Loans & Financing

There are a variety of loan programs available to students and families to help fund education costs at Susquehanna.

Federal Stafford Loan
Perkins Loan
PLUS Loan
Alternative Loan Options

 

 

Federal Stafford Loan Program

The Federal Stafford Loan Program allows eligible students to borrow up to $23,000 during their undergraduate education. Annual subsidized loan amounts may not exceed the following:

First year: $3,500
Sophomore: $4,500
Junior: $5,500
Senior: $5,500

For first-time borrowers, the Stafford Loan requires that a form be completed in addition to the general application forms required when applying for financial aid.

The Master Promissory Note (MPN) is available through Susquehanna. The completed Stafford Loan MPN is returned directly to Susquehanna's Office of Financial Aid, where an applicant’s ability to borrow is certified. This process takes up to four weeks.

There are two types of Stafford loans: subsidized and unsubsidized.

Subsidized loans are awarded based on financial need. Interest is not charged while the borrower is enrolled at least half-time or otherwise qualifies for a deferment. The federal government "subsidizes" (or pays) the interest during these times. Repayment begins six months after a borrower graduates, withdraws, or is no longer enrolled at least half-time.

Unsubsidized loans are not awarded based on financial need. Any eligible student can take out Unsubsidized Stafford Loans. The borrower will be charged 6.8% interest from the time the loan is disbursed to the time the loan is repaid in full. There is no payment due on the principal until six months after the borrower is no longer enrolled at least half-time. However, borrowers are obligated to make quarterly interest payments (or to have them added to the principal) throughout the in-school period.

Students are eligible to borrow unsubsidized Stafford Loans annually on the schedule noted above.

In addition to the base Stafford Loan for each student’s academic level, students may also borrow a supplemental unsubsidized Stafford Loan of up to $2000 annually. If a student takes advantage of the full Stafford Loan amount available in each academic year, cumulative borrowing could be as much as $27,000, itemized as follows:

First year: $3,500 + $2,000 = $5,500
Sophomore: $4,500 + $2,000 = $6,500
Junior: $5,500 + $2,000 = $7,500
Senior: $5,500 + $2,000 = $7,500

Stafford Loan Interest Rates »
Stafford Loan Sample Repayment Chart »

 

 

Perkins Loan Program

The federal Perkins Loan provides loans up to $5,500 per year. Repayment of the loan at 5 percent interest begins nine months after the borrower leaves Susquehanna. Repayment can be deferred for students who attend graduate school, enter military service, or enroll in the Peace Corps or AmeriCorps.

At Susquehanna, this program is used to supplement the Stafford Loan for some students but is usually limited to the first and second years of study.

 

 

Parent Loan for Undergraduate Students (PLUS)

Through this program, parents may borrow an annual amount up to the cost of attendance less financial aid. Repayment begins within 60 days of the loan's disbursement. The fixed interest rate is set at 8.5 percent. Interest may be tax deductible. There is no income requirement, but the parent borrower may not have an "adverse credit history."

Applications are available through the Office of Financial Aid or online through American Education Services.

Borrowers have the option to choose any participating lender and/or guarantor for any of their federal education borrowing.

PLUS loan sample repayment schedule.

For an understanding of how lenders are selected for recommendation to SU students and their families, please see our Lender Code of Conduct.

 

 

Alternative Loan Options

There are a variety of private loans for education that are available to Susquehanna students. Students and their families are always best-advised to pursue federal education loans first, since they carry lower, and often tax-deductible, interest.

However, for families who wish to handle additional borrowing through one of these programs, our staff is available to sort through the options and evaluate which loan may make sense for a particular situation.

Since these loans are non-federal, there is no cap on their interest rates, which currently range from 4.47% upward and are subject to change as frequently as monthly.

For information and/or application materials, please contact the Office of Financial Aid.