Financial Aid Office

• Federal Stafford Loans
• Federal Parent PLUS Loan
• Private Alternative Loans

Stafford Loans

The Federal Stafford Student Loan program is the most widely used student loan program. Borrowing limits, interest rates and terms of repayment are defined by the U.S. Department of Education. Stafford Loans are available to virtually all students enrolled in a degree or certificate program. The interest rate is no higher than 6.8%, both while students are in college, and during repayment. Federal law makes it a fixed interest rate. Key points of the Stafford Loan program:

• You must have submitted a FAFSA to be eligible.
• You must be enrolled in 6 or more credits each semester.
• You must not be in default on any federal educational loan or owe a refund on an educational grant.
• There is no credit check.
• Repayment begins 6 months after you graduate, withdraw, drop below half-time (5 or fewer credits) status, or stop attending.
• You can choose to make interest payments while you are enrolled in college.
• You have up to 10 years to repay.
• Depending on the lender you choose you may be charged a fee (most lenders do charge a fee, with a maximum of 4%)
• The amount that you can borrow per year is determined by the number of credits you have earned toward your program or major (refer to table below).

If I don't need the maximum Stafford Loan funds in any one semester, how can I reduce my amount?

Although we credit your eBill with the maximum Stafford Loan amounts, we encourage you to be conscious of keeping your loan debt to a minimum. You do not have to accept the maximum amount. To cancel any part or all of your Stafford Loan funds, please contact the Financial Aid Office.

• Frequently Asked Questions about Federal Stafford Loans, including aggregate loan limits
• National Student Loan Data System - to view U.S. Department of Education records about your specific federal loans
• The U.S. Department of Education provides more information on Federal Stafford Loans.

Parent PLUS Loan

The Federal Parent Loan for Undergraduate Students (PLUS) lets parents borrow money to pay the education expenses of their dependent student. The interest rate is higher than it is for Federal Stafford Loans, at a fixed 8.5% rate.

• Students must be enrolled in 6 or more credits each semester.
• Lenders perform a credit check on the parent applicant.
• Lenders charge a fee of up to 4%.
• Parents normally begin repayment when their student is in college, although they can request to defer payments by contacting their lender.
• Parents have up to 10 years to repay.
• The annual loan limit is the cost of attendance minus the amount of all other financial aid the student will receive.

When should your parent apply for a parent PLUS Loan?

If you will start attending during the Fall Semester, your parent can apply anytime after May 1 of that year and at least three weeks before your tuition eBill is due in early August . If you will start during the Spring Semester, apply after October 1 of the previous year and at least three weeks before your tuition eBill is due in mid-December . However, the Financial Aid Office cannot actually credit your student account with a loan until after you schedule classes.

How does your parent apply for a Federal PLUS Loan?

New Parent Borrowers

• You (student) must complete a Penn College Financial Aid Application (FAA).*
• Student and parent(s) must complete a FAFSA for the academic year.*
• Your parent borrower completes the PLUS Master Promissory Note (MPN) via American Education Services (AES), chooses a lender, and signs using your parent's Federal PIN.

Returning Parent Borrowers

• You (student) must complete a Penn College Financial Aid Application (FAA).*
• Student and parent(s) must complete a FAFSA for the academic year.*
• Your parent borrower must contact your previous academic year lender to reapply.

* These applications only need to be completed once per academic year, if you are unsure if you have completed them please contact us.

Separate MPNs need to be submitted for different students in the same family.

Does the Financial Aid Office recommend any parent PLUS lenders?

Private Alternative Loans

If your cost of education exceeds your total funding from grants, scholarships, and government-backed loans, a private or alternative loan is another option. A private alternative loan is a non-federal educational loan, through a private lending institution, typically issued in a student’s name and requiring a creditworthy cosigner. Each private alternative loan lender has different eligibility requirements, loan rates, repayment terms, and conditions.

These student loans are not backed by the federal government, but are offered by a number of reputable lenders.

• Lenders perform a credit check on each student and co-signer
• Interest rates and fees vary, so look for the best deal (review our list of questions to ask the lender below)
• Maximum loan amounts, grace periods, and repayment periods also vary
• Apply quickly online through the lender's Web site
• Most lenders require that you're enrolled in 6 or more credits a semester

When should I apply for a private alternative loan? 

We first encourage you to submit a FAFSA for the academic year, to learn if you qualify for government grants and other types of financial aid. We also recommend borrowing from the Federal Stafford Loan program before considering a private alternative loan. If you will start attending during the Fall Semester, apply anytime after June 1 of that year and at least three weeks before your tuition bill is due in early August. If you will start during the Spring Semester, apply after October 1 of the previous year and at least three weeks before your tuition bill is due in mid-December.

Do not apply for a private alternative loan more than 90 days prior to the beginning of the semester for which you are applying. Otherwise, your credit check may run out and your loan will not be valid at the time of scheduled disbursement.

How do I apply for a private alternative loan?

Please first refer to these questions. They will give you guidance on how much to apply for and how to choose a lender. Below we provide a list of lenders that we recommend. Click on the hyperlinks to learn more about each lender and/or to apply, and do not hesitate to call or e-mail lenders with questions about their products. Please understand that you do not have to choose a lender that we have listed. If you choose a lender other than one listed below please notify the Financial Aid office so that we can ensure your loan application is received to process.

Does the Financial Aid Office recommend any lenders?

We provide the following lenders based on past experience, customer service and qualifications. These lenders use current loan processing technology, ensuring that every loan will be delivered in the most accurate and efficient way. These lenders also offer competitive interest rates, fees and repayment options. Neither Pennsylvania College of Technology nor the Financial Aid Office benefits from referring students to any lender in any manner.

Even though we offer a list of preferred lenders, you are free to choose any lender. If you have any questions in relation to our preferred lenders or any other lender, please contact us.

• Chase (Select Private Undergraduate Loan)
• Citibank (CitiAssist Loan)
• Citizens Bank (TruFit Student Loan)
• SallieMae (Smart Option Loan)
• Sun Trust (Academic Answer Loan)

Be Aware

Please note that you may be inundated by mailings and advertisements about private alternative loans. We want to caution you about direct-to-consumer loans, which may have higher interest rates and associated fees than the private alternative loans we recommend and certify. Please contact the Financial Aid Office with any questions.

Student Loan Reduction Programs

Student Loan Rebates and Upromise are two separate but similar programs that allow you to help reduce your student loan debt. Various merchants will contribute a percentage of purchases you make from them toward your student loan. Family and friends can join on your behalf. Be aware that many of the programs' partners require online purchases.

Debt Management

Loans, of course, need to be repaid along with interest. From the start, be conscious of keeping your loan debt to a minimum. Good planning and preparation for courses can reduce both the amount of time and the amount of loan money that you need to complete your degree. This loan repayment calculator offered by AES can estimate the amount of your monthly loan payment after you finish your education.