Central Penn College - Financial Aid - Loans

 

Financial Aid

Loans

Loans include funds for school that MUST be repaid. The following loans are available for Central Penn students. 

Direct Student Loan The Federal Stafford Loan is a loan program in which students have an opportunity to take a loan in their own name with no co signers or credit check.

  • Must be a U.S. citizen or permanent resident
  • Must be at least half-time
  • Must be degree seeking
  • First payment due 6 months after graduation or withdrawal or less than ½ time status
  • Up to 10 years for repayment
  • Must complete Free Application for Federal Student Aid (FAFSA), Central Penn Financial Aid Form and all other forms requested by the Financial Aid office

Federal Stafford Loan

Dependent Student

Independent Student or Dependent Student whose parent is unable to obtain a PLUS Loan

First Year 
0-35 credits

$5,500 of which no more than $3,500 may be subsidized.

$9,500 of which no more than $3,500 may be subsidized.

Second Year
36-71 credits 

$6,500 of which no more than $4,500 may be subsidized.

$10,500 of which no more than $4,500 may be subsidized.

Third Year and Beyond 
72+ credits

$7,500 of which no more than $5,500 may be subsidized.

$12,500 of which no more than $5,500 may be subsidized.


To apply for the Direct Student Loan click here:
https://studentloans.gov/myDirectLoan/index.action

1. Click on the green "Sign In" box
2. Enter your social security number, birthday, last name and FAFSA PIN
3. Click on "Complete Entrance Counseling"
4. Answer all questions
5. Click on "Submit Master Promissory Note"
6. Click "Subsidized/Unsubsidized"
7. Enter your information
8. Agree to terms and conditions
9. Sign
10. Submit

ENTRANCE COUNSELING - All students are required to complete entrance counseling before loan money can be disbursed to the college.  Entrance Counseling can be completed at https://studentloans.gov/myDirectLoan/index.action

EXIT COUNSELING - All student are required to complete exit counseling once they graduate, withdraw or drop below six credits. Exit counseling can be completed at https://studentloans.gov/myDirectLoan/index.action

Subsidized Federal Direct Loans (interest rates by year of borrowing):

July 1, 2009 - June 30, 2010 - 5.6%

July 1, 2010 - June 30, 2011 - 4.5%

July 1, 2011 - June 30, 2012 - 3.4 %

 July 1, 2012 - June 30, 2013 - 3.4%

 July 1, 2013 - June 30, 2014 - 3.86%

 July 1, 2014 - June 30, 2015 - 4.66%

Unsubsidized Federal Direct Loans (constant interest rate): 6.8%



Direct PLUS Loan

The PLUS loan is for parents who want to borrow funds to help pay for their student's education. Parent must demonstrate credit worthiness for this program. Central Penn's Financial Aid Office can do a PLUS pre-screening to see if a parent qualifies. If PLUS Loan is denied, the student may borrow up to an additional $4,000 on their Stafford Loan. Please call today!

Eligibility Requirements:

  • Parent must be a U.S. citizen or permanent resident
  • Parent is the borrower and must be credit-worthy
  • Student must be at least half-time and degree seeking
  • May borrow difference between cost and other financial aid awards
  • First payment begins 60 days after final disbursement of the loan
  • Payment can be deferred until 6 months after the student graduates or stops attending 
  • Up to 10 years to repay
  • Variable interest rate up to 9% (current rate is 7.21%)
  • Loan fee of 4.204%

How to Apply for the Direct PLUS loan:

1. Go to www.studentloans.gov
2. Click on green "Sign In" box
3. Enter in Parent name, social security number, birthday and FAFSA PIN
4. Click on "Request a PLUS loan"
5. Enter in the information requested
6. Click on "Complete Master Promissory Note"
7. Click on "Parent PLUS"
8. Enter in the information requested
9. Submit

