Student Aid
Prospective Students
Thinking about Penn State or are a newly accepted student? Prepare yourself and your parent(s) or guardian(s) for the financial aid process.
Welcome to Penn State!
Understanding financial aid at Penn State is an important part of planning for your college experience. As a prospective student, you have access to a variety of resources, including scholarships, grants, loans, and work-study opportunities. We aim to provide you with detailed information on how to apply for financial aid, evaluate your options, calculate your cost of attendance, manage your aid package, and utilize the resources available to make your education more affordable.
Preparing College Costs
Teach the financial basics:
Teach your child the importance of establishing a budget
Have your child set up and use a bank account
Teach your child the consequences of not paying an outstanding bill
Have your child learn to use credit responsibly
Have your child find a part-time job
Your student can arrive for their first Fall semester with the money in hand to buy their books. They will not have to depend on the timing of financial aid, can borrow fewer loans, and have less money to pay back later.
Many students and/or parents will have to seek out educational loans to help cover expenses not covered by institutional and federal financial aid.
Come to college with a financial plan and be prepared to finance your child’s education:
Start saving for your child’s college as soon as possible
Check your credit score on a yearly basis
Resolve any mistakes that appear on the report
Work to improve your credit score which will help in securing future educational loans
Determine if you will be the borrower of the loans (Parent PLUS) or you will co-sign on a loan (private alternative loan) for your student.
Learn the credit requirements to borrow a parent PLUS loan or a Private Loan
Eligibility for a Parent PLUS Loan does not depend on the borrower’s credit scores or debt-to-income ratios, therefore, they can be easier to secure.
However, the borrower of a Parent PLUS Loan must not have an adverse credit history.
Adverse credit history is a current delinquency of 90 or more days on more than $2,085 in total debt; or
More than $2,085 in total debt in collections or charged off in the past two years (before the date of the credit report); or
Default, bankruptcy discharge, foreclosure, repossession, tax lien, wage garnishment, or write-off of federal student loan debt in the past five years (before the date of the credit report)
If a parent has an adverse credit history, the parent can still borrow from the Parent PLUS Loan program if they can submit a successful appeal for an exceptional circumstance, or with an endorser (cosigner) who does not have an adverse credit history. Secure a relative or friend who would be willing to be your credit-worthy co-signer if you are unable to appeal your denial.