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Loans

Federal Direct Stafford Loan

Direct Loans are the primary federal loan for students. Direct 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 a subsidized Direct Loan, you must be able to demonstrate financial need. All students, regardless of need, are eligible for the unsubsidized Direct Loan. Graduate students are eligible for the unsubsidized Direct Loan only. Direct subsidized and unsubsidized loans have a fixed interest rate of 4.99% for undergraduate students and 6.54% for graduate students.  A 1.057% disbursement fee is deducted from each disbursement before the loan funds are sent to the college. Repayment begins six months after you graduate or if you drop below half-time enrollment. The standard repayment term is 10 years; however, it is possible to get access to alternate repayment terms (extended, graduated and income contingent repayment) by consolidating the loans.

Amount
$5,500 (freshmen)
$6,500 (sophomores)
$7,500 (juniors, seniors)
$20,500 (graduates)

Eligibility
Full-time or part-time student

How to Apply
Complete the FAFSA
Complete the Online Federal Entrance Interview 
Complete the Direct Loan Master Promissory Note

Federal Parent Loan (PLUS)

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 7.54%. A disbursement fee of 4.228% is deducted from each disbursement of a PLUS Loan. Repayment begins 60 days after the loan is fully disbursed and extends up to 10 years or parent(s) may request a deferment if the student is enrolled in at least six credit hours.

Eligibility
A modest credit check is conducted to assess the parent's credit history. If a parent is denied a Federal PLUS loan due to adverse credit history, the parent may reapply with a credit-worthy co-borrower or appeal the denial with the Direct Loan Origination Center. 

If the parent is denied a PLUS loan, the student becomes eligible for increased Stafford Loan limits.

Amount
Up to the full cost of the student's education

Eligibility
Parents of full-time or part-time dependent students

How to Apply
Complete a PLUS loan application

Federal Graduate Plus Loan (Grad Plus)

The Federal Direct Graduate Plus Loan for Graduate Students (Grad PLUS) lets graduate students borrow money to cover any costs not already covered by the student's financial aid package, up to the full cost of attendance. Grad Plus Loans have a fixed interest rate of 7.54%. A 4.228% disbursement fee is deducted from each disbursement before the loan funds are sent to the college.


Eligibility
A modest credit check is conducted to assess the student's credit history. If a student is denied a Federal Graduate PLUS loan due to adverse credit history, the student may reapply with a credit-worthy co-borrower or appeal the denial with the Direct Loan Origination Center.


Amount
Up to the full cost of the student's education

Eligibility
Students enrolled in a graduate program

How to Apply
Complete a Graduate Plus Loan

SC Teachers Loan Program

Repayment of the SC Teachers Loan is forgiven if the graduate teaches in a critical geographic area within South Carolina as determined by State.

Amount
Up to $2,500 (Freshmen, sophomores) 
Up to $5,000 (Juniors, Seniors)

Eligibility
Full-time student; South Carolina resident
Education major
Freshmen must be in the top 40% of their class and have an SAT or ACT score equal to or greater than the South Carolina average for their graduation year
Enrolled students must take and pass the SC EEE and have a 2.75 GPA

How to Apply
Complete the FAFSA
Complete the SC Teachers Loan application

Private Education Loans

Private Education Loans, also known as Alternative Education Loans, help bridge the gap between the actual cost of your education and the amount the government allows you to borrow in its programs.

The Newberry College Office of Financial Aid will work with any lender and servicing agency to process a private/alternative education loan for our students. It is important to note that this type of loan is typically more expensive than federal loans and should only be used when all other options, including federal loans, have been exhausted. The terms and conditions of alternative loans vary from lender to lender. We encourage all borrowers to carefully review and evaluate each program.

To ensure timely processing of your loan, please monitor your application once submitted. Each lender’s process varies, but all steps require by the lender must completed before a disbursement can be made to Newberry College.

We urge you to carefully consider all of your options before making a final decision. Click here to research and compare alternative loan programs using FASThoice. This tool from 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.

Online Loan Counseling

Loan Entrance Counseling: If you are a first-time undergraduate loan borrower and are interested in taking out student loans at Newberry College, you are required to complete a Direct Loan Entrance Counseling. If you are a first-time graduate loan borrower and are interested in taking out student loans at Newberry College, you are required to complete a Direct Loan Entrance Counseling for graduates.

Graduate PLUS Loan Entrance Counseling: If you are a first-time Graduate PLUS loan borrower and are interested in taking out student loans at Newberry College, you are required to complete a Graduate PLUS Loan Entrance Counseling.

Loan Exit Counseling: When you separate from Newberry College, you will need to complete the Loan Exit Counseling. Separation occurs if you withdraw or graduate from Newberry College.

Borrowers’ Rights & Responsibilities

When a student takes out a student loans, he/she has certain rights and responsibilities. The borrower has the right to receive the following information before the first loan disbursement:

  • The full amount of the loan

  • The interest rates

  • When the borrower must start repaying the loan

  • The effect borrowing will have on the students’ eligibility for other types of financial aid.

  • A complete list of any charges the student must pay (loan fees) and information on how those charges are collected

  • The yearly and total amounts the student can borrow

  • The maximum repayment periods and the minimum repayment amount

  • An explanation of default and its consequences

  • An explanation of available options for consolidating ore refinancing the student loan

  • A statement that the student can prepay the loan at any time without penalty

 

The borrower has the right to receive the following information before leaving school:

  • The amount of the student’s total debt (principal and estimated interest), what the student’s interest rate is, and the total interest charges on the loan(s).

  • A loan repayment schedule that lets the student know when his/her first payment is due, the number and frequency of payments, and the amount of each payment

  • The fees the student should expect during the repayment period, such as late charges and collection or litigation costs if delinquent or in default

  • An explanation of available options for consolidating or refinancing the student’s loan

  • A statement that the student can repay his/her loan without penalty at any time

 

The borrower has the responsibility to do the following:

  • Understand that by signing the promissory note, the student is agreeing to repay the loan according to the terms of the note

  • Make payments on the student loan even if the student does not receive a bill or repayment notice

  • If the student applies for a deferment or forbearance, he/she must continue to make payments until notification that the request has been granted

  • Notify the appropriate representative (institution, agency, or servicer) that manages the student’s loan when the student graduates, withdraws from school, or drops below half-time status; changes to his/her name, address, or Social Security Number, or transfer to another institution

  • Receive entrance counseling before being given the first loan disbursement, and to receive exit counseling before leaving school

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