Did your financial aid offer change? Is your refund late? Thinking about dropping a class? Changes in federal legislation may have effected your student aid offer or payment. This guide can help you unravel where these changes may have impacted your aid. 

Warning: Financial aid rules are confusing for everyone, even for those who WORK in financial aid. This guide includes explanations about how financial aid works, but a campus coach, foster care liaison, or supportive adult can help you walk through next steps. We suggest you start with the section that best fits your situation. 

Before you change your classes

How the loan limit changes. Starting in 2026–27, schools use a federal formula called the Schedule of Reductions to lower annual Direct Loan limits for students taking fewer than full-time credits in programs covered by the rule. You generally need at least half-time enrollment for a new loan payment. Pell Grants and Michigan aid can follow different rules.

What happens after your loan pays out. Dropping a class alone doesn’t automatically mean you must repay money right away. Before the next payment on the same loan, your school checks your enrollment for the year and may reduce or cancel that payment. If you withdraw from all your classes, separate federal rules can affect what you owe.

Example. If 12 credits is full time, 9 credits is 75% of full time for that semester. If you drop to 9 credits in fall and take 12 in spring, that’s 21 of 24 credits for the year. The annual percentage rounds to 88%. With a $5,500 starting limit and $2,750 already paid in fall, up to $2,090 could remain for spring if the fall payment stays in place and you otherwise qualify.

• Ask financial aid to compare your two schedules. Find out how each would affect your school’s cost-of-attendance budget, each grant and scholarship, and any loan payment, refund, or balance this term and next.
• Ask what you might owe if you already received a refund. Check the deadline to drop or withdraw and ask your advisor which classes count toward your program.
• If you’re cutting back because of work, caregiving, housing, or transportation, tell the campus staff member helping you what you need. Ask about options that fit your schedule and budget.

Federal Student Aid guidance on part-time loans • Find campus support in Michigan

When Your Aid Changes or Arrives Late

My Pell Grant changed

Ask your financial aid office which rule affected your offer. One new rule applies when certain state, college, and private grants or scholarships together cover your full cost of attendance for the year, including allowable costs such as housing, food, and books. Another generally makes students ineligible for Pell if their Student Aid Index (SAI), a number calculated from the FAFSA, is $14,790 or higher in 2026–27. The Pell calculation now also includes certain foreign-earned income that was excluded from U.S. taxable income.

If you expected a Michigan Achievement Bonus through the Community College Guarantee, ask the school to check it too. The bonus depends on Pell eligibility. Ask for a breakdown before declining a scholarship or grant.

Federal Pell Grant rules • Rule on scholarships and Pell • Michigan Community College Guarantee

My refund is late or my bill is due

Check your school portal for missing forms and contact financial aid for a status update. If rent, books, food, or transportation are urgent, say what you need and when. Ask the billing office about a payment extension or protection from being dropped for an unpaid balance, and ask campus support about emergency help.

I need help with the FAFSA

If you were in foster care at any time at age 13 or older, you can generally file as independent without parent information. If the school asks for proof, ask what it accepts and how to send it securely. Options include official state documentation or verification that you qualify for a Chafee Education and Training Voucher (ETV).

If you’re unsure whether you qualify as independent or it’s unsafe to contact a parent, ask the financial aid office to walk you through your options.

Federal FAFSA guidance • FSM Financial Aid Guide

Copy and send this message

Hi, I’m trying to plan for my next bill. My aid changed or hasn’t arrived. Can you tell me what happened, what amount I should expect, and when I’ll get an update? If I change from ___ to ___ credits, how would that affect my grants, loans, refund, or bill this term and next term? My ___ payment is due on ___. Who can help me with that deadline?

More Ways to Pay and Where to Get Help

Check Michigan aid with your school

Ask your school to review what each award covers, when it will pay, and what a schedule change could mean for it. If you receive ETV, check with your school and the ETV team before dropping a class or changing programs.

• Education and Training Voucher (ETV) can help eligible students with education and living expenses. FSM ETV resource
• Fostering Futures Scholarship supports eligible Michigan undergraduates who experienced foster care in Michigan. MI Student Aid scholarship information
• Tuition Incentive Program (TIP) can help eligible students with tuition and certain fees at participating schools. MI Student Aid TIP information
• Workforce Pell can help eligible students pay for certain short training programs. Before paying a deposit, ask the school if the exact program has state and federal approval and whether aid is available for your start date. Michigan Workforce Pell information

For professionals and supportive adults

• Help the student get a clear answer. With their permission, connect them with financial aid. Ask the office to identify the cause of the change and give a next step and a date for an update. If the FAFSA no longer reflects their finances, ask about a case-by-case review called professional judgment.
• Bring in billing and campus support early. If there’s a deadline for housing, books, or keeping classes, ask who can help with that deadline while financial aid reviews the case.
• Check out our one pager that highlights steps to help your students navigate changes.