Loans: Frequently Asked Questions

When Should I Apply for my Loan?
Generally the earlier you apply the better.
OCtech deadlines are as follows:

Fall – November 1^st

Spring – April 1^st

Summer – June 1^st

How much am I eligible to borrow?
Your eligibility is determined by your institutions financial aid office based on your financial need, the amount of other financial aid that you are receiving and your grade level (i.e. Freshman, Sophomore, etc).

Can I apply for a loan through SCSLC without going through my school?
No! The school must certify your eligibility for participation in these student loan programs and determine the amount of money that you are eligible to borrow. If you have not already done so, you should contact your school to determine how to start the application process and tell them that you want your loan through the S.C. Student Loan Corporation.

What is a Master Promissory Note?
The Master Promissory Note (MPN) process has been designed for you, the borrower, to control your educational borrowing. The ease of the MPN affords you the opportunity to receive additional loans, cancel and modify loan amounts under the same note, instead of completing a new one. (This is referred to as a Serial Loan note.) The MPN is signed by the borrower and will remain valid for 10 years from the date the borrower signs it. You will be notified in writing whenever there is a modification to your loan amount.

You may cancel the MPN by sending a written request to the lender requesting the MPN no longer be used. If twelve months from the date the MPN was signed expires, and no disbursements have been made, the MPN becomes invalid.
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How long will it take for you to process my loan?
Student loans are certified through the Financial Aid office.  Once we have certified a student loan it is submitted to SCSLC.  If you are a 1^st time borrower you would need to sign a Master Promissory Note (MPN).  SCSLC will send you a MPN via mail or you can sign it electronically at South Carolina Student Loan Corporation by using your PIN received from the Department of Education.  Upon receipt of your completed Master Promissory Note, loan funds are approved and disbursed on the following dates:

Fall Semester – 2^nd week of September

Spring Semester – 2^nd week of February

Summer Semester – 2^nd week of June

What will the interest rate on my new loan be?
Student loans are variable rate loans. Rates are determined by the rate of the treasury bill and are updated every July 1st.

What is the difference between Subsidized and Unsubsidized Stafford Loans?
The Federal government pays the interest on your loan while you are in school, during the grace period and during any periods of deferment if you have a Subsidized loan. If you have an Unsubsidized Loan all the interest that accrues is your responsibility to pay. You have the choice of paying the interest quarterly or allowing the interest to accumulate until you enter repayment. The information you provide on the Free Application for Federal Student Aid (FAFSA) along with the cost associated with the school you plan to attend will determine your eligibility for subsidy.

What are Guarantee Fees?
Guarantee fees are no longer charged by SCSLC. The fee, up to 1% of the amount borrowed, is charged by some lenders and is used as insurance to pay your loan should you default, die, become totally and permanently disabled or meet certain other criteria where you do not have to pay your loan obligation. SCSLC has such an exceptionally low default rate they no longer charge this fee but you still receive the same insurance protection.

What are Origination Fees?
An origination fee is a charge by a lender for originating or processing your loan. Lenders are allowed to charge an origination fee of up to 3% of the loan amount.  SCSLC has eliminated the loan origination fee on Federal Stafford Loans and on our supplemental loans, Palmetto Assistance Loans. On Federal PLUS Loans, federal law requires them to charge a 3% loan origination fee; however, we will credit back to your account this amount, thereby saving you the amount of the fee. On a $10,000 loan this saves you $300.
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