Penn State and Loans

JustAMomOf4
Tue, 22 Apr 2008 19:17:04 +0000

I am not describing that she become a state resident. Keystone loans are available for Parents from OOS who have kids in college in PA.

Go back up and re-read the requirements - they are for PA residents with kids in any college (in-state or OOS) OR for those who have kids in college in PA.

Michina -
The financial aid office can help you get the Stafford Loan - if you find a better deal from another lender you are free to use that.

The $21,925 that your daughter will borrow would be an Alternative Loan (also called private or signature loans). She will accrue interest from the time the money is disbursed - there are some programs where the interest can be deferred until after graduation but the interest will continue to accrue until that time - 4 years in this case. Bottom line - after 4 years she will owe much more than $21,925 on the loan.
Also, she will most likely need a co-signer. Rarely does an 18 year old have enough credit established to borrow without a cosigner.

IMO - think long and hard before you commit to an alternative loan.