Federal Student Loan Eligibility Reduced for Part-Time Students; Borrower Defense Relief Expanded

New federal changes for the 2026-2027 academic year will reduce Federal Direct Loan eligibility for part-time students, requiring enrollment in 12 credits for full eligibility and prorating amounts for those taking 6-11 credits. Additionally, a recent federal court ruling in late July has paved the way for Borrower Defense relief for approximately 170,000 students defrauded by for-profit schools.