Undergraduate Student Financial Aid Changes

What is changing?

The Federal Pell Grant continues to be part of a student’s overall financial aid package, which cannot exceed the Cost of Attendance. New regulations now make this limitation more explicit and introduce an additional change: students with a Student Aid Index (SAI) at or above twice the maximum Pell Grant are no longer eligible to receive Pell Grant funding.

What is changing?

The Parent PLUS Loan limits are changing. The new annual limit for all parents (combined) is $20,000 per student and the new lifetime limit for all parents (combined) is $65,000 per student. Families should be aware that these new limits may impact borrowing eligibility in a student’s fourth year and beyond.

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Who is impacted by this change?

The law allows for a time-limited exception to new loan limits for currently-enrolled students.

In order for Parent PLUS Loan borrowers to not be subject to the new loan limits, the below criteria must be met.

1) The student must remain continuously enrolled in the same program of study at the same institution as they were enrolled as of June 30, 2026, AND

2) Either:

• The parent borrower must have had a Parent PLUS Loan disbursed for that same program before July 1, 2026,

OR

• The student must have had a Direct Loan (subsidized or unsubsidized) disbursed for that same program before July 1, 2026.

If the above requirements are met, the new Parent PLUS Loan limits do not apply while the student is completing their program, for up to 3 years, provided the student remains continuously enrolled (i.e., does not withdraw or otherwise cease enrollment outside of scheduled breaks or non-required terms, such as summer).

Parents of current students who do not currently meet these criteria can still qualify for this limited exception to the new loan limits if:

• The parent borrows a Parent PLUS Loan prior to July 1, 2026,

OR

• The student borrows a Direct Loan (subsidized or unsubsidized) prior to July 1, 2026.

After three academic years, or earlier if the student withdraws or otherwise ceases enrollment from their current school or completes their program of study, Parent PLUS Loan borrowers become subject to the new $20,000 annual and $65,000 aggregate loan limits.

Examples 

• You have received federal loans for the past two years (prior to July 1, 2026) and change your major at MU. In this case, you are considered a legacy borrower.
• You have received federal loans for the past two years (prior to July 1, 2026) as an undergraduate and now enroll as a graduate student. In this case, you are considered a new borrower.
• A student has been enrolled at Millersville University since Fall 2024 in a Biology degree program. The parent borrowed a Parent PLUS Loan in Spring 2026 (before July 1, 2026). The student continues in the same program at MU without withdrawing. In this case, the parent qualifies for the exception and is not subject to the new Parent PLUS loan limits for up to 3 years.
• You received federal loans last year at another institution and transferred to the Millersville University to continue your undergraduate degree. In this case, you are considered a new borrower.
• A student was enrolled prior to July 1, 2026 but neither the student nor the parent borrowed any federal loans before that date. The parent applies for a PLUS loan for the first time in Fall 2026. Because no loan was disbursed prior to July 1, 2026, the parent does NOT qualify for the exception and is subject to the new limits.

What is changing?

Eligibility for annual Federal Direct Loan amounts must be reduced for students who are enrolled less than full-time (12 credit hours).

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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 undergraduates at Millersville University is 24 credits per full academic year (typically 12 credits in fall and 12 credits in spring).

If you enroll in:

• 9 credits in Fall
• 12 credits in Spring
• This equals 21 total credits for the academic year

Semester Award Calculation:

Fall:

• 9 credits ÷ 24 credits (annual full-time enrollment) = 37.5%
• If your annual federal direct loan limit is $5,500, you would be eligible for: $5,500 × 37.5% = $2,063 for Fall 

Spring:

• 12 credits ÷ 24 credits (annual full-time enrollment) = 50%
• If your annual federal direct loan limit is $5,500, you would be eligible for: $5,500 × 50% = $2,750 for Spring

Total Award for Academic Year: $4,813 (87.5% of the 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.

What alternatives should I consider with the reduction in federal loan availability?

• Private Loans
• Payment Plans
• Scholarships