Student Loans and Student Work-Study are considered to be self-help aid.  Before applying for student loans, students should consider applying for student work-study.  Students who have applied for financial aid may be eligible to work for different departments on campus. 

Student loans are borrowed money that the student will have to repay with interest.  Subsidized and Unsubsidized Direct Loans are the most common source of student loan funds however; there are other sources of funds.

Direct Subsidized Loan

A low-interest, need-based, Direct Subsidized Loan for students registered at least half-time. The federal government assumes responsibility for interest payments while you are in school.  These loans have federal limits and may not exceed the cost of attendance minus expected family contribution and any other financial aid or resources.  Direct Subsidized Loan limits for dependent and independent undergraduate students are $3,500 for freshmen and $4,500 for sophomores per academic school year. 


Direct Unsubsidized Loan

Offers the same terms, conditions, and interest rates as the Direct Subsidized Loan program, except the student assumes responsibility for payment of the accrued interest while in school and during the loan period.  This loan program is available to students who do not qualify, or qualify only in part, for a Direct Subsidized Loan.  Dependent and Independent students are eligible for amounts equal to the Direct Subsidized Loan limits and/or up to $6,000 Direct Unsubsidized Loan amounts per academic year for freshmen and sophomores.


Direct PLUS Loan (Parent Loan for Undergraduate Students)

Established for parents of undergraduate dependent students.  As the other federal financial aid programs carry more favorable terms, students are encouraged to apply for and be considered for other student grants and loans first.  Parent borrowers must undergo a credit check before a Direct PLUS loan can be processed.  Please note if the parent(s) has not completed and returned  a Parent(s)  PLUS Loan Check Authorization form to the Financial Aid Office, the PLUS loan funds will not be made available to the Business Office to pay expenses nor the student or parent(s).


Alternative Loans

Numerous lenders offer other types of educational loans.  A complete financial aid file is required before SPC will certify these applications.  The loan will be certified according to the terms of the loan program.


Transfer Student Loan Limits

Students who transfer from other colleges or universities will be subject to the loan limits for either a freshman or sophomore according to hours earned in their current program of study. Transfer hours earned in the student's current program of study and included on the SPC transcript  will be considered in determining grade level for the Stafford loan .  If the transfer hours are not on the SPC transcript prior to the beginning of the semester, the loan may be increased during the current semester if eligibility requirements are met.  Students should notify the Financial Aid Office when the transfer hours are on the SPC transcript  if they wish to borrow additional loan funds.  Students who have 30 non-remedial hours in their current program of study are considered a sophomore. A student who transfers in the middle of an academic year and received his or her annual loan limit at the transfer institution will not be eligible to receive a loan at SPC until the beginning of the next academic year.


Defaulted Student Loans

In the event South Plains College receives notice from the Texas Guaranteed Student Loan Corporation, the Department of Education or other loan agency that a student or prior student has a defaulted student loan, a hold will be placed on the student’s academic records. The hold will be released when SPC receives a written paid-in-full notice from the agency that owned the note. At the discretion of the Financial Aid Office, a hold may be temporarily released upon receipt of written notice from the agency owning the note that the note is current. The hold may be temporarily released for an official academic transcript or to allow the student to enroll in classes. A current letter is required each time the hold is released.


Unavailable Loan Programs

South Plains College does not participate in the following loan programs: Perkins Loan, Hinson-Hazlewood Loan Program, HEAL Loan Program, HELP Loan Program and the CAL Loan Program.



 Last Published 8/8/10