Grants | Loans | Scholarships | Tuition Account Program | Work Study

Loans and Loan Forgiveness programs
Students loans are long-term, low interest loans made to students by private lending institutions, such as banks, savings and loan associations, and credit usnions, or directly from the Federal Government. Loan amount must be paid back at specific interest rates. AES/PHEAA offer several loan programs:

• Federal Stafford Loan Program: Stafford Loans are federal student loans made directly available to college and university students and are used to supplement personal and family resources, scholarships, grants, and work-study. They may be subsidized by the U.S. Government or may be unsubsidized depending on the student's financial need.

  Both subsidized and unsubsidized loans are guaranteed by the U.S. Department of Education either directly or through guarantee agencies. Nearly all students are eligible to receive them (regardless of credit score or other financial issues). Both types offer a grace period of six months, which means that no payments are due until six months after graduation or three months after the borrower becomes a less-than-full-time student without graduating. Both types have a fairly modest annual limit. The limit for the academic year beginning in 2007 is $3,500 per year for freshman undergraduate students, $4,500 for sophomore undergrads, and $5,500 per year for junior and senior undergrads.

• Federal Perkins Loan: The Federal Perkins Loan Program provides low-interest loans to help needy students finance the costs of postsecondary education. Students can receive Perkins loans at any one of approximately 1,800 participating postsecondary institutions. Institutional financial aid administrators at participating institutions have substantial flexibility in determining the amount of Perkins loans to award to students who are enrolled or accepted for enrollment. Borrowers who undertake certain public, military, or teaching service employment are eligible to have all or part of their loans canceled.

• Parent Loan for Undergraduate Students: (PLUS): This program allows parents of dependent undergraduates to borrow to finance education expenses. Applications are available through local financial institutions and AES/PHEAA.

• Agriculture Education Loan Forgiveness Program (AELF): This program helps repay a portion of outstanding AES-administered federally-insured student loans for eligible graduates with Veterinary degrees, Agriculture degrees or teaching certification.

• Pennsylvania Loan Forgiveness Programs: Loan forgiveness programs encourage students to pursue educational goals that will lead to employment in specific occupations by forgiving part or all of your educational loan debt, provided you fulfill certain work-related requirements. Loan “forgiveness” does not magically erase debt. It is a program through which an organization or company makes a payment on your loan account on your behalf (if you meet certain requirements).

  You may qualify for loan forgiveness in Pennsylvania if you earned a degree for and are gainfully employed in one of the following fields:

  • Nursing Loan Forgiveness for Healthier Futures
    
    
  • Quality Early Education Loan Forgiveness Program
    
    
  • Agriculture Education Loan Forgiveness Program
    
    
  • Armed Forces Loan Forgiveness Program
    
    
  • Loan Forgiveness Program for State Veterans Homes Nurses

  For information on federal loan forgiveness programs, visit aesSuccess.org.