Federal Direct Loans

Federal Direct Loans are either subsidized or unsubsidized.

• A subsidized loan is awarded on the basis of financial need as determined by the Expected Family Contribution (EFC) number found on your Student Aid Report (SAR). You will not be charged any interest before you begin repayment or during authorized periods of deferment.  The federal government "subsidizes" the interest during these periods.  Once you enter repayment, interest will start accruing.
• An unsubsidized loan is not awarded on the basis of need.  You'll be charged interest from the time the loan is disbursed until it is paid in full.  If you allow the interest to accumulate, it will be capitalized, therefore the interest will be added to the principal amount of your loan and additional interest will be based upon the higher amount.
• You can receive a subsidized loan and an unsubsidized loan for the same enrollment period.  The amounts that you may borrow will depend upon whether you are a dependent versus independent student, your cost of attendance (determined by the college/university that you attend), and your current grade level.  
• The maximum Direct Loan amount you are eligible to borrow may be found in SCC Loan Information.
• Loans will be prorated for students enrolled in their last semester prior to graduation based on the number of credit hours enrolled for that term.
• A Direct Consolidation Loan allows a borrower to consolidate (combine) multiple federal student loans into one loan. The result is a single monthly payment instead of multiple payments.  Information about consolidation can be accessed at http://www.loanconsolidation.ed.gov/
  

Loan Proration Chart
Credit Hours Enrolled In	Dependent 6500	Independent 10500
6	$1,625	$2,625
7	$1,895	$3,062
8	$2,166	$3,500
9	$2,437	$3,937
10	$2,708	$4,375
11	$2,979	$4,812
12	$3,250	$5,250

Applying for a Student Loan

Below are the steps for applying for a student loan. We recommend that you print the Loan Information packet for important deadlines and application instructions (seven steps) to ensure you have all documents to complete your file. Incomplete files will delay processing!  See our Frequently Asked Questions page for more information.

Step 1: 

Apply for admission to SCC

Step 2: 

Request official transcripts from all institutions you have previously attended. 

• Transcripts should to be sent to the SCC Enrollment Services Department.
• Complete a Request for Evaluation of Transcripts form.
• Your Financial Aid application will not be processed until this step is completed.

Step 3: 

Complete the Free Application for Federal Student Aid (FAFSA)*.

• Obtain a pin at www.pin.ed.gov
• SCC School Code: 017027
• Your completed FAFSA must be on file at SCC before you can continue the loan process.

* The FASFA must be completed!

Step 4: 

Complete loan Entrance Counseling

• Go to www.studentloans.gov
• Sign in with the same PIN used to complete your FAFSA
• Click "Complete Entrance Counseling"
• Select "Undergraduate Student"

Important Note:

• Even if you have completed Entrance Counseling at another school, you are required to complete the session again for SCC.
• "Financial Awareness Counseling" will not fulfill the Entrance Counseling requirement

Step 5:

Complete a Master Promissory Note (MPN) located on the U.S. Department of Educations' website.

• Click on www.studentloans.gov
• Sign in with the same PIN used to complete your FASFA
• Click "Complete a Master Promissory Note"
• Select "Subsidized/Unsubsidized"

Important Note:

• A Direct Loan MPN may be active for 10 years
• A Direct Loan MPN will expire after 1 year if no loans are borrowed
• If you have an active MPN through the William D. Ford Federal Direct Loan program, you do not need to complete a new MPN.

Step 6:

Complete the Loan Data Sheet: Fall 2012/Spring 2013/Summer 2013 Loan Data Sheet

• Read the SCC Loan Information document
• Fill in the Data Sheet
• Sign the "Borrower's Rights and Responsibilities" notice

Step 7:

Return the Loan Data Sheet to the Enrollment Services Department, Administration Building Room 1113, after you have completed all of the above steps.  Frequently Asked Questions found here.

Important

All sources of funding are considered when determining your maximum amount of eligibility for financial aid. This is including but not limited to PELL, SEOG, Federal Direct Student Loans, Scholarships, A+ Scholarship, Vocational Rehabilitation and any other program participation. Students receiving financial aid must meet satisfactory academic progress standards (SAP).  Failure to meet these standards may result in a student's loss of financial aid eligibility until satisfactory academic progress can be reestablished. Refer to the Financial Aid Handbook for more information about SAP, or contact the Enrollment Services Department, Administration Building, Room 1113, 636-922-8270.

Exit Counseling

Exit counseling is required before you withdraw, graduate, or drop below half-time enrollment (even if you plan to transfer to another school).  It will help you understand your rights and responsibilities as a student loan borrower and provide useful tips to help you manage your loans.

You may complete exit counseling on-line at www.nslds.ed.gov. Select “Loan Exit Counseling,” then complete the steps listed.