FEDERAL PERKINS LOAN: The Federal Perkins Loan program provides students with long-term, low-interest loans for educational expenses. The amount which can be made available to an applicant is based on the student’s computed financial need and available funding.

Changes in Federal law now allow you to borrow up to $4,000 during one academic year, but no more than $20,000 during the period that you are a full-time student. No interest is charged while you maintain at least half-time status.

Repayment of the loan with interest at 5% per annum on the unpaid balance begins nine months (based on the conditions of your promissory note) after you graduate or terminate your student status or become less than a half-time student. Repayment must be completed within ten years after the interest begins to accrue. The interest paid towards your Perkins Loan may be deductible from the taxpayer's income.

Entrance Interviews 
Federal law requires that every student who has been awarded a Federal Perkins Loan through Philadelphia University must have the opportunity for an entrance interview. During this brief meeting, a member of the financial aid office will explain your rights and responsibilities under this program.

Exit Interviews 
Federal law requires that every student who has obtained a Federal Perkins Loan through Philadelphia University must have the opportunity for an exit interview before leaving the University. During this brief meeting, a representative of the financial aid office will explain provisions for loan repayment and privileges for deferment of payment to the student borrower. The Financial Aid Office will contact the borrowers prior to their anticipated graduation dates to remind them of the necessity for an exit interview. However, each student is responsible for scheduling the interview even if he or she withdraws from the University at any time prior to graduation.

FEDERAL STAFFORD LOAN: Loans are available to students enrolled for at least six credit hours per semester. You may borrow up to $3,500 per academic year for the freshman year, $4,500 for the sophomore year and $5,500 per academic year for the junior and senior years. The total amount outstanding that you may borrow for undergraduate study is $23,000. The annual interest beginning July 1, 2008 is 6.0%.  The government will pay this interest until six months after you have terminated your studies, or dropped below half-time status, at which time you must begin repayment of the principal and interest. The interest paid towards your Stafford Loan may be deductible from the taxpayer's income.

There may be a 3% loan origination fee deducted by the bank from the face value of the loan. In addition, your lender may deduct an insurance fee of 1%.

Under current regulations, all applicants must pass a “needs test” to qualify for this loan. A Free Application for Federal Student Aid must be filed prior to certification of a loan application by the school. You must maintain satisfactory progress to renew your loan.

To apply for a Stafford Loan, go to www.aessuccess.org or click on the box to the right or the link below.  You will need to select a lender and can do so from one of our preferred lenders or select whichever lender you prefer.  Our preferred lenders are listed below:

Chase Bank

Citizens Bank

EdAmerica

National City Bank

PNC Bank

Wachovia Bank

You are free to select what ever guarantor and lender you prefer.  

Sample payment plans for Federal Stafford Loans are available at the financial aid office.

Click here to Apply >>

Entrance and Exit Interviews 
Federal law requires when you borrow through the Federal Stafford Loan program for the first time, you must complete an entrance interview. In addition, when you graduate, withdraw, or enroll less than half-time, you must complete an exit interview. The entrance and exit counseling sessions can be done on-line at http://www.aessuccess.org.

UNSUBSIDIZED FEDERAL STAFFORD LOAN: The Unsubsidized Federal Stafford Loan provides students not qualifying for all or part of the Federal Stafford Loan due to need restrictions the opportunity to borrow a low interest loan. The annual limits a student can borrow are identical to the Federal Stafford Loan program.

Beginning with the 2008-09 academic year, undergraduate students will be eligible for $2000 unsubsidized loan in addition to the amounts listed above.

The interst rate for the Unsubsidized Stafford Loan beginning July 1, 2008 is 6.8%.  The distinguishing feature of the Unsubsidized Federal Stafford Loan is that the interest must be paid by the student, on a quarterly basis, while the student is enrolled in school. The interest paid towards your Unsubsidized Stafford Loan may be deductible from the taxpayer's income. Principal payments start six months after the student leaves school or drops below half-time status. Application procedures are identical to those for a Federal Stafford Loan.

FEDERAL PLUS LOANS: Parents of dependent undergraduates may borrow up to the student’s cost of attendance minus any estimated financial aid. The annual interest rate is 8.5%.  The parent must meet certain credit criteria in order to be eligible.  Some lenders allow a review of the borrowers credit information if the borrower is denied.  Repayment of principal and interest begins 60 days after the loan is disbursed. Some lenders allow parents to delay payments under a forbearance option.  The interest paid towards your PLUS loan may be deductible from the taxpayers income.

To apply for a PLUS Loan, go to www.aessuccess.org or click on the box to the right or the link below.  You will need to select a lender and can do so from one of our preferred lenders or select whichever lender you prefer.  Our preferred lenders are listed below:

Chase Bank

Citizens Bank

EdAmerica

National City Bank

PNC Bank

Wachovia Bank

You are free to select what ever guarantor and lender you prefer.  

Click here to Apply >>

 

ALTERNATIVE LOANS:

An alternative loan can help to pay the student’s remaining expenses after financial aid has been applied to the bill. The alternative loans are credit-based and offer flexible repayment options. Alternative loans are to be used to supplement other forms of financial aid. Alternative loans are student loans, with the student listed as the borrower.  Most alternative loans will require that the student also have a credit worthy co-signer in order to be eligible.  Interest rates are variable and are set by the individual lender.  Additional information about alternative loans is available in the financial aid office. 

For more information, download the ParentPLUS vs. Alternative Loans PDF on the http://www.aessuccess.org website.

 Our preferred alternative loan lenders are:

Chase

Citibank

Citizens Bank

EdAmerica

Key Bank

National City

PNC

Sallie Mae

Wachovia

You are free to select an alternative lender of your choice.

 

For more information contact:
Office of Financial Aid
ph: 215.951.2940 • email: financialaid@PhilaU.edu
Our federal school code is 003354