LOANS
Student loans, unlike grants and work-study, are borrowed money that must be repaid, with interest, just like car loans and mortgages.  Many students find that they must borrow money to finance a portion of their education. Before you borrow, consider carefully how much you will need to borrow and the burden your loans will impose after you leave school. The Financial Aid Administrator at your institution can provide you with more information on the responsibilities you assume when you borrow money.

Types of loans:

Federal Perkins Loans

Federal Family Educational Loans (FFEL)

• Federal Stafford Loans (Subsidized and Unsubsidized)
  • Annual Stafford Loan Maximum Amounts
  • Requesting a Federal Stafford Loan
• Federal PLUS Loans 

Entrance and Exit Loan Counseling
It is required by law that all students receiving Perkins and Stafford Loans undergo both entrance and exit counseling. This counseling provides critical information about your loans and your rights and responsibilities as a student borrower. This counseling can be done on the website indicated below:

FEDERAL PERKINS LOAN
The Perkins Loan program is a low-interest (5%), long-term educational loan program available to undergraduate students demonstrating exceptional financial need. Interest is not charged, and repayment does not begin until 9 months after you graduate, withdraw from school, or your enrollment drops below half-time status.

You are required to complete Perkins entrance loan counseling each academic year that you are awarded a Perkins Loan. Your Perkins loan will not be available for you to use toward your charges until this requirement is met. Additionally, you will also be required to sign a Promissory Note that will be made available to you by your campus Business Office.

If you graduate, withdraw from school, or your enrollment drops below half-time status, exit interviews must be conducted as well.

FEDERAL FAMILY EDUCATION LOANS (FFEL)
Federal Family Education Loans (FFEL)provide low-cost educational loans authorized by the Higher Education Act to assist students and their parents obtain help in paying for the cost of higher education. There are several types of loans currently offered under the FFELP: Subsidized Federal Stafford Loans, Unsubsidized Federal Stafford Loans and Federal PLUS Loans.

Federal Stafford Loans

Subsidized

The subsidized Federal Stafford Loan program provides long term, low interest, need based loans to undergraduate students. Undergraduates may borrow up to $3,500 for the first year of study, $4500 for the second year of study, and $5500 per year for subsequent undergraduate study. However, the amount borrowed as an undergraduate cannot exceed $23,000. The loan repayment begins six months after you graduate, withdraw from school or your enrollment drops below half-time status.

Unsubsidized

The unsubsidized Federal Stafford Loan program is similar to the subsidized Stafford Loan except that eligibility is not based on financial need, but awards cannot exceed the cost of attendance less any other financial assistance received during the loan period. The interest payments are not subsidized by the federal government but are the responsibility of the borrower.  Borrowers may choose to pay the interest or request that it be deferred which results in the deferred interest being capitalized.

Federal regulations require that we limit or reduce the amount of a Stafford Loan under certain prescribed conditions. These conditions are as follows: (1) you are an undergraduate and you apply for a Stafford Loan and are enrolled less than a full academic year (fall and spring semesters), or (2) you will complete all degree requirements at the end of the semester or term. If both of these conditions occur, the Stafford Loan amount may be reduced. We will make this adjustment and send you a revised award letter.

Requesting a Federal Stafford Loan
If you have completed your FAFSA, and you want a Federal Family Educational Loan (FFEL):

Current Borrowers at USC – Lancaster, Salkehatchie, Sumter and Union

Unless you notify the Financial Aid Office, your new academic year Federal Stafford Loan will be processed with the same lender you used previously. 

New Borrowers at USC- Lancaster, Salkehatchie, Sumter and Union

Step 1:  Choose a lender and complete the Lender Request Form.
Step 2:  Submit the completed Federal Stafford Loan and Lender Request Form
              to the Student Financial Aid Office.
Step 3:  Complete the required Stafford Entrance Counseling online at
              http://www.mapping-your-future.org/.
Step 4:  Complete and sign the Master Promissory Note (MPN) from your lender. This
              may be an electronic on-line signature.

Federal PLUS Loan

The PLUS Loan is a non need-based educational loan program that allows parents to borrow funds for full-time dependent students. Parents may borrow up to the cost of education less any other financial assistance received during the loan period. Repayment begins within 60 days after the loan is made. The repayment period can be extended up to 10 years with minimum monthly payments to be arranged with the lender.

We suggest that students first apply for a Stafford Loan before a PLUS due to more favorable interest and repayment options.

PLUS loans are based on the credit-worthiness of the applicant. A credit check is made by the lender, not the University. If a parent applicant is denied a PLUS loan due to a credit problem, their dependent student may be eligible for additional unsubsidized Stafford Loan.

Requesting a Federal PLUS Loan
Apply online with the selected lender and ask the lender to fax the school certification form to the Financial Aid Office.  You can also make a request with the Financial Aid Office.