Last updated: April 5, 2026
This calculator estimates prorated federal Direct Loan limits under the schedule of reductions for less-than-full-time students. It is based on a mix of the proposed regulatory language at 34 C.F.R. §685.203(m)(1), as set forth in the RISE Act Notice of Proposed Rulemaking published January 30, 2026 (91 FR 8430), and our current understanding of the regulations based on conversations with the Department of Education. The Department has not endorsed this tool.
No. The NPRM has not been finalized. The Department of Education may revise the formula, definitions, or requirements before issuing the final rule. Calculations produced by this tool reflect our current interpretation of the proposed regulation, which may differ from the final rule in material ways. We will update the calculator when the final rule publishes. Until then, treat all results as estimates based on a proposed rule.
Not necessarily. Even after the final rule takes effect, the Department will likely need to issue sub-regulatory guidance (Dear Colleague Letters, Electronic Announcements, or additional FAQs) to address implementation details and edge cases. We will update the calculator as that guidance is issued.
The proposed regulation at §685.203(m)(1)(ii) requires schools to distribute the reduced annual loan limit across enrollment periods, but does not prescribe a specific distribution method. Based on our current understanding, schools may distribute the reduced limit equally across terms, or proportionally based on each term's share of total enrolled credits. The calculator shows both options so your institution can apply whichever method it adopts. When all terms have the same enrollment intensity, the two methods produce the same result and only one figure is shown.
It is our understanding that the choice between equal and proportional distribution is an institutional decision, provided the total distributed across terms does not exceed the SOR annual loan limit. This interpretation may be clarified by the Department in the final rule or subsequent guidance.
No. This calculator is designed for credit-hour, term-based programs. If your institution offers clock-hour or non-term programs and you would like us to support those, please let us know through our feedback form.
No. This calculator determines loan eligibility under the schedule of reductions. R2T4 is a separate process that applies when a student withdraws from all classes during a payment period. If a student who received a reduced loan under SOR subsequently withdraws, the R2T4 calculation is performed separately using your institution's existing process. This calculator does not perform or replace R2T4 calculations.
No. This tool is an informational resource for financial aid professionals. It does not constitute legal advice, compliance advice, or official regulatory guidance. Desata does not guarantee that calculations produced by this tool will satisfy any particular regulatory, audit, or program review standard. Financial aid officers are responsible for verifying all calculations against the applicable regulations before making disbursement decisions.
No student names, IDs, Social Security numbers, or other personally identifiable student information are entered into or stored by this tool. The inputs are enrollment parameters (credits enrolled per term, full-time credit definitions, number of terms, degree level, and loan limit amounts) that describe an academic scenario, not an individual student. These inputs are not retained after the calculation is returned. Loan limit amounts are entered by the financial aid officer, not pulled from any student system.
The printed calculation record includes blank fields for student information that the financial aid officer completes by hand after printing. See our Privacy Policy for details on what information we do collect, including counselor contact information provided through the print feature.
Desata Analytics, Inc. builds compliance tools for higher education financial aid. Questions about this tool: [email protected].