Long-Term Loans
Federal Stafford Loan--Subsidized
The subsidized Stafford Loan Program provides long-term, low-interest, need-based loans to undergraduate, graduate, and professional students. The interest rate is variable and set at 3.1 percentage points above the 91-day Treasury bill rate with an 8.25 percent cap. The interest rate on subsidized Federal Stafford Loans made prior to July 1, 1994, will vary according to the dates on which the loans were disbursed and/or the borrower’s outstanding federal loan indebtedness. The interest rate during repayment will be different. These rates are subject to change by law.
Subsidized Federal Stafford Loans may be requested from a variety of lenders with a loan guaranty from any authorized guarantee agency. As an undergraduate, you may borrow up to $2,625 for the first year of study, $3,500 for the second year, and $5,500 per year for subsequent undergraduate study, not to exceed a maximum of $23,000. As a graduate or professional student, you may borrow up to $8,500 per year not to exceed $65,500, including any amount borrowed as an undergraduate. If you receive a subsidized Stafford Loan, you will not be required to begin repayment until six months after you cease to be enrolled on at least a half-time basis.
Some students will receive a promissory note which must signed, completed, and returned to your lender before any loan funds will be disbursed. If, however, you signed a Master Promissory Note for the 2000-2001 academic year, it may also be used for all future Stafford Loans you may borrow while attending USC. You will no longer need to sign a promissory note each year you apply for and receive a Stafford Loan.
Federal regulations require that we limit or reduce the amount of a Stafford Loan under certain prescribed conditions. These conditions are as follows: 1) You are an undergraduate and you apply for a Stafford loan and are enrolled less than a full academic year (fall and spring semesters); or 2) you will complete all degree requirements at the end of the semester or term. If either of these conditions occur, the Stafford Loan amount may be reduced. The financial aid office will make this adjustment and send you a revised award letter.
We are required to disburse your loan in installments to coincide with the beginning of the enrollment period covered by the loan. Additionally, if after the time your Federal Stafford Loan (subsidized or unsubsidized) was certified, you receive any type of other financial assistance, or your tuition fee structure changes, your eligibility for the Stafford Loan may be reduced. In some cases, you may be required to repay amounts in excess of your eligibility.
Federal Stafford Loan--Unsubsidized
The unsubsidized Federal Stafford Loan program is similar to the subsidized Stafford Loan except that eligibility is not based on financial need and interest payments are not subsidized by the federal government, but rather are the responsibility of the borrower.
If you are a dependent student, your annual unsubsidized and subsidized Stafford Loan totals combined cannot exceed the totals previously noted for a subsidized Stafford Loan. As an independent student, you have additional unsubsidized eligibility of $4,000 per year for the first and second years of study and $5,000 per year for subsequent undergraduate study. As a graduate or professional degree student, you have an additional $10,000 per year in unsubsidized eligibility, and your career maximum increases to a total of $73,500, including any amounts borrowed as an undergraduate. Medical students and graduate students in public health and clinical psychology may be eligible for additional unsubsidized loan limits. The interest rate is the same as the subsidized Stafford Loan; however, interest begins to accrue at the time the lender makes the loan and is not automatically deferred. You may choose to pay the interest or request that it be deferred. This results in the deferred interest being capitalized and creating a greater expense to you during repayment.
Some students will receive a promissory note, which must be completed, signed and returned to your lender before any loan funds will be disbursed. If, however, you signed a Master Promissory Note for the 2000-2001 academic year, it may also be used for all future Stafford Loans you may borrow while attending USC. You will no longer need to sign a promissory note each year you apply for and receive a Stafford Loan.
Federal regulations require that we limit or reduce the amount of a Stafford Loan (subsidized and unsubsidized) under certain prescribed conditions. These conditions are as follows: (1) You are an undergraduate and you apply for a Stafford loan and are enrolled less than a full academic year (fall and spring semesters); or (2) you will complete all degree requirements at the end of the semester or term. If either of these conditions occur, the Stafford Loan amount may be reduced. The financial aid office will make this adjustment and send you a revised award letter.
We are required to disburse your loan in installments to coincide with the beginning of the enrollment period covered by the loan. Additionally, if after the time your Federal Stafford Loan, (subsidized or unsubsidized) was certified, you receive any type of other financial assistance, or your tuition fee structure changes, your eligibility for the Stafford Loan may be reduced. In some cases, you may be required to repay amounts in excess of your eligibility.
Federal PLUS
The PLUS loan is a non-need-based educational loan program that allows parents to borrow funds for full-time dependent students. Parents may borrow up to the cost of education less any other financial assistance received during the loan period. For loans disbursed on or after July 1, 1998, the interest rate is variable, based upon the bond equivalent rate of the 91-day T-bill, plus 3.1 percent. The variable rate is capped at 9 percent. Previous PLUS loans may have a different interest rate depending upon when the loan was first disbursed. Repayment begins within 60 days after the loan is made. The repayment period can be extended up to 10 years with minimum monthly payments to be arranged with the lender.
