University Loans

University Loan

The University Loan is for undergraduate students and offers a 6 percent fixed, low-interest loan with zero origination fees. This is not a loan that you can request. Loans will be offered based on your eligibility (FAFSA) and available funds.

For inquiries regarding the processing or re-payment of your University Loan contact the Office of the Bursar.

Eligibility

To be eligible for the University Loan, undergraduate students must:

• Meet and maintain Federal and Penn State Financial Aid Eligibility Requirements

• Demonstrate financial need

Due to limited funding, not all students who are eligible will receive a loan. Students who are offered a University loan are not automatically offered in subsequent years.

How to apply

You will be automatically considered for a University loan if you submit the Free Application for Federal Student Aid (FAFSA). This is not a loan that you can request. Loans will be offered based on your eligibility (FAFSA) and available funds.

How to accept your loan

You need to accept the loan in LionPATH.

First-time University loan borrowers will also need to complete loan disclosures and sign a Master Promissory Note (MPN). An email invitation with instructions on how to complete these requirements will be emailed to you from ECSI, a third-party loan servicer, mid- to late-July. Monitor your email account, including your junk folder.

The University loan will appear as a credit on your tuition bill after you have completed all the requirements.

How to repay or defer payments

Repayment begins after your nine-month grace period. The grace period will begin any time you are not enrolled at least half-time (with the exception of summer). For most students, the grace period begins after graduation.

If you cannot make payments on your loan after the nine-month grace period, you may be able to postpone repayment by pursuing deferment or forbearance. For more information, visit the Loan Repayment section of the Office of the Bursar's site.