You must have a complete file with the Financial Aid Office in order to receive any type of loan.
The minimum requirements for consideration of any federal loan is to complete the FAFSA application, admission into a degree-seeking program, and at least half -time enrollment (6 hours). You must also complete a master promissory note. SPC participates in the William D. Ford Direct Loan Program (Direct Loans). This means the Direct Loans we offer are funded by the Department of Education. The Loan origination fee for student Direct Loans will be 1.059%. The Parent Plus Loans are charged a 4.236% rate. (NOTE: For loans with the first disbursement occurring on or after October 1, 2020, the new origination fees are 1.057% for Direct Loans and 4.228% for Parent PLUS Loans.) The origination fee will come out of the amount that you borrow. The example below depicts a 1.059% charge.
Example: $3500.00 - Your Loan Award
$3463.00 - Actual amount you will receive.
SPC is required to distribute the loan funds in two disbursements per loan period throughout the Fall 2020 semester. If you are enrolled in one semester only, then you will receive half your loan on the first scheduled refund date and the other half after the 50% point of the semester as per the refund schedule. Effective with the Spring 2021 semester, the two disbursement regulation will no longer be in effect if you are enrolled in one semester only. If you are enrolled for both Fall and Spring, you will receive half of your total loan on the first scheduled refund date for Fall and the other half on the first scheduled refund date for Spring.
30 Day Hold Loans
The 30 Day Hold Loans will no longer be a requirement beginning with the Spring 2021 semester. The last semester for this regulation to be in effect is Fall 2020.
If you have less than 1 year in your program of study and are a new borrower, then you are required by government regulation to wait 30 calendar days before you are eligible to receive any loan funds. Even if the Financial Aid Office has awarded you a loan, the Business Office requires payment for your classes by the deadline date for the particular semester in which you are enrolled. You must go on installment contract if you are not able to pay your balance in full. Please go to the Business Office Home page and click on Payment Details for your payment options and contract details. If your loan has a 30 day hold, you should see a notice on your Texan Connect. Any questions concerning this status should be directed to the Financial Aid Office.
Previous or Existing FFELP Loans
(Includes Direct Sub, Unsub, & PLUS)
You will not receive all of your loan funds at one time if you have indicated you will be enrolled for one semester only throughout the Fall 2020 semester. SPC is required to distribute the loan funds in multiple disbursements per loan period. If you attend school at least 6 hours the entire academic year your loan will only be divided into two disbursements. The example below shows a full loan with the 1.059% fees applied. Loan fees will be applied based on the program and first disbursement date as listed above.
Example:$3500.00 - Loan Award for the Fall and Spring academicyear.
First disbursement:$1732.00-Post after 12th class day according to Fall refund schedule
Second disbursement: $1732.00 - Post after 12th class day according to Spring refund schedule
Example:$2000.00 - Loan award for Fall Only or Spring Only semester.
First disbursement: $990.00 - Post after 12th class day according to the semester
Second disbursement: $990.00- Post after 50% period according to the semesterrefund schedule
If you are enrolled for one semester only, it is imperative to make sure that your first loan disbursement will cover the charges on your account. You must have the classes you enrolled in paid by the deadline date or you will be dropped for non-payment.
Example: $1550.00 Your account balance for classes
- $ 990.00 Your first loan disbursement
$ 560.00 Amount you need to pay before deadline date
If you do not have a zero balance or if you have not established a payment plan through Texan Connect, your schedule will be cancelled. You can read more about Payment Plans under Payment Details on the Business Office home page.
Beginning with loans requested for the Spring 2021 semester, SPC will distribute all loan funds in one disbursement. The multiple disbursement regulation has been eliminated beginning with loan requests for Spring 2021.
Please call the Business Office if you have questions regarding your loan disbursement or the balance on your account.