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This video will show you
step-by-step how to calculate
the amount of a
Private Loan to borrow.
Before we can get started,
we need to grab
some information from
the Student Aid Summary.
Let's log in to eLion at
elion.psu.edu
Open the "Financial" menu on
the left side of the page and
click on the link "Student Aid Summary."
Select the academic year
and click "Continue."
Then click on "View Aid" to
show the Student Aid Summary.
This is an example of
a Student Aid Summary that
I made just for this presentation.
Yours may not look exactly the same
but it will be similar.
There are two things we need to write down
from this page, the
Estimated Total Cost of Attendance
and Total Aid.
Your student's financial aid
will be listed at the top
of their Student Aid Summary
under the heading, Types of Aid.
If you are applying for a Private Loan
for the fall and spring semesters,
write down the "Total Aid"
under the Total column.
Otherwise, write down
"Total Aid" under the fall
or spring column.
If you request a loan
for both the
fall and spring semesters,
you will receive
two equal disbursements.
The first disbursement
will be credited on
the fall tuition bill
and the second disbursement
will be credited on
the spring tuition bill.
The lower half of
the Student Aid Summary
lists your student's billable
and non-billable expenses.
Write down the
"Estimated Total Cost of Attendance"
under the fall, spring, or total column.
For the purpose of
this demonstration,
I'm going to use $13,400
as the Total Aid
and $32,200 for the
Estimated Total Cost of Attendance.
Now we need to open up
the Private Loan Worksheet -
there's a link on
the same page as this video.
You'll need Adobe Reader
to open the worksheet.
If you don't have it,
you can download it for free at
get.adobe.com/reader
The first thing
we want to figure out is
our Maximum Loan Eligibility.
The Maximum Loan Eligibility
is simply the maximum amount
of a Private Loan
that you are eligible to borrow.
The important thing
to remember though
is that you may not actually need to
borrow the maximum amount.
Ok, let's open the worksheet
and figure out what our
Maximum Loan Eligibility is.
From the Student Aid Summary,
we wrote down that the
Estimated Total Cost of Attendance
was $32,200.
Under Part One,
I'm going to write
in $32,200
in this first line
while you write in your number.
And let's do the same
for the Total Aid.
Then, subtract the Total Aid from
the Estimated Total Cost of Attendance.
For me the resulting figure is $18,800.
This is my Maximum Loan Eligibility.
Part 2 of the Private Loan Worksheet
may or may not be relevant to you,
depending on whether you plan to
contribute any out-of-pocket funds.
I'm going to carry over the
$18,800 from Part 1
and write in the $2,000
I'm going to pay out-of-pocket.
To get the Amount to Borrow,
subtract your
out-of-pocket contribution
from your Maximum Loan Eligibility.
I get $16,800.
This is the amount I need to borrow.
To quickly recap,
we arrived at
the Amount to Borrow figure
by subtracting the Total Aid
from the Estimated Cost of Attendance
to determine our
Maximum Loan Eligibility.
Then we subtracted any
personal contributions from
the Maximum Loan Eligibility
to get this final figure, which is
the Amount Needed to Borrow.
This final number is
what you'll want to request to borrow
from a private loan lender.
For more information
about Private Loans,
please visit the "Types of Aid" section
of our website at
studentaid.psu.edu
You'll find there
information on how to plan for,
decide on,
and apply for a private loan;
questions to ask Private Lenders;
and a table that compares
private loans with the
Federal Direct Parent PLUS Loan.
To estimate monthly payments and
the total repayment amount
for a private loan,
use the Loan Calculator
at finaid.org/calculators