With most lenders, the student will be the borrower of a private education loan. Parents may borrow through the Parent PLUS Loan program and graduate/professional students are encouraged to apply through the Graduate PLUS Loan program. All students are encouraged to complete a FAFSA and consider the Federal Direct Loan Program before applying for a private educational loan. If you decide to apply for a private student loan, please keep in mind that private loans are based on credit, which will affect the interest rate you'll be offered and the fees that you'll pay.  Additionally, due to instability in the credit market, many students may need to apply with a cosigner to qualify for credit.

A Direct to Consumer Loan is a private education loan that typically does not require school certification though most lenders do require a verification of enrollment. The private loans you'll find suggested by The University of South Carolina require certification by The Office of Student Financial and Scholarships. Direct to Consumer loans will generally have higher fees and higher interest rates than other loans.

If the school is made aware that a student has a Direct to Consumer loan, either by the student or the lender, then the amount must be included as a resource in the student's aid package, which may mean a reduction to lower interest loans or grants, or may result in a bill to the student. Before applying for a Direct to Consumer loan, students are strongly encouraged to seek other student loan alternatives.

Students who chose to pursue a Direct to Consumer student loan should protect themselves against predatory lending. Ask questions about fees and interest rates. Ask what will happen after you graduate and think about the affect it will have on your ability to get credit for things like mortgages or car payments. Review marketing materials and remember that if it sounds too good to be true, then it probably is. If you have questions or concerns about Direct to Consumer Loans or if you would like to explore alternatives, contact The Office of Financial Aid and Scholarships.

Interest rates and fees can vary significantly between lenders and even among borrowers of the same lender. Many lenders also offer borrower benefits that can reduce the principal or interest on a private student loan. Be sure to look carefully at the terms and conditions when applying for a loan and ask questions to make sure you understand before you agree to borrow. Click here for more information about choosing a private student loan lender.

Students will need to apply directly with the lender of their choice.  The lender will approve or deny credit, generally within a few hours.  Once the school receives notice of an approval, it usually takes 24 to 48 hours for the loan to show up as available aid on VIP.

Please note that due to recent changes in legislation, private loan applicants will be required to read, sign and return additional disclosures, including a self-certification disclosure, in addition to signing the promissory note.  For most lenders, the school will be required to certify your eligibility for a private educational loan.  This certification request may come after you have returned all required documentation to your lender, so you are encouraged to follow your lender’s instructions carefully.

Keep in mind that most students will be required to have someone cosign the loan application.  Interest rates for loans are determined by the lender based on the student and cosigners credit worthiness.  If you have any questions about an alternative loan, you may contact the lender directly or the Office of Student Financial Aid and Scholarships.

Below is a listing of all of the private student loan lenders our students have used over the past five years.  The listing is in alphabetical order and there is no significance attached to where a lender falls.  Note that some of these lenders are no longer offering private educational loans.  You are not required to select one of the lenders from the listing.  You may want to use a different lender and are free to do so.  The choice is yours.

Please note that our office will confirm that your lender has received both the promissory note and the self-certification statement before the award becomes available financial aid for your use on VIP.

  Sallie Mae Smart Option Student Loan for Regions Bank Customers

  Bank-Fund Staff Federal Credit Union

  Teri Loan (currently does not offer a private loan product)

  Digital Federal Credit Union

  Discover Student Loan

  MELA Loan *Please note, applicants must be Maine resident

  Bank of America (currently does not offer a private loan product)

  Firstmark

  New Jersey Class Loan *Please note, applicants must be New Jersey residents

  Rhode Island Student Loan *Please note, applicants must be Rhode Island residents

  South Carolina Student Loan Corporation Palmetto Assistance Loan

  Nelnet (currently does not offer a private loan product)

  Access Group (currently does not offer a private loan product)

  Ed Financial Services

  US Bank

  Campus Door

  Workers Credit Union (currently does not offer private loan product)

  Connecticut Higher Education Supplemental Loan *Please note, applicants must be Connecticut residents

  NMTW credit Union

  Northwest Federal Credit Union

  Sallie Mae Smart Option Student Loan for Nellie Mae Customers

  Chartway Federal Credit Union

  Members First Credit Union (currently does not offer private loan products)

  PNC Bank

  Sallie Mae Smart Option Student Loan for Fifth Third Bank Customers

  Wells Fargo Collegiate Loan

  Wright-Patt Credit Union

  SunTrust Academic Answer Loan

  Alaska Supplemental Education Loan *Please note, applicants must be Alaska residents

  Signal Federal Credit union

  Ed Access

  Kemba Financial Credit Union

  Citibank CitiAssist Loan

  National Education

  Charter One

  Sallie Mae Smart Option Student Loan

  KeyBank Loan (currently does not offer a private loan product)

Students are not required to complete a FAFSA to be considered for a private student loan but are strongly encouraged to do so. Federal loan programs will have better terms and conditions.

As part of new federal regulations, private educational loan borrowers are now required to complete, sign and return an Applicant Self-Certification form to their lender before loan funds can be disbursed.  This form is intended to promote informed borrowing and will give you information about financial aid as well as provide your lender with information about your educational expenses and other aid.  You should receive this form as part of your application packet when applying for a private educational loan.  If you should need a copy of this form, you may contact your lender or our office.   Please note that the Applicant Self-Certification form does not replace school certification of your private educational loan.

The Applicant Self-Certification form requests personal information from the borrower as well as your cost of education for the period of enrollment covered by the loan and estimated financial assistance.  The form then requests that you deduct your estimated financial aid from the estimated cost of attendance, which will give you an estimated loan amount.

For guidance in completing your Self-Certification form click here.

Private student loans can be used for education-related expenses including such things as tuition, books, transportation and room and board.

Interest rates may be fixed or variable. Variable rates will be based on your or your cosigner's credit history. They are generally stated as an index, such as Prime or LIBOR, plus a margin.  More information about LIBOR versus Prime interest rates can be found at http://www.finaid.org/loans/prime_libor.phtml. Borrowers are encouraged to explore lender options to determine the best interest opportunity.

Based on your credit history, there may be fees associated with origination, disbursement or repayment as well as a repayment finance charge. Contact your lender directly for specific fees.

Students may borrow up to the cost of their education, as determined each year by the Office of Financial Aid and Scholarships, less any other aid the student may receive, including grants, loans, and scholarships.

It may take up to seven days after your lender sends the school certification request until it shows as an award for your use on VIP.  The lender or the school may request additional information during the credit, application, or certification process.   Make sure that you have completed all the necessary forms with your lender, including the promissory note, all disclosures, and the Applicant Self-Certification form.

Yes. Once your private student loan has been awarded, the University of South Carolina will advance you the aid to pay your bill via VIP and that advance will be paid off once your lender disburses the funds on the established disbursement dates.

The University of South Carolina will award the private student loan to the maximum of your eligibility or to your requested amount, whichever is less. If you chose to decline your loan or wish to request a lower amount, you must indicate this choice on your award letter, available on VIP, and return it to the Financial Aid Office.  You may also send your request via e-mail to our office at uscfaid@mailbox.sc.edu

Most private lenders will defer your payments from three to twelve months after you graduate or cease enrollment for at least half time. Borrowers may also choose or be required to make interest only payments while you are in school, or defer all of your payments while you are in school. Any interest you defer will be capitalized (added to your balance) when you begin making your loan payments.