University Loan

The University Loan is for undergraduate students and offers a 6 percent fixed, low-interest loan with zero origination fees.

Eligibility

To be eligible for the University Loan, undergraduate students must:

Meet and maintain Federal and Penn State Financial Aid Eligibility Requirements
Demonstrate financial need

Due to limited funding, not all students who are eligible will receive this award. Students who are awarded a University loan are not automatically awarded in subsequent years.

return to top

How to apply

You will be automatically be considered for a University loan if you submit the Free Application for Federal Student Aid (FAFSA).

return to top

How to accept your loan

First-time University loan borrowers will receive an e-mail mid to late August from the Office of Loans and Scholarships with directions for finalizing the loan online. You will need your Penn State User ID and password to sign an MPN, which will be valid for any future University loans.

The loan amount will appear on your Student Aid Summary on eLion and as a credit on your tuition bill. Once you have completed your registration, funds will automatically disburse to your student account after classes begin.

return to top

How to decrease or cancel the loan

To decrease or cancel your loan, log into eLion and select "Loan Decrease." If you are a new student, this option will be available after your Penn State Access Account is activated during the New Student Orientation.

Reducing or canceling your University loan for the fall semester will not automatically reduce or cancel your University loan for the spring semester.

return to top

How to repay or defer payments

Repayment begins after your nine-month grace period. The grace period will begin any time you are not enrolled at least half-time (with the exception of summer). For most students, the grace period begins after graduation.

If you cannot make payments on your loan after the nine-month grace period, you may be able to postpone repayment by pursuing deferment or forbearance. For more information, access the Office of Student Loans and Scholarships.

return to top