Penn State University has decided to directly provide federal student loans, following dozens of other colleges nationwide seeking to protect their loan programs from recent market upheaval.

Penn State’s move means the Pennsylvania Higher Education Assistance Agency, which traditionally awards student loans, will lose up to 8 percent of its business in the state, or about 41,000 of the 500,000 loans it currently oversees.

‘‘It is significant,’‘ Keith New, PHEAA’s spokesman, told the Pittsburgh Post-Gazette. ‘‘It certainly is a concern to us.’‘

PHEAA is not a bank, so it relies on the bond market to raise capital, New said. With recent turmoil in those markets, the loss of Penn State’s business puts added stress on PHEAA.