How Loan Adjustments Work
You must be enrolled at least half-time for the term to qualify for a federal loan disbursement. Loan eligibility is calculated using a proportional enrollment percentage:
Initial Percentage Formula: Half-time credits ÷ Full-time credits = Enrollment percentage.
This percentage is applied to your annual federal loan limit to determine initial eligibility.
Your loan amount may increase or decrease during the academic year if you
- Add or drop credits that change your enrollment level
- Begin attendance in additional sessions within the term
- Experience changes in enrollment after the add/drop period is finalized
Once you begin active enrollment, your eligibility is calculated using a percentage:
(Active credits + credits at half-time for subsequent terms) ÷ Full-time credits = enrollment percentage
This percentage is then applied to your annual loan limit to determine your adjusted eligibility.
How UMGC Determines Active Enrollment Status
University of Maryland Global Campus reviews enrollment after the add/drop period for each session has ended. Students will initially see loan amounts at the half-time enrollment level; however, once active enrollment has been verified for the current session, federal loan amounts may be adjusted. This process ensures that federal loan disbursements remain aligned with actual enrollment activity and continues on a rolling basis throughout the academic year as students adjust their schedules.
Undergraduate Scenarios (24 Credits = Full-Time Year)
Rachel is a 4th-year, independent undergraduate student enrolled in 6 credits each for the summer, fall, and spring terms. This would bring her total to 18 credits across all terms.
(Half-time credits ÷ Full-time credits = Enrollment percentage)
Loan Amount by Term
| Loan Type | Summer | Fall | Spring | Total |
| Subsidized | $1,375 | $1,375 | $1,375 | $4,125 |
| Unsubsidized | $1,750 | $1,750 | $1,750 | $5,250 |
| Total Per Term | $3,125 | $3,125 | $3,125 | $9,375 |
Rachel is a 4th-year, independent undergraduate student initially enrolled in 6 credits for summer, fall, and spring terms.
Rachel drops a course in summer and reduces enrollment to 3 credits for that term. Fall and spring remain unchanged at 6 credits each.
Enrollment Overview
| Enrollment | Summer | Fall | Spring | Total |
| Credits Enrolled (Before) | 6 | 6 | 6 | 18 |
| Credits Enrolled (After Drop) | 3 | 6 | 6 | 15 |
Full-Time Comparison
- Full-time requirement: 24 credits per academic year
- Rachel’s updated total enrollment: 15 credits
- Enrollment level: 63% of full-time
Loan Eligibility Impact (Example Adjustment Based on 3-Credit Reduction)
(Total annual reduction equivalent: 3 credits)
Applied across fall and spring equally
| Loan Type | Summer | Fall | Spring | Total |
| Subsidized | $1,375 | $1,031 | $1,032 | $3,438 |
| Unsubsidized | $1,750 | $1,312 | $1,313 | $4,375 |
| Total Per Term | $3,125 | $2,343 | $2,343 | $7,813 |
Summary
The summer loan eligibility will remain unchanged because Rachel’s enrollment was adjusted after disbursement. As a result, the summer calculation continues to reflect the original 6-credit enrollment level that was already established and processed.
However, the reduction equivalent to 3 credits is applied to the remaining portion of the academic year, which impacts fall and spring only. Fall and spring loan amounts are reduced to reflect the decreased overall annual eligibility. The adjustment is distributed evenly across both remaining terms.
Jordan is a 4th-year, independent undergraduate student initially enrolled in 6 credits for summer, fall, and spring terms.
After summer disbursement is completed, Jordan increases fall enrollment from 6 credits to 12 credits. Spring remains at 6 credits.
Enrollment Overview
| Enrollment | Summer | Fall | Spring | Total |
| Credits Enrolled (Initial) | 6 | 6 | 6 | 18 |
| Credits Enrolled (After Fall Increase) | 6 | 12 | 6 | 24 |
Full-Time Comparison
- Full-time requirement: 24 credits per academic year
- Jordan’s updated total enrollment: 24 credits
- Enrollment level: 100% of full-time
Loan Eligibility Impact (Example Adjustment Based on Fall Increase)
Additional annual eligibility equivalent: 6 credits.
