Students may borrow from two federal Direct Loan Programs:

• Subsidized Federal Direct Loan
  A subsidized Federal Direct Loan is offered based on financial need and accrues no interest while the student is enrolled in school at least half-time, during the grace period or during periods of deferment.
• Unsubsidized Federal Direct Loan
  An unsubsidized Federal Direct Loan is not dependent upon need. Interest accrues from the time the loan is disbursed until final payment. The student has the option to make interest payments while in school and during the grace period.

If you accept federal student loans, you will be required to repay those loans with interest. It is important that you understand how interest is calculated and the fees associated with your loan. Both will impact the amount you will be required to repay.  Learn more about Federal Direct Subsidized and Direct Unsubsidized Loans.

To apply, complete your FAFSA. If eligible, you will automatically be offered Direct Loans as part of your financial aid package. You can view and accept the loan amount you would like to receive on the Financial Aid Dashboard at my.sc.edu. Select your campus to log into your secure account.

There are limits to the amount of Federal Direct Loans that a student may borrow. The following table explains those loan limits:

	Dependent Student	Independent Student and Dependent Student Whose Parents Have Been Denied the Parent PLUS Loan
First Year Student Annual Limit (0 to 29 credit hours)	$5500 (no more than $3500 can be subsidized)	$9500 (no more than $3500 can be subsidized)
Second Year Student Annual Limit (30 to 59 credit hours)	$6500 (no more than $4500 can be subsidized)	$10,500 (no more than $4500 can be subsidized)
Third Year Student Annual Limit (60+ credit hours)	$7500 (no more than $5500 can be subsidized)	$12,500 (no more than $5500 can be subsidized)
Fourth Year Student Annual Limit (90+ credit hours)	$7500 (no more than $5500 can be subsidized)	$12,500 (no more than $5500 can be subsidized)
Aggregate (Lifetime) Loan Limits	$31,000 (no more than $23,000 can be subsidized)	$57,500 (no more than $23,000 can be subsidized)

 

Beginning July 1, 2026, federal loan eligibility will be impacted by the number of hours in which a student enrolls. Full-time students may borrow up to their full loan eligibility as described above, but any student enrolled less than full-time will have their loan disbursements reduced on their percentage of enrollment. For example, if a student enrolls in 6 credit hours for a semester, and 12 credit hours is considered full-time for the student’s program of study, he/she will receive 50% of the loan disbursement for that semester.

Federal regulation also requires our office to reduce a student’s loan amount if both of the following conditions are true:

1. The student is an undergraduate who accepted a Federal Direct Loan but will be enrolled for less than a full academic year.
2. The student will complete all degree requirements at the end of a semester or term (graduate).

If our office reduces your Federal Direct Loan based on the above requirements, we will send you a revised aid letter.

Interest Rates

Interest rates for Direct Loans first disbursed on or after July 1, 2025, and before July 1, 2026, are as follows:

• Direct Subsidized Loans and Direct Unsubsidized Loans (Undergraduate): 6.39%
• Direct Unsubsidized Loans (Graduate or Professional): 7.94%
• Direct PLUS Loans (Parents and Graduate or Professional Students): 8.94%

Loan Fees

Most federal student loans have loan fees. These fees are a percentage of the total loan amount.

Federal Direct Subsidized Loans and Federal Direct Unsubsidized Loans

• First disbursement date on or after 10/1/2020 and before 10/1/2025: 1.057 percent

Federal Direct PLUS Loans

• First disbursement date on or after 10/1/2020 and before 10/1/2025: 4.228 percent

Learn more about Interest Rates and Fees for Federal Student Loans

Teacher Loan Forgiveness

Public Service Loan Forgiveness

Federal Direct PLUS Loans are available from the U.S. Department of Education to help parents pay for education expenses not covered by other financial aid.  Parents can borrow up to the cost of attendance at the school your child will attend minus any other financial aid your child receives or an annual limit of $20,000, whichever is lowest. The school determines the cost of attendance. 

Interest is charged on a PLUS Loan from the date of the first disbursement is made until the loan is paid in full. Repayment begins 60 days after the final loan disbursement though parent borrowers may choose to defer payments until six months after the date the student ceases to be enrolled at least half time.

Parent PLUS Loans are subject to new loan limits:

• The annual borrowing limit is $20,000 per student from all Parent PLUS Loans received. For example, if one parent borrows $20,000 in Parent PLUS Loan funds for a student, the student cannot receive additional Parent PLUS Loan fund from another parent in the same academic year.
• The lifetime borrowing limit is $65,000 per student.

Additionally, the only repayment plan for all new PLUS Loans borrowed after July 1, 2026 is a new tiered standard repayment plan, which offers a fixed monthly payment over 10 to 25 years based on the balance of the loan. The tiered standard repayment plan is not eligible for Public Service Loan Forgiveness.

To receive a Parent PLUS Loan, you must:

• be the biological or adoptive parent of a dependent undergraduate student enrolled at least half-time at an eligible school;
• not have an adverse credit history; and,
• meet the general eligibility requirements for federal student aid.

A credit check will be performed during the application process. Borrowers with adverse credit history may still receive a parent PLUS loan through one of two options: seek a co-signer or successfully appeal the credit decision. If the borrower is unable to obtain a parent PLUS loan, the student may be eligible for additional unsubsidized loans.

Visit the Department of Education's website to learn more about Parent PLUS Loans. 

We encourage all Parent PLUS Loan borrowers to carefully consider their student’s academic plans and borrow only what is needed to meet the student’s costs. When a parent applies for a PLUS Loan, the campus Financial Aid Office will reach out with more information and guidance.

How to Apply

1. The student must complete a Free Application for Federal Student Aid (FAFSA).
2. Parent borrowers apply online through the Direct PLUS Loan Application for parents, which includes a credit check.
3. If you are approved, sign a Direct PLUS Loan Master Promissory Note (MPN), agreeing to the terms of the loan.

Private educational loans can help bridge the gap between your cost of education and the financial aid offered to you through state or federal programs. If you are considering applying for a private loan, we encourage you to complete your FAFSA application first and then borrow only what you need. Learn more about the differences between federal and private loans.

How to Apply

1. Determine how much you need to borrow.
2. Research lenders and their loan products to determine which is best for you.
3. Apply with the lender of your choice. This usually involves an online application and a credit check. You may also need a creditworthy co-signer.
4. Submit any requested documentation. Follow-up with your lender to be sure they have everything they need.

Historical Lender List

The University of South Carolina and its representatives do not endorse any private lender. The lenders provided here are not recommendations but a list of lenders our students have used in the past three years. It is presented to aid your search. You are not limited to these lenders.  You may choose any lender of your choice.

• College Avenue
• CU Student Loan
• Founders FCU (Sallie Mae)
• Sallie Mae
• South Carolina Student Loan Corporation

Disbursement

Most private loan disbursements are made via Electronic Funds Transfer (EFT) from your lender to the university. These funds will be applied to your university charges. Any remaining funds will be sent to you as a refund after all university fees have been paid in full.