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