Student Loans are considered to be self-help aid. Before applying for student loans, students should consider applying for an on campus student work-study job.
Student loans are borrowed money that the student will have to repay with interest.
Federal Subsidized Loan
These low-interest loans are available to undergraduate students with financial need. The interest is paid on behalf of the student as long as the borrower is enrolled at least half-time (6 semester hours) in an eligible program.
Direct Subsidized loans are available to undergraduate students with financial need. SPC determines the amount you can borrow, and the amount may not exceed your financial need.
For a subsidized loan, the U.S Department of Education pays the interest
- while you are in school at least half-time,
- for the first six months after you leave school (referred to as a grace period), and
- during a period of deferment (a postponement of loan payments).
*Note: If you receive a Direct Subsidized Loan that is first disbursed between July 1, 2012 and July 1, 2014, you will be responsible for paying any interest that accrues during your grace period. If you choose not to pay the interest that accrues during your grace period, the interest will be added to your principle balance.
Federal Unsubsidized Loan
These low-interest loans have been added to the Higher Education Amendments to provide funding for middle and upper income borrowers who do not qualify for interest subsidies under the Federal Loan Program. Unlike the Federal subsidized loan, the interest will not be paid (subsidized) by the Federal Government. The borrower may make interest payments or the interest will be capitalized. Borrowers who qualify for interest subsidies under the Federal loan Program, may also choose to accept an Unsubsidized Loan in addition to their Subsidized Loan if their estimated family contribution is greater than zero; and all other eligibility requirements are met.
Federal Parent PLUS Loans
The Federal PLUS is a variable interest rate loan created by the federal government to help parents pay for their dependent student’s education beyond high school. Federal PLUS loans are not restricted to financial need. The Department of Education will perform a standard credit check with a national credit bureau before approving the loan. If approved, the parent must pay the principal amount of the loan(s) and all interest that accrues from the date of the disbursement until the loan is paid in full. The loan amount may not exceed the dependent student’s cost of attendance less estimated financial aid the student has been or will be awarded for the period of enrollment. A complete financial aid file and a William D Ford PLUS Loan Request Form for Parents is required to be signed by the parent borrower and returned to SPC before a Plus Loan will be awarded. The form authorizes SPC to issue a check, direct deposit or Texan Card credit to the dependent student for any remaining PLUS Loan funds after the student’s account is paid in full.
Beginning Fall 2013, SPC will no longer certify private education loans. Because of the low cost of attending, most SPC financial aid budgets can be fully funded with federal, state and scholarship awards.
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: Private Education loans (effective Fall 2013), Perkins Loan, Hinson-Hazlewood Loan Program, HEAL Loan Program, HELP Loan Program, CAL Loan Program and any loan program other than Federal direct subsidized, unsubsidized and parent plus.