Student Loans

The Federal Stafford Loan is available through the Federal Family Education Loan (FFEL) Program. Students borrow the funds from a bank, credit union, or other lender that participates in the FFEL Program. The FFEL Stafford Loans are either subsidized or unsubsidized. The FFEL Program also offers Parent Loans for Undergraduate Students (PLUS) for parents of undergraduate students. Students will need to complete the Online Loan Entrance Counseling Session before a loan can be certified at Southwestern.

• How much can I borrow?
• What types of loans are available at Southwestern?
• How do I choose a lender?
• What is the interest rate?
• How will I receive my Federal Stafford Loan?
• Are fees deducted from my loan?
• When does repayment begin?
• What forms will I need to complete?
• Loan repayment programs for Health Care Professionals

How Will I Receive My Federal Stafford Loan? - Southwestern receives student loan funds via electronic funds transfer (EFT). This means that your loan funds will be electronically deposited into your student account via electronic funds transfer.

• If you have an outstanding balance, your loan funds will be applied towards that balance before a check can be disbursed to you for the excess cash. These funds will be mailed to you as soon as your attendance verification sheet has been received by the Financial Aid Representative at the Student First Stop Center. The attendance verification sheet can only be completed after the 1st week of any term.
• ALL students are required to complete a pink attendance verification form before ANY type of federal or institutional aid can be disbursed. For student loans, this form must be received no later than 10 days after the anticipated arrival date of the loan funds. These dates are listed on the approval sheet that is mailed to you after the loan is certified. It is very important that you get the attendance verification sheet in as soon as possible to avoid having the loan funds returned to the lender.
• If you have online courses, you may have the instructor email the Financial Aid Representative at the Student First Stop Center at fao@socc.edu. This is considered the same as a signature.

What Types of Loans are Available at Southwestern? - you can apply for the Federal Stafford Loan (subsidized and unsubsidized).

• Subsidized Federal Stafford Loan - this loan is awarded based on financial need.  The Federal government will pay the interest that accrues on this loan while the borrower is enrolled in college at least half-time, during the six month grace period, and during any other deferment.
• Unsubsidized Federal Stafford Loan - this loan is not awarded based on financial need. The Federal government will not pay the interest on this loan. The borrower is responsible for the interest on the loan even during deferment.

How Much Can I Borrow? - the annual loan limits for all students are reported below.

What is the Interest Rate? - Up-to-date information here: http://www.finaid.org/loans/scripts/interest.cgi

Are Fees Deducted from the Loan? - Fees up to 3% may be deducted proportionately from each disbursement of the loan. These fees are for loan origination and/or guarantee processing. The borrower owes the gross amount before fees, but will receive a net amount after fees are deducted. Average loan fees will be added to the student’s cost of attendance, based on the average loan fees paid by Southwestern borrowers in the prior academic year.

When Does Repayment Begin? - Repayment of the Federal Stafford Loan begins six months after the student leaves college by graduating, withdrawing, or dropping below half-time (six credits or the equivalent). The minimum monthly payment is $50, and the maximum repayment period is 10 years.

Repayment of the Federal PLUS begins approximately 30 to 60 days after the first disbursement is made. The minimum monthly payment is $50, and the maximum repayment period is 10 years.

Online Loan Entrance Counseling Session - just click on the Mapping Your Future icon below to begin!  Good Luck!

When asked to give two references at the completion of the Online Counseling session, be sure that they are different than those listed on the loan application.