Penn State and Loans

robochick84
Mon, 19 May 2008 10:17:54 +0000

I have a few thoughts for you from the perspective of a recent graduate of PSU.

As for the Stafford/federal loans. Yes, AES is the “servicer” or the loans, however, you must find a lender. I had an excellent lender PSECU, however, I am unsure if you can become a member while not living in state. Although, I do know once you are a student you are eligible to join PSECU. I would look into them.

As for the private loans. Penn State recommends Citi Bank’s CitiAssist, so I went with them all four years. I varied between $14000 and $20000 a year depending on how much my stafford and PHEAA was each year (it used to go up each year over the four years, not as likely now). You can go with almost any large lender such as MBNA, Citi, etc.

The money can be applied for and approved now, just be sure that you apply for enough for the whole year, and any extra that may be needed for summer classes next year, or down payments on an apartment for the following school year (usually starts around February). Once you are approved, the school is notified. When you receive your bill in August or so, it will just state the amounts that they are deducting for “room”, “meals”, “tuition”, etc. Anything that is left over, the first day of school, will be distributed into your eLion account. Which on that same day is when the loan is then “active” and begins to accrue interest.

The reason for the difference between campuses is the activities and facilities fees, etc. The tuition for commonwealth campuses is all within the same realm, and housing costs differ. Have you considered a different campus, to bring down the cost of living?

Is it impossible to borrow $20,000 a year? No. Is it a pain in the rear once you graduate, well, I’m getting by. I have a nice house, a new truck, and a good lifestyle. I just have to be sure to pay my $700 or so a month to the lenders to keep them happy too. I’m glad that I made the decision to get my $80,000+ piece of paper from Penn State.