Code of Conduct for Financial Aid Personnel

Federal Direct Loans (Subsidized & Unsubsidized)

Accepting Your Federal Direct Loan(s)

Interest Rates

The interest rate for Direct Subsidized and Unsubsidized Loans is 4.66% for loans first disbursed on or after July 1, 2014. Interest begins to accumulate on a Direct Subsidized Loan when you are no longer enrolled at least half-time. For additional information regarding the Federal Direct Loan Program, click here.

Dependent Student Loan Limits

Grade Classification Annual Limit Aggregate Limit
Freshman

$5,500 (subsidized may not exceed $3,500)

$31,000 (subsidized may not exceed $23,000)
Sophomore $6,500 (subsidized may not exceed $4,500) $31,000 (subsidized may not exceed $23,000)

Independent Student Loan Limits

Grade Classification Annual Limit Aggregate Limit
Freshman

$9,500 (subsidized may not exceed $3,500)

$57,500 (subsidized may not exceed $23,000)
Sophomore $10,500 (subsidized may not exceed $4,500) $57,500 (subsidized may not exceed $23,000)

*Note – grade classification is determined by the number of earned credits at the time your award letter is prepared, not how many years you have attended college.

0-29 credits = Freshman
30+ credits = Sophomore

Federal Direct PLUS Loan

A Federal Direct PLUS Loan is a loan that a parent borrows to help their child pay for educational expenses. In order to be eligible:

The interest rate for a PLUS Loan is 7.21% for loans first disbursed on or after July 1, 2014. For additional information regarding the Federal PLUS Loan Program, click here.

Loan funds are sent to South Central College and will first pay any outstanding charges the student owes to SCC. If any loan funds remain, they will be disbursed to the student unless you have indicated on the PLUS Loan application otherwise. Any remaining loan funds must be used for educational related expenses.

Applying for Additional Loan Assistance - Private Loans

If you require more financial assistance than awarded on your official award letter, you may apply for additional student loans from private education loan programs. These loans may have higher interest rates, many require a co-signer and generally should be considered as a last resource after utilizing Federal student loans. South Central College will not recommend nor refer students to any specific private student loan program.

FASTChoice is an online comparison tool that allows you to determine which loan program is the best fit for your borrowing needs. To access FASTChoice, please click here.