Financial Aid


Loans


SCAD participates in the U.S. Department of Education's Direct Loan Program. With a Direct Loan, students and parents are obtaining a low-interest loan directly from the federal government to assist in paying for the student's education after high school. To apply for a direct loan, visit www.studentloans.gov.


Loans

 

Amount per year

 

Basic eligibility requirements

Federal Subsidized Direct Loan

  $3,500 (USD) to $8,500 (USD), depending on grade level

 

  must complete FAFSA and demonstrate unmet need after other aid is awarded

Federal Unsubsidized Direct Loan

  $2,000 (USD) to $12,000 (USD), depending on grade level   must complete FAFSA and demonstrate unmet need after other aid is awarded

Federal Graduate PLUS Loan

  Limited by cost of attendance and other aid received   must complete FAFSA and have a positive credit check

Federal Parent PLUS Loan   Limited by total cost of attendance   must complete federal process, be a parent (biological, step or adoptive) and have a positive credit check
 

OrientationOrientation

William D. Ford Direct Subsidized and Unsubsidized Direct Loan (repayable funds)
The direct loan program enables students to borrow funds directly from the U.S. Department of Education to assist with educational expenses. Undergraduate student borrowers can borrow from US$5,500 to US$12,500 per academic year (three quarters), depending on class level and dependency status as determined by the FAFSA. The amount of subsidized vs. unsubsidized loan that can be borrowed is determined by results from the FAFSA and remaining need. Regular graduate student borrowers can borrow US$20,500, unsubsidized, per academic year (three quarters). Graduate student borrowers admitted with required preliminary undergraduate coursework are subject to undergraduate loan limits and enrollment rules until they proceed into the regular graduate program. The amount credited to the student account is reduced by a federally mandated processing fee. Repayment of direct loans begins after graduation, dropping below half-time enrollment, or ceasing enrollment.

William D. Ford Direct PLUS Loan for Graduate Students (repayable funds)
The Grad PLUS loan program enables credit-worthy graduate-level students to borrow funds for educational purposes. Graduate students may borrow the full cost of education or any educational expenses that other student aid does not cover. Grad PLUS loans are collateral-free, low-interest-rate loans with a minimum 10-year repayment term and several repayment options.

William D. Ford Direct Parent PLUS Loan Program (repayable funds)
The PLUS loan program enables credit-worthy parents and stepparents (must be listed on the FAFSA) of dependent students to borrow funds for educational purposes. Parents may borrow the full cost of education or any educational expenses that student aid does not cover. PLUS loans are collateral-free, low-interest-rate loans with a minimum 10-year repayment term and several repayment options.

The federal government announced that, effective fall 2012, graduate students are no longer eligible to receive Federal Direct Subsidized Loans.
 

The U.S. Department of Education contracted with additional entities to provide loan servicing for borrowers of Federal Direct Subsidized, Federal Direct Unsubsidized and Federal Direct Parent (PLUS) Loans.  It is possible that student and parent borrowers from the same family will have their respective loans serviced by different entities.  These loans are sent to an entity for servicing once a promissory note has been completed and a disbursement is made on the loan.  If a student or parent receives a contact from one of the entities listed below, it is important to follow through on any requests made by these servicers. 

Loan Servicer Contact Information


*Uncertain of which Loan Servicer to Contact?*
Students and parents can look up their complete loan history including the servicers for each loan here.  Access to this site requires the user to have their Department of Education PIN.

 

Direct Loan Confirmation Policy
SCAD utilizes "active confirmation" on all student direct loans prior to crediting the loan to student accounts. This process requires the student to accept the loan amount(s) he or she would like to borrow for the specified aid year. If any changes are made to the loan amount(s) prior to the loan crediting to the student's account, the loan is reset to "offered" status and the student must accept the new loan amount. The loan must be accepted prior to the end of the ninth week of class to ensure adequate processing time before the term ends.


After the loan is credited to the student's account, SCAD utilizes "passive confirmation" on all student direct loans. In this process, students must notify SCAD if, after receiving notification that the loan amount has changed, they no longer choose to receive the loan. SCAD sends students an updated award letter as notification of changes to financial aid. 


Direct loan amounts can change upon further review of eligibility, generally resulting in funds being reallocated between subsidized and unsubsidized loans. If the student no longer wishes to receive the loan, return payment must be made to SCAD and the loan is returned to the source.

 

Loan disbursement
Loan proceeds under the federal direct loan programs are disbursed to the student's SCAD account in accordance with federal regulations. Requirements for loan disbursement:

 

  • Federal Direct loans must be accepted via the student portal in MySCAD prior to the ninth week of class to ensure adequate processing time before the quarter ends.
  • PLUS loan application has been accepted and credit approval received.
  • A signed master promissory note (MPN) has been accepted and approved by the government.
  • Entrance counseling (if applicable) has been received by SCAD.
  • Student is enrolled at least half time in a degree-seeking program.

 

After a loan is approved for disbursement, loan proceeds are credited to the student's SCAD account the week following the end of the drop/add period each quarter. First-time Direct and Grad PLUS loan borrowers are required to complete entrance loan counseling. Students who do not have access to the Internet can schedule an in-person session with their adviser.

 

More information regarding PLUS loans

This amount will be evenly distributed among terms that the student is expected to enroll and be eligible to receive federal aid. A PLUS loan may already be on your student's award notification. This award is predetermined based on tuition, housing, meals, books, transportation and other expenses, minus student aid. You have the option to change this amount to meet your specific needs. For assistance in determining the amount to borrow, visit our budget planning guide at www.scad.edu/budget. All disbursements are reduced by the current loan fee assessed by the Department of Education. Repayment begins after the last disbursement of the loan.

You will be notified by the Department of Education when a decision is made on your loan. If your loan is denied, the award will be canceled and an additional unsubsidized direct loan will be awarded to your student (amounts vary).

Complete terms and conditions of the Federal Direct PLUS Loan are found on the application and master promissory note, located at www.studentloans.gov. By signing the note you agree to the terms and conditions of the loan.

If you have questions about your PLUS loan, contact Direct Loan Applicant Services at 800.557.7394. You can inquire about disputing your credit report, clearing up adverse credit, or obtain paperwork for an endorser. If your PLUS loan is subsequently approved, it will be processed and the additional unsubsidized loan will be removed from your student's award.



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