Loan Programs
Federal Parent PLUS Loan
The Parent PLUS program provides federally-guaranteed loans to help parents with dependent, undergraduate students pay for college-related expenses.
Select each of the options below to learn more:
SC Student Loan does not charge a Federal Default Fee! As a borrower benefit to you, South Carolina Student Loan pays this fee on your behalf, saving you 1% of your total loan balance.
To begin the Parent PLUS Loan process, apply online or simply download and complete the Parent PLUS Pre-application.
Eligibility Requirements Back to top
To be eligible for this loan, a parent must be:
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Creditworthy or able to supply a creditworthy cosigner. Cosigners can download and complete a Cosigner Application.
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In good standing on any other student loan or education grant
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Pre-qualified. Go to our Online Loan Pre-Application. If you qualify, we will notify you immediately
- The natural or adoptive parent, or an eligible step-parent, of the dependent student (legal guardians may not apply)
- A U.S. citizen or permanent resident
- If you have been convicted of or have pled nolo contendere or guilty to a crime involving fraud in obtaining federal student assistance under Title IV of the Higher Education Act of 1965, as amended, you must have completed the repayment of such funds to the Department of Education, or to the loan holder in the case of a Title IV federal student loan
To be eligible for this loan, the student must:
- Be a U.S. citizen or permanent resident
- Be a dependent of the parent borrower
- Have a high school diploma or a G.E.D.
- Be currently enrolled at or accepted for enrollment into an eligible post-secondary institution
- Must be enrolled in a degree-granting program at the school
- Carry at least half of the normal full-time academic workload, as defined by the school
- Make satisfactory academic progress, as defined by the school
- Not be in default on any other student loan nor owe a refund on an education grant
- If you have been convicted of or have pled nolo contendere or guilty to a crime involving fraud in obtaining federal student assistance under Title IV of the Higher Education Act of 1965, as amended, you must have completed the repayment of such funds to the Department of Education, or to the loan holder in the case of a Title IV federal student loan
Current Maximum Loan Amounts Back to top
Borrowers are eligible for cost of education minus any other financial aid.
Disbursement of Funds Back to top
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 Back to top
Parent PLUS borrowers now have the choice of making payments while their dependent student is in school or deferring payments. For Parent PLUS loans that are first disbursed on or after July 1, 2008, the borrower may begin repayment on the loan either within 60 days after the loan is fully disbursed or defer repayment until six months after the benefiting student ceases to be enrolled on at least a half-time basis. In addition, parent borrowers may defer payments based upon their own enrollment in college. Parents may contact us to request a deferment.
As a reminder, Parent PLUS Loans disbursed prior to July 1, 2008 may be eligible for a postponement of repayment through forbearance. During any periods of deferment or forbearance, interest will continue to accrue. Parent borrowers have the option of paying the interest as it accrues or allowing the unpaid accrued interest to be capitalized (added to the principal balance) at the end of this period. The maximum PLUS repayment period is 10 years, with no penalty for early prepayment. A Repayment Disclosure will be mailed to the borrower which will provide the terms of the loan including the due date and payment amount.
We offer many ways to manage your loan debt:
- Standard Repayment Plan
This plan provides 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 a reduced payment initially with an increase in your payments every 24 months. This plan provides 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 Parent PLUS 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 Back to top
The interest rate for PLUS loans is fixed at 8.5%.
If you qualify under the Servicemembers Civil Relief Act, the interest on your loans obtained prior to military service may be limited to 6% during your military service. To receive this benefit, you must contact SCSL for information about the documentation you must provide to show that your qualify
Credit Requirements Back to top
The review of your credit history will look at the past five years for adverse information including, but not limited to:
- Bankruptcy
- Foreclosure proceedings
- Government claim on a defaulted loan
- Deed in-lieu of foreclosure
- Credit line closed-not paying as agreed
- Lease on contract terminated by default
- Government claim on secured real estate
- Collection account
- Foreclosure
- Voluntary surrender
- Repossession
- County/state/federal tax lien
- Charge-off
- Judgment
- Presently 90 days or greater delinquency on any outstanding debts
The Online Pre-Application Process Back to top
- We will obtain and review your credit history.
- You will be notified of your approval or denial by the method of response you indicate on the online form.
- If you appear to be eligible, we will notify your school. We will also give you the opportunity to electronically submit the Application and Master Promissory Note, which must be completed prior to the disbursement of funds.
- Since the amount borrowed may not exceed the cost of education less other aid received, the Financial Aid Administrator at the school will determine whether you are eligible to receive the loan.
- This Pre-Application process does not guarantee eligibility for a loan.
Loan Discharge Back to top
Your loan may be discharged (forgiven) when:
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Acceptable documentation of the borrower’s or student’s death is given to your lender;
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The student cannot complete a course of study because the school closes;
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The school falsely certifies your loan eligibility;
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A loan in your name was falsely certified as a result of a crime of identity theft; or
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You become totally and permanently disabled and meet certain other requirements.
Your loan may also be discharged up to the amount of any refund that the school should have made, but did not send to your lender.
Your loan will not automatically be discharged in bankruptcy
More questions? Contact Us
