Interest Rates

With our competitive, fixed interest rates, you never need to worry about your interest rate going up!

5.19%1 – 7.38% APR2

The interest rate you pay will be determined after you apply. It will be based upon your credit history and other factors, to include:

  • Credit score
  • Loan term
  • Repayment plan

If approved, we will notify you of the rate you qualify for within the stated range.

Loan Information

Helping parents and/or guardians help to cover the costs of college is exactly why the PA Forward Student Loan Program was established.

  • Borrow up to 100% certified cost of attendance (tuition, fees, room, board, books, etc.)
  • Low minimum loan amount: $1,500
  • No pre-payment penalty

Loan Eligibility

The PA Forward Parent Loan is a loan designed specifically for parents or
guardians

Guardians

Anyone who is providing support to a dependent student.

of dependent undergraduate students enrolled or who plan to be enrolled at least half-time in a Title IV approved degree, certificate, or diploma granting program. This loan is meant for:
  • PA residents with students attending an
    approved school

    Approved School

    Federally-approved educational institution under Title IV of the Higher Education Act of 1965

    in or out of PA
  • Residents from an approved state (MD, NJ, DE, NY, VA, and OH) with students attending an approved PA school
  • U.S. citizens and permanent residents
  • Parents or guardians who meet minimum credit requirements via a credit check

Repayment Plan Options

Immediate Repayment

If you want to get a head start on paying back your loan right away, this is the option to choose. With this option you will:

  • Be eligible for the lowest interest rate available
  • Pay your loan off earlier by making principal and interest payments while your student is in school
  • Pay the least amount of interest over the life of the loan compared to the other repayment plan options
NOTE: Your first payment will be due within 30 to 60 days after the date of your final
disbursement

Disbursement

Disbursement is the transfer of loan funds from a lender to the school.

.

Interest Only

If you want to avoid
interest capitalization

Interest Capitalization

Capitalization is the addition of unpaid interest to the principal balance of a loan. Capitalization of interest results in a higher principal balance and additional finance charges over the course of repayment and may cause your monthly amount to increase.

this is the repayment option for you! With this option you will:
  • Be responsible to pay the accrued interest while your student is enrolled in school
  • Enter repayment with the starting principal balance of the original amount you borrowed

NOTE: Interest payments will begin 30 to 60 days after the loan’s first disbursement. Full payments, payments made toward principal and interest, will not begin until the student leaves school or drops below half-time.

Payments and Terms

  • The minimum monthly payment for a PA Forward Student Loan is $50.00 a month, unless you select the Interest Only repayment plan.
  • You have the option to choose between two terms to make repayment fit your needs:
    • 10 years
    • 15 years

NOTE: The longer your term, the more interest you could pay over the life of the loan.

Save Time and Money with Direct Debit

Direct Debit is a free service that sets up an electronic deduction from your checking or savings account each month. And you may qualify for a 0.25% interest rate reduction when your application is approved.

NOTE: If you choose the Interest Only Repayment plan, you will not be initially eligible for Direct Debit or the 0.25% rate reduction until your loan enters repayment and you start paying toward both principal and interest.

1 Annual Percentage Rate (APR) Calculations: The lowest APR is based on the following assumptions: a loan of $10,000 made in a single disbursement, a borrower who selected an Immediate Repayment Plan, monthly payments of $107.05 for a period of 120 months, a fixed periodic interest rate of 5.45% and a total amount financed of $12,845.50. The borrower in this sample qualified for a 0.25% Direct Debit benefit for the entirety of the repayment period. This APR is an estimate and may differ from the actual rate received.

2 The highest APR is based on the following assumptions. A loan of $10,000 made in a single disbursement, a borrower who selected an Interest Only Repayment Plan and a repayment term of 180 months, monthly payments of $61.67 for 46 months and monthly payments of $92.13 for the remainder of the repayment term, a fixed periodic interest rate of 7.40% and a total amount financed of $19,420.77. The borrower in this sample did not qualify for any interest rate discounts.

This APR is an estimate and may differ from the actual rate received.

NOTE: Subject to aggregate loan limits.

The PA Forward Student Loan Program is a credit-based loan program. Applicants are subject to credit qualifications, completion of an application and credit agreement, and verification of application information.

PHEAA reserves the right to discontinue all programs or benefits without prior notice