Financial Aid

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

• Aspire Resources, Inc.
  855.475.3335
  
• CornerStone
  800-663-1662 
• COSTEP
  877.292.8639 
• Direct Loan Servicing Center (ACS)
  800.848.0979
• EDGEducation Loans
  877.292.7470
• EdManage
  855.479.0490
• ESA/Edfinanical
  855.337.6884
• FedLoan Servicing (PHEAA)
  800.699.2908 
  
• Granite State 
  888.556.0022
• Great Lakes Educational Loan Services, Inc
  800.236.4300  
• KSA Servicing
  877.292.4825
• Mohela
  888.866.4352
  
• Nelnet
  888.486.4722
• OSLA Servicing
  866.264.9762
• Sallie Mae 
  800.722.1300
• VSAC Federal Loans
  888.932.5626

*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