Receiving Your Financial AidDirect 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).
South Plains College receives student loan funds via electronic funds transfer from the Department of Education. For borrowers not subject to the 30-day delay, loan funds may be credited to your tuition, fees and room and board charges as early as 10 days prior to the first class day. Credit balances, after all institutional charges have been paid will be posted to either the TEXAN card or to the borrower's personal checking account no later than 14 calendar days after the credit to the student’s account.
If a student is in the first year of their program of study and is a first-time Student Loan borrower, SPC may not disburse the first installment of the Stafford loan until 30 calendar days after the student's program of study begins. All borrowers must be currently enrolled and attending at least six (6) credit hours in order to have their charges credited or to receive a balance check. Dropping to part time enrollment (1-5 credit hours) or attending only part time during the first 12 class days of a semester will result in cancellation of the student loan. The loan credit will be charged back to the student's account and returned to the lender.
Students borrowing through an alternative loan lender will receive their checks though the Business Office. Students using Federal Direct Subsidized and Unsubsidized loans will have their funds electronically transmitted to South Plains College. Students must be registered for at least six (6) hours during a session. All new borrowers at SPC must complete entrance counseling prior to their loans being certified. Any changes to your enrollment or loan period may cause a delay or cancellation of your loan. If students receive addition financial aid after the loan is processed the amount of any future loan disbursements may be reduced.
As stated in the Master Promissory Note, SPC is authorized to transfer loan proceeds by electronic funds transfer (EFT) or master check to the student’s account. SPC will use the loan funds to pay other school charges for educationally related activities such as books and minor prior award year charges. All students applying for Stafford Loans must first complete the Free Application for Federal Student Aid (FAFSA) and other forms required to complete their financial aid file.
Borrowers have a right to cancel all or a portion of the loan or loan disbursement and have their proceeds returned. SPC will send a notice to the borrower no earlier than 30 days before and no later than 30 days after the school credits the student’s account. The notice will include the method and date by which the borrower must notify the school that he or she wishes to cancel all or a portion of the loan or loan disbursement. SPC requires a written request for loan cancellations. If SPC receives the cancellation request after a loan disbursement, only future disbursements will be canceled.