Student Finance

Loans

A loan is money you borrow and must pay back with interest. Below you can find information about different federal and private loan options.  

NEW RULES IMPACTING FEDERAL LOANS 

The One Big Beautiful Bill (also known as OBBB) impacts federal student loans starting July 1st, 2026. OBBB changes include:

  • Lifetime loan limits for graduate students
  • Graduate PLUS loans availability (no longer available for new students or new borrowers)
  • Parent PLUS loan limits
  • Federal loan eligibility for less than full time students
  • Loan repayment options 

Learn more on our OBBB page. 

Federal Loans

The FAFSA is the application for federal student aid including federal student loans. Compared to private loans, federal student loans have lower interest and offer a greater variety of repayment plans. 

Federal Loans and Less than Fulltime Enrollment

Starting with the 26/27 school  year, all federal student loans except Parent PLUS loans must be prorated (reduced) for less than full time enrollment. This means a student may not receive the full amount of federal loans unless they enroll in full time classes. For Undergraduate and Post Baccalaureate students, this is a minimum of 12 academic credits per term and for Graduates, this is a minimum of 9 academic credits per term.

Federal Direct Subsidized/Unsubsidized Loans

Subsidized and Unsubsidized loans are federal student loans for FAFSA eligible students to help cover the cost of higher education. 

To be eligible for federal Direct loans students need:

The difference between a Direct Subsidized and a Direct Unsubsidized Loan:

  • Direct Subsidized Loan: A need-based loan  available to undergraduate students who have financial need according to their FAFSA. The benefit of this loan is the federal government pays the interest while the student is in school. This loan can be deferred while a student is enrolled at least half time.
  • Direct Unsubsidized Loan: available to both undergraduate and graduate students. This loan is not based on financial need. . Interest begins accruing on this loan once the funds are paid. This loan can be deferred while a student is enrolled at least half time. 

New Starting 07/01/2026:

  • Federal student loans will require proration for undergraduate and graduate students who are less than fulltime
  • There are also new lifetime borrowing limits forgraduate student borrowers who are not eligible for legacy borrowing consideration.
  • Find more about these changes on our OBBB page

Federal Direct Parent PLUS Loan

The Federal Direct Parent PLUS Loan is a credit based, federal, fixed interest loan for  parents of dependent undergraduate students. To apply for the Parent PLUS loan, a parent must complete an annual PLUS loan application at studentaid.gov when the application becomes available May 1  for the following academic year which begins in the fall. 

Either parent may apply but they must be a U.S. citizen or an eligible non-citizen and pass a credit check. To be eligible students are required to have a processed FAFSA and be enrolled at least half time.

Starting 07/01/2026, Parent PLUS loans have new limits for non-legacy borrowers:

  • The new annual limit for the Parent PLUS loan is $20,000 per student
  • The new lifetime limit for the Parent PLUS loan is $65,000 per student
  • Once the new rules for who qualifies as legacy are finalized, they will be posted on our OBBB page 

Federal Direct Graduate PLUS Loan

The Federal Direct Graduate PLUS Loan program is being phased out starting 07/01/2026. As of that date only students considered legacy borrowers will be eligible to receive this loan. The new rules also require graduate PLUS loans to be prorated for less than full time enrollment. Once the new rules for proration and who qualifies as legacy borrowers are finalized, they will be posted on our OBBB page. 

The Graduate PLUS loan is a fixed interest, federal loan for graduate students in an eligible program. To be eligible for this loan, graduate students must be enrolled at least halftime (5+ credit hours), have submitted a FAFSA, be awarded Federal Stafford loans (the primary Unsubsidized FAFSA based student loan), be a U.S. citizen or an eligible non-citizen and pass a credit check. The PLUS loan application must be completed at studentaid.gov when the application becomes available May 1 for the following academic year which begins in the fall.

Private Loans

Many students and parents consider private loan programs as a source of funding after exhausting all opportunities available from federal and state aid programs. Taking on debt for any reason should be done deliberately and only for the amount necessary. If you plan to borrow a Private Educational Loan, you should make an informed decision. Check out our Private Student Loan page for more information. 

PSU Short-Term Loans

Short term loans can be issued to students that are registered for at least one credit for the current term and meet the eligibility requirements. If you have questions about these loans, contact Student Financial Services.

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Manage Your Loans

Navigate the student loan repayment process based on where you are in the process. Whether you're an incoming student or you've graduated or left school, you'll need to know and understand your next steps and studentaid.gov is your best resource.

Learn About Managing Your Loan