LOANS

SPC only participates in theWilliam D. Ford Direct Loan Program.

Refer to the Online Catalog for detailed loan information.

 Application Process for Federal Loans

  • Complete the FAFSA, and provide any other requested documents in order to complete your Financial Aid file.  South Plains College will NOT award your loan until your financial aid file is complete. 
  • Complete the Master Promissory Note online.

Please note:  The Federal Government assesses an Origination Fee to all Direct Loans.  This fee reduces the amount disbursed for each loan.  The fee is currently 1.069% for all Direct Loans originated before October 1, 2017.  The fee may change for loans originated on or after October 1, 2017. 

SPC will certify the loan for the requested amount or the maximum eligibility, whichever is less.

Annual Loan Limits -- SPC will award your maximum loan eligibility in accordance with the Department of Education eligibility formula for determining loan eligibility

(Fall 2018 + Spring 2019 + Summer 2019):

____________________________________________________________________________________________

            Dependent       Independent
                                                                    (also Dependents whose parents are denied PLUS)
      Subsidized   Unsubsidized *  Total      Subsidized  Unsubsidized * Total   

Freshman:

$3,500 $2,000 $5,500  $3,500 $6,000   $9,500 
Sophomore: $4,500 $2,000 $6,500   $4,500 $6,000   $10,500 
             
*Add subsidized amount if student's unmet need does not meet subsidized eligibility criteria.

____________________________________________________________________________________________

SPC will reduce your loan award if necessary to comply with the Department of Education eligibility formula if you are awarded additional aid after the original loan award.  A revised award letter will be sent to your SPC email address.

  • Freshman Level -- less than 30 non-remedial hours earned in current program of study; or current program of study is less than one academic year in length.
  • Sophomore Level -- 30 or more non-remedial hours earned in current program of study.
  • Loans for only one semester will be pro-rated if anticipated graduation date is less than one year away.
  • Loans will be disbursed once per semester unless the loan is processed for only one semester.  Loans processed for one semester only will be divided in half and come in two disbursements (one at Census Date near the beginning of the semester and one mid-semester).
  • Loans processed for Fall/Spring - if after each term's loan disbursement, you have a credit balance after SPC charges are paid in full, SPC will deposit the balance to your Texan Card or bank account within 14 calendar days after Census Date of the semester.  If the loan plus other aid awarded will not cover all tuition and fee charges, students must make payment arrangements to ensure enrollment is not dropped.  An installment contract is available on your Texan Connect.
  • Loans processed for one semester - if after the first disbursement (one half the loan award) you have a credit balance after SPC charges are paid in full, SPC will deposit the balance to your Texan card or bank account within 14 calendar days after Census Date of the semester and the second disbursement after mid-semester.  If the first disbursement plus other aid awarded will not cover all tuition and fee charges, students must make payment arrangements to ensure enrollment is not dropped.  An installment contract is available on your Texan Connect account.  If your loan is awarded and is for one semester only, you may contact the Financial Aid Office for a possible Emergency Loan. 
  • Students who have not previously received a student loan and who have no earned non-remedial hours in their current program of study will receive their first loan disbursement 30 days from the first class day for their first semester.  If other aid awarded will not cover all tuition and fee charges, students must make payment arrangements to ensure enrollment is not dropped.  An installment contract is available on your Texan Connect account.  If your loan is awarded and is a 30-day hold, you may contact the Financial Aid Office for a possible Emergency Loan. 

 

Basic Requirements:

  • Students must be enrolled and attending at least six (6) eligible hours to receive funds.  At least one (1) hour must be non-remedial.  If it is determined that a student was not attending class at the time of disbursement, the loan will be canceled and SPC will bill the student for the resulting balance.
  • Loan disbursements will be canceled if a student drops below (6)credit hours before Census Date for the semester. 
  • Students must be meeting the Financial Aid Satisfactory Academic Progress Policy.  
  • Students must meet all Federal general eligibility requirements.
  • No loan disbursements (subsidized or unsubsidized) will be made for less than $100.

For the Federal Student Loan Program, South Plains College follows a scheduled academic year.  At SPC, a scheduled academic year consists of consecutive Fall/Spring/Summer semesters.  Students who receive a maximum loan for any period during the award year will not have new loan award eligibility until the following Fall semester unless they advance a grade level. 

 

Types of Loans for Students

Subsidized Loans:

  • Eligibility based on financial need as determined by the FAFSA
  • Must be enrolled in at least 6 credit hours
  • No interest charged while in school at least half-time

Unsubsidized Loans:

  • Not based on financial need
  • Must be enrolled in at least 6 credit hours
  • Interest charged from the time the loan is disbursed

Important Note: If you are a first-time college student, your loan will be on a 30-day hold.  This means the loan cannot be applied to your student account in the Business Office until 30 days into the semester.  If this applies to you and you need help paying tuition, contact the Financial Aid Office about an Emergency Loan. 

Types of Loans for Parents

PLUS Loan (Parent Loan for Undergraduate Students) 

  • Not based on financial need
  • Student must be enrolled in at least 6 credit hours
  • Interest charged from the time the loan is disbursed
  • Credit check required for the parent borrower  

Loan Forms and Links

Spring 2018:

          Loan Request Form for Students

          PLUS Loan Request Form for Parents

Summer 2018:

          Summer Loan Request Form for Students

          Summer Parent PLUS Loan Request Form for Parents

Any Year:

          Entrance Counseling

          Master Promissory Note

When you leave SPC ordrop below 6 hours:

          Exit Counseling

 

Loan Terms and Conditions, and Repayment:

When it comes time for students to repay their Federal Direct Student Loans, they will need to speak to their individual loan servicers about repayment options.  There are several repayment plans:  standard, extended, graduated, income contingent, income based, and pay-as-you-earn.  How much a student pays and how long it takes to repay loans will vary depending on a student’s chosen repayment plan.  Consolidation loans also have varying repayment plans.

The following is a link to the U.S. Department of Education's Direct Loan "Repayment Estimator" webpage.  This webpage can estimate repayment amounts under each of these different plans.

 

The sample Student Loan Repayment Chart can be used to estimate loan repayment under the standard repayment plan.  It is for estimating purposes only.

                                   Student Loan Repayment Chart

6.8% Fixed Interest Rate

          Amount

Borrowed

       Monthly

   Payment

Numberof

Months

              Total

 Interest

              Total

Repaid

   $500

 $50

  11

       $16

$516

 $1,000

 $50

 22

      $64

$1,064

 $3,500

 $50

 90

     $971

$4,471

 $4,500

 $52

120

  $1,714

$6,214

 $8,000

 $92

120

$3,048

$11,048

$10,000

$115

120

 $3,810

$13,810

$12,000

$138

120

 $4,572

$16,572

$15,000

$173

120

 $5,714

$20,714

$20,000

$230

120

 $7,619

$27,619

$23,000

$265

120

$8,762

$31,762

$31,000

$357

120

$11,810

$42,810

$40,000

$460

120

$15,239

$55,239

$46,000

$529

120

$17,524

 $63,524

$50,000

$575

120

$19,048

$69,048

$57,500

$662

120

$21,905

  $79,405

 This Standard Repayment Plan chart can be used to estimate student loan payments.  Figures have been rounded to the nearest whole dollar and represent minimum payments at 6.8% over a maximum of 10 years, and do not include interest that may accumulate during periods of deferment or forbearance.  Lower balances may take less than 10 years to repay at the minimum payment of $50.  This chart is for estimating purposes only. 

 

Complete information on understanding repayment, repayment options and the importance of repayment can be found at http://studentaid.ed.gov/sa/repay-loans.

 

 April  2018