Taking out a loan, or borrowing money, is one way to make your college education affordable. However, unlike grants and scholarships, a loan is money that must be repaid with interest. If you apply for financial aid, you may be offered loans as part of your school’s financial aid offer.

Student loans can come from the federal government or from private sources such as a bank or financial institution. SCAD participates in the U.S. Department of Education’s Direct Loan Program. With the Direct Loan Program, students and parents can obtain a low-interest loan directly from the federal government. To apply for a Direct Loan, visit


Amount per year


Federal Subsidized Direct Loan US $3,500-8,500 depending on grade level Must complete FAFSA and demonstrate unmet need after other aid is awarded
Federal Unsubsidized Direct Loan US $2,000-12,000 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


Consumer loan disclosure notice — In compliance with federal regulations under HEOA Sec. 489 amended Sec. 485B(d)(4)(20 U.S.C. 1092b) approved loans will be submitted to the National Student Loan Data System (NSLDS) by the U.S. Department of Education and will be accessible by guaranty agencies, lenders and institutions determined to be authorized users of the data system as determined by the U.S. Department of Education.

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 and books, 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 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 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.

Georgia aid

The Georgia Student Finance Commission, or GSFC, administers financial aid programs that provide grants, scholarships and loans to help eligible Georgia students achieve their educational goals. In addition, the GSFC provides free financial aid consulting to promote financial literacy to students and their families.

Learn more

SCAD students collaborating

Hong Kong aid

SCAD Hong Kong students are eligible for financial aid from Hong Kong government. Grants and low-interest loans are administered by the Student Financial Assistance Agency of Hong Kong and include certain eligibility requirements.

Learn more


When a student is selected for verification, the financial aid office is required to verify various data elements listed on the student's FAFSA.

Know what you should do

Complete your Master Promissory Note

In order for funds to be released to you, you must sign your master promissory note.

Learn more

Direct loan confirmation

SCAD utilizes ‘active confirmation’ on all student direct loans prior to crediting the loan to the student’s account. Active confirmation is the process requiring the student to accept the loan amount(s) he/she wants to borrow for the specified aid year.

Learn more

Disbursement of financial aid

In order to receive financial aid, you must be fully enrolled at SCAD and you must review and accept the terms and conditions through MySCAD.

Learn more

Direct loan services

A loan servicer is a company that handles the billing and other services on a federal student loan. The loan servicer will work with the student on repayment plans and loan consolidation and will assist with other tasks related to their federal student loan. It is important that a borrower maintains contact with their loan servicer. If a borrower's circumstances change at any time during your repayment period, the loan servicer will be able to help. Learn more about federal loan servicers on the website.

Federal Direct Loans borrowed before July 1, 2010

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.

Federal Direct Loans borrowed after July 1, 2010

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)

Granite State

Great Lakes Educational Loan Services, Inc.





OSLA Servicing


Not sure which loan services is handling your loan?

Students and parents can look up their complete loan history including the servicers for each loan using the My Federal Student Aid website. Access to this site requires the user to have their FSA ID.


SCAD professor reviewing work with student

Discover alternative ways to fund your education

Institutional scholarships, outside scholarships, federal/state aid programs and personal funds may fall short of a student's anticipated budget for educational expenses. Alternative (credit-based) loans from private lenders are one source of funding that may help compensate for any shortfall. However, parents and students should be aware that these loans may be a more expensive way of borrowing and they should read all the information available on these loans to select the lender with the most suitable terms.

Alternative funding