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  • Loans

    Federal Perkins Loans
    This is a government-funded, low-interest loan (currently 5%) for undergraduate students who have demonstrated financial need. The Financial Aid Office will award this and send paperwork in your award packet if you qualify. Repayment begins nine months after graduation. Perkins Loan funds are limited.

    Direct Loans
    Direct Loans are low-interest loans for students and parents to help pay for the cost of a student's education after high school. The lender is the U.S. Department of Education (the Department), though the entity you deal with, your loan servicer, can be a private business. A student can complete a Federal Direct Master Promissory Note by going to www.studentloans.gov.

    With Direct Loans, you ·

    • Borrow directly from the federal government and have a single contact—your loan servicer—for everything related to repayment, even if you receive Direct Loans at different schools.
    • Have online access to your Direct Loan account information via your servicer's website.
    • Can choose from several repayment plans that are designed to meet the needs of almost any borrower, and you can switch repayment plans if your needs change


    Undergraduate Dependent Students receive......

    $3500 Subsidized and $2000 Unsubsidized for the 1st year
    $4500 Subsidized and $2000 Unsubsidized for the 2nd year
    $5500 Subsidized and $2000 Unsubsidized for the 3rd & 4th years

    Undergraduate Independent Students receive......

    $3500 Subsidized and $6000 Unsubsidized for the 1st year
    $4500 Subsidized and $6000 Unsubsidized for the 2nd year
    $5500 Subsidized and $6000 Unsubsidized for the 3rd & 4th years

    If your financial aid does not cover all of your costs, a parent can apply for a Federal Parent PLUS Loan (Parent Loan for Undergraduate Students) by going to www.studentloans.gov and completing the application and Master Prom Note. The interest rate is fixed at 6.41% as of July 1, 2013. The benefits of a PLUS are a fixed interest rate and the option to defer payments for up to four years. There is a 4% fee on this loan.

    If a parent is denied the PLUS, you are then eligible for an additional Stafford Loan of up to $4,000 in unsubsidized funds for the first and second years and up to $5,000 thereafter. However, a parent must apply and be denied each year.

    Alternative Loans
    Additional private loans, generally referred to as “alternative loans”, are also available to students to bridge any funding gaps. Most students will need a co-borrower. Payment can usually be deferred until after graduation, but interest accrues from the time the loan is disbursed. Additional information on this type of loan is available through the Financial Aid Office.

    The list of lenders is available online through www.ELMSelect.com. This summary information is intended only as a guide for comparison purposes. Many other options exist for supplemental borrowing. We encourage all students to utilize the federal loans available which include the Federal Direct Student Loan and the Federal Direct PLUS Loan for parents. You are NOT required to use any of the loans or lenders listed on this guide. Please consider the lender and loan product that best meets your needs. More information and a list of private lenders can also be found at www.finaid.org. A list of Pennsylvania Credit unions who offer private loans can be found at www.pastudentchoice.org along with their requirements. Please refer to the lender for updated information before making your choice. Rates, Terms and Conditions are subject to change without notice.