Graduate Student Financial Aid Changes

What is changing?

The Graduate PLUS loan has been eliminated for new student borrowers.

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Who continues to be eligible for the Graduate PLUS loan?

Any student who has borrowed any federal student loan prior to July 1, 2026 and meets the following conditions is eligible for the Graduate PLUS Loan:

• Enrolled in the same graduate program for up to three academic years but no longer than their expected time to credential.
• Has not ceased enrollment after July 1, 2026.
• Students must continue to be credit approved. 

Examples

• You have received federal loans for the past year (prior to July 1, 2026) as a MSW student and will be taking another loan this year for the same program. In this case, you are considered a legacy borrower.
• You are starting a new degree program after July 1, 2026 and have not previously borrowed federal loan money for this program. In this case, you are considered a new borrower and are NOT eligible for a Graduate PLUS Loan.
• You began your MBA program in Fall 2025 and received federal Direct Loans during that academic year (before July 1, 2026). You remain continuously enrolled in the same MBA program through Fall 2026 and Spring 2027 without taking a break in enrollment. You have not exceeded your expected time to complete the program, and you continue to pass the credit check requirements. In this case, you are considered a legacy borrower and remain eligible for the Graduate PLUS Loan.
• You completed your MBA in Spring 2026 and then enroll in a new graduate program starting Fall 2026. Even though you previously borrowed federal loans, this is a new program after July 1, 2026. In this case, you are considered a new borrower for that program and are NOT eligible for the Graduate PLUS Loan.

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What happens if I change my degree program of study after July 1, 2026 or take a leave of absence?

Beginning a new degree program (even at the same school), or taking a leave of absence can reset your borrowing category. This means your loan limits and eligibility rules may change to those of a "new borrower."

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If completion of my program extends longer than expected, do I retain my original borrowing category?

Current borrowers meeting the legacy provision are only eligible for this for a limited period of time (usually no more than 3 years). If your program enrollment extends beyond the allowable "legacy" window of 3 years, you will be subject to the new annual and lifetime loan limits.

What is changing?

Eligibility for annual Federal Direct Loan amounts are reduced for students who are enrolled less than full-time.

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Is there a legacy provision for this reduction in eligibility based on less than full-time enrollment?

No, this provision is effective for any student enrolled less than full-time after July 1, 2026.

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How should I plan my enrollment?

Because future loan disbursements will be tied more closely to full-time enrollment, students will want to plan their schedules carefully starting in the 2026–2027 academic year. Your academic advisor as well as your degree audit can help you map out a schedule that keeps you on track.

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Will taking classes part-time reduce the amount of federal loans that I can borrow?

Yes, under the new law your loan eligibility is adjusted based on your total annual enrollment. If you drop below full-time, your available loan amount will be prorated, even if you were eligible for the full amount in past years.

Example

Full-time enrollment for graduate students at Millersville University is 12 credits per full academic year (typically 6 credits in fall and 6 credits in spring).

If you enroll in:

• 3 credits in Fall
• 6 credits in Spring
• This equals 9 total credits for the academic year.

Semester Award Calculation:

Fall:

• 3 credits ÷ 12 credits (annual full-time enrollment) = 25%
• If your annual federal direct loan limit is $20,500, you would be eligible for: $20,500 × 25% = $5,125 for Fall.

Spring:

• 6 credits ÷ 12 credits (annual full-time enrollment) = 50%
• If your annual federal direct loan limit is $20,500, you would be eligible for: $20,500 × 50% = $10,250 for Spring.

Total Award for Academic Year: $15,375 (75% of annual limit with full-time enrollment)

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will Enrollment Adjustments Affect My Future Loan Eligibility?

Yes, enrollment adjustments may impact your future federal loan eligibility. Additional guidance from the U.S. Department of Education is still needed before we will know the full implications of this. We will continue to update this page as more information becomes available.

For more information on how enrollment changes may impact your financial aid, please visit our page on Enrollment Changes.

Beginning July 1, 2026, a student’s eligibility for federal financial aid may be impacted if they do not successfully complete coursework.

Students who receive failing or non-completion grades such as:

• F – Failure
• I – Incomplete
• W – Withdrawal (including for medical reasons)
• Z – No grade given

may experience an impact to their financial aid eligibility for the current and/or future terms.

In some situations, when a student receives a failing or another non-completion grade, a portion of the student's federal loan may need to be returned for that semester, which may create a balance due with the Office of Student Accounts.

These grades may affect:

• Satisfactory Academic Progress (SAP)
• Pace of completion
• Federal, state, and institutional aid eligibility
• Future financial aid disbursements

What is changing?

Effective July 1, 2026, the Federal Direct Loan limits are different for graduate and professional students. Before this, the limits were the same.

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What programs meet the definition of “professional”?

A professional student is a student enrolled in a program of study that awards a professional degree upon completion of the program. *Millersville University does not currently offer “professional” level programs.*

A professional degree is a degree that signifies both completion of the academic requirements for beginning practice in a given profession, and a level of professional skill beyond that normally required for a bachelor’s degree; is generally at the doctoral level, and requires at least six academic years of postsecondary education coursework for completion, including at least two years of postbaccalaureate level coursework; generally requires professional licensure to begin practice; and includes a four-digit program CIP code in the same intermediate group as the following fields: Pharmacy (Pharm.D.), Dentistry (D.D.S. or D.M.D.), Veterinary Medicine (D.V.M.), Chiropractic (D.C. or D.C.M.), Law (L.L.B. or J.D.), Medicine (M.D.), Optometry (O.D.), Osteopathic Medicine (D.O.), Podiatry (D.P.M., D.P., or Pod.D.), Theology (M.Div., or M.H.L.), and Clinical Psychology (Psy.D. or Ph.D.).

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Who is impacted by this change?

New student borrowers are subject to these limits.

Previous legacy borrowers are any students enrolled in the same graduate program for up to three academic years but no longer than their expected time to credential. Additionally, a student may not cease enrollment after July 1, 2026, or they will be considered a new borrower.

Examples

• You have received federal loans for the past year (prior to July 1, 2026) as a MSW student and will be taking another loan this year for the same program. In this case, you are considered a legacy borrower.
• You are starting a new degree program after July 1, 2026 and have not previously borrowed federal loan money for this program. In this case, you are considered a new borrower.

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What are the current borrower and new borrower limits for Graduate Students?

Federal Student Loan Limits

 

Effective July 1, 2026, the new lifetime borrowing limit for federal student loans is $257,500 for a combination of all undergraduate, graduate, and professional student loans, excluding Parent PLUS loans.

Once a borrower reaches the $257,500 lifetime maximum loan limit, the borrower will no longer be eligible to receive additional federal loans, even if the borrower’s loans have been repaid, forgiven, or discharged.

Limited Exception: Students are not subject to the new lifetime loan limit (for up to three academic years or the remainder of their expected time to credential, whichever is less) if they remain continuously enrolled in the same program of study at the same institution as they were enrolled as of June 30, 2026 and they had a Direct Loan disbursed for that same program before
July 1, 2026.

• Private Loans
• Payment Plans
• Graduate Assistantships