Office of Student Aid : Loans

Because grants and scholarships are limited, many students must rely on loans to cover at least some portion of college costs. Undergraduate and graduate students as well as parents of undergraduate students may borrow money for education. In fact, approximately 80% of Penn State's aid recipients borrow educational loans.

The following steps represent borrowing options beginning with the best value and proceeding to other, less favorable loan options based on interest rates, loan terms and conditions, and repayment options. These loan options may be used alone or in combination with each other. Select the loan links below for more information about each option.

Step 1:

Perkins Loan
Loan program awarded to our highest-need students.

University Loan
Loan program awarded to undergraduate students who demonstrate high financial need.

Federal Direct Stafford Loan
A federal loan program available to all students.

Step 2:

Federal Direct Parent PLUS Loan
When undergraduate students need funding beyond the Stafford or Perkins Loan, parents may need to consider the PLUS Loan.

Federal Direct Graduate PLUS Loan
Graduate students who need funding beyond the Stafford or Perkins Loan may want to consider the Graduate PLUS Loan.

Step 3:

Alternative Loans
Students who need additional funds after considering the feasibility of the loan options in Steps 1 and 2--or students who are ineligible for federal aid--may need to apply for an alternative loan.

Note: A FAFSA is not required to apply for an alternative loan.