Loan Programs
Federal Stafford Loan
A Federal Stafford Loan is a long-term, low interest loan available to students to help pay expenses related to attending college.
Select each of the options below to learn more:
SC Student Loan does not charge loan application, origination, or federal default fees!
To begin the Stafford Loan process, apply online or simply download and complete the Stafford Loan Application and Promissory Note. If you choose to complete the paper application, please return the first two pages to our office.
There are two types of Federal Stafford loans:
Subsidized Federal Stafford Loan
A subsidized Stafford Loan is awarded based on financial need. The Federal government pays the interest on these loans while the borrower is in school at least half-time, during the grace period and during periods of deferment.
Unsubsidized Federal Stafford Loan
An unsubsidized Stafford Loan is not awarded based on financial need. Interest accrues from the date of disbursement until the final payment. The borrower can choose to pay the interest monthly or quarterly while in school and during the grace period or can have the interest capitalized and added to the principal amount of the loan.
SC Student Loan offers borrower benefits which make a Federal Stafford Loan from us your best choice. Learn about these by visiting our Borrower Benefits page.
Eligibility Requirements
To be eligible for this loan, a student must:
- Be a U.S. citizen/national or must have filed a declaration of intent to become a citizen
- Have a high school diploma or GED
- Be currently enrolled at or accepted for enrollment into an eligible institution
- Carry at least half of the normal full-time academic workload, as defined by your school
- Make satisfactory academic progress, as defined by your school
- Meet applicable 'needs' requirements (only for subsidized loans)
- Not be in default on any other student loan nor owe a refund on an education grant
- Complete entrance counseling prior to the first disbursement
- Complete the Free Application for Federal Student Aid (FAFSA)
Current Maximum Loan Amounts (Effective July 1, 2008)
| Dependent Students (excluding students whose parents cannot borrow PLUS) |
Base Amount Sub/Unsub |
Additional Unsubsidized Loan Amount | |
| Loans first disbursed before July 1, 2008 |
Loans first disbursed on or after July 1, 2008 |
||
| First-year undergraduate | $3,500 | 0 | $2,000 |
| Second-year undergraduate | $4,500 | 0 | $2,000 |
| Third-year and beyond undergraduate | $5,500 | 0 | $2,000 |
| Independent Students (and dependent students whose parents cannot borrow PLUS) |
Base Amount Sub/Unsub |
Additional Unsubsidized Loan Amount | |
| Loans first disbursed before July 1, 2008 |
Loans first disbursed on or after July 1, 2008 |
||
| First-year undergraduate | $3,500 | $4,000 | $6,000 |
| Second-year undergraduate | $4,500 | $4,000 | $6,000 |
| Third-year and beyond undergraduate | $5,500 | $5,000 | $7,000 |
| Base Amount Sub/Unsub |
Additional Unsubsidized Loan Amount | ||
| Loans first disbursed before July 1, 2008 |
Loans first disbursed on or after July 1, 2008 |
||
| Graduate and Professional Students | $8,500 | $12,000 | $12,000 |
Maximum Total Debt from Stafford Loan (Effective July 1, 2008)
- $31,000 - dependent undergraduate student (maximum $23,000 subsidized)
- $57,500 - independent undergraduate student and certain dependent undergraduates if a parent is denied a PLUS loan (maximum $23,000 subsidized)
- $138,500 - graduate or professional student (only $65,500 subsidized)
Disbursement of Funds
Loan funds will be sent directly to the school and made payable to the borrower. The funds will be disbursed according to the dates the school provides us when they certify loan eligibility.
Repayment Information
Repayment does not begin until six months after you graduate or cease to be enrolled at least half-time. We offer many ways to manage your loan debt:
- Standard Repayment Plan
This plan provides for substantially equal monthly payments during the life of the loan, not to exceed 10 years ($50 minimum per month). - Graduated Repayment Plan
This plan allows for an increase in your payments every 24 months, providing the greatest relief from the 'cash crunch' of starting your career. - Income-Sensitive Repayment Plan
Monthly payments are adjusted annually based on expected total monthly gross income from all sources. - Extended Repayment Plan
Available for outstanding Stafford loans exceeding $30,000 and first disbursed on or after October 7, 1998, this plan provides an extended repayment period, not to exceed 25 years ($50 minimum per month). You can choose a standard or graduated payment amount.
Interest Rate
- Loans obtained prior to July 1, 2006 carry a variable interest rate that is adjusted on July 1 each year.
- Loans obtained for periods of enrollment beginning on or after July 1, 2006 will have a fixed interest rate of 6.8%. Over a four-year period beginning July 1, 2008, the interest rate on subsidized Stafford Loans made to undergraduate students will be reduced. The applicable interest rates for loans made during this period are as follows:
| First disbursement of a loan: | Interest rate on the unpaid balance | |
| Made on or after | And made before | |
| July 1, 2008 | July 1, 2009 | 6.0 percent |
| July 1, 2009 | July 1, 2010 | 5.6 percent |
| July 1, 2010 | July 1, 2011 | 4.5 percent |
| July 1, 2011 | July 1, 2012 | 3.4 percent |
These changes apply to subsidized Stafford loans first disbursed on or after July 1 of each year through June 30 of the next year. This change does not affect any prior loans made to borrowers; the terms and interest rates of those loans remain the same. These reduced interest rates apply only to subsidized loans; any unsubsidized Stafford Loan for the same undergraduate borrower would continue to be made at the current fixed interest rate of 6.8 percent. In addition, both subsidized and unsubsidized Stafford Loans for graduate borrowers will continue to have a fixed 6.8 percent interest rate.
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