Sen. Hughes praises PA Forward Student Loan Program launched by PHEAA

Sen. Vincent Hughes (D-Philadelphia/Montgomery) recently praised a new student loan program from the Pennsylvania Higher Education Assistance Authority (PHEAA) for Pennsylvania students who need help paying for college after exhausting their eligibility for gift aid.

The PA Forward State Grant Program will provide low-cost, alternative student loans for undergraduate and graduate students, as well as loans for parent borrowers. A PA Forward Refinance Loan can benefit borrowers are in repayment and want to combine their debt after graduation for a lower monthly payment. The program is set to begin the 2019-2020 academic year.

“We know funding is one of the greatest barriers to college access, so I am pleased we were able to work with PHEAA to offer these low-interest loans to help individuals and families struggling to make ends meet,” Sen. Hughes said. “I am certainly thankful for steps like this, but the reality is dire for so many people working to learn and secure better lives. We have to continue to promote programs like this.”

PA Forward student loan borrowers can borrow up to the total cost of attendance. The program features low interest rates, no application or origination fees, immediate credit approvals, and flexible repayment options.

Borrowers who enroll in an automatic direct debit program will receive a 0.25 percent interest rate reduction. Those who achieve successful graduation will receive an additional 0.50 percent interest rate reduction. The program includes a six-month grace period after graduation before the first payment is due.