Students in Pennsylvania struggling to pay for college will have a new option in the next school year. PHEAA is launching the ‘Pennsylvania Forward Student Loan Program,’ starting with the 2019-2020 school year.
They say it’s a good alternative for students looking for an affordable loan.
James Steeley, CEO of PHEAA, says, “PHEAA, at its core, when we were created in the early ’60s, one of the prime reasons we were created was to finance education.”
But, in 2010, PHEAA stopped funding student loans when the ‘Federal Family Education Loan Program’ was phased out by Congress.
Director of Public and Media Relations for PHEAA, Keith New, says, “So, that’s when we got out of the lending business back in 2010. This is a bit of a different animal because this gets back to our core mission.”
PHEAA’s new ‘PA Forward’ student loan program will be a low-cost alternative for students and parents.
New says, “When it’s launched, it’s very competitive. There’s a lot of borrower benefits built in that they can’t enjoy elsewhere.”
That includes no origination or late fees, a quarter percent interest rate reduction for automatic debit enrollment, and a half percent interest rate reduction for graduating on time.
New says, “Between the lack of fees and interest rates being lower and reductions they can enjoy in repayment, a borrower can save thousands of dollars in this loan.”
Interest rates will be set in about two weeks, but Keith New says they will be competitive and he encourages anyone struggling to afford college to take a look at the new program.
“Our goal isn’t to make money. We’re not the private sector. Our goal is to make sure the borrower stays in good standing and has a worry-free repayment experience.”
And, applications for the program will be made available this spring.