Interest Rates

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

5.01%1 – 7.43% 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
  • Co-signer credit history (if applicable)
  • Loan term
  • Repayment plan

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

Interest Rate Rewards

With our great interest rate rewards, you could save a total 0.75% (0.50% Graduation and 0.25% Direct Debit interest rate rewards) off of your fixed interest rate!

Lower Interest Rate for Graduating

We are invested in your future and with that comes a 0.50% interest rate reduction for graduating!

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 will qualify for a 0.25% interest rate reduction when your application is approved.

NOTE: If you choose the Interest Only or Partial Interest Repayment Plans, 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.

Loan Information

Helping you 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 Student Loan is a loan designed specifically for students enrolled or 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 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
  • Students from an approved state (MD, NJ, DE, NY, VA, and OH) attending an approved PA school
  • U.S. citizens and permanent residents

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 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 during 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 30 to 60 days after the expiration of your
grace period

Grace Period

A grace period is a 6-month period before the first payment on a loan is due. The grace period begins the day after you graduate, leave school, or drop below half-time status and ends the day before repayment begins.

.

Partial Interest Payment

To get a head start on paying the interest that accrues on your loan, this is a great option for you! With this option you will:

  • Be required to pay a fixed $25.00 a month payment that is applied toward your loan while you are in school
  • Have less interest capitalize when you enter repayment

NOTE: 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 after the expiration of your grace period.

Full Deferral

If you don’t want to worry about making payments until you leave school, this option is available to you! With this option you will:

  • Not have to make payments while in school; however, will end up paying the most amount of money over the life of the loan compared to the other repayment plan options

NOTE: Payments will not be due until after you separate from school and any applicable grace period has expired.

Payments and Terms

  • The minimum monthly payment for a PA Forward Student Loan is $50.00 a month, unless you select the Interest Only or Partial Interest Payment repayment plans.
  • 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.

Co-signer Information

The PA Forward Student Loan Program does not require you to have a
co-signer

Co-signer

A co-signer is a person who accepts equal responsibility for the repayment of the loan.

unless you have not met the
age of majority

Age of Majority

The age a person is considered an adult.

based on the law of your state of residence or you do not meet the minimum credit requirement. However, you may benefit from a
creditworthy

Creditworthy

Having a satisfactory credit rating

co-signer. Having a co-signer may increase your chances that the loan will be approved and, perhaps, may get you a better interest rate.

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 and a repayment term of 120 months, monthly payments of $107.05 and a final payment $79.67, a fixed periodic interest rate of 5.45%, and a total amount financed of $12,711.07. The borrower in this sample qualified for a 0.25% Direct Debit benefit for the entirety of the repayment period and a 0.50% Graduation benefit was applied 47 months into repayment.

2 The highest APR is based on the following assumptions: a loan of $10,000 made in a single disbursement, a borrower who selected a Fully Deferred Repayment Plan and a repayment term of 180 months, monthly payments of $127.51, a fixed periodic interest rate of 7.90%, and a total amount financed of $22,951.20. The borrower received an in-school deferment of 46 months and a grace period of 6 months. The borrower in this sample did not qualify for any interest rate discounts.

Please note these APRs are estimates and may differ from the actual rates received.

NOTE: Subject to aggregate loan limits.

Applicants, including co-signers, 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