Loan Programs
Various Loan programs are offered through numerous lending agencies (not through Shippensburg University). A separate application is required to these loans after filing the FAFSA. The following is a summary of the loan programs. Detailed information is available through the PHEAA web site.
Loan Program Summary
Please feel free to contact us at the addresses below or to consult with the program coordinators listed on this site.
| Program | Basis | Annual Award | Remarks |
| Federal Perkins Loan | Need | $400 - 2,600 | awarded based on need analysis |
| Federal Stafford Loan | - | depends on class standing | More required |
| Federal Plus Loan | - | Up to cost of education less other aid received | Federal plus loan application required. Must complete Free Application for Federal Student Aid (FAFSA) |
| Alumni Student Loan | Need | Up to tuition costs | Available to academically outstanding students |
| Bush Student Loan | Need | Up to tuition costs | Available to academically outstanding students |
Federal Perkins Loan
The Federal Perkins Loan is a low interest loan (5%) and is interest free to the student while enrolled in school. A limited amount of funds are available for students with high financial need. The information provided on the FASFA will be used to determine student eligibility. Awards vary from $400 to $2,600 based on need and fund availability.
Federal Stafford Loan
The Federal Stafford Loan is available for students through participating lenders . There are two types of Federal Stafford Loans: subsidized and unsubsidized. The subsidized loan is interest free while the student is in school, and is awarded based on financial need. Interest accrues on the unsubsidized loan while the student is enrolled in school. The borrower may opt to pay it as it accrues, or allow it to accrue and capitalize. The unsubsidized loan is a non-need based loan program. There is an 8.25% cap on the Federal Stafford loan.
The maximum Federal Stafford Loan per academic year is:
- for freshmen (0-29 earned credits): $3,500
- for sophomores (30-59 earned credits): $4,500
- for juniors & seniors (60+ earned credits0: $5,500
- for Graduate students : $8500 subsidized
- An independent student may borrow an additional $4,000 Federal Unsubsidized Stafford Loan per year as a freshman
or sophomore, and an additional $5,000 Federal Unsubsidized Stafford Loan per year as a junior or senior. To
be eligible for a loan, a Student must be in a degree program and enrolled
in at least 6 credit hours per semester.
Stafford Loan Limits (beginning 7/1/07)
The chart below provides information about the maximum loan amounts for which you may be eligible. Federal regulations will not allow total aid to exceed the cost of attendance.
| Annual Federal Stafford Loan Limits | Additional Unsubsidized Eligibility for Independent Students* | |
| 1st Year Undergraduate | ||
| Full Academic Year | $3,500 | $4,000 |
| Less than a Full Academic Year | Prorated | Prorated |
| 2nd Year Undergraduate | ||
| Full Academic Year | $4,500 | $4,000 |
| Less than a Full Academic Year | Prorated | Prorated |
| 3rd, 4th, or 5th Year Undergraduate | ||
Teacher Certification |
$5,500 | $7000 |
| Full Academic Year | $5,500 | $5,000 |
| Less than a Full Academic Year | Prorated | Prorated |
| Graduate or Professional Student | $8,500 | $10,000 |
| Total Borrowing Allowed (sum of all years) |
||
| Dependent Undergraduate | $23,000 | |
| Independent Undergraduate* | $46,000 | |
| Graduate/Professional | $138,500 | (includes borrowing on an undergraduate level) |
| * Or Dependent students whose parents are determined ineligible for the Federal PLUS loan may borrow the additional Unsubsidized Federal Stafford loan. These are processed on a case by case basis through the Financial Aid Office. | ||
Source: http://www.pheaa.org/
Federal PLUS Loan
The Federal Plus Loan for Undergraduate Students is available for parents of undergraduate students. A parent may borrow up to the cost of attendance less any other financial aid received. It is currently at a fixed 6.8% interest rate. Parent borrowers must begin repayment 60 days after a loan is disbursed. A separate application is required each academic year. Student must complete the Free Application for Federal Student Aid (FAFSA).
