Below are some of the federal and state loans available to Newberry students.
The main federal loan forstudents is called the Stafford Loan. All Stafford Loans are either subsidized (the government pays the interest while you're in school) or unsubsidized (interest accrues while you are in school). To receive asubsidized Stafford Loan, you must be able to demonstrate financial need. All students, regardless of need, are eligible for the unsubsidized Stafford Loan. Stafford Loans have a fixed interest rate of 4.5% for subsidized loans and 6.8% for unsubsidized loans. Repayment begins six months after the student graduates or drops below half-time enrollment. The standard repayment term is 10 years, although one can get access to alternate repayment terms (extended,graduated and income contingent repayment) by consolidating the loans.
The Federal Direct Parent Loan for Undergraduate Students (PLUS) lets parents borrow money to cover any costs not already covered by the student's financial aid package, up to the full cost of attendance. PLUS Loans have a fixed interest rate of 7.9%. There is a 2.5% net fee deducted from each disbursement of a PLUS Loan. Repayment begins 60 days after the loan is fully disbursed, and extends up to 10 years.
Eligibility for the PLUS loan depends on a modest credit check that determines whether the parent has an adverse credit history. If a parent is denied a Federal PLUS loan due to credit reasons, the parent may reapply with a credit-worthy co-borrower or appeal the denial with the Direct Loan Origination Center. In addition, if a student's parents are denied a PLUS loan, the student becomes eligible for increased Stafford Loan limits.
This loan is forgiven if you teach in a critical geographic area within SC.
Private Education Loans, also known as Alternative Education Loans, help bridge the gap between the actual cost of your education and the limited amount the government allows you to borrow in its programs.
Our Financial AidOffice will work with any lender and servicing agency to process a private/alternative education loan for our students. Please be advised that these loans are often more expensive than federal loans and should only be used when all other options have been exhausted, including federal loans. The terms and conditions of alternative loans vary from lender to lender and we encourage all borrowers to review and evaluate each program.
To insure timely processing of your loan, please monitor your application once submitted. Each lender’s process may vary, but each step must be completed before a disbursementis made to Newberry College.
The link below will allow you to research and compare alternative loan programs. We strongly suggest looking at all of your options before making a final decision.
Fast Choice—Great Lakes Educational Loan Services,Inc. has a private/alternative education loan selection tool that provides basic information on alternative loans and detailed listings of the various interest rates, borrower benefits, fees and repayment options.
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