Loans

The subsidized Direct Loan Program provides long-term, low-interest, need-based loans to undergraduate, graduate, and professional students. The interest rate on subsidized Federal Direct Loans will vary according to the dates on which the loans were disbursed and/or the borrower’s outstanding federal loan indebtedness. The interest rate during repayment will be different. These rates are subject to change by law.

As an undergraduate, you may borrow up to $3,500 subsidized and $2,000 unsubsidized for your freshman year, $4,500 subsidized and $2,000 unsubsidized for your sophomore year, and $5,500 subsidized and $2,000 unsubsidized for your junior and senior year, not to exceed a maximum of $23,000 subsidized and $8,000 unsubsidized.

As a graduate or professional student, you may borrow up to $8,500 per year not to exceed $65,500, including any amount borrowed as an undergraduate. If you receive a subsidized Direct Loan, you will not be required to begin repayment until six months after you cease to be enrolled on at least a half-time basis.

Students must complete entrance counseling and sign a promissory note at studentaid.gov before any loan funds will be disbursed.

See below for instructions on completing the loan application.

The unsubsidized Federal Direct Loan program is similar to the subsidized Direct Loan except that eligibility is not based on financial need and interest payments are not subsidized by the federal government, but rather are the responsibility of the borrower.

If you are a dependent student, your annual unsubsidized and subsidized Direct Loan totals combined cannot exceed the totals previously noted for a subsidized Direct Loan.

As an independent student, you have additional unsubsidized eligibility of $4,000 per year for the freshman and sophomore years of study and $5,000 per year for junior and senior years of study.

As a graduate or professional degree student, you have an additional $10,000 per year in unsubsidized eligibility, and your career maximum increases to a total of $73,500, including any amounts borrowed as an undergraduate.

Medical students and graduate students in public health and clinical psychology may be eligible for additional unsubsidized loan limits.

The interest rate is the same as the subsidized Direct Loan; however, interest begins to accrue at the time the loan funds are disbursed. You may choose to pay the interest or request that it be deferred. This results in the deferred interest being capitalized and creating a greater expense to you during repayment.

Students must complete entrance counseling and sign a promissory note at studentaid.gov before any loan funds will be disbursed.

See below for instructions on completing the loan application.

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.

PLUS loan checks are mailed directly from the lender to the school. Parents/students are advised to exhaust their eligibility for other federal student aid programs before considering the PLUS loan. More information is available at studentaid.gov.

Alternative loans or private loans are designed to help students who need additional assistance with educational costs. It is important to understand that these loans do not offer the same advantages that the Federal Loan programs offer and should be used only if all other avenues have been pursued. There are a number of private lenders who offer alternative loans. Loan approval is generally based on creditworthiness and the ability to repay. Most student borrowers will need a credit-worthy, employed cosigner in order to qualify. Each lender offers different rates, fees, repayment terms and approval requirements.

Recommended Private Loan Lenders

This program is available only to residents of South Carolina who are attending college for the purpose of becoming certified teachers employed in the state’s school system in areas of critical need as defined by the state Board of Education. For loan recipients who become certified and teach in an area of critical need, the loan shall be canceled at the rate of 20 percent for each full year of teaching, up to 100 percent. Loan recipients who do not become certified and/or do not teach in an area of critical need shall be responsible for repaying the entire amount of loan funds borrowed plus interest. Learn more details and fill out an application at scstudentloan.org.

Graduates in some fields, such as nursing and teaching, may qualify to have some of their loans forgiven. Learn more at studentaid.gov.