Loan Programs

Loans help you and your parents pay for your college education. The Federal government offers several different loan programs, and you can also apply for education loans via private alternative lenders such as banks as well as through an alumni program here at Ship.

Federal student loans offer several tax benefits for you and your parents:


  • Interest deduction reduces your taxable income based on the amount of interest paid during the tax year

  • Tuition and fees deduction reduces your taxable income paid during the tax year

  • American Opportunity and Lifetime Learning tax credits can be credited against your Federal income taxes for college tuition and fees paid during the tax year


For additional information about these benefits, find out more below and consult with your tax preparer.

Undergraduate and graduate students may be eligible to borrow loans under the Federal Direct Loan program. Loan eligibility is determined through a combination of factors including, but not limited to: FAFSA completion, dependency status, grade level, and maintaining satisfactory academic progress. Click here for more information on this loan program.

First-time loan borrowers of a Federal Direct Loan must complete a Master Promissory Note (eMPN) and Entrance Counseling at StudentLoans.gov.

If you are an undergraduate student, your parents may qualify for a Federal Direct Parent PLUS Loan to help you pay for college. This type of loan enables your parent to borrow up to an amount equal to your total cost of attendance at Ship minus any other financial aid you receive.

In order to borrow a Federal Direct PLUS Loan, your parents must log onto the StudentLoans.gov website using their own FSA User ID and apply. If they are approved, they will need to complete a Master Promissory Note (eMPN) on StudentLoans.gov after April 1. Learn more about this loan here.

If you are a graduate student, you may borrow up to the total cost of attendance minus any other financial aid you receive with a Federal Direct Graduate PLUS Loan. To borrow, please complete a Master Promissory Note (eMPN) on StudentLoans.gov. Go here to find out more.

PRIVATE ALTERNATIVE LOANS FOR STUDENTS

Before turning to private education loans, we encourage all of our students to complete the Free Application for Federal Student Aid (FAFSA) and consider borrowing your maximum eligibility on the Federal Direct Student Loan program. 

Students that require additional funds to cover educational costs may review more information on private alternative loans for students here.  Each lender has different credit requirements.  In most cases when borrowing an alternative education loan, the student will need a credit-worthy cosigner.  Your cosigner does not need to be your parent. 

When making your loan application please consider our loan terms:

  • Fall & Spring combined  OR
  • Fall, Spring and Summer terms individually
  • We cannot process a summer term loan combined with any other term.

Alternative Loans are especially useful for students who will be enrolled less than half time or not making Satisfactory Academic Progress (SAP).  Elm Select provides filtering options to find lenders.

If you are enrolled less than half time (below 6 credits) or if you have lost eligibility for Federal Student Loans (for example, students who are not meeting satisfactory academic progress SAP requirements), Private Alternative Loans are a good option to fund your educational costs.  Elm Select has filtering options to search for specific loans and lenders who offer loans for those circumstances. 

PRIVATE ALTERNATIVE LOANS FOR PARENTS

 Several lenders have available private education loans specifically for parents to borrow to cover their child's educational costs.  Each lender offers its own terms and conditions.  Please review more information on private alternative loans for parents here by entering Shippensburg University and selecting ‘Parent Loans’ on the loan program drop down menu. 

If you are an academically outstanding undergraduate or full-time graduate student and have need of additional financial assistance, Shippensburg has a limited number of Alumni Student Loans to help with your tuition costs. To learn more, click here or contact the Financial Aid Office at 717-477-1131.  

If you are an academically outstanding undergraduate student who needs financial help to complete your degree at Ship, contact our Financial Aid Office at 717-477-1131 and ask about a Bush Student Loan. Find out more about this program here.

If you are an undergraduate or graduate student with exceptional financial need, you may be eligible to receive a Federal Perkins Loan up to $2,000 based on need.  Learn more here

NOTE: The Federal Perkins Loan Program is ending September 30, 2017. Please be sure outstanding Entrance Counseling and Master Promissory Note requirements for Federal Perkins Loan are completed prior to September 30, 2017.  Perkins loans not able to be disbursed by this date will be canceled in accordance with federal regulation.