6 Private Pennsylvania Student Loans and Refinance Options

According to the latest statistics from The Institute for College Access and Success (TICAS), Pennsylvania is the third highest student debt state in the United States. The average student debt load for Pennsylvania’s Class of 2020 that graduated with loans was $39,375.

Federal student loans should be the financing opinion that most Pennsylvania students turn to. They offer benefits that private lenders can’t match, like income-driven repayment (IDR) plans and the ability to join federal forgiveness programs like the Public Service Loan Forgiveness (PSLF) program.

But with the high cost of education in Pennsylvania, some students might need to borrow more than the allowed federal student loan limits. If you’ve exhausted your federal loans or are looking for a Pennsylvania student loan refinance option, keep reading to learn about private lenders serving your state.

6 Pennsylvania student loan refinance and private student loan options

Below are seven private lenders to consider for a Pennsylvania student loan refinance or private student loan. Note that if you choose to refinance federal student loans, you’ll lose eligibility for federal student loan benefits. Learn the pros and cons of refinancing federal student loans.

Pennsylvania Higher Education Assistance Agency (PHEAA)

You might know Pennsylvania Higher Education Assistance Agency (PHEAA) better by one of its other names  — FedLoan Servicing or American Education Services (AES).

But PHEAA isn’t just a servicing agency for federal loan programs. It also offers PA Forward private student loans for Pennsylvania residents and a few neighboring states.

The PHEAA student loan product line includes both in-school student school and student loan refinancing products. Below we cover the details of both programs.

Pennsylvania student loans

In addition to Pennsylvania residents, students from the following states might also be eligible for a PHEAA loan by attending an approved PA school:

• Maryland
• New Jersey
• Delaware
• New York
• Virginia
• Ohio

PHEAA offers undergraduate, graduate and parent loans. The chart below compares each program’s rates and terms:

*As of December 25, 2020. Rates might include an autopay discount and are subject to change without notice.

There are no application or origination fees for any of the loans above. And PHEAA doesn’t charge prepayment penalties either. In-school repayment options include:

• Immediate full repayment
• Interest-only payments
• Fixed $25 payments
• Full deferment

All of PHEAA’s Pennsylvania student loans offer a Direct Debit interest rate discount of 0.25% plus undergraduate and graduate loan borrowers can earn an additional 0.50% graduation discount. Finally, borrowers can apply to have their cosigners released after making 48 consecutive, on-time monthly payments.

Pennsylvania student loan refinance

To qualify for a PA Forward Student Loan Refinance, you’ll need to be a resident of Pennsylvania or one of the states listed below:

• Maryland
• New Jersey
• Delaware
• New York
• Virginia
• Ohio

As long as you’re from one of the above states, there’s no Pennsylvania university attendance or graduation requirement. Here are the key details of the PA Forward Student Loan Refinance product.

• Fixed APR*: 3.72% to 7.11%
• Variable APR*: N/A
• Terms: 5,7,10, 15 or 20 years
• Min loan amount: $5,000 – $20,000
• Max loan amount: $300,000
• Cosigner release: Yes, borrowers can apply after 48 on-time payments

*As of December 25, 2020. Rates might include an autopay discount and are subject to change without notice.

PHEAA’s student loan refinancing program offers many of the same benefits as its private student loans. Again, there are no origination fees or prepayment penalties and an 0.25% autopay discount is available.

Members 1st Federal Credit Union

Members 1st is a large Pennsylvania credit union that has branch locations scattered across the state. To join, your employer, school, church or other organization must be affiliated with Members 1st or you must have a relative who’s a current member.

In addition to its various banking products, Members 1st offers private student loans and student loan refinancing. Below are the key details of its student loan options.

Pennsylvania student loans

Members 1st Federal Credit Union offers both graduate and undergraduate Pennsylvania student loans. However, both loans have identical terms and rates as listed below:

• Fixed APR: N/A
• Variable APR*: 4.99% to 6.14%
• Terms: 5,10 or 15 years
• Min loan amount: $1,000
• Max loan amount: Up to 100% of the cost of attendance ($250,000 aggregate limit)
• Cosigners allowed: Yes

*As of December 25, 2020. Rates might include an autopay discount and are subject to change without notice.

Note that Members 1st doesn’t currently offer any fixed-rate in-school student loans. It also doesn’t allow full deferment during school.

You can, however, choose interest-only or flat $25 in-school payments. Other benefits include a 0.25% autopay discount and cosigner release option after 48 consecutive, on-time payments.

Pennsylvania student loan refinance

Unlike its private student loans, Members 1st Federal Credit Union’s refinance loans offer both fixed and variable rates. Below are the current APR rates and other terms.

• Fixed APR*: 6.74% to 9.74%
• Variable APR*: 4.06% to 5.06%
• Terms: 5,10, or 15 years
• Min loan amount: $10,000
• Max loan amount: $200,000
• Cosigner release: Yes, borrowers can apply after 48 on-time payments

*As of December 25, 2020. Rates might include an autopay discount and are subject to change without notice.

It should be noted that cosigners aren’t required to be credit union members — only the primary account holder. Also, Members 1st allows parents to transfer their Parent PLUS Loans to a creditworthy child without being a cosigner on the new loan.

1st Ed Credit Union

1st Ed Credit Union is another Pennsylvania credit union that offers student financing to its members. Various Pennsylvania schools, businesses and other organizations partner with 1st Ed Credit Union (see the full list). Membership is also open to the family of current members.