(Initially applied to fall only until spring enrollment is reviewed.)
| Loan Type | Summer | Fall | Spring | Total |
| Subsidized | $1,375 | $2062 | $2063 | $5,500 |
| Unsubsidized | $1,750 | $2625 | $2625 | $7,000 |
| Total Per Term | $3,125 | $4687 | $4688 | $12,500 |
Summary
The summer loan eligibility remains unchanged because summer enrollment and disbursement were already finalized before the fall enrollment increase occurred. As a result, summer continues reflecting the original 6-credit enrollment level.
Once Jordan increased fall enrollment from 6 to 12 credits, the system recalculated eligibility for the remaining active terms, resulting in an equal increase to both fall and spring loan eligibility.
Because Jordan has now been offered 100% of annual loan eligibility based on full-time enrollment for the academic year, any additional increase to spring enrollment later in the year would not result in an additional spring loan increase.
Todd is a 1st-year, independent undergraduate student beginning his program at UMGC in the spring term. He is enrolled in 15 credits for his first term of attendance.
Full-Time Comparison
- Full-time requirement: 24 credits per academic year
- Todd’s spring enrollment: 15 credits
- Enrollment level: 63% of full-time (for the academic year)
Loan Eligibility Framework
- Annual Direct Loan limit: $9,500
- Subsidized: $3,500
- Unsubsidized: $6,000
- First-term restriction: Students are limited to no more than 50% of annual eligibility in their first term of enrollment
Loan Eligibility Impact (Spring Term Only)
| Loan Type | Spring |
| Subsidized | $1,750 |
| Unsubsidized | $3,000 |
| Total Spring Loan Eligibility | $4,750 |
Summary
Because this is Todd’s first term in the aid year at UMGC, his loan eligibility is capped at 50% of his annual Direct Loan limit for spring.
The remaining eligibility isn’t lost; it just stays available for future aid years.
Graduate Scenarios (18 Credits = Full-Time Year)
Greg is a graduate student enrolled in 6 credits for the fall term and 6 credits for the spring term, for a total of 12 credits.
Full-Time Comparison
- Full-time requirement: 18 credits per academic year
- Greg’s total enrollment: 12 credits
- Enrollment level: 67% of full-time
Loan Eligibility Framework
- Annual Direct Loan limit: $20,500
- Graduate students are only eligible for unsubsidized loans
Loan Eligibility Impact
| Loan Type | Fall | Spring | Total |
| Unsubsidized | $6,867 | $6,868 | $13,735 |
Summary
Greg isn’t enrolled at a full-time level for the academic year, so his loan eligibility is adjusted based on his total credits (12 out of 18).
Ana is a graduate student enrolled across the summer, fall, and spring terms. She maintains half-time enrollment throughout the academic year.
Enrollment Overview
| Enrollment | Summer | Fall | Spring | Total |
| Credits Enrolled | 6 | 6 | 6 | 18 |
Loan Amount by Term
| Loan Type | Summer | Fall | Spring | Total |
| Unsubsidized | $6,833 | $6,833 | $6,834 | $20,500 |
Summary
Ana maintains enrollment across all required terms and receives the full annual unsubsidized loan eligibility distributed evenly across the academic year.
Graduate Four-Term Scenarios (18 Credits = Full-Time Academic Year)
Taylor is enrolled in the fall and winter terms only. Although the graduate four-term structure includes three required terms, Taylor participates in only two full-time terms during the academic year—6 credits in the fall term and 6 credits in the winter term, for a total of 12 credits.
Loan Amount by Term
| Loan Type | Fall | Winter | Total |
| Unsubsidized loan | $6,867 | $6,868 | $13,735 |
Full-Time Comparison
- Full-time requirement: 18 credits per academic year
- Total enrollment: 12 credits
- Enrollment level: 67% of full-time
Summary
Taylor’s enrollment reflects participation in two out of the three required graduate four-term terms.
Because full-time status is defined as 18 credits annually, loan eligibility is prorated based on actual enrollment. As a result, eligibility is adjusted proportionally to reflect a 66.7% full-time equivalency.
