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Planning for School | Loans
Loans are money that you borrow which must be paid back over a period of time, usually after you leave school. PSU participates in the Federal Family Education Loan Program (FFELP)* and students must choose the lending institution where the funds will originate. The Financial Aid office also maintains a list of preferred lending institutions.
Kiplinger's no-nonsense guide to understanding student loans.
Information on the best way to pay back your Federal Stafford Loans.
Analyze loan repayment benefits.
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Federal Perkins Loan
A low-interest loan available to Undergraduate and Graduate students attending at least half-time. To be considered for this loan in the fall, you should apply before March 1. Repayment begins nine months after recipients are no longer enrolled at least half time. The interest rate is fixed at 5%. New borrowers will need to sign a Master Promissory Note for the Perkins loan. The Perkins Master Promissory Note can be electronically signed here. For more information about the Perkins Master Promissory Note, contact the Office of the Bursar at 503.725.3440 or visit the Perkins Loan information Page.
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Federal Subsidized Stafford Loan
A moderately low-interest loan available to eligible Undergraduate, Post-baccalaureate, and Graduate students. Repayment begins six months after recipients are no longer enrolled at least half time. This six months is referred to as a “Grace Period”. The annual federal maximums are as follows: Freshmen $3,500 | Sophomores $4,500 | Juniors, Seniors, and Post-baccalaureate students $5,500 | Graduate students $8,500.
NEW | The College Cost Reduction and Access Act of 2007 has reduced the interest rates on subsidized Stafford loans for undergraduate students starting July 1, 2008. These interest rate reductions are available only to undergraduates. The interest rates are illustrated in the following table:
| Year |
Interest Rate
Subsidized Stafford Loans
(Undergraduate Students) |
Interest Rate
Other Stafford Loans
(Graduate or Unsubsidized) |
| 2007-08 |
6.8% |
6.8% |
| 2008-09 |
6.0% |
6.8% |
| 2009-10 |
5.6% |
6.8% |
| 2010-11 |
4.5% |
6.8% |
| 2011-12 |
3.4% |
6.8% |
| 2012-13 |
6.8% |
6.8% |
For all subsidized Stafford Loans, the federal government "subsidizes" the interest (pays the interest) while the student attends at least half time. Loan origination and guarantee fees of up to 2% - 4% are deducted from each disbursement made. Check with your lender for the exact amount of origination and guarantee fees on your Stafford loan.
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Federal Unsubsidized Stafford Loan
A moderately low-interest loan available to eligible Undergraduate, Post-baccalaureate, and Graduate students enrolled at least half time. Unlike the Subsidized Federal Stafford Loan, the federal government does not "subsidize" the interest (does not pay the interest) on this loan while the student attends school. Students may borrow subsidized and unsubsidized Federal Stafford Loans at the same time. For dependent students the total of both loans cannot exceed the appropriate annual federal maximum. (See amounts listed in subsidized loan.)
For independent students, the combined Subsidized and Unsubsidized Stafford loan maximums are: Freshmen $7,500 | Sophomores $8,500 | Juniors, Seniors, and Post-baccalaureates pursuing a second bachelor's degree $10,500 | Post-baccalaureates taking preparatory courses for a graduate program $12,500 | and Graduate students $20,500.
The interest rate is fixed at 6.8%. This loan is not need-based. Loan origination and guarantee fees of up to 2% - 4% are deducted from each disbursement made. Check with your lender for the exact amount of origination and guarantee fees on your Stafford loan.
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Federal Parent Loan for Undergraduate Students (PLUS)
The Parent PLUS loan is a federal loan for parents to borrow on behalf of dependent students (as defined by financial aid regulations). The Parent PLUS loan has a fixed interest rate of 8.5%. For parents to be eligible to borrow this loan, students must be enrolled at least halftime and have submitted a FAFSA. Parents must be a U.S. citizen or national, a U.S. permanent resident, or an eligible non-citizen and pass a credit check. A 3% origination fee and up to 1% federal default fee will be deducted from the loan amount. With a Parent PLUS loan, parents may borrow up to the full cost of attendance, less other financial aid received by the student. For more information, visit the Parent's Page.
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Federal Graduate PLUS Loan for Graduate and Professional Students | Apply Now
NEW | For all Federal Graduate PLUS loans created on or after July 1, 2008, graduate plus borrowers will be required to complete an online entrance counseling session prior to disbursement of the loan. Access to the graduate online entrance counseling session will be posted to student accounts through the Student Information System under outstanding requirements.
The Graduate PLUS loan is a federal loan for students attending graduate school with a fixed interest rate of 8.5%. To be eligible for this loan, graduate students must be enrolled at least halftime, have submitted a FAFSA, be awarded Federal Stafford loans, be a U.S. citizen or national, a U.S. permanent resident, or an eligible non-citizen and pass a credit check. A 3% origination fee and up to 1% federal default fee will be deducted from the loan amount. With a Graduate PLUS loan, students may borrow up to the full cost of attendance, less other financial aid received. The Online Graduate PLUS application is preferred, but if necessary you can alternately submit a paper application.
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*The Direct Loan Servicer provides information regarding repayment and consolidation options on student loans obtained at PSU prior to the 2003-2004 school year.
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