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.
Alternative Student Loans
Private alternative loans come from a private lending institution, like a bank. If you are declared ineligible for Federal aid or you require additional funds after Federal aid and assistance from Shippensburg have been provided to you, you may apply for these kinds of loans. They are classified as non-need, are typically issued in your name, and they require a cosigner.
Alumni Student Loan
The Alumni Loan Fund was originated by the Class of 1904 and added to by numerous individuals and groups, in particular, the Estate of Catherine McMullen. It provides need-based loans to academically outstanding undergraduate and full-time graduate students.
Bush Student Loan
The William Harold and Nancy E. Bush Student Loan Fund provides need-based loans to academically outstanding undergraduate junior or senior students (those having 60 credits or above) needing financial help to complete their degree at Ship.
Federal Direct Parent PLUS Loan
The Federal Direct Parent PLUS Loan program is available for parents of Dependent Undergraduate students. To process your parent’s PLUS loan application, Shippensburg University must have the results of your FAFSA on file.
Please also see the information regarding changes to the Federal Parent PLUS Loan due to the One Big Beautiful Bill or OB3 for short.
Federal Direct Graduate Plus Loan
The Federal Direct Graduate PLUS Loan is available only to current students enrolled in a Graduate Program.
NEW:
Beginning July 1, 2026:
- Graduate PLUS Loans will no longer be available for students who begin a new graduate or professional program on or after this date.
- Students who have any federal loan disbursed before July 1, 2026, while enrolled may continue to borrow Graduate PLUS Loans for up to 3 additional academic years or the remainder of their expected time to complete the program, within the published length of time to do so, whichever is less.
- The federal government has introduced new annual and lifetime limits for Direct Unsubsidized Loans for graduate students.
- The federal government has established new loan eligibility rules based on your enrollment status. Loans must be reduced when students are not enrolled full-time.
Federal Direct Loan
Both undergraduates and graduate students may receive Federal Direct Loans. Students borrowing Federal Direct loans must complete the following requirements online at Studentaid.gov. You will need your Federal Student Aid (FSA) ID and password to complete these requirements.
NEW: Changes Effective July 1st, 2026
-
- Total Aggregate Limit: $257,500 across all federal loan programs (undergraduate and graduate)
- The federal government has established new loan eligibility rules based on your enrollment status. Loans must be reduced when students are not enrolled full-time.
Loan Counseling
The Federal Government requires that all first-time Federal Direct Loan borrowers complete an entrance counseling session before they receive any loan proceeds. This session is designed to provide the borrower with important information about the Federal Direct Loan program, including your rights and responsibilities as a borrower.
It is important that you complete this session as soon as possible. You may not use your loan as credit against your bill until this requirement is satisfied. Disbursement of your loan funds will not occur before you complete this session.
Payment Options
There are multiple options and payment plans for paying student loans. Explore repayment options by visiting studentaid.gov and use the student loan repayment calculator to estimate monthly student loan payments.
Due to OB3, please also consider reading updated loan repayment information at https://studentaid.gov/manage-loans/repayment.