Student Loan Option

Beginning with the 2017-2018 award year, SCTC will begin offering Federal Direct Student Loans. STUDENTS IN THE CERTIFICATE PROGRAMS INCLUDING CDL, CANNOT RECEIVE FEDERAL FUNDS (THIS INCLUDES FEDERAL STUDENT LOANS)

Federal Direct Loan

The Federal Loan Program allows students to borrow money at a low interest rate for educational expenses. While loans can be a good investment in a student's future, taking out a federal loan is a serious obligation. The full amount borrowed must be paid back with interest. There are two types of loans:

Subsidized – need based loan, which means the amount you may be eligible to receive is based on your financial need. The federal government pays the interest that accrues on a loan:

  • while you are in school,
  • during your grace period after you leave school or graduate, and
  • during eligible deferment periods.
  • Loan Eligibility Requirements

Unsubsidized – non-need based loan, which means the amount you may be eligible to receive is not based on your financial need. If you receive an unsubsidized Direct Loan, you will be responsible for all interest that accrues on the loan from the date of disbursement forward.

  • Must complete the Free Application for Federal Student Aid (FAFSA);
  • Must be a U.S. Citizen or an eligible non-citizen;
  • Must be accepted for enrollment and enrolled at least half-time at a participating school in an eligible program leading to a diploma or degree;
  • Must maintain Satisfactory Academic Progress (SAP) in your program of study according to your school's standards and statutory requirements;
  • Must not be in default on an educational loan or owe a refund on an educational grant;
  • Must have a high school diploma or equivalent (GED);
  • Must meet all other Federal Direct Loan program eligibility requirements prescribed by law at the time your loan application is processed.

To apply for a Federal Direct loan, Loan request form

Student Access Loan

The Student Access Loan (SAL) program is a need-based, low interest loan program administered by the Georgia Student Finance Authority (GSFA). The loans, or portions of the loans, are forgivable for recipients who graduate with a minimum cumulative grade point average of 3.5.

Students applying for SAL must meet all general eligibility requirements, citizenship, Georgia residency, enrollment status, satisfactory academic progress, selective service, defaulted loan, Drug-Free Act, and Incarceration.

All students applying for SAL must complete a FAFSA at www.fafsa.ed.gov and an application with Georgia Student Finance Commission (GSFC) at www.GAfutures.org . GSFC shall designate an open application cycle period for the state fiscal year and only collect applications during such period. Application cycle periods are subject to available funding and application volume. The selection process is FIRST COME FIRST SERVE. The application will remain open until all funds are depleted.

Southern Crescent Technical College does not administer this loan.  We complete school certification based on need and eligibility.   Even if the loan has been certified, the funds are not available to cover your tuition and fees until funds have be received by the college. Paying your fees and tuition is the responsibility of the student.. Students enrolled in a certificate, diploma or associates degree program are eligible to apply.  Students with a prior degree are also eligible to apply.

Student Eligibility

  • You must have exhausted all other federal aid including federal student loans.
  • You must be considered a Georgia resident and United States citizen or eligible non-citizen.
  • You must complete a valid Free Application for Federal Student Aid (FAFSA) in order to apply for this program
  • You must maintain Satisfactory Academic Progress (SAP) in accordance with the SAP policy at their college.
  • You must be enrolled in an eligible Georgia post-secondary institution.
  • You must be enrolled at least half-time (six or more credit hours).
  • You must meet all eligibility requirements.

Important Things to Know

  • Priority consideration is given to HOPE and Zell Miller Scholarship recipients and FY 2016 SAL recipients in good standing.
  • Selection is First Come, First Served after priority selection.
  • SAL is an annual process which includes application, selection, certification, approval, and disbursement.
  • Applications are only collected in pre-designated application cycle periods.  See the application link below for dates and information.
  • If you apply for this loan, you understand that this is a private education loan that must be repaid and cannot be combined or consolidated with federal loans.
  • Borrow smart! When applying for a loan, request only the amount of funds needed for your educational costs and that you can repay.
  • Your eligible postsecondary institution may decline the loan or certify for a reduced amount based on financial aid status.
  • Loan disbursements are sent directly to the student's chosen eligible postsecondary institution and are not transferable.

Click on the links below for more information or, if you are ready to apply, please click "SAL Application" below

Interest Rate

Interest rate structure for loans received on or after July 1, 2014:

  • The interest rate on any loan made under these regulations is 1% for the life of the loan.  The Borrower must fulfill the loan obligation, including Repayment requirements as specified in the Promissory Note to maintain the loan at a 1% interest rate.
  • If the Borrower fails to meet the Repayment obligation outlined herein and his/her Promissory Note, the Borrower will be considered to be in Default.  In the event of Default, the interest rate shall irrevocably convert to 5% per year for the life of the loan.

