You could always call Penn State and ask them if the loans are paid or just charged~off.   If they are showing closed and charged~off then I don't know if it will be an issue with underwriting.

I believe that any student loan accounts that are closed and CO'd should drop at 7.5 years.   However I think that there is a difference between private and government backed loans in terms of the SOL ~ you can be sued for outstanding government student loans for a longer period of time.

I don't have a lot of experience with student loans, but hopefully other people will provide some additional input.