• General Loan Information

    Federal need-based loans are awarded to students on the basis of financial need, and include the Federal Perkins Loan, Federal Direct Subsidized Stafford Loan and the Nursing Student Loan. Students are awarded need-based loans as part of their financial aid packages. Repayment is deferred and there is no interest accrual on need-based loans as long as the student is enrolled at least half-time (6 hours).

    Non-need-based loans include the Federal Direct Unsubsidized Stafford Loan and the Federal Direct PLUS loan. Federal Direct Unsubsidized Stafford Loans are awarded to students as part of their financial aid packages, while Federal Direct PLUS Loans are not.  (See additional information below.) Repayment is deferred as long as the student is enrolled at least half-time, and interest begins accruing immediately on non-need based loans. Interest may be paid periodically or capitalized (added to the balance when you enter repayment).   

    The PLUS loan is intended to assist those families who are ineligible for other types of financial aid, have remaining financial need after other forms of aid have been awarded, or wish to borrow all or part of the EFC. The borrower in this program is the parent of a dependent undergraduate student, and must apply for the PLUS loan each academic year. Repayment of principal and interest for PLUS Loans begins 60 days after the last loan disbursement of the academic year for which the loan was granted. Contact the OSFA for the required forms, or access them online under the PLUS Applicants link.

    The maximum that can be borrowed each year is the cost of education minus all other financial aid awarded.

        PLUS Eligibility Example

           

    Cost of Attendance/Budget

    $16,528

    Total Financial Aid Awards

     -12,000

     PLUS Loan Eligibility

    $  4,528

  • Summary of Loan Programs
    LOAN PROGRAM ELIGIBLITY INTEREST RATE TERMS

    MAXIMUM ANNUAL AWARD

    Federal Perkins

    Need based

    Undergraduate and graduate students

    Must be enrolled full-time in a degree or certificate program

    Application materials received by priority deadline of March 1

    Fixed rate of 5%

    No interest accrual & repayment deferred while student is enrolled at least half-time

    Nine-month grace period before repayment begins

    Lender is PSU-Contact PSU Cashiers and Student Accounts for repayment information

    $2,500-$4,000
    Nursing Student Loan

    Need based

    Must be admitted to the Clinical Nursing Program (Juniors and Seniors)

    Application materials submitted by priority deadline of March 1

    Fixed rate of 5%

    Federal government pays interest and repayment is deferred while student is enrolled at least half-time

    $2,500

    Federal Direct Subsidized Stafford

    Need based

    Undergraduate and graduate students

    Must be enrolled at least half-time in a degree or certificate program

    Graduate Students Fixed rate of 6.8%

    For Undergraduates:

    Fixed rate of 6.8% for loans disbursed 7/1/06-7/1/08

    Fixed rate of 6.0% for loans disbursed for 2008-2009 Acad. Yr.

    Fixed rate of 5.6% for loans disbursed for 2009-2010 Acad. Yr.

    Fixed rate of 4.5% for loans disbursed for 2010-2011 Acad. Yr.

    Federal government pays interest and repayment is deferred while student is enrolled at least half-time

          Freshman       $3,500

         Sophomore     $4,500

       Junior/Senior    $5,500

          Graduate        $8,500

    Federal Direct Unsubsidized Stafford

    Non-need-based - Cost of Attendance (COA) less other aid

    Undergraduate and graduate students

    Must be enrolled at least half-time in a degree or certificate program

    Fixed rate of 6.8% for loans disbursed after July 1, 2006

    Variable rates for loans first disbursed between July 1, 1998 and June 30, 2006

    Interest accrual begins upon disbursement of funds - may be paid periodically or capitalized

    Repayment is deferred while student is enrolled at least half-time

          Freshman       $3,500

         Sophomore     $4,500

       Junior/Senior   $5,500

           Graduate        $8,500

    Federal Direct Additional Unsubsidized Stafford

    Non-need-based - Cost of Attendance (COA) less other aid

    Undergraduate and graduate students

    Must be enrolled at least half-time in a degree or certificate program

    Fixed rate of 6.8% for loans disbursed after July 1, 2006

    Interest accrual begins upon disbursement of funds - may be paid periodically or capitalized

    Repayment is deferred while student is enrolled at least half-time

    Undergraduate Dependent Students $2,000

    Undergraduate Independent Students, and Dependent Students whose parents are not eligible for PLUS $6,000-$7,000

    Federal Direct PLUS

    Non-need-based - Cost of Attendance (COA) less other aid

    Parents of dependent undergraduate students enrolled at least half-time in a degree or certificate program - must not have negative credit history

    Current rate of 7.9%

    Separate application required

    Repayment of principal and interest begins 60 days after final loan disbursement for the respective academic year

    Contact the Office of Student Financial Assistance

    620-235-4240

    Alternative Loans

    Non-need-based - Cost of Attendance (COA) less other aid

    Undergraduate and graduate students enrolled at least half-time in a degree or certificate program

    Rate determined by the lending institution and the borrower's credit rating Separate application to lender required

    Contact the Office of Student Financial Assistance

    620-235-4240

    For special deferment and cancellation provisions for Stafford and Perkins loans, see the U.S. Department of Education's Student Guide (page 31), Deferments and Forbearances, and the Department of Education's Cancellation/Deferment Options for Teachers.

     

  • Loan Disbursement Information

    Loan funds are disbursed at the beginning of each semester.  First-time PSU borrowers, and PSU borrowers who previously had FFELP (bank lender) loans must complete Entrance Interview Counseling and e-sign a Master Promissory Note (MPN) with the Department of Education , prior to the disbursement of funds. All borrowers must also verify enrollment online through GUS. 

    (If you previously attended another college/university and had a Direct Loan there, you may not need to complete a new MPN.)

     

  • Repaying Your Loans

    You may visit Federal Student Aid on the Web for information on loan consolidation and repaying your student loans. Please view additional information regarding Direct Loans.  The Federal Guide to Student Aid also provides repayment information, and a Direct Loan repayment calculator.

    You may also contact your loan servicer or lender for information regarding loan-repayment options. If you do not know who your loan provider/servicer is, please consult the National Student Loan Data System.

  • Student Loan Consolidation Information
  • Loan Repayment Charts

    Remember to borrow only the amount you need.  What you borrow today must be paid back after you graduate or withdraw from college (with interest)!  You may not need to borrow as much, if at all, if you are able to cut personal expenses and/or work on- or off-campus while you attend PSU.  Many students wisely maintain a lower-cost student lifestyle in order to borrow the least amount necessary to cover their college expenses.  The result is lower debt and more manageable loan payments once you graduate.

    You may refer to the General Loan Repayment Charts below to see how loan funds borrowed today affect the amount you will owe once you graduate or withdraw from school.

    Monthly Payments 6.0 & 6.8%
    Monthly Payments 8.5%
  • Glossary of Loan Terms
  • Student Loan Code of Conduct