Student loans

Colleges and Universities A-Z Penn State
1

<p>So I basically didnt get anything from financial aid and am left to pay about 40000...given that I am oos, my only option is to take out a loan.
Can someone explain to me the types of loans, how much I can take out and just how this loan stuff works? Also, do I have any other options for payment? Penn state is my dream school and I really wanna go there</p>

2

<p>Try this website: [Index</a> of /studentaid/aidprog](<a href=“http://www.psu.edu/studentaid/aidprog/]Index”>http://www.psu.edu/studentaid/aidprog/) It has lots inform on loans. I assume you hv filled the FAFSA and did not get any federal grants & fed direct stafford loan(sub & unsub), and Fed perkin loan. As those are determined by your EFC (need basis). Anycase the max you can get from the above in total is about $10-15K max. Still has a big gap to bridge. However, your parent can apply to a Federal Direct Parent PLUS Loan. The requirement is you hv to fill the FAFSA and your parent has a good credit history upon the credit check and you’re a full time student & meets the University’s sat academic standards…etc. (note: they don’t look at your parent’s debet to income ratio, employment status etc)</p>

<p>It’s at a higher interest rate (7.9%) & higher orgin fee and has the option to defer repayment while student is enrolled in school.
The website also has a section on other Federal Loan Servicers… for other loan’s consideration as well.</p>

3

<p>If you mean to borrow $40k per year, the payments are going to be well over $1k per month after graduation. If you have an in-state option, that is much better even though Penn State might be a dream school for you.</p>

4

<p>

Not completely correct. Just filing the FAFSA guarantees everyone (regardless of income) is eligible for Stafford Loans ($5500 as a freshman). What percentage of those Stafford Loans that are subsidized vs unsubsidized is affected by your EFC as is the Perkins Loan.</p>

<p>Short answer is that as a student you will not be able to get $40K ($160K total) per year in loans unless:

  1. You personally have assets that are large enough to secure a loan that size
  2. Your parents are willing to co-sign for your loan
    Either way PSU is (IMHO) not worth taking on that much debt. I’m not sure Harvard or MIT is worth that much debt for an 18 year old. Again…just my opinion…</p>