Crystal is enrolled across the summer, fall, and spring terms (at 6 credits per term) and maintains full-time enrollment throughout the aid year by completing 18 total credits.
Loan Amount by Term
| Loan Type | Summer | Fall | Spring | Total |
| Unsubsidized | $6,833 | $6,833 | $6,834 | $20,500 |
Summary
Crystal meets full-time enrollment requirements across all three graduate four-term terms.
As a result, the full annual loan eligibility is distributed evenly across summer, fall, and spring terms.
Graduate PLUS Loan Scenarios
Joe is enrolled across the summer, fall, and spring terms (taking 6 credits per term, for a total of 18 credits) and is eligible for a Graduate PLUS Loan based on the Cost of Attendance (COA) minus other financial assistance (OFA).
Financial Aid Overview
| Aid Type | Amount |
| Cost of Attendance (COA) | $41,000 |
| Direct Unsubsidized Loan | $20,500 |
| Scholarship | $500 |
Maximum Graduate PLUS Loan Eligibility
The maximum Graduate PLUS Loan amount is calculated by subtracting all other financial assistance (OFA) from the Cost of Attendance.
COA − Other Financial Assistance = Maximum Grad PLUS Eligibility
Calculation
41,000 (COA) − 20,500 (OFA) − 500 (OFA) = 20,000
- Maximum Graduate PLUS Loan Eligibility: $20,000
Full-Time Comparison
- Full-time requirement: 18 credits per academic year
- Total enrollment: 18 credits
- Enrollment level: 100% of full-time
Graduate PLUS Loan Award
| Aid Type | Summer | Fall | Spring | Total |
| Scholarship | $0 | $250 | $250 | $500 |
| Unsubsidized | $6,833 | $6,833 | $6,834 | $20,500 |
| Graduate PLUS Loan | $6,666 | $6,667 | $6,667 | $20,000 |
Summary
Joe is enrolled full-time across the summer, fall, and spring terms, completing 18 credits during the academic year.
Graduate PLUS Loan eligibility is determined by subtracting all other financial assistance, including Direct Unsubsidized Loans and scholarships, from the Cost of Attendance.
Because Joe maintains full-time enrollment status, the full Graduate PLUS Loan eligibility of $20,000 is awarded and distributed evenly across the academic year.
Sara is enrolled across the fall and spring terms only (at 6 credits per term, for a total of 12 credits) and is eligible for a Graduate PLUS Loan based on the Cost of Attendance (COA) minus other financial assistance (OFA).
Financial Aid Overview
| Aid Type | Amount |
| Cost of Attendance (COA) | $35,000 |
| Direct Unsubsidized Loan | $13,735 |
| Scholarship | $500 |
Maximum Graduate PLUS Loan Eligibility
The maximum Graduate PLUS Loan amount is calculated by subtracting all other financial assistance from the Cost of Attendance.
COA − Other Financial Assistance = Maximum Grad PLUS Eligibility
Calculation
35,000 − 13,735−500 = 20,765
- Maximum Graduate PLUS Loan Eligibility: $20,765
Full-Time Comparison
- Full-time requirement: 18 credits per academic year
- Total enrollment: 12 credits
- Enrollment level: 67% of full-time
Graduate PLUS Loan Award Calculation
The final Graduate PLUS Loan award is adjusted proportionally based on the student’s enrollment level.
Calculation
20,765 × 67% = 13,913
Graduate PLUS Loan Award
| Aid Type | Fall | Spring | Total |
| Scholarship | $250 | $250 | $500 |
| irect Unsubsidized Loan | $6,867 | $6,868 | $13,735 |
| Graduate PLUS Loan | $6,956 | $6,957 | $13,913 |
Summary
Sara is enrolled less than full-time for the academic year, completing 12 out of the 18 credits required for full-time enrollment.
Graduate PLUS Loan eligibility is first determined by subtracting all other financial assistance from the Cost of Attendance. The resulting eligibility is then prorated based on the student’s enrollment percentage.
Because Sara is enrolled at 67% of full-time status, the Graduate PLUS Loan eligibility is reduced proportionally, resulting in a total annual award of $13,913 distributed across the Fall and Spring terms.