Information For...
Loan Details
General Information
You must have a complete file with the Financial Aid Office in order to receive any type of loan.
The minimum requirements for consideration of any federal loan is to complete the FASFA application, admission into a degree-seeking program, and at least half -time enrollment (6 hours). You must also complete a master promissary note. SPC participates in the William D. Ford Direct Loan Program (Direct Loans). This means the Stafford Loans we offer are funded by the Department of Education. The Loan origination fee for Student Stafford loans will be 1.0%. The Parent Plus loans are charged a 4% rate. The origination fee will come out of the amount that you borrow. The example below depicts a 1.0% charge.
Example: $3500.00 - Your Loan Award
$3465.00- Actual amount you will receive.
You will not receive all of your loan funds at one time. SPC is required to distribute the loan funds in multiple disbursements. This is usually two disbursements per semester.
30 Day Hold Loans
If you have less than 1 year in your program of study and are a new borrower, then you are required by government regulation to wait 30 calendar days before you are eligible to receive any loan funds. Even if the Financial Aid Office has awarded you a loan, the Business Office requires payment for your classes by the deadline date for the particular semester you are enrolled in. You must go on installment contract if you are not able to pay your balance in full. Please go to the the Business Office Home page and click on Payment Details for your payment options and contract details. Your loan award letter from the Financial Aid Office will have an enclosure if you are a 30 day hold. Any questions concerning this status should be directed to the Financial Aid office.
Previous or Existing FFELP Loans
(Includes Stafford, Unsub, & PLUS)
If you are a previous Stafford borrower or your parent has a PLUS loan for the current semester your loan will be scheduled to credit your account the week before the first day of the semester that you enroll in. This applies only if you have received an award letter from the Financial Aid Office for the semester you are enrolled in.
You will not receive all of your loan funds at one time. SPC is required to distribute the loan funds in multiple disbursements. If you attend school at least 6 hours the entire academic year your loan will be divided into four disbursements. The example below shows a full loan with the 1% fees applied. If your bank does not charge a fee to process your loan these amounts will change. Parent Plus loans will have 4% fees applied.
Example:$3500.00 - Loan award for the Fall and Spring academic year.
First disbursement: $867.00 - Post the week before first class day of Fall
Second disbursement: $866.00 - Post after 50% of semester has passed.
Third disbursement: $866.00 - Post the week before first day of Spring
Fourth disbursement: $866.00 - Post after 50% of semester has passed.
Since the loan funds are distributed in disbursements it is imperative to make sure that your first loan disbursement will cover the charges on your account for the classes you enrolled in by the deadline date.
Example: $1240.00 Your account balance for classes
$ 867.00 Your first loan disbursement with the 1% fee deducted
$ 373.00 Amount you need to pay before deadline date
If you do not have a zero balance or if you are NOT on installment contract and have not paid at least half of your balance by the semester deadline, your schedule will be cancelled. If you choose to go on contract using your first loan disbursement you are still required to complete a contract through Campus Connect. You can read more about Installment Contracts under Payment Details on the Business Office Home page.
Please call the Business Office if you are not sure about your loan disbursement or the balance on your account for the classes you enrolled in.