South Central College follows the National Association of Student Financial Aid Administrators Code of Conduct.

Federal Direct Loans (Subsidized & Unsubsidized)

  • You must be registered for at least 6 credits at the time your loan is certified and disbursed by SCC.
  • If you become eligible for additional funding such as scholarships, third party funding, etc., your loan eligibility may decrease. As a result, you may have to repay part of your loan funds to SCC if you already received the loan funds, or future loan disbursements might be reduced or canceled. 
  • Your loan may require proration (a reduction in what you are eligible to borrow) if your final period of enrollment at SCC is just one semester or your program length is less than 24 credits. The amount listed on your award offer might be higher than your actual remaining eligibility. The loan amount will be revised at the time SCC certifies your loan.
  • First Time Loan Borrowers: Federal Regulations require that the first disbursement of your loan be delayed until after the 30th day of the semester. After accepting your loan(s), please review the disclosure statement sent from the Department of Education.
  • Loans Accepted for One (1) Semester:  Each loan period will have two disbursements. If a loan is requested for fall only, there will be one disbursement at the beginning of fall term and one at the mid-point of fall term.  If you accept a loan for one semester, please plan accordingly.

    If you request a loan for fall and spring terms, the first disbursement will during fall term and the second disbursement will be during spring term.

Interest Rates

The interest rate for direct subsidized and unsubsidized Loans is 5.50% for loans disbursed between July 1, 2023 and June 30, 2024.

  • Interest begins to accumulate on a subsidized loan when you are no longer enrolled at least half-time.
  • Interest begins to accumulate on an unsubsidized loan when the loan disburses.

For additional information regarding the Federal Direct Loan Program, click here.

Dependent Student Loan Limits

Grade Classification Annual Limit Aggregate Limit
Freshman $5,500 (subsidized may not exceed $3,500) $31,000 (subsidized may not exceed $23,000)
Sophomore $6,500 (subsidized may not exceed $4,500) $31,000 (subsidized may not exceed $23,000)

Independent Student Loan Limits

Grade Classification Annual Limit Aggregate Limit

$9,500 (subsidized may not exceed $3,500)

$57,500 (subsidized may not exceed $23,000)
Sophomore $10,500 (subsidized may not exceed $4,500) $57,500 (subsidized may not exceed $23,000)

*Note – grade classification is determined by the number of earned credits at the time your award letter is prepared, not how many years you have attended college.

0-29 credits = Freshman
30+ credits = Sophomore

Federal Direct PLUS Loan

A Federal Direct PLUS Loan is a loan that a parent borrows to help their child pay for educational expenses. In order to be eligible:

  • The student must complete a Free Application for Federal Student Aid (FAFSA) and receive an official award letter from the Financial Aid Office at South Central College. The FAFSA can be completed at
  • The student must be enrolled for at least 6 credits.
  • The parent (borrower) will be required to pass a credit check.
  • The parent (borrower) completes the PLUS Loan application by going to and logging in with their FSA username and password. Once logged in, click on "Request a Direct PLUS Loan" to begin the loan application. In addition to completing the online loan application, a Master Promissory Note is also required when logged into

The interest rate for a PLUS Loan is 8.05% for loans disbursed between July 1, 2023 and June 30, 2024. More information is available on the Federal Student Aid website.

Loan funds are sent to South Central College and will first pay any outstanding charges the student owes to SCC. If any loan funds remain, they will be disbursed to the student unless you have indicated on the PLUS Loan application otherwise. Any remaining loan funds must be used for educational related expenses.

Applying for Additional Loan Assistance - Private Loans

If you require more financial assistance than awarded on your official award letter, you may apply for additional student loans from private education loan programs. These loans may have higher interest rates, many require a co-signer and generally should be considered as a last resource after utilizing Federal student loans. South Central College will not recommend nor refer students to any specific private student loan program.

FASTChoice is an online comparison tool that allows you to determine which loan program is the best fit for your borrowing needs.

Cohort Default Rate:
  • South Central College Fiscal Year 2019: 5.3%
  • National Default Rate for Fiscal Year 2019: 2.3%

More information is available on National Student Loan Data System website.