There are generally three types of student loans a student may encounter at SCC; the Federal Direct Loan, the Federal Plus Loan, and private loans. Each of them have varying characteristics, and a student should fully read and understand all required loan disclosures prior to authorizing any type of student loan. In addition, a student should have a very strong understanding of his or her own personal budget to ensure that student loan funds are required prior to taking on the burden of debt.
Student loans represent an obligation to repay the amount borrowed plus interest. The decision to borrow should not be taken lightly.
Federal Direct Student Loan
SCC will automatically offer the student a Federal Direct Student Loan on his or her financial aid offer if he or she is eligible. This offer does not represent a "finalized" student loan. A student must complete the proper application documents prior to obtaining a student loan. These documents are accessed through the online Self-Service module in HawkNet. When you have completed the custom loan request, the Master Promissory Note and the on-line entrance counseling your loan will be processed. Under federal regulation, student loans must be divided in two disbursements over the period of the loan.
If your loan is approved, and you are currently enrolled at least half-time, attending class, and maintaining satisfactory progress, the loan funds will be available to apply directly to tuition and book charges. Any remaining balance after tuition and book charges have been paid will be mailed directly to the student the third week of the term. If you are a first time borrower, the balance funds will not be mailed until at least 30 days into the term per federal regulation.
Of note: the maximum subsidized Federal Direct Loan for the 2020-2021 award year is $3500 per academic year for freshmen and $4500 for sophomores (dependent students). Repayment of the Federal Direct Loan generally begins six months after the student graduates or drops below half-time enrollment.
Federal PLUS (Parent) Loan
This loan program is available to the parents of dependent students. The maximum PLUS loan amount is based on the student's cost of attendance and other financial aid received. Parents must generally begin repayment within 60 days after the final loan disbursement. To apply for a PLUS (Parent) loan, parents should visit https://studentaid.gov/, sign in with their FSA ID, and access the Parent Borrowers section of the website. The PLUS Loan Request and Master Promissory Note must be completed. If further information is needed, you will be contacted by the Financial Aid Office.
Private loans are offered by private lenders and there are no federal forms to complete at SCC. The maximum private loan amount that can be certified at SCC is determined according to the following formula: Direct Costs at SCC + Books – Financial Assistance = Private Loan Amount. Amounts in excess of institutional costs and within the student's cost of attendance may be approved by the Financial Aid Director on a case-by-case basis.
Remember, you're not alone during loan repayment.
There are many people on your side during loan repayment including your loan servicer, SCC and Inceptia. If you have questions about how much you should pay, or where you should send your payment, please contact your loan servicer as soon as possible. If you are not sure who your loan servicer is, call the Financial Aid Office at SCC.
SCC has partnered with Inceptia, a division of National Student Loan Program (NSLP), to provide you with FREE assistance on your Federal student loan obligations to ensure successful, and comfortable, loan repayment.
Inceptia's friendly customer representatives may reach out to you during your grace period to answer questions you have about your loan obligation and/or repayment options. Inceptia is not a collection agency. We've partnered with them to inform you of a wide variety of possibilities such as alternative repayment plans, deferment, consolidation, discharge, forgiveness, and forbearance options.
Inceptia will stay in touch with you via phone calls, letters, and/or emails to help you understand your repayment timing and options.
For additional resources including information on repayment options, please visit Inceptia's Federal Student Loan Overview website at www.Inceptia.org/FAQ.