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Financial Aid Office

Student & Administrative Services Center, Rm. 1013 · (570) 327-4766 or (800) 367-9222 · Fax: 570.321.5552

Types of Loans

Most students need loans to help meet the cost of their college expenses. There are three types of educational loans available:

Stafford Loans

Federal Stafford Loans are available to virtually all students enrolled in a degree or certificate program, and offer the lowest interest rates. The interest rate is 6.8%, both while students are in college, and during repayment. Federal law makes it a fixed interest rate.

  • There is no credit check
  • You don't need to begin repayment until 6 months after you graduate, withdraw, drop below half-time (5 or fewer credits) status, or stop attending
  • You may be expected to make interest payments while you're in school
  • Take up to 10 years to repay
  • You must be enrolled in 6 or more credits each semester
  • 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)
Credits Earned Toward
Your Program/Major		 Maximum Annual Loan
Amount for
Dependent Students		 Maximum Annual Loan
Amount for
Independent Students
These amounts are effective as of July 1, 2008
Less than 30 credits $5500 $9500
30 or more credits toward
an associate's degree
or
30 to 59 credits toward
a bachelor's degree		 $6500 $10,500
60 or more credits toward
a bachelor's degree		 $7500 $12,500

How do I apply for a Federal Stafford Loan?

When should I apply for a Stafford Loan?
If you will start attending during the Fall Semester, apply anytime after April 1 of that year. If you will start during the Spring Semester, apply after October 1 of the previous year. However, the Financial Aid Office cannot actually credit your student account with a loan until after you schedule classes.

Does the Financial Aid Office recommend any Federal Stafford lenders?
We provide the following lenders based on past experience, customer service and qualifications. These lenders participate in electronic funds transfer (EFT) and guarantee loans through Pennsylvania's Guaranteed Service, American Education Services. These lenders use current loan processing technology, ensuring that every loan will be delivered in the most accurate and efficient way. 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 that participates in FFELP (Federal Family Education Loan Program). However, there are FFELP lenders who do not use American Education Services as their funds transfer and guarantee loans servicer. If you choose one of these lenders to originate your loan, you will go through a slower, paper process which will result in delays in processing your aid.

If you have any questions in relation to our preferred lenders or any other lender please contact the Financial Aid Office.

Stafford Lender Lender Code
PNC Bank 809921
Edamerica 831453
Citizens Bank 833880
Chase 811571
Bank of America 805317
National City Bank 810148

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PLUS (Parent Loan for Undergraduate Students) Loans

Federal Parent PLUS Loans are for a student, but are taken out by a parent of a dependent student. The interest rate is higher than it is for Federal Stafford Loans, at a fixed 8.5% rate.

  • Some lenders offer a discounted rate
  • Lenders perform a credit check on the parent applicant
  • Parents normally begin repayment when their student is in college, although they can arrange to defer payments
  • Take up to 10 years to repay
  • Lenders charge a 3% origination fee
  • The annual loan limit is the cost of attendance minus the amount of all other financial aid the student will receive

How does your parent apply for a Federal PLUS Loan?

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

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. If you will start during the Spring Semester, apply after October 1 of the previous year. However, the Financial Aid Office cannot actually credit your student account with a loan until after you schedule classes.

Does the Financial Aid Office recommend any parent PLUS lenders?
We provide the following lenders based on past experience, customer service and qualifications. These lenders participate in electronic funds transfer (EFT) and guarantee loans through Pennsylvania's Guaranteed Service, American Education Services. These lenders use current loan processing technology, ensuring that every student loan will be delivered in the most accurate and efficient way. 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, your parent is free to choose any lender that participates in FFELP (Federal Family Education Loan Program). However, there are FFELP lenders who do not use American Education Services as their funds transfer and guarantee loans servicer. If your parent chooses one of these lenders to originate your parent's loan, your parent will go through a slower, paper process which will result in delays in processing your aid.

If you or your parent have any questions in relation to our preferred lenders or any other lender please contact the Financial Aid Office.

PLUS Lender Lender Code
Edamerica 831453
PNC Bank 809921
Citizens Bank 833880
Chase 811571
Bank of America 805317
National City Bank 810148

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Private Alternative Loans

If your cost of education exceeds your total funding from grants, scholarships, and government-backed loans, an alternative or private loan is another option. These student loans are not backed by the government, but are offered by a number of reputable lenders.

  • Lenders perform a credit check on the student and a co-signer
  • Interest rates and fees vary, so look for the best deal
  • 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 you 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. If you will start attending during the Fall Semester, apply anytime after June 1 of that year. However, be sure to do so at least three weeks before your tuition bill is due.

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 the Financial Aid Office.

Please note: 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 Rebates
Student Loan Rebates is a program that allows you to help reduce your student loan debt. Various merchants will contribute a percentage of purchases you make from them toward your loan. Family and friends can join on your behalf. Be aware that two of the three program 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.

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