PHEAA sets interest rates for student loans
The Pennsylvania Higher Education Assistance Agency (PHEAA) announced 2022-23 interest rates for PA Forward undergraduate, graduate, and parent borrowers.
Combined with the program’s many borrower benefits, PA Forward undergraduate and graduate borrowers can experience fixed interest rates as low as 3.82% annual percentage rate (APR) and no higher than 7.69% APR. This rate change applies to new applications beginning June 8.
Borrower benefits include a .50% interest rate reduction for achieving successful graduation and .25% interest rate reduction for participating in Direct Debit, PHEAA’s free automatic payment service.
The PA Forward Student Loan Program is a suite of borrower-friendly, Pennsylvania-based, private student loan products allowing students and families to borrow up to the total cost of attendance with competitively low interest rates and a variety of upfront and repayment benefits.
Additional benefits include no application or origination fees, flexible repayment options, and biweekly payment options that can pay off a loan sooner, saving borrowers even more money in interest.
PHEAA is the lender and servicer for the program, with a line of credit provided by the Pennsylvania Treasury and tax-exempt allocation from the state Department of Economic Development (DCED), making PA Forward Pennsylvania’s student loan program.
The program is available to Pennsylvania residents attending an approved school in or out of the commonwealth, or a student from an approved state (Delaware, Maryland, New Jersey, New York, Ohio, Virginia and West Virginia) attending an approved Pennsylvania school.
The PA Forward Student Loan Program includes four different student loan products:
- PA Forward Undergraduate Loan for students seeking an undergraduate degree, certificate, or diploma
- PA Forward Graduate Loan for students seeking an advanced degree such as masters, doctoral, law, health profession, or others
- PA Forward Parent Loan for parents or guardians of dependent undergraduate students seeking an undergraduate degree, certificate, or diploma
- PA Forward Refinance Loan for borrowers in repayment seeking a more streamlined way to manage their debt by combining all their federal and private student loans into a single monthly payment under new terms and conditions.
While the PA Forward Student Loan Program does not require a co-signer if the borrower has reached the age of majority in their state, applicants may benefit from a creditworthy co-signer if they do not meet minimum credit requirements.
A creditworthy co-signer may also increase an applicant’s chances for approval and could result in a lower interest rate.
As with all PHEAA’s business activities, the money earned through the program will be used to help support the agency’s public service mission. This includes $1 billion that has been allocated to fund student aid programs and services for Pennsylvania residents over the last 10 years.
To help students make more informed choices about their higher education funding plan and prevent unnecessary or excessive borrowing, PHEAA offers MySmartBorrowing.org. This free resource helps users understand how different career, school, and financial decisions made during the college planning process can influence the total cost of their education and their ability to repay any student loans after graduation.
To learn more about PA Forward Student Loans, including rates on the PA Forward Parent Loan, and to apply, visit PHEAA.org/PA-Forward or call 1-800-PA-FORWD.