or Direct Unsubsidized Loan amount.
Example 1
Undergraduate student award offer on the quarter system
Let’s say you are an undergraduate student at UC Davis who can borrow up to $5,500 in Direct Subsidized Loans for the academic year with full-time enrollment. At UC Davis, full-time enrollment for an undergraduate student is 12 units per quarter.
Your original loan offer of $5,500 is divided across three quarters:
- Fall: $1,833.33
- Winter: $1,833.33
- Spring: $1,833.34
Fall enrollment
Let's say you enroll in six (6) units during the fall quarter.
Calculate the percentage of full-time enrollment: (6 ÷ 12) × 100 = 50%
Because you are enrolled at 50% of full-time for fall, your fall loan amount is reduced to 50% of the original fall amount: $1,833.33 × 50% = $916.67.
Your fall loan amount would therefore be $916.67.
Winter enrollment
Let's say you enroll in nine (9) units during the winter quarter.
Calculate the percentage of full-time enrollment: (9 ÷ 12) × 100 = 75%
Because you are enrolled at 75% of full-time for winter quarter, your winter loan amount is reduced to 75% of the original winter amount: $1,833.33 × 75% = $1,375.00.
Your winter loan amount would therefore be $1,375.00.
Spring enrollment
Let's say you enroll in 12 units during the spring quarter.
Calculate the percentage of full-time enrollment: (12 ÷ 12) × 100 = 100%
Because you are enrolled at 100% of full-time for spring quarter, your spring loan amount is not reduced: $1,833.34 × 100% = $1,833.34.
Your spring loan amount would therefore be $1,833.34.
Total loan for the academic year
In this example, your adjusted loan amounts would be:
- Fall: $916.67
- Winter: $1,375.00
- Spring: $1,833.34
- Total: $4,125.01
Your loan amount is adjusted based on your confirmed enrollment in each quarter. Enrolling in more units in a later quarter can increase the loan amount for that quarter, but it does not automatically restore an amount that was reduced during an earlier quarter.
Example 2
Graduate student award offer on the quarter system
Let’s say you are a graduate student at UC Davis who can borrow up to $20,500 in Direct Unsubsidized Loans for the academic year with full-time enrollment. At UC Davis, full-time enrollment for a graduate student is 12 units per quarter.
Your original loan offer of $20,500 is divided across three quarters:
- Fall: $6,833.33
- Winter: $6,833.33
- Spring: $6,833.34
Fall enrollment
Let's say you enroll in three (3) units during the fall quarter.
Calculate the percentage of full-time enrollment: (3 ÷ 12) × 100 = 25%
Because you are enrolled at 25% of full-time for fall quarter, your fall loan amount is reduced to 25% of the original fall amount: $6,833.33 × 25% = $1,708.33.
Your fall loan amount would therefore be $1,708.33.
Winter enrollment
Let's say you enroll in three (3) units during winter quarter.
Calculate the percentage of full-time enrollment: (3 ÷ 12) × 100 = 25%
Because you are enrolled at 25% of full-time for winter quarter, your winter loan amount is also reduced to 25%: $6,833.33 × 25% = $1,708.33.
Your winter loan amount would therefore be $1,708.33.
Spring enrollment
Let's say you enroll in nine (9) units during spring quarter.
Calculate the percentage of full-time enrollment: (9 ÷ 12) × 100 = 75%
Because you are enrolled at 75% of full-time for spring quarter, your spring loan amount is reduced to 75% of the original spring amount: $6,833.34 × 75% = $5,125.01.
Your spring loan amount would therefore be $5,125.01.
Total loan for the academic year
In this example, your adjusted loan amounts would be:
- Fall: $1,708.33
- Winter: $1,708.33
- Spring: $5,125.01
- Total: $8,541.67
The amount you can receive in each quarter depends on your enrollment during that quarter. Enrolling in additional units in a later quarter can increase that quarter's loan amount, but it does not automatically restore loan eligibility reduced in an earlier quarter.