Financial Aid

William D. Ford Direct Subsidized and Unsubsidized Stafford Loan (repayable funds)
The Stafford 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. Regular graduate student borrowers can borrow US $20,500 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 of subsidized versus unsubsidized loan that can be borrowed is determined by results from the FAFSA and remaining need. The amount credited to the student account is reduced by a federally mandated processing fee. Repayment of Stafford 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. Graduate students who are admitted with required undergraduate preliminary courses do not meet the eligibility requirements to receive Grad PLUS loans.

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.
 

Effective July 1, 2010, 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
Students and parents who first borrowed Federal Direct Loans prior to July 1, 2010, should continue to have all of their Federal Direct Loans serviced by the Direct Loan Servicing Center at this time.

• Direct Loan Servicing Center (ACS)
  800-848-0979 
  

Students and parents who first borrowed Federal Direct Loans after July 1, 2010, will have their Federal Direct Loans serviced by one of the five servicing contractors listed below:

• FedLoan Servicing (PHEAA)
  800-699-2908 
  
• Great Lakes Educational Loan Services, Inc
  800-236-4300 
  
• Mohela
  888-866-4352
  
• Nelnet
  888-486-4722
• Sallie Mae 
  800-722-1300

*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. 

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 the student financial services department 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. The following steps are required for loan disbursement:

 

• Stafford loans must be accepted via the student portal on MySCAD.
• 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 Stafford and Grad PLUS loan borrowers are required to complete loan entrance counseling. Students who do not have access to the Internet can schedule an in-person session with their student financial adviser.

 

More information regarding PLUS loans