Northwest Missouri State leadership shares new federal legislation about the consequences when students with student loans drop classes.
At the August 19, 2026 academic affairs meeting, associate provost Allison Hoffmann said over 50 percent of students at Northwest Missouri State use loans to help pay for school.
Click the LISTEN button to hear comments from Allison Hoffmann.
Dr. Hoffmann informed faculty and staff that there are changes in the federal direct loan program as the result of the Working Families Tax Cut Act.
The federal legislation says students dropping one or two classes after their federal direct loan is processed will result in a loan reduction and may impact future loan eligibility.
The maximum amount for a federal student loan is $5,500.
Hoffmann also says families are more hesitant to take out loans to finance education.
