Financial aid file must be completed before you can receive a student loan.
The following is a brief description of student loan programs at SCC. Loans are borrowed funds that must be repaid. SCC participates in the Federal Direct Loan Program, which includes Federal Direct Loans for students and Federal PLUS Loans for students’ parents. Students must be enrolled in at least 6 credit hours to receive a Federal Direct Loan. The Free Application for Federal Student Aid (FAFSA) must be filed and eligibility determined before pursuing student loans.
Please contact the SCC Financial Aid Office at 828.339.4438 to request instructions on how to inquiry on receiving a federal student loan. All first time borrowers at SCC will be asked to schedule a loan counseling session where they will receive loan instructions. The FAFSA should be filed, and eligibility determined before pursuing student loans.
The following chart shows the maximum amount that an SCC student may be eligible to borrow during an academic year. Each student’s eligibility will be determined individually. The amount a student may borrow will be determined by a number of factors, including whether he/she is a first-year or second-year student, whether he/she is a dependent or independent student, and whether or not he/she is receiving other financial assistance.
Federal Direct Loan Limits for Academic Year (Fall-Summer)
|Dependent Student||Maximum Subsidized Amount||Annual Limit (Subsidized & Unsubsidized)|
|First Year (In first half of current SCC program)||$3500||$5500|
|Second Year (In second half of current SCC program)||$4500||$6500|
|Independent Student||Maximum Subsidized Amount||Annual Limit (Subsidized & Unsubsidized)|
|First Year (In first half of current SCC program)||$3500||$9500|
|Second Year (In second half of current SCC program)||$4500||$10500|
All applicants are required to file a Free Application for Federal Student Aid (FAFSA) and must have calculated financial need to receive a subsidized loan. Subsidized loans are those on which the government pays the interest while the student is in school and in other periods of authorized deferment. The student becomes responsible for the interest and principal payments six months after graduating or dropping below half-time enrollment. For subsidized loans disbursed for 2022-2023, the interest rate is 4.99%.
Unsubsidized loans are those on which the student is charged interest beginning after the date of the loan's first disbursement. Payments are not required while the student is in school and in other periods of authorized deferment, but the student is encouraged to make the interest payments rather than allow interest to accrue and be added to the loan balance. For unsubsidized loans disbursed for 2022-2023 interest rates are 4.99%.
Parent Plus loans are those on which the parent takes out the loan and is responsible for paying the loan back. For parent plus loans disbursed for 2022-2023, the interest rate is 7.54%.
If a dependent student cannot file the FAFSA with parent information, he/she must contact the Financial Aid Office to determine if he/she can qualify for an unsubsidized loan.
Inceptia -- Providing Help with Loan Repayment
You’re not alone when it comes to student loans. Southwestern Community College has partnered with Inceptia, a division of National Student Loan Program (NSLP), to provide you with FREE assistance on your Federal student loan obligations to ensure successful, and comfortable, loan repayment. Inceptia’s friendly customer representatives may reach out to you if your loan(s) become delinquent. Inceptia is not a collection agency. We’ve partnered with them to help you explore a wide variety of possibilities such as alternative repayment plans, deferment, consolidation, discharge, forgiveness, and forbearance options. Inceptia will stay in touch with you via phone calls, letters and/or emails to help you find answers to your questions and solutions to your issues. For additional resources including information on repayment options, please visit Inceptia’s Student Loan Knowledge HQ website at HeroKnowl.org.