0:00:09.440,0:00:15.360
[Music] Hey GTC students, we have some really important 
information we want to share with you. And don't

0:00:15.360,0:00:19.040
worry, we're going to break it down 
in a way that's easy to understand.

0:00:19.040,0:00:24.640
The US Department of Education introduced the 
new federal student loan pration regulation

0:00:24.640,0:00:29.120
to ensure that federal student loan amounts 
more accurately reflect a student's actual

0:00:29.120,0:00:35.520
enrollment period and remaining coursework. 
Starting fall 2026, this new regulation is

0:00:35.520,0:00:40.880
going to change how your federal student loans 
are calculated. We want to make sure you know

0:00:40.880,0:00:47.440
exactly what to expect before it happens because 
the more you know, the better prepared you'll be.

0:00:50.080,0:00:55.760
Your federal student loans will now be prrated 
based on your enrollment. So, what does proration

0:00:55.760,0:01:03.040
even mean? Great question. Think of it like this. 
Your loan used to be like a fixed price on a menu,

0:01:03.040,0:01:06.960
no matter how many classes you took, as long 
as you were in at least six credit hours,

0:01:06.960,0:01:14.000
you got the full amount. Now, your loan is 
more like paying for exactly what you order.

0:01:14.000,0:01:19.600
In simple terms, your loan amount will now match 
your enrollment. Let's look at a real example so

0:01:19.600,0:01:28.160
this makes sense. Say you're a dependent freshman 
who qualifies for $1,750 in subsidized loans and

0:01:28.160,0:01:33.360
$1,000 in unsubsidized loans per term at 
full-time enrollment. Here's how your loan

0:01:33.360,0:01:38.880
changes depending on how many hours you take. So, 
if you're taking nine credit hours, you'd receive

0:01:38.880,0:01:49.200
75% of your full loan, not 100%. And if you're at 
six credit hours, you'd only receive half, etc.

0:01:49.200,0:01:55.760
Here's a pration example for a dependent 
sophomore who qualifies for $2,250 subsidized

0:01:55.760,0:02:01.440
and $1,000 unsubsidized. As you can see, you 
will no longer receive your full loan amount

0:02:01.440,0:02:08.480
if you are less than full-time. Now, here's 
something really important we need you to hear.

0:02:09.760,0:02:14.960
There is a withdrawal rule associated with the 
new federal loan regulation. If you withdraw

0:02:14.960,0:02:22.480
from even one class during the semester, it 
can affect your loan for your next semester.

0:02:22.480,0:02:28.560
Here's why. When you withdraw from a class, your 
completed credit hours for that term go down,

0:02:28.560,0:02:35.360
and your next term's loan is calculated based 
on those reduced hours. So, withdrawing from a

0:02:35.360,0:02:44.080
class now can mean less money next semester, 
even if you plan to take a full load. Then,

0:02:44.080,0:02:48.000
let's follow Jordan to see how this 
works in real life. Jordan starts

0:02:48.000,0:02:55.280
the fall 2026 term enrolled in 12 credit 
hours and receives a full dispersement,

0:02:55.280,0:03:02.400
$1,750 in subsidized loans and $1,000 in 
unsubsidized loans. But partway through

0:03:02.400,0:03:07.520
the semester, Jordan decides to withdraw 
from two classes. That's six credit hours

0:03:07.520,0:03:14.000
withdrawn. Jordan finishes the fall semester 
with only six credit hours completed. Now,

0:03:14.000,0:03:18.000
here comes the part that surprises a 
lot of students. Even though Jordan

0:03:18.000,0:03:22.960
signs up for 12 credit hours in the 
spring, he will not receive his full

0:03:22.960,0:03:29.840
federal student loan eligibility. Jordan's 
spring loan is not calculated on 12 hours.

0:03:29.840,0:03:35.520
It's calculated with consideration to the 
withdrawn courses from the previous term.

0:03:35.520,0:03:43.200
Since Jordan withdrew from 50% of his courses, 
his next dispersement is reduced by 50%. Jordan's

0:03:43.200,0:03:52.000
new spring dispersement due to withdrawing 
from six credit hours during the fall term.

0:03:52.000,0:03:57.520
Now, there are a few exceptions to this rule. 
The withdrawal reduction may not apply to your

0:03:57.520,0:04:02.400
next term if you transfer to another school for 
the following term. The withdrawal happens during

0:04:02.400,0:04:07.440
a summer term or you reduce your hours from 
15 down to 12. That one won't count against

0:04:07.440,0:04:13.120
you. If you're not sure whether your situation 
qualifies as an exception, just reach out to

0:04:13.120,0:04:19.280
your enrollment advisor. We know this might feel 
like a lot of information, and that's okay. You

0:04:19.280,0:04:25.040
don't have to figure this out alone. If you are 
thinking about withdrawing from a class, please

0:04:25.040,0:04:32.960
talk to your enrollment support advisor first. 
At GTC, we want to see you succeed, and part of

0:04:32.960,0:04:39.920
that is making sure you have the information you 
need to make the best decisions for your future.