Loans

Educational Loans

Penn State Federal's Student Loan Code is USDE 823021.

For more information, contact the Loan Department, visit www.pheaa.org or call PHEAA at 1-800-692-7392.

Visit FAFSA online for frequently asked questions or fill out your FAFSA online.

Keystone Best Program

Federal (Student) Stafford Loans

These loans are available to finance both graduate and undergraduate study at colleges, universities, vocational schools, technical schools, business schools, hospital schools of nursing and even home study courses. Collateral or parental endorsements are not required for these loans. There is no age limitation. Student may receive one loan per academic grade level. PHEAA Keystone Best Program fees: 1% origination fee, no insurance fee. (Non- Keystone Best Program lender fees: 3% origination fee 1% insurance fee.) PHEAA Keystone Best Program also offers a 2% interest rate reduction after 48 consecutive on-time payments, and an additional 1/4% interest reduction for ACH electronic payments. Repayment of a BEST loan begins 6 months after graduation or withdrawal from school. Repayment can be deferred for graduate study and certain other circumstances. Graduated and income sensitive options available. There is a maximum 10-year repayment period.

Subsidized Loans

Interest is subsidized (or paid) by the federal government during the in-school period. Student must show financial need. During the in school, grace & deferment periods, the rate is equal to the 91- day T-bill rate + 1.7% with an 8.25% cap. Debt may be consolidated to repay in 25 years. Limit for borrowing: freshman $3500, sophomore $4,500, junior $5,500, senior/additional year $5,500, ($23,000 aggregate maximum). During repayment, the rate is the 91-day T-Bill rate + 2.3% with an 8.25% cap. The interest rate of a BEST student loan is adjusted each July. Call 800-692-7392 for current rate.

Unsubsidized Loans

The interest is not subsidized by the federal government. The borrower is liable for interest from the day the loan is made. Interest accrued during the in-school period may be paid monthly or capitalized. Limit for borrowing: Freshman/ Sophomore $4,000, Junior/ Senior $5,000. During repayment, the rate is the 91-day T-Bill rate + 2.3% with an 8.25% cap. The interest rate of a BEST student loan is adjusted each July. Call 800-692-7392 for current rate.

To Be Eligible & To Apply Graduate/ Undergraduate Student Must:
Be a U.S. Citizen or an eligible non-citizen. Be accepted for enrollment in a participating school, or if enrolled, be making satisfactory progress. Be classified as at least a half-time student and working toward a degree or certificate. Be registered with Selective Service, if required. Not be in default on an educational loan or owe any education grant refunds. Have financial need in order to receive a subsidized Federal Stafford Loan. First-time borrowers must complete an Entrance Interview requirement; this may be completed online at www.pheaa.org. Complete a Free Application for Federal Student Aid (FAFSA) by May 1 for the appropriate academic year. Indicate on the FAFSA that you are interested in a student loan. Complete a promissory note according to the instructions.

Then:
A credit evaluation is completed. School certifies eligibility. PHEAA reviews application to determine eligibility and notifies you, your school and your lender of the approved loan guaranty amount. If you borrow from the Keystone PLUS program, your funds will be disbursed to your student account by electronic payment (EFT) at the beginning of each term (twice a year).

Keystone PLUS Program

Federal Parent Loans

These loans are available to enable parents to borrow for their dependent student. They can be used to finance undergraduate study at colleges, universities, vocational schools, technical schools, business schools and hospital schools of nursing. Collateral endorsements are not required for these loans. PHEAA Keystone Plus Program fees: 3% origination fee, 0% insurance premium deducted from the loan principal. PHEAA Keystone Plus Program also offers a 1% rebate of the loan amount after 24 on-time payments, and an additional 1% after the 48th on-time payment. Repayment of a PLUS Loan begins no later than 60 days after it is disbursed. There is a maximum 10-year repayment period.

Unsubsidized Loans

The interest is not subsidized by the federal government. The borrower is liable for interest from the day the loan is made. Limit for borrowing: up to the Educational Expense Budget minus any financial assistance received. Lender sets the maximum aggregate loan amount that can be borrowed. During repayment, the rate is the 91-day T-Bill rate + 3.10%, with a 9% cap. The interest rate of a PLUS loan is adjusted each July. Call 800-692-7392 for current rate.

To Be Eligible & To Apply Dependent Undergraduate Student Must:
Be a U.S. Citizen or eligible non-citizen. Be accepted for enrollment at a participating school; or, if enrolled, be making satisfactory progress. Be classified as at least a half-time student and working toward a degree or certificate. Be registered with Selective Service, if required. Not be in default on an educational loan or owe any education grant refunds. Parent & student complete a loan application from Penn State Federal or the Keystone PLUS application from PHEAA.

To Be Eligible & To Apply Parents Must:
Be a U.S. Citizen or eligible non-citizen. Be the dependent student's natural parent, adoptive parent, or in some cases, a stepparent. Not be in default on an educational loan or owe any education grant refunds. Have satisfactory credit history; income to debt ratio is not considered. (If the parents are not eligible, the student may apply for additional unsubsidized Federal Stafford Loan.) Parent & student complete a loan application from Penn State Federal or the Keystone PLUS application from PHEAA. Apply by June 1 in order to have funds available by the Fall Term due date.

Then:
A credit evaluation is completed. School certifies eligibility. PHEAA reviews application to determine eligibility and notifies the parent, school and lender of the approved loan guaranty amount. If you borrow from the Keystone PLUS program, your funds will be disbursed to your student account by electronic payment (EFT) at the beginning of each term (twice a year).

Additional Resources

Interest Rates

Penn State Federal Loan Application

TurboTax

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