Loans

Loan options for Central Penn students

Loans include funds for school that MUST be repaid. The following loans are available for Central Penn students. 

Federal Direct Stafford Loan

The Federal Direct Stafford Loan is a loan program in which students have an opportunity to take a loan in their own name with no co signers or credit check.

  • Must be a U.S. citizen or permanent resident
  • Must be at least half-time
  • Must be degree seeking
  • First payment due 6 months after graduation or withdrawal or less than ½ time status
  • Up to 10 years for repayment
  • Must complete Free Application for Federal Student Aid (FAFSA) and all other forms requested by the Financial Aid office

Dependent Student

  • First year (0-35 credits): $5,500 of which no more than $3,500 may be subsidized.
  • Second year (36-71 credits): $6,500 of which no more than $4,500 may be subsidized.
  • Third year & beyond (72+ credits): $7,500 of which no more than $5,500 may be subsidized.

Independent Student or Dependent Student whose parent is unable to obtain a PLUS Loan

  • First year (0-35 credits): $9,500 of which no more than $3,500 may be subsidized.
  • Second year (36-71 credits): $10,500 of which no more than $4,500 may be subsidized.
  • Third year & beyond (72+ credits): $12,500 of which no more than $5,500 may be subsidized.

Apply for the Federal Direct Stafford Loan

  • Go to: www.studentloans.gov
  • Click on Log In Box
  • Enter student FSA ID and Password
  • Click on Complete Loan Counseling
  • Click on Entrance Counseling
  • Read the information and answer the questions
  • Submit Load Counseling
  • Click on Complete Master Promissory Note
  • Click on Subsidized/Unsubsidized
  • Read the information
  • Sign
  • Click Submit
Apply Now

Exit Counseling: All student are required to complete exit counseling once they graduate, withdraw or drop below six credits. Exit counseling can be completed at: https://studentloans.gov/myDirectLoan/index.action

Loan Type

Direct Subsidized Loans and Direct Unsubsidized Loans

Direct Subsidized Loans and Direct Unsubsidized Loans

Direct PLUS Loans

Direct PLUS Loans

First Disbursement Date | Loan Fee

On or after 10/1/19 and before 10/1/20 : 1.059%

On or after 10/1/18 and before 10/1/19: 1.062%

On or after 10/1/19 and before 10/1/20: 4.236%

On or after 10/1/18 and before 10/1/19: 4.248%

Interest Rates for Direct Loans First Disbursed on or After July 1, 2019, and Before July 1, 2020

Loan Type

Direct Subsidized Loans and Direct Unsubsidized Loans

Direct Unsubsidized Loans

Direct PLUS Loans

Borrower Type / Fixed Interest Rate

Undergraduate: 4.53%

Graduate or Professional: 6.08%

Parents and Graduate or Professional Students: 7.08%

Interest Rates for Direct Consolidation Loans

The interest rate for Direct Consolidation Loans remins the weighted average of the interest rates on the loans included in the consolidation, rounded to the next higher one-eighth of one percent. There is no maximum interest rate for Direct Consolidation Loands.

Direct PLUS Loan

The PLUS loan is for parents who want to borrow funds to help pay for their student’s education. Parent must demonstrate credit worthiness for this program. Central Penn’s Financial Aid Office can do a PLUS pre-screening to see if a parent qualifies. If PLUS Loan is denied, the student may borrow up to an additional $4,000 on their Stafford Loan. Please call today!

Eligibility Requirements:

  • Parent must be a U.S. citizen or permanent resident
  • Parent is the borrower and must be credit-worthy
  • Student must be at least half-time and degree seeking
  • May borrow difference between cost and other financial aid awards
  • First payment begins 60 days after final disbursement of the loan

  • Payment can be deferred until 6 months after the student graduates or stops attending 
  • Up to 10 years to repay
  • Variable interest rate up to 9%
  • Loan fee of 4.204%

How to Apply for the Direct (Parent) PLUS loan:

  • Go to www.studentloans.gov
  • Click on Log In Box
  • Enter Parent FSA ID and Password
  • All other steps are the same

PLUS Loan Sample Repayment Schedule

Based on 7.9% or 8.50% interest rates

Amount Borrowed

$4,000

$5,500

$8,000

$10,000

$12,000

$16,000

$18,000

$20,000

$25,000

$30,000

$35,000

7.9% Payment Amount

$50

$66

$97

$121

$145

$193

$218

$242

$302

$363

$423

8.5% Payment Amount

$50

$68

$99

$124

$149

$198

$223

$247

$310

$372

$434

Interest Paid

$1,924

$2,638

$3,903

$4,878

$5,854

$7,805

$8781

$9,757

$12,196

$14,635

$17,074

Private/Alternative Loans

To assist students and their parents in identifying a lender for a Private Education Loan, Central Penn has developed a Preferred Lender List. (Please be aware that there are several who will not lend to a Central Penn student due to our for-profit status. Please ask your lender if they will lend to you for Central Penn before applying.) In addition, documented experiences with these lenders during the past academic year by students and by staff within the financial aid office were considered as a qualitative component. After all information was collected, a committee reviewed the data and developed the list of lenders below. The list is evaluated and updated annually.

Our suggested lenders:

  • Have a history of excellent customer service in dealing with our students and families – this includes offering a variety of payment options and maintaining well-trained staff to answer questions via a toll-free telephone number;
  • Offer benefits, such as interest rate reduction for auto-debit; and
  • Offer “value-added” services to students – this includes offering debt management tools and programs, providing useful websites to educate students on financial issues and offering default prevention programs.
  • Have not offered financial benefits or other benefits to Central Penn in exchange for inclusion on Central Penn’s preferred lender list.
  • Have not offered, directly or indirectly, points, premiums, payments or other inducements, to Central Penn or any party to secure applicants for loans.
  • Will not offer a loan to induce other products and services to the borrower.

Remember, this is only a list of suggested lenders. You are not required to select a lender from our Preferred Lender List. You may select any lender and/or guarantor. If you decide to select a lender not included on our Preferred Lender List, call the Financial Aid Office at 1-800-759-2727.

The Financial Aid Office will process a loan from any eligible lender you select. The processing of your loan will not be unnecessarily delayed if you choose a lender that is not on our list. Schools are required, by federal regulations to certify federal student loans from any eligible lender/guarantor selected by the student or parent. As of February 14, 2010, lenders and schools will provide a self-certification form as part of the application process for a private student loan. The loan application will not be complete until all forms and disclosures are signed by the borrower and co-borrower.  

PHEAA
PHEAA

  • PA Forward Student Loans
  • Zero Fees
  • Low-cost, fixed interest rates
  • Low interest rates (5.01-7.43% APR)
  • Co-borrower release after 48 consecutive on-time monthly payments.
  • 0.25% interest rate reduction for automatic debit and 0.50% for graduation
  • Multiple repayment plans
  • PNC Solutions Loan
  • Zero Fees.
  • Interest rate is based on Libor plus a margin ranging from 3.30% – 11% depending on creditworthiness of the borrower and co-signer.
  • Co-borrower release after 48 consecutive on-time monthly payments.
  • 0.50% interest rate reduction for automatic debit.
  • Sallie Mae Smart Option Loan
  • 0%-5% fees.
  • Interest rates based on credit as low as LIBOR + 2.5%.
  • Co-signer release option available.
  • Interest only payments required while in school and during grace period.

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