Keep In Touch (KIT) Payments

A monthly Keep in Touch (KIT) Payment of $10.00 is required approximately 60 days after the first disbursement is received.  The monthly KIT payments are required while enrolled in school at least half-time and while in six month grace period.

SAL Program Information

  • Repayment is a maximum of 10 years with a minimum payment of $50.00 for loans received on or after July 1, 2014.
  • The minimum loan amount is $300. The maximum loan limit is $3,000 per year up to a maximum of $12,000 over a college lifetime. A student cannot borrow more than $1,500 in one term.
  • Origination Fee – A non-refundable fee of 5% of the loan amount, but no more than $50.00 is deducted from the first disbursement of the loan.
  • SAL is an annual process which includes application, selection, certification, approval, and disbursement.
  • The program is also designed to provide loan discharge to those students who graduate with a minimum 3.5 cumulative Grade Point Average in the program of study for which the loan was received.
  • The SAL is first come, first served based on the funds available.
  • Applications are only collected in predesignated application cycle periods. See the application link for dates and information.
  • If you apply for this loan, you understand that this is a private education loan that must be repaid and cannot be combined or consolidated with federal loans.
  • Borrow smart! When applying for a loan, request only the amount of funds needed for your educational costs and that you can repay.
  • Your eligible post-secondary institution may decline the loan or certify for a reduced amount needed on financial aid status.
  • Loan disbursements are sent directly to the student’s chosen eligible post-secondary institution and are not transferable.

 

Information on Federal Student Loans in Repayment

Exit Counseling: The federal government requires us to counsel students regarding their rights and responsibilities as a student loan borrower before they graduate or leave school.

Southern Crescent will notify you if you are required to complete the exit counseling process. If you are a recent Southern Crescent graduate, or if you have ceased attending 6 or more hours, you are required to complete exit counseling. You can complete the Exit Counseling requirement online by accessing www.studentloans.gov and click on “Exit Counseling” on the top bar.

 

Estimated Loan Repayment Amounts

Total Loan Amount Number of Payments Monthly Payment Interest Charges Total Repaid
$2,625 66 $49.29 $628.14 $3,253.14
$4,000 120 $48.53 $1,823.60 $5,823.60
$7,500 120 $91.00 $3,420.00 $10,920.00
$10,000 120 $121.33 $4,559.00 $14,559.00
$17,000 120 $208.00 $8,021.00 $25,021.00

 

Obtaining Your Loan Repayment Information

The U. S. Department of Education’s National Student Loan Data System (NSLDS) provides information on your federal loans including loan types, disbursed amounts, outstanding principal and interest, and the total amount of all your loans.  To access NSLDS , go to www.nslds.ed.gov.

Repayment Options

  •  Standard Repayment — Payments are fixed for the life of the loan.  A minimum payment of $50 is required with a 10 year repayment period.
  • Graduated Repayment—Payments start low and gradually increase every two years.  The length of repayment will be up to 10 years.
  • Income Contingent—Repayment is solely based on income.  Payments are adjusted annually.
  • Extended Repayment—Fixed payments of at least $50 are made over a period not to exceed 25 years.
  • Income-Based Repayment (IBR) – Monthly payments are based on Adjusted Gross Income (AGI) and family size.  IBR’s have benefits and disadvantages so contact your lender for additional information.

Non-Payment of Student Loans

Failure to repay your student loan without contacting your lender can cause your loan to become delinquent.  If your account is in a delinquent status for 270 days (for monthly payments) or 330 days (for less frequent payments) your student loan is placed in a default status.

Defaulted Student Loans

Defaulting on student loans can affect you in the following ways:

  • You can be sued for your balance , court costs, and attorney’s fees.
  • Your credit rating will be damaged, you may not qualify for credit cards, you may not be able to borrow money to purchase a car or home.
  • Your income tax refund could be  intercepted to pay on your student loan debt.
  • 15% of your wages may be garnished and used to repay your student loan.
  • Your account may be turned over to a collection agency, and collection charges will be added.
  • You cannot receive future financial aid (loans, grants, etc.) until your default situation is resolved.
  • You could be denied assistance from other federal benefit programs.
  • You will be ineligible for deferments.
  • You could be denied state grants, scholarships or loans.

Your lenders are here to help you so please do not hesitate to contact your lender if you are having any problems with your student loan.

Student Loan Provider Phone Number Website
Nelnet 1-800-486-4722 www.nelnet.com
Great Lakes Educational Loan Services, Inc.  1-800-236.4300 www.mygreatlakes.org
FedLoan Servicing (PHEAA) 1-800-699-2908 www.myfedloan.org
Sallie Mae 1-800-722-1300 www.salliemae.com
Direct Loan Servicing Center (ACS) 1-800-848-0979 www.dl.ed.gov