Federal Direct Subsidized and Unsubsidized Loans (formerly known as Stafford Loans) are available through the William D. Ford Federal Direct Loan Program to help pay for educational expenses. The Penn State Office of Student Aid awards Subsidized or Unsubsidized Loans, or a combination of both, based on financial need.
You may need funds in addition to your student's Federal Direct Loans to pay for your student's education. The Federal Direct Parent PLUS Loan is available to parents of dependent undergraduate students. The Parent PLUS Loan application process will change for the fall 2016 and spring 2017 semesters. Beginning in mid-June, parents can apply through studentloans.gov.
As a graduate or professional student, you may need to borrow more than the Federal Direct Loan to pay for your education. The Federal Direct Graduate PLUS Loan can help.
Federal Direct and PLUS interest rates for the 2015-16 academic year
A partial list of federal loan servicers.
Private alternative loans are managed through private lenders, issued in the student’s name, and require a co-signer. Eligibility, rates, terms, and conditions vary.
The Federal Perkins Loan is for undergraduate and graduate students and offers a 5 percent fixed rate with no origination fees.
The University Loan is for undergraduate students and offers a 6 percent fixed, low-interest loan with zero origination fees.