Penn State Student Loans and College Tuition Information

College tuition can often seem like an insurmountable plateau, especially when you are first starting out. It may even seem like a bad investment when you consider all of your career related options. However, did you know that on average, people with an accredited college degree will earn $1,000,000 more in their lifetime that someone who does not? It’s true, so now let’s learn a little more about how you can get help to pay your student's tuition.

There are several types of student loans and government grants available to help you pay for college. On this page we will go over the basics of the most popular loans and provide links to get you on your way to further understanding.

Types of Federal Stafford Loans

Federal Stafford LoansThese are loans given based on your financial need. You can apply for these loans at your bank, credit union, or directly on the government loan website. Here are the three different types of Stafford loans you can choose from

Subsidized Stafford Loans: This type of loan is granted based on need of the applicant and their family. The interest rate is low, and is paid by the government while the student is in school. You can even apply for a grace period after the student has completed their education to extend the time you don't need to pay interest.

Unsubsidized Stafford Loans: These loans are granted to just about anyone regardless of family income and need. Students who apply for these loans are solely responsible for the interest due. There are however some cases where payment of interest can be postponed via application.

Additional Unsubsidized Stafford Loans: These loans are held for borrowers classified as independent students; status determined by federal guidelines.

Federal Perkins Loan

The Federal Perkins loan is given to those with “exceptional” financial need. The interest rate is around 5%, and the loan must be applied for using the Free Application for Federal Student Aid or ‘FAFSA’.

You can visit the Federal Student Aid Website for more information regarding these loans and their application process.

Private Student Loans

Also known as personal student loans, private student loans can help pay for student expenses; generally at better interest rates than other lines of credit. These should only be used to supplement your educational loans if they are not sufficient. They can be obtained through lenders such as your personalbank or credit union and also through a variety of online lenders.

Sallie Mae is an excellent resource for loan information and can be used to apply for personal student loans.

Government Grants

Government GrantsThe government also issues grants to deserving students to help pay for their education. Grants are similar to loans but differ in one very unique way, They never need to be paid back! Please visit the government student webpage to learn more about the different types of grants available at this current time. New grants and qualifications to apply for the grants change often so we recommend checking the options for your student several times during and before their education.

It is important to choose the student loan which is best for you based on your individual situation. Recommending a certain type of loan for everyone does not make sense and is next to impossible. Hopefully you were able to learn a little bit about what is available and the routes you can take to begin the application process.

Scholarships4Moms hands out $10k scholarships every year to hardworking moms throughout the nation.

Please share your student loan experiences and any other websites about student loans in the designated section on the Penn State Moms Message Board.