Student Loans

The time has come to make a decision about your future and you've decided that higher education is the way to go. Peoples State Bank in cooperation with the federal government and the Pennsylvania Higher Education Assistance Agency (PHEAA) offers two loan programs that enable you, as a qualified student, to secure long-term, education loans under attractive conditions. Whether you are attending a postsecondary school now or you are planning to do so in the future, student loans can be a big help to pay for the costs of your education. REMEMBER: LOANS MUST BE REPAID. Check out all other sources of financial aid with the financial aid office at your school before applying for a student loan.

TWO TYPES OF STUDENT LOANS:

1. Subsidized Federal Stafford Loan - The federal government will pay the interest on this loan while you are in school. You must have "financial need" to qualify for these interest subsidy benefits. "Need" is your cost of education (tuition, room and board, personal student expenses), minus your other financial aid (grants, scholarships, college work-study, or other loans) minus your expected family contribution (how much of your family's finances should be available to help pay your educational costs).

2. Unsubsidized Federal Stafford Loans - You are responsible for all the interest on this type of loan from the date it is disbursed. The federal government does not pay any interest on your behalf. This type of loan is limited to your cost of education minus your other financial aid. No expected family contribution is used to determine your need for this type of loan.

TO BE ELIGIBLE FOR STUDENT LOANS, YOU MUST:

(a) be a U.S. citizen or eligible non-citizen;

(b) be accepted for enrollment in a participating school; or if enrolled, be making satisfactory progress;

(d) not be in default on an educational loan or owe any education grant refund;

(e) be registered with Selective Service, if required;

(f) have financial need in order to receive a subsidized Federal Stafford Loan.