Federal Loans
Federal Stafford Loan
The Federal Stafford Loan is a low-interest loan available from the federal government in two versions, subsidized or unsubsidized. The subsidized loan is based on financial need. If you qualify for this version, the federal government pays the interest on your loan while you're in school.
The unsubsidized version is not based on financial need, and you'll be charged interest on the loan as soon as the funds are disbursed. (You may defer payment on the interest until you've finished school, but the interest will be capitalized -- that is, it will be added to the amount you owe.)
Both versions require that repayment begin six months after you graduate or terminate your studies. The loan has a fixed interest rate (which is currently 5.6% for Subsidized and 6.8 for Unsubsidized).
More information on Direct Loans for Undergraduate and Pharmacy students.
Federal PLUS Loan
For families who want a low-interest loan but have no demonstrated financial need, there is the Federal PLUS (Parent Loans for Undergraduate Students).
Key points about the PLUS Loan include:
- PLUS loans are the responsibility of the parent.
- Fixed interest rate of 8.5%.
- There is no income eligibility or credit score check.
Parents who have declared bankruptcy, foreclosure, or have defaulted on debts in the past five years or more than 90 days behind on a mortgage payment for their primary residence may be denied a PLUS Loan. If so, the student may be eligible for additional Unsubsidized Stafford Loan. Repayment options are flexible. You can either begin payment 60 days after the loan is issued or you can opt to pay just the interest while your child is in school and the tackle the principle later on.
For complete information on all of these loans, click here.
- More information on the PLUS Loan for Undergraduates.
- More information on the PLUS Loan for Gradate/Pharmacy students.
Private Alternative Loan Programs
Presbyterian College participates in a number of other private loan programs. In general, these programs allow for extended repayment terms. Alternative lenders are free to set their own repayment terms, interest rates, guarantee fees, etc. It is wise to compare several lenders to discover which ones are best suited to you. Alternative lenders often have fee and interest rate structures that are competitive with the federal loan programs.
Unlike the federal PLUS Loan program, one of the primary advantages of alternative loans is the ability to defer repayment of principal (and sometimes interest) while the student is enrolled in school. This allows parents greater flexibility to shape their borrowing program to more fully conform to their current financial situation. Another possibility is to combine a deferred payment alternative loan with a federally subsidized Stafford Loan and PC’s monthly payment plan. This results in paying part of the costs while the student is enrolled (and saving on interest) with the remainder being paid by both student and parent in monthly installments after the student is no longer enrolled, thus spreading the costs more evenly over several years.
Students and parents interested in alternative loan plans may contact the Office of Financial Aid for additional information and suggested lenders.
South Carolina Teacher’s Loan Program
The South Carolina Teacher Loan Program was established by the State of South Carolina through the Education Improvement Act of 1984 to entice talented and qualified students into the teaching profession. This loan is cancelled by teaching in South Carolina public schools in an area of critical need. To download and print the Application and Promissory Note form, go to the SC Teachers/Career Changers Loan Application and Promissory Note Download page. Select each of the options below to learn more about the Teacher Loan.
Critical Geographic Schools - If you taught in one of these schools during a particular school year you may be eligible for cancellation.
Critical Subject Areas - If you received a loan to teach one of these subjects you may be eligible for cancellation.