Office of Student Aid : Frequently Asked Questions

Loans

If I want only a loan, do I still need to complete the FAFSA?

You must complete a Free Application for Federal Student Aid (FAFSA) in order to borrow a Federal Direct Stafford or Federal Perkins Loan.

All Federal Direct Parent PLUS Loan borrowers are required to complete the FAFSA on the Web, which allows Penn State to confirm the relationship between the student and the borrower.

Some alternative loans do not require completion of the FAFSA, but it is recommended that you have a current FAFSA on file so that the University can consider you for all possible aid programs.

What is the difference between a subsidized and an unsubsidized loan?

With a subsidized Federal Direct Stafford Loan, the federal government pays the interest due on the loan while you are enrolled. For the unsubsidized Direct Stafford Loan, students are responsible for the interest during enrollment. Subsidized loans are awarded based on financial need.

If I need a loan to supplement the grants I expect to get, what do I do first?

Follow the step-by-step guide on our Web site.

How can I decrease my Direct Stafford loans if I do not need to borrow the entire amount listed on my Student Financial Aid Award Notification?

You may decrease the amount of Direct Stafford Loan you will borrow for a particular semester by accessing the Stafford Loan Decrease option from the Students menu on eLion.

Do not decrease your loan amount until you have reviewed all of your expenses for the year.

If you have any questions, please contact the University Park Office of Student Aid or the student aid representative at your Penn State Campus.

If my parents think they need to get a PLUS loan, what should they do?

Parents can follow the step-by-step instructions on our Web site to secure a Federal Direct PLUS Loan.