Penn State Student Aid and Scholarships Policy

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Student Aid and Scholarships Policy
Federal and State Student Aid Programs

Penn State participates in all the major federal and state student aid programs. Federal and state funding sources comprise 70 percent of all student aid at Penn State, the majority of which is available in the form of federal education loans for students and parents. Eligibility for these programs is determined based on the information students report on the Free Application for Federal Student Aid (FAFSA) each year, in accordance with federal and state regulations. Student aid funds are awarded based on financial need and these limited funds are distributed first to students with the greatest financial need. Program regulations limit the University’s ability to make exceptions to the eligibility criteria.

Because of limited student aid funding (including limited University Scholarships) Penn State is unable to meet the full demonstrated financial need of all students. Students and their families have the primary responsibility for meeting the essential costs of tuition, fees, room and meals, books, and supplies. However, many families are able to make use of student and parent loans to meet their education financing needs.

Education loans are the primary source of student aid at Penn State and at many colleges and universities across the country. Each year, approximately 75 percent of Penn State undergraduate students with financial aid receive loans to pay for their education. For most students, federal education loans will be the only form of assistance available.

In addition to the loans available to students, parents who request additional assistance from Penn State for their students will be directed to consider the federal Parent PLUS Loan. Parents who qualify for this program can borrow up to the full cost of attendance minus any aid to their student. Penn State also offers two payment plans which may be helpful to students and families in managing costs at Penn State. The Deferred Payment Plan allows payment in three installments each semester. The Tuition Management System (TMS) Lion-Pay Monthly Payment Plan allows monthly payments over the course of the academic year.

Scholarships

One in five Penn State undergraduate students receives University scholarships. While scholarship award amounts vary and are limited by donor guidelines the average award amount last year was $2,500 for the academic year. Scholarships are awarded on the basis of merit or financial need as defined by the specific scholarship program. Some scholarships use both financial need and academic merit to select recipients. Awards are made by the academic colleges, Penn State campuses, the Office of Student Aid, and other administrative units.

Each year, Penn State enrolls many outstanding and academically talented students and therefore cannot assist all deserving students. Scholarship funds are insufficient to recognize students who may rank at or near the top of their class, or have received other significant academic honors. Penn State cannot negotiate student aid packages to match grant and scholarship offers from other colleges and universities. Students should pursue available scholarships through their campus or their academic college. Many students receive private scholarships through external organizations that provide funding. The Office of Student Aid Web site provides helpful tools for students to conduct a scholarship search.