OBBBA Financial Aid Q&A: What Institutions Need to Know About OB3 Post July 1

The One Big Beautiful Bill Act (OB3) is now in effect, and the Schedule of Reductions (SOR) is generating more questions than any other provision. In this live Q&A, Portico's financial aid team answers the SOR scenarios institutions submitted in advance: grade level changes mid-year, header and trailer terms, R2T4 timing, single-term loans, overlapping academic years, and quarter credit BBAY programs. Sarah Scott (FA Compliance Specialist), Armando Rios (Director of Financial Aid Processing), and Kimberly Verga (Senior VP of Financial Aid) walk through the calculations step by step, flag where the Department of Ed has not yet issued written guidance, and cover how Portico FA CORE is automating SOR for the 26-27 award year. Topics covered A recap of the major OB3 changes: Pell and institutional aid, enrollment intensity, Grad PLUS elimination, Parent PLUS caps, and Workforce Pell How to calculate SOR when a student progresses to a new grade level mid-year When header and trailer term credits belong in the numerator, the denominator, or both Why SOR happens at the disbursement level and before R2T4 Single-term loan calculations, including when the remaining period of study formula applies instead SOR in overlapping academic years and quarter credit BBAY programs How Portico FA CORE will automatically calculate SOR after your add/drop period, and what to do for students who need adjustments now What institutions should ask of their policies and systems when enrollment changes constantly Chapters 0:00 Welcome and introductions 0:46 OB3 at a glance: what changed 6:04 SOR when a student changes grade level mid-year 7:37 Optional header and trailer terms 9:23 SOR and R2T4: which comes first 10:31 SOR and less than half-time enrollment 11:21 Originating loans one term at a time 13:27 Overlapping academic years 16:15 Quarter credit BBAY programs 17:55 Where to find CORE's SOR calculation guide 18:48 Disbursement timing when one term is less than full-time 20:04 Automatic SOR proration in Portico FA CORE 22:12 Managing continuously changing enrollment 24:53 Single-term loans and the annual loan limit 30:12 References and where to find guidance 32:04 How Portico can help Resources Portico OBBBA Resource Hub: https://welcome.porticoedu.com/obbba-... NASFAA AskRegs, applying SOR when a student advances a grade level mid-year: https://askregs.nasfaa.org/article/37... NASFAA AskRegs, indicating a summer term is mandatory: https://askregs.nasfaa.org/article/37... NASFAA AskRegs, annual loan limit in a single term under OBBBA: https://askregs.nasfaa.org/article/37... NASFAA AskRegs OBBBA category: https://askregs.nasfaa.org/articles/c... FSA Office Hours: https://fsatraining.ed.gov/mod/book/v... FSA Webinar, 2026 SOR + Loan Limits: https://fsatraining.ed.gov/pluginfile... FSA FAQ, Loan Limits: https://fsapartners.ed.gov/sites/defa... About Portico CORE Financial Aid CORE replaces manual work and disconnected systems with automation, real-time updates, and built-in compliance checks. From document collection to disbursement and reconciliation, every step is connected and easier to manage. Learn more at porticoedu.com.