Loan Terms & Conditions

Any graduate of Manheim Central High School is eligible to apply for a loan of $4,000 per year for up to four years of undergraduate degree or vocational training courses for a total maximum of $16,000 per borrower.

Historically most of our borrowers are students enrolled in four year college degree programs; however, students who enroll in one, two, or three year programs (nursing, or some kind of vocational training) are also eligible. MCSLF does not grant loans for graduate level degree courses (masters or doctorate). The loan is interest-free while the student is in school and for a minimum of a seven-month period (“grace period”) after the end of the 4th academic year or upon severance from school. After the 4th academic year or leaving school for any reason, 6% interest is charged after an initial grace period which may last seven months. Borrowers generally have the grace period plus five years from the date of graduation or leaving school to repay the loan and related interest.

The terms of the MCSLF loan agreement with borrowers, students and their parents / legal guardians include:

Students may borrow a maximum of $4,000 per academic year for a maximum of four years. The total maximum loan is $16,000 and is disbursed in four increments of $4,000 annually.

Students and their parents / legal guardians are required to meet with one of MCSLF’s Board members to ensure understanding of the loan terms prior to receiving initial disbursement of $4,000. Students and their parents / legal guardians are required to sign a demand note annually prior to receipt of loan disbursement that is payable to the student and selected school. The initial and subsequent annual loan disbursements are contingent upon the students and their parents / legal guardians signing the demand note. All parties to the demand note are jointly and severally obligated under the terms of the demand note.

Loan must be repaid within five (5) years / (60 months) after the earlier of January 1st following the end of the 4th academic year or upon school severance for any reason.

Students are encouraged to promptly pay back loans, and the MCSLF has established an interest free grace period after graduation or leaving school for any reason to January 1st following the end of the 4th academic year or upon leaving school. During this grace period any loan payments are deducted from the outstanding principal of loans. Grace period extensions requests for students that continue their education beyond four years are considered on a case-by- case basis by the MCSLF Board; grace period extension requests may be denied and in no circumstances will the maturity of the note be extended.

Loan repayment plans are tailored to meet student’s financial situation; the MCSLF requires minimum monthly payments of $320 be established by the earlier of January 1st following the end of the 4th academic year or upon school severance prior to the 4th academic year.

Loan is considered delinquent when (a) repayment has not started within one (1) year from the end of the interest deferral period or (b) minimum repayment of $2,000 annually thereafter.

Student loan interest is added to the outstanding balance of the loan on an annual basis on January 1 and is calculated based upon 6% of the outstanding December 31 loan balance.

MCSLF currently offers two methods of payment:

  • ACH (Preferred for students and MCSLF benefit) – this can be implemented by downloading and completing an ACH form and returning it to MCSLF along with a voided check, if available. Debits (withdraws) from students account will be the 20th of each month and initiated in the month the students indicates on the form.Download the Direct Payment (ACH Debit) Authorization FormIf a student desires to change the amount at any time, the student can contact download and complete an ACH form and email completed form to our Assistant Treasurer, Tim Bruckhart at, or mail completed form to Manheim Central Student Loan Fund PO Box 521, Manheim PA 17545. Adjustments will generally be initiated the month you notify MCSLF if provided prior to the 15th of the month if submitted after the 15 adjustment will be initiated the following month.
  • Alternatively, check can be made payable to Manheim Student Loan Fund and mailed to: Manheim Central Student Loan Fund PO Box 521, Manheim PA, 17545

If the demand note is not paid in accordance with its terms, the parties that signed the demand note agree to pay all costs of collection, including reasonable attorney fees. In the event that any judgment is obtained under the demand note, the parties that signed the note waive, to the extent permissible under law, the benefit of any law exempting their property, or any part of it.

All applications must be submitted through our Online Application by no later than April 30th of each year. Late applications will not be accepted.

A student upon notification from MCSLF Board that they have been approved for a loan, DO NOT NEED TO REAPPLY ANNUALLY.

A student that applied but received correspondence from MCSLF Board that they were not granted a loan, CAN REAPPLY IN FOLLOWING YEARS. MCSLF is receiving increasing number of applicants each year but based on current funding our ability to issue new loans remains static and a student has not been approved for a loan in one year may be approved in following years, based upon available funding.