PLUS loan checks are mailed directly from the lender to the school. The Student Loan Accounting Office, 207 Petigru, handles all PLUS loan checks. Questions regarding the handling of these checks should be directed to that office. Parents/students are advised to exhaust their eligibility for other federal student aid programs before considering the PLUS loan.
South Carolina Teacher Loan Program
This program is available only to residents of South Carolina who are attending college for the purpose of becoming certified teachers employed in the state’s school system in areas of critical need as defined by the State Board of Education. For loan recipients who become certified and teach in an area of critical need, the loan shall be cancelled at the rate of 20 percent for each full year of teaching, up to 100 percent. Loan recipients who do not become certified and/or do not teach in an area of critical need shall be responsible for repaying the entire amount of loan funds borrowed plus interest. Contact the Office of Student Financial Aid and Scholarships for application information and deadlines.
Federal Perkins Loan
The Perkins Loan Program is a low-interest (5 percent), long-term educational loan program available to both undergraduate and graduate students demonstrating exceptional financial need. This is a loan and must be repaid. Undergraduates may borrow up to $4,000 for each year of study and up to $20,000 to complete an undergraduate degree. Graduate students may receive up to $6,000 for each year of study not to exceed $40,000 for all years of study including undergraduate amounts received. Interest is not charged and repayment does not begin until nine months after your enrollment drops below half-time status. If you receive your first Perkins Loan on or after October 1, 1992, your minimum payment will be $40 per month. In all cases, repayment may extend up to 10 years depending upon the total amount borrowed. If you have outstanding National Direct Student Loan (NDSL) balances and you are receiving a Federal Perkins Loan now, you must review your NDSL Promissory Note to determine the terms and conditions that apply to your loan. Under certain conditions of reenrollment, employment, or extenuating circumstances, payments may be deferred or cancelled. Further information concerning repayment is available in the Office of Financial Services, Room 110, Petigru.
Nursing Student Loans (NSL)
Nursing Student loans are low-interest (5 percent), long-term educational loans available to upper-division undergraduate and graduate students who are enrolled in nursing degree programs. If you qualify, you may borrow up to $4,000 per year during the last two years of study, not to exceed $13,000 for all years of study. Priority is given to students who demonstrate exceptional financial need. If you receive an NSL, you will not be required to start repaying it, nor will any interest be charged, until nine months after you cease to be enrolled on at least a half-time basis in the nursing program. Under certain conditions of advanced professional training or employment, payments may be deferred or canceled.
Health Professions Student Loan (HPSL)
Health Professions Student Loans are low-interest (5 percent), long-term educational loans available to students enrolled full-time in pharmacy. As funding permits, students may borrow an amount equal to the cost of education less other financial aid. You must have submitted parental data on the FAFSA in order to be considered for this program.
If you receive an HPSL, you will not be required to start repaying it, nor will any interest be charged, until 12 months after you cease to be enrolled on a full-time basis as a pharmacy student. Minimum payments will be $40 per month, and the 10-year repayment period may be extended to 25 years under certain circumstances.
Primary Care Loan (PCL)
Primary Care loans are low-interest (5 percent), long-term educational loans available to full-time medical students who demonstrate exceptional financial need and who never have borrowed through the Health Professions Student loan program. In order to receive the loan and qualify for the most favorable repayment terms, borrowers must agree to enter a residency and practice in primary health care. Primary health care areas are defined by the Department of Health and Human Services as family medicine, general internal medicine, general pediatrics, preventive medicine, combined medicine/pediatrics, and osteopathic general practice. The maximum annual program award can range up to the cost of education less other financial aid.
If you receive a PCL, you will not be required to start repaying it, nor will any interest be charged until 12 months after you cease to be enrolled on a full-time basis as a medical student. Minimum payments will be $40 per month, and the 10-year repayment period may be extended to 25 years under certain circumstances. You must have submitted parental data on the FAFSA in order to be considered for this program.
Super Primary Care Loan (SPCL)
This is a PCL that is awarded for the sole purpose of repaying a higher interest loan.
Short-Term Loans
Burroughs Wellcome Emergency Loan Fund: Established as a cooperative endeavor between Burroughs Wellcome, alumni, and friends of the College of Pharmacy. Restricted to pharmacy students. (Contact the dean of the College of Pharmacy for information.)
The funds listed below provide short-term emergency loans to assist students in substantiated emergencies. Short-term loans are repayable within 30 days. Application is made to the Office of Student Financial Aid and Scholarships.
Chaplains’ Emergency Loan Fund
Columbia Sertoma Club Emergency Loan Fund
International Students Club Emergency Loan Fund
Kiwanis Club of Richland County Emergency Loan Fund
Donald Russell Student Loan Fund
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