The Pennsylvania Higher Education Assistance Agency announced an interest rate drop for PA Forward undergraduate, graduate, and parent borrowers.
Combined with the program’s many borrower benefits, eligible PA Forward borrowers can now experience new fixed interest rates starting at 2.71% APR up to 10.18% APR.* This rate change applies to new applications beginning June 4, 2026.
The PA Forward Student Loan Program leverages the combined resources of the Commonwealth of Pennsylvania to provide loans at low rates with better borrower benefits as compared to most private education loan programs. PHEAA serves as the lender and loan servicer for the program, with tax-exempt allocation provided by the Pennsylvania Department of Community and Economic Development (DCED).
“The PA Forward Student Loan Program leverages the combined resources of the Commonwealth of Pennsylvania to provide loans at low rates with better borrower benefits as compared to most private education loan programs,” explained Senator Wayne Fontana, Chairman of the PHEAA Board of Directors. “We always encourage students and families to do their homework—shop around and find the best rates—and for many Commonwealth families, that’s going to be PA Forward!”
The program is available to Pennsylvania residents attending an approved school in or out of the Commonwealth, or a student from an approved state (Delaware, Maryland, New Jersey, New York, Ohio, Virginia, and West Virginia) attending an approved Pennsylvania school.
“Our PA Forward Parent Loan is especially worth checking out,” said James Steeley, PHEAA President and CEO. “With the rates going up on federal loans, our parent loan has zero origination fees, and the lower rates are hard to beat.”