1st Ed Credit Union’s student financing option is a “line of credit” rather than a traditional installment loan. Like most lines of credit, interest rates are variable. Currently, only undergraduate students are eligible to apply.

1st Ed Credit Union’s “line of credit” structure is unique in that students aren’t required to reapply each year. Instead, you can simply request an additional draw amount for each academic year. Here are the maximum borrowing amounts and rates:

• Fixed APR: N/A
• Variable APR*: 5.25% to 6.75%
• Terms: 20 or 25 years
• Min loan amount: $1,000
• Max loan amount: Up to 100% of the cost of attendance ($120,000 aggregate limit)
• Cosigners allowed: Yes

*As of December 25, 2020. Rates might include an autopay discount and are subject to change without notice.

1st Ed Credit Union offers longer repayment terms than some of the other lenders on this list and there’s a 0.25% rate discount for borrowers who set up automatic payments. Unfortunately, it doesn’t offer a cosigner release option.

Not a member of 1st Ed Credit Union or Members 1st? There might be other community banks or credit unions near you that offer private student loans. To search for more local options, we recommend using LendKey, a student loan refinance marketplace.

Earnest

Earnest is a national lender that provides both in-school loans and student loan refinancing. The company ranked #2 on Student Loan Planner®’s recent reader survey of major student loan refinancing lenders.

Private student loans

Earnest offers both undergraduate and graduate private student loans. Additionally, it’s designed profession-specific loans for students who are pursuing business, medical or law degrees. Here are the rates and term that each has in common:

• Fixed APR*: Starting at 1.05%
• Variable APR*: Starting at 3.49%
• Terms: 5 to 20 years
• Min loan amount: $1,000
• Max loan amount: Not published
• Cosigners allowed: Yes

*As of December 25, 2020. Rates might include an autopay discount and are subject to change without notice.

Earnest offers great payment flexibility on its student loans. There is a generous nine-month grace period before payments begin and borrowers can skip a payment once per year. In-school payment options include:

• Interest-only payments
• $25 fixed payments
• Full principal and interest payments

Earnest also offers a 0.25% rate discount to borrowers who sign up for autopay. There are no origination fees or prepayment penalties. However, the lack of a cosigner release option is one of its few downsides.

Student loan refinancing

The Earnest student loan refinancing program offers many of the same benefits as its private student loans such as zero origination fees, autopay discounts, and the ability to skip a payment once every 12 months. Here are the key loan details:

• Fixed APR*: Starting at 1.99%
• Variable APR*: Starting at 2.98%
• Terms: 5 to 20 years
• Min loan amount: $5,000
• Max loan amount: $500,000
• Cosigner release: No

*As of December 25, 2020. Rates might include an autopay discount and are subject to change without notice.

Another way that Earnest promotes payment flexibility is through its “Precision Pricing.” There are 180 repayment terms to choose from ranging from 5 to 20 years. Borrowers can also apply for up to 12 months of hardship forbearance.

Currently, you can get a refinance bonus of up to $500 from Earnest. Read our full Earnest review for more about the lender.

Ascent

Ascent is a national lender that doesn’t offer student loan refinancing but does provide some unique in-school loan options. For example, international students can apply for any of their loans as long as they have a creditworthy U.S. cosigner. In-school payment options include:

• Full deferment
• Flat monthly payments
• Interest-only payments

Ascent also provides a special non-cosigned undergraduate student loan that’s based on a student’s potential future income rather than their credit score and income. To qualify for the non-cosigned future income student loan, you must be a junior or senior enrolled full-time or be at least nine months away from graduating.

Ascent charges no application or origination fees. There are also no prepayment penalties. In addition to its undergraduate loan options, Ascent offers a variety of profession-specific graduate loans. You can compare the rates and terms for each of its loan options in the chart below:

*As of December 25, 2020. Rates might include an autopay discount and are subject to change without notice.

There are a number of ways to earn free money from Ascent. Borrowers can apply for a 1% cash-back benefit after graduating and can earn ongoing cash back through the Ascent Rewards program.

Plus it gives away a $1,000 essay-free scholarship each month and its autopay discount ranges from 0.25% to 2.00%. Check out our full review of Ascent.

Credible

If you want to shop around with several student loan lenders, Credible can save you a lot of time. Credible is a free lender marketplace that sends your information to all of its partners after you’ve filled out just one application.

Within minutes, you can receive quotes from multiple lenders. Currently, Credible works with seven private student loan lenders (most of which offer undergraduate and graduate loans) and 10 refinancing lenders.

Rates and terms vary by lender. But no matter which company you choose, you won’t pay any application fees, origination fees or prepayment penalties. Plus, Student Loan Planner® readers can earn an additional bonus of up to $1,250.

Read our Credible student loan refinancing review, if you’re thinking about shopping for Pennsylvania student loan refinance offers through the platform.

How to minimize your Pennsylvania student loans

There are various ways for Pennsylvania students to lessen the amount of student loans they need during school.

One of the best ways is applying for the Pennsylvania State Grant since any money received from this program doesn’t have to be paid back. And set up a profile with a few scholarship websites to help you find local and national scholarships that you’re eligible to apply for.

Don’t forget that you can reduce your student debt even after graduation by taking advantage of Pennsylvania forgiveness programs.

Looking for more advice on how to minimize or pay back your Pennsylvania student loans? Our student loan experts would love to help you create your comprehensive student loan plan. Book a consultation with a student loan advisor today.

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