- How to apply
- How to accept your loan
- How to decrease or cancel the loan
- How to repay or defer payments
To be eligible for the University Loan, undergraduate students must:
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.
You will be automatically be considered for a University loan if you submit the Free Application for Federal Student Aid (FAFSA).
First-time University loan borrowers will receive an e-mail mid to late August from Student Financial Services 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.
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.
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, visit Student Financial Services.