Important Change to Federal Student Loans for 2026–2027
Starting July 1, 2026:
- The amount you can borrow will depend on how many credits you are enrolled in and actively attending.
- You can only receive the full yearly loan amount if you are enrolled and actively attending full-time (12 credits each semester).
- If you are enrolled in 6–11 credits, your loan amount will be lower.
Formula for Loan Amount when enrolled below 12 credits:
(Number of Enrolled Credits* ÷ 12) × Semester Loan Amount = Your Eligible Loan Amount
*Students taking more than 12 credits will receive 100% of loan amount. Registration over 12 credits will not receive additional loan eligibility.
The federal government allows full-time students to receive half of their yearly loan amount each semester. If you are taking fewer than 12 credits, the college must reduce the amount of loan money you can receive.
Examples:
A first-year independent student eligible for $4,750 a semester could receive:
- Full-time (12+ credits) = 100% = $4,750
- 9 credits = 75% = $3,562
- 6 credits = 50% = $2,375
- 5 credits or less = not eligible = $0
A first-year dependent student eligible for $2,750 a semester, could receive:
- Full-time (12+ credits) = 100% = $2,750
- 9 credits = 75% = $2,062
- 6 credits = 50% = $1,375
- 5 credits or less = not eligible = $0
Your enrollment is checked throughout the semester. Your loan amount may be reduced if you:
- drop a class,
- withdraw from a class, or
- are withdrawn by your instructor for not attending.
If your registration changes during the semester, your loan for the next semester in the same school year may also need to be adjusted.
Please contact the NHCC financial aid office if you have any questions regarding federal loan changes and the impact on your student loans.
More information regarding the One Big Beautiful Bill Act Updates can be found on Federal Student Aid.
Know Before You Borrow
A loan is a type of financial aid that must be repaid. Make sure you will be able to afford the monthly payment before you borrow. You must repay the funds you borrow, any fees associated with the loan, and any interest that accrues on the loan. All fees are deducted from your loan prior to disbursement. However, you remain responsible for repaying the entire loan amount plus interest. Use Federal Student Aid's Loan Simulator as a tool to calculate estimated student loan payments.
NHCC's 3-year cohort default rate for 2019 was 2.5%. For more information about the national average Cohort Default rate, as well as specifics by institution type, visit Federal Student Aid's default management site.
You must be enrolled in and attending at least 6 credits to receive a loan.
Federal Direct Loan Application Process
- Complete a FAFSA and wait to receive an email from the Financial Aid Office that notifies you that your award notice is ready to view online. The online award notice will list the amount and type of loan that you are eligible to receive.
- All borrowers must complete a Direct Loan Master Promissory Note (MPN), loan entrance counseling session, and loan application. To apply for a loan or to check your application status, go to your e-Services account . Choose Financial Aid from the menu and select the Loan option.
Note: The loan amount requested is for the year and will be equally split between the fall and spring semesters. You have the right to cancel or reduce any loan amount by making the request using the online Direct Loan Change form within 14 days of the loan disbursing.
Federal Direct PLUS Loan Application - Parent
- Complete a FAFSA and wait to receive an email from the Financial Aid Office that notifies you that your award notice is ready to view online.
- Complete the Direct PLUS Loan Master Promissory Note (MPN).
- Complete the Direct PLUS Loan Request Form.
Note: The parent borrower has the right to cancel or reduce any loan amount by making the request in writing to the Financial Aid Office within 14 days of the loan disbursing.
Other Loan Options
Alternative loan options are available, but should only be considered after federal loan options have been exhausted. Interest rates, fees, terms, and conditions will vary by lender.