Federal Direct Student Loan
The Federal Direct Student Loan is a low-interest fixed-rate loan available from the federal government in two versions:
- 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 are charged interest on the loan as soon as the funds are disbursed. You may defer payment on the interest until you have finished school, but the interest will be capitalized–that is, it will be added to the amount you owe.
Both versions require that repayment begins six months after graduation or upon termination of studies. Read more on Direct Loans for undergraduate and PC School of Pharmacy students.
Federal Direct PLUS Loan
Families who want a low-interest loan but have no demonstrated financial need can apply for the Federal Direct PLUS (Parent Loans for Undergraduate Students) Loan. Key features include:
- Responsibility of the parent
- First disbursed on or after July 1, 2016, and before July 1, 2017, the interest rate is 6.31%
- No income eligibility or credit score check
Parents who have declared bankruptcy, foreclosure, or have defaulted on debts in the past five years or are 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 Federal Direct Student Loan. Repayment options for the PLUS Loan are flexible. Payment can begin either 60 days after the loan is issued, or parents can opt to pay interest only while the student is in school and then repay principle.
Visit the U.S. Department of Education Loans page for more information.
Private Alternative Loan Programs
Presbyterian College participates in a number of private loan programs. These programs generally 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.
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 Federal Direct Student 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.
South Carolina Teachers Loan Programs
The South Carolina Teachers Loan Programs were established by the State of South Carolina to help talented and qualified students become teachers. The SC Teachers Loan and Career Changers Loan may be forgiven if the applicant teaches in a South Carolina public school in a critical subject or critical geographic area. Learn more at South Carolina Student Loan.