PHEAA recently announced the launch of a new student loan program for students who need help paying for college after they have exhausted their eligibility for gift aid, such as grants and scholarships.
The PA Forward Student Loan Program is a borrower-friendly suite of low cost alternative student loans that will be available to borrowers, beginning with the 2019-20 academic year.
The program is currently available to Pennsylvania residents who can use their PA Forward loan at any Title IV school in the nation. Additionally, and students who are residents of Maryland, Delaware, Virginia, New York, New Jersey and Ohio may use a PA Forward loan at any Title IV school in Pennsylvania.
The program includes loans for undergraduate and graduate students, as well as loans for parent borrowers. Additionally, borrowers who are in repayment and want to combine their debt after graduation to achieve a lower monthly payment can benefit from a PA Forward Refinance Loan.
This program was created to address a growing need among students who are struggling to pay for their entire cost of attendance after taking full advantage of available grants, scholarships, campus-based aid, and low-cost federal student loans. If family savings are not sufficient, students are often forced to rely on alternative student loans, many of which come with strict credit requirements, higher interest rates, and fewer borrower benefits during repayment.
PA Forward student loan borrowers can borrow up to the total cost of attendance with competitively low interest rates. Additional benefits include no application or origination fees, immediate credit approvals, and flexible repayment options.
Borrowers can receive a 0.25 percent interest rate reduction for enrolling in an automatic direct debit program and an additional 0.50 percent interest rate reduction for achieving successful graduation. Borrowers also benefit from a 6-month grace period after graduation before the first payment is due. This allows borrowers time to get their finances in order, including time to find a job, before repayment begins.
Borrowers who take full advantage of the program’s benefits could save thousands of dollars over the life of the loan.
Pennsylvania joins 20 other states, including New Jersey and Massachusetts, in offering a similar loan program as a public service to its residents.
You can learn more about PA Forward at PHEAA.org/PA-Forward.