University Park, Pa- The Pennsylvania Higher Education Association (PHEAA) announced a new student loan program in Centre County today.
The goal of the program is to offer low cost loans to students who’ve exhausted their eligibility for other grants and gifts.
At a press conference at the Penn Stater, PHEAA officials said the new loan program would be borrower friendly and low cost to all students attending college in Pennsylvania.
The program includes affordable loans for graduate and undergraduate students, as well as loans for parent borrowers.
PHEAA said borrowers receive a point-two-five interest reduction rate for enrolling in an automatic debit program and an additional point-fifty percent reduction for successfully graduating.
At the moment the interest rates of the loan are not exact.
Shawn Barbrow a guidance counselor for Bellefonte Area High School said, “It provides our families to fill the gap between federal loans, grants, and what’s left to pay for college. we see that gap growing every single year and with a partner like PHEAA that is a trusted partner, offers competitive rates, and no cost loans to students, it’s gonna provide our students with more opportunities to make those college aspirations a reality”
The loan program will begin in the 2019-2020 school year.