4 Financial Factors in Making the Part-Time College Calculation

A student can transition from full- to part-time status for any number of reasons.

Illness, family problems, stress, work -- all may necessitate a semester or two of pumping the brakes on college. But downshifting to part-time enrollment affects financial aid in myriad ways, from federal loan eligibility to scholarships and even long-term debt repayment.

"Students should always check with their schools before dropping down to part-time status, especially if it's after a semester has started, as it could be a costly mistake," said Marty Somero, director of financial aid at the University of Northern Colorado, in an email.

Avoid these money mistakes [for part-time students, full-time workers.]

Here's how reducing credit hours affects four important aspects of the student financial aid package: grants, loans, scholarships and long-term repayment.

1. Federal grants: Federal Pell Grants, awarded based on need, are prorated with enrollment status, meaning that a reduction in hours affects how much a student can receive on a sliding scale.

Typically, taking on three-quarters of a full-time course load earns students 75 percent as much in Pell Grant aid as a full schedule would, said David Horne, director of the financial aid office at Towson University, in an email. Likewise, half-time students get half as much, and quarter-time students get 25 percent as much.

Grants are one of the most forgiving kinds of financial aid because they don't need to be repaid, so losing or reducing this funding is something to think twice about, say experts.

2. Federal loans: Students need to enroll in at least six credits per semester to qualify for government loans.

Beyond that, enrollment status has little effect on the amount students can receive. There are a few uncommon circumstances, such as when a student is not enrolled for entire length of the final year before graduation, in which this isn't the case, so check with a financial aid officer, says Brad Barnett, senior associate director of the office of financial aid and scholarships at James Madison University.

But typically a student who's eligible for, say, $5,500 in unsubsidized Stafford loans, can take out that amount as a full-time or part-time student. That's despite the fact that tuition costs may be less as a part-time attendee and can cause that student to borrow more over the course of a college education.

Plus, it's important to remember that there is a limit to how much students can borrow in federal loans fortheir education.

The limit depends on the type of loan and dependency status of the student. But borrowing up to the maximum each semester means that "you may run out of loans before you actually receive your degree," says Ebony Carter, director of financial aid at the College of Professional Studies at Northeastern University. "And there's no appealing the aggregate loan limit."

3. Scholarships: Dropping below full-time can affect scholarships, depending on the eligibility requirements set out by the institution, donor or organization.

"It's case by case, so you need to check with whoever gave you the money," says Barnett.

Explore resources and tips on finding [college scholarships.]

Before dropping to part-time, students should check in with their schools to verify that their scholarships don't require full-time status and do the math on whether they can survive without.

4. Long-term borrowing: "The most common student loan error is borrowing too much without adequate consideration for how much debt you are accruing," says Horne, of Towson.

Horne recommends tailoring how much a student borrows to his course load. Students taking a three-quarter course load should borrow 75 percent of their awarded amount to ensure that they're not borrowing more than they need for their smaller course load. Half-timers should borrow half.

Make sure that withdrawing from courses doesn't become a regular occurrence since a student can lose federal aid eligibility altogether by making a habit of not completing courses. Different institutions determine when a student isn't making satisfactory progress differently. At James Madison, students must complete 80 percent of attempted courses, says Barnett.

Know your risks for [delaying graduation and accumulating more debt.]

Since decreasing a course load and taking longer to graduate means that a student borrows more, accrues more interest on unsubsidized loans and delays entry into the workforce, the decision shouldn't be made lightly.

It may help students get through a stressful period or focus on one challenging class, but the financial ripples will live on beyond that tough time.

Says Barnett, "The longer you're staying in school, the more you're falling behind the eight ball every year."

Trying to fund your education? Get tips and more in the U.S. News Paying for College center.

Susannah Snider is an education reporter at U.S. News, covering paying for college and graduate school. You can follow her on Twitter or email her at ssnider@usnews.com.