Agencies

academic year. A second-year (sophomore) student (earned 36 credits or more) may borrow up to a maximum of $4,500 subsidized and up to $2,000 (dependent) or $6,000 (independent student or parent unable to borrow PLUS) unsubsidized per academic year. A third year (junior) student (earned 72 credits or more) may borrow up to a maximum of $5,500 subsidized and up to $2,000 (dependent) or $7,000 (independent student or parent unable to borrow PLUS) unsubsidized per academic year. A fourth-year (senior) student’s loans are prorated based on the number of credits attempted for their last term. Students must begin repayment of their Federal Direct Stafford Loans six months after they graduate, withdraw or drop below half-time status. Minimum repayment of a Federal Direct Stafford Loan is $50 per month, but the actual payments will be based upon the total amount borrowed, the length of the repayment period, and the type of repayment plan chosen by the borrower. Students may qualify for different repayment programs. Students need to check with their servicer for the various options.

• Federal Direct Unsubsidized Stafford Loan – This loan program provides low interest loans to students who demonstrate little or no “need” for a Federal Direct

Stafford Loan. The terms, conditions, and loan limits are the same as a Federal

Direct Stafford Loan except that the federal government does not pay the interest on behalf of the student. The student is responsible for the interest and can either pay the interest on the loan monthly or quarterly or choose to have the interest capitalized. Interest capitalization means that the servicer adds the unpaid interest to the principal balance of a loan. Repayment options are the same as the Federal

Direct Stafford Loan.

• PLUS Loan – The PLUS program provides educational loans to parents who borrow on behalf of the dependent student. PLUS borrowers do not have to demonstrate need, but they are required to have a credit check performed to confirm their ability to repay the loan. The maximum amount that a parent can borrow is the student’s cost of education less any financial aid that the student receives during the loan period. The interest on the loan is variable but is capped at 9%. Repayment of the loan begins 60 days after the final disbursement, unless the borrower meets the criteria for a deferment.

• Private Loans – Private loans are another option to help make Central Penn more affordable. These loans differ in the amounts that can be borrowed, the interest rate used, and repayment terms. In most cases, the student is the borrower and the parents are the co-signer. Students can contact the Financial Aid Office or go to centralpenn.edu to find out how these loans can help finance their education at Central Penn. You may borrow from any private lender that you wish to borrow from.

Central Penn’s Financial Aid Office works with governmental agencies and local organizations that provide qualified students with additional sources of financial assistance. Some of these agencies include Office of Vocational Rehabilitation (OVR) and the Bureau of Blindness and Visual Services.

Students who qualify for Veteran’s Benefits must notify the Certifying Official once they are admitted to discuss their benefits. The Veterans Administration requires Central Penn to monitor veterans’ progress during their enrollment. It is the responsibility of the Certifying Official to certify a veteran’s eligibility for benefits.