PLUS Loan Sample Repayment Schedule

Based on 7.9% or 8.50% interest rates

Amount Borrowed

7.9% Payment Amount

8.5% Payment Amount

Interest Paid

$4,000

$50

$50

$1,924

$5,500

$66

$68

$2,638

$8,000

$97

$99

$3,903

$10,000

$121

$124

$4,878

$12,000

$145

$149

$5,854

$16,000

$193

$198

$7,805

$18,000

$218

$223

$8,781

$20,000

$242

$248

$9,757

$25,000

$302

$310

$12,196

$30,000

$363

$372

$14,635

$35,000

$423

$434

$17,074


Private/Alternative Loans

To assist students and their parents in identifying a lender for a Private Education Loan, Central Penn has developed a Preferred Lender List. In developing this List, we sent request for information to several lenders who have been actively lending within Pennsylvania for at least five years. Please be aware that there are several who will not lend to a Central Penn student due to our for profit status. Please ask your lender if they will lend to you for Central Penn before applying. We evaluated the responses to this survey based on pricing, technology and customer service. In addition, documented experiences with these lenders during the past academic year by students and by staff within the financial aid office were considered as a qualitative component. After all data were collected, a committee reviewed the data and developed the list of lenders below. The list is evaluated and updated annually.

Our suggested lenders:

  • Have a history of excellent customer service in dealing with our students and families - this includes offering a variety of payment options and maintaining well-trained staff to answer questions via a toll-free telephone number;
  • Offer benefits, such as interest rate reduction for auto-debit; and
  • Offer "value-added" services to students - this includes offering debt management tools and programs, providing useful websites to educate students on financial issues and offering default prevention programs.
  • Have not offered financial benefits or other benefits to Central Penn in exchange for inclusion on Central Penn's preferred lender list.
  • Have not offered, directly or indirectly, points, premiums, payments, or other inducements, to Central Penn or any party to secure applicants for loans.
  • Will not offer a loan to induce other products and services to the borrower.

Remember, this is only a list of suggested lenders. You are not required to select a lender from our Preferred Lender List. You may select any lender and/or guarantor. If you decide to select a lender not included on our Preferred Lender List, call the Financial Aid Office at 1-800-759-2727.

The Financial Aid Office will process a loan from any eligible lender you select. The processing of your loan will not be unnecessarily delayed if you choose a lender that is not on our list. Schools are required, by federal regulations to certify federal student loans from any eligible lender/guarantor selected by the student or parent. As of February 14, 2010, lenders and schools will provide a self-certification form as part of the application process for a private student loan. The loan application will not be complete until all forms and disclosures were signed by the borrower and co-borrower.  

Citizens Bank
Citizens Bank Loan Information

 

 

  • TruFit Student Loan
  • Variable rate loan option from one-month Libor + 2.70% to one-month Libor + 9.75%
  • Zero Fees
  • Fixed rate loan option ranges from 6.75% to 12.25% (borrow with co-signer)
  • A 0.25% interest rate reduction with auto debit from any Citizens Bank account.
  • Choice of repayment to be determined during the application process, i.e., immediate, interest-only or deferred. Once a repayment selection is made, it cannot be changed.
  • Co-signer release after initial 36 consecutive, on-time payments.

PNC Bank
PNC Bank Loan Information

 

  • PNC Solutions Loan
  • Zero Fees.
  • Interest rate is based on Libor plus a margin ranging from 3.30% - 11% depending on creditworthiness of the borrower and co-signer.
  • Co-borrower release after 48 consecutive on-time monthly payments.
  • 0.50% interest rate reduction for automatic debit.

Sallie Mae
Sallie Mae Loan Information

  •  Sallie Mae Smart Option Loan
  • 0%-5% fees
  • Interest rates based on credit as low as LIBOR + 2.5%
  • Co-signer release option available
  • Interest only payments required while in school and during grace period

Lender Code of Conduct

Lender Disclosure

Financial Aid Office