Often part of a financial aid package, loans provide students with an opportunity to invest in their future, typically at interest rates lower than those on the commercial market. Students are reminded that borrowing money for University is a serious financial obligation, that interest is generally charged for use of funds, and that when you borrow money it must eventually be repaid. Think about this commitment carefully when taking out a loan, and consider how much you reasonably can afford to repay. In order to decline the federal loans students must send an email to email@example.com from their AU email account.
On March 25, 2010, both the House and the Senate passed H.R. 4872, the Health Care and Education Affordability Reconciliation Act of 2010, which includes major reforms to health care and student financial aid.
This legislation eliminates new lending under the Federal Family Education Loan Program (FFELP) beginning July 1, 2010, and provides the Department of Education with the sole responsibility of providing student loans through the Direct Loan program.
Loan limits and eligibility requirements for the Direct Loan program are the same as the FFELP loan program.
All students will now be required to secure student loan funds from the Direct Loan program by going to http://studentloans.gov, completing the Entrance Counseling, and signing the Master Promissory Note (MPN).
South Carolina Teacher Loan Program
This program is available only to residents of South Carolina who are attending college for the purpose of becoming certified teachers employed in the state's school system in areas of critical need as defined by the State Board of Education. For loan recipients who become certified and teach in an area of critical need, the loan shall be canceled at the rate of 20 percent for each full year of teaching, up to 100 percent. Loan recipients who do not become certified and/or do not teach in an area of critical need shall be responsible for repaying the entire amount of loan funds borrowed plus interest. For more information on the SC Teacher Loan from SC Student Loan Corporation please visit http://www.scstudentloan.org/.
Steps to Applying for Student Loans
(See options for loans below)
- Complete the Free Application for Federal Student Aid (FAFSA) being sure to list Anderson University (FAFSA Code: 003418).
- Complete the online entrance counseling at http://studentloans.gov. Please complete this step before going to Step 3. Your loans cannot be processed if you do not complete the entrance counseling.
- Go to http://studentloans.gov and complete the Master Promissory Note (MPN). The MPN is a legally binding agreement to repay your loan to the Department of Education. In most cases, one MPN can be used for loans that you receive over several years of study.
Student Loan Options
Direct Loans – all students are eligible to receive loan funds through the Direct Loan program at the following levels as long as the student is in school at least half time (6 hours).
Grade Level 1 – (1 – 29 earned hours) - $5500 ($2000 must be unsubsidized funds)
Grade Level 2 – (30 – 59 earned hours) - $6500 ($2000 must be unsubsidized funds)
Grade Level 3 – (60 – 89 earned hours) - $7500 ($2000 must be unsubsidized funds)
Grade Level 4 – (90 and above earned hours) - $7500 ($2000 must be unsubsidized funds)
Direct Loans can be either Subsidized which means the interest will be paid by the Federal Government as long as the student is enrolled at least half-time. Subsidized loan eligibility is determined by the Free Application of Federal Student Aid (FAFSA) and other aid that the student is receiving. If the student is not eligible for subsidized student loan funds, they can still receive loan funds at the above level. However, the funds will be Unsubsidized which means interest will be accruing while the student is in school.
Students whose parents have been denied a Parent Loan for Undergraduate Students (PLUS) can receive Additional Unsubsidized Direct Loan funds at the following level. Parents must apply each year for the PLUS before students can receive the additional unsubsidized funds.
Grade Level 1 & 2 – Additional $4000
Grade Level 3 & 4 – Additional $5000
Direct Loans have a fixed interest rate, origination fee and yearly/lifetime aggregate loan limits which can be found at https://studentaid.ed.gov/sa/types/loans.
Students must apply for Direct Loans, complete the Entrance Counseling, and sign the Master Promissory Note (MPN) at http://studentloans.gov before loans can be processed.
Upperclassmen or previous borrowers will now be required to go to http://studentloans.gov to complete Entrance Counseling and sign a new Master Promissory Note (MPN).
Direct Loan Funds Are Divided Equally Between Fall & Spring Semester
Note: If a student is enrolled in courses that do not count toward his/her degree, they (the courses) cannot be used to count towards the enrollment status unless the courses are noncredit or remedial courses. This means a student cannot be awarded and receive aid for classes that do not count towards his/her degree or certificate.
Direct PLUS Loans – Direct PLUS Loans are for the parents of dependent students and for graduate/professional students. Interest accrues during enrollment. Parents can apply and complete entrance counseling at http://studentloans.gov
Eligibility Requirements for Direct PLUS Loans
You must be the biological or adoptive parent (or, in some cases, the stepparent) of the student for whom you are borrowing.
Your child must be a dependent student who is enrolled at least half-time at a school that participates in the Direct Loan Program. Generally, your child is considered dependent if he or she is under 24 years of age, has no dependents, and is not married a veteran, a graduate or professional student, or a ward of the court.
You cannot have an adverse credit history (a credit check will be completed).
In addition, you and your child must be
U. S. citizens or eligible noncitizens, must not be in default on any federal education loans or owe an overpayment on a federal education grant, and must meet other general eligibility requirements for the Federal Student Aid Programs.
Direct PLUS Loan Funds Are Divided Equally Between Fall & Spring Semester
THIRD Option - Private Student Loans
Private Student Loans, also called Alternative Loans, are a last resource for students who are not eligible for other financial aid or who may need additional funds to meet education expenses. Private loans should be considered only when all other options have been exhausted, including federal student loans or other federal financial aid options for which you might qualify. Private loans typically have higher interest rates than federal student loans, are credit-based, and do not always offer the same benefits as federal student loans. The U.S. Department of Education provides a comparison chart at https://studentaid.ed.gov/sa/types/loans/federal-vs-private to review the differences between federal and private loans. The terms and conditions of alternative loans vary from lender to lender and are typically less favorable than Title IV federal student loans. The maximum private loan amount a student can borrow is determined by the Cost of Attendance minus other financial aid. Never borrow more than you believe you will be able to repay.
Students are responsible for finding the company through which they want to obtain a Private Loan. To research and apply, students can seek loan options through Banks, Credit Unions, and other various Student Loan Servicers. Students can also use FastChoice – a student loan search tool provided by Great Lakes Educational Loan Services, Inc. You may choose to use this tool to help educate yourself before making a decision or choose to go directly to a lender of your choice to apply. FastChoice provides information to help students research and compare private student loan options. The lenders presented in this tool are lenders from which Anderson University students have borrowed within the last three years. This three-year historical list of lenders is also provided online at https://andersonuniversity.edu/financial-aid/loans. Anderson University does not have a preferred lender list and cannot recommend any one lender over another.
Three-Year Historical Lender List:
- Citizens Bank
- Citizens One
- College Ave Student Loans
- College Foundation Inc.
- Commonbond Inc.
- Discover Bank
- Dupont Community Credit Union
- Lendkey Technologies Inc.
- Nasa Federal Credit Union
- Northwest Federal Credit Union
- PNC Bank
- South Carolina Student Loan Corporation
- Sallie Mae
- Suntrust Bank
- Thrivent Federal Credit Union
- Utilities Employees Credit Union
- Wells Fargo
To complete your exit counseling, click http://studentloans.gov then select Exit Counseling, then Start.