Student Loans from a Trusted Partner
PHEAA recently announced the launch of a new student loan program for students who need help paying for college after they have exhausted their eligibility for gift aid, such as grants and scholarships.
The PA Forward Student Loan Program is a borrower-friendly suite of low cost alternative student loans for undergraduate and graduate students, and parent borrowers. A PA Forward Refinance Loan will be offered later this year to combine all of a borrower’s loan debt, including Federal and private loans, to achieve a single lower monthly payment or reduce the amount they pay over the life of the loan.
With first year borrowing limits on federal loans as low as $5,500 and the annual average cost to attend college in Pennsylvania at $43,866*, many students experience difficulty affording the full cost of attendance even after taking advantage of available grants, scholarships, campus-based aid, and federal loans. If family savings are not sufficient, students are often forced to rely on private student loans - many of which come with strict credit requirements, higher interest rates, and fewer borrower benefits during repayment.
PA Forward student loan borrowers can borrow up to the total cost of attendance with competitively low interest rates. Additional benefits include no application or origination fees, immediate credit approvals, and flexible repayment options. Borrowers can receive a .25 percent interest rate reduction for enrolling in an automatic direct debit program and an additional .50 percent interest rate reduction for achieving successful graduation. Borrowers also benefit from a 6-month grace period after graduation before the first payment is due. This allows borrowers time to get their finances in order, including time to find a job, before repayment begins.
Borrowers who take full advantage of the program’s benefits could save thousands of dollars over the life of the loan.
Pennsylvania joins 20 other states, including New Jersey and Massachusetts, in offering a similar loan program as a public service to its residents. Applications for the program will be available at PHEAA.org/PA-Forward late April.
* Average full-time student cost of attendance for the 2017-18 school year, including tuition & fees, on-campus room & board, books & supplies, and other expenses.
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