Recent legislation has altered PNC's role in the student loan industry. PNC is committed to assisting you and your family achieve your educational goals. Below are answers to some questions you may have about PNC's student loans.
Why is PNC no longer offering federal student loans (Stafford, PLUS, Graduate PLUS)?
On March 30, 2010, President Obama signed the Health Care and Education Reconciliation Act (HCERA), which eliminates banks from providing new loans through the Federal Family Education Loan Program (FFELP).
Effective July 1, 2010, all federal student loans (Stafford, Parent PLUS, Graduate PLUS and Consolidation Loans) must be originated through the national Federal Direct Loan Program administered by the U.S. Department of Education.
As a result, PNC will no longer be able to offer federal student loans to students and their families. However, PNC will continue to offer the PNC Solution Loan, a private education loan that aids students in covering the full cost of education.
Will PNC honor 2010-spring/summer term federal student loans?
Yes! PNC will honor all spring/summer term federal student loans that are approved and first disbursed by July 1, 2010. The remaining disbursements on these loans will also be honored regardless of when they are scheduled. If you have any questions, please contact the PNC Education Loan Center at 1-800-762-1001.
Will PNC continue to service my existing federal student loans?
Yes! PNC will continue to service all federal student loans established prior to July 1, 2010. If you have any questions, please contact the PNC Education Loan Center at 1-800-762-1001.
Where should a student go to apply for federal education loans after July 1, 2010?
Students should contact their school's financial aid office or visit www.studentloans.gov for information about applying for federal student loans. The new federal loan application process will be similar to the current process:
- Students/parents will need to submit a FAFSA each year in order to define financial need for federal aid/loan options.
- Students will receive an award letter from their school.
- Students must complete a new Master Promissory Note (MPN) with the Department of Education.
- Students will need to contact the loan servicer for the Department of Education.
What is a private loan and how do I know if I need one?*
A private loan is a non-government student loan that is borrowed through a bank or private lender. Once students have borrowed the maximum in federal loans such as Stafford and PLUS Loans, they may need additional funds to cover the full cost of education. Private loans can bridge the gap between what's borrowed in federal loans and what's needed for the full cost of an education.
Will PNC continue to offer private student loans?
Yes. For the past 15 years, PNC private student loans have helped students bridge the gap between federal aid and the full cost of education.
PNC will continue to offer students the following private loans:
What types of expenses are covered by the PNC Solution Loan?
The PNC Solution Loan can be used to pay education-related expenses including tuition, room and board, class fees, books, study abroad, a laptop and school supplies.