Penn State students receive four types of student aid: grants, scholarships, loans, and federal work-study.
Grants are awarded based solely on financial need, have no requirement of repayment, and can come from the federal government, the state, or Penn State.
Scholarships are awarded based on academic achievement. For many University scholarships, financial need is an additional criterion of eligibility. There is no requirement of repayment.
Loans are a form of financial aid that must be repaid after a student leaves Penn State or drops below half-time attendance.
- Federal Direct Stafford Loan
To accept a federal student loan, a student must complete both Loan Entrance Counseling and a Master Promissory Note. Both may be completed at www.studentloans.gov
- Federal Direct Parent PLUS Loan
The Federal Direct Parent PLUS Loan is available to parents of dependent undergraduate students. More information is available at http://studentaid.psu.edu/types-of-aid/loans/parent-PLUS
- Alternative Educational Loans
Alternative loans are managed through private lenders. For more information, visit http://studentaid.psu.edu/types-of-aid/loans/private-alternative.
Federal Work-Study awards are based on a student's financial need and allows students to earn money towards their school expenses. Work-study earnings are not applied directly to a student's semester bill because work-study students receive a paycheck.