Students must complete the Free Application for Federal Student Aid (FAFSA) to be considered for Federal Student Loans (be sure complete the FAFSA as soon as possible after October 1 each academic year). A Federal Direct Loan needs to be repaid with interest.
South Central College follows the National Association of Student Financial Aid Administrators Code of Conduct.
Federal Direct Loans (Subsidized & Unsubsidized)
The Federal Direct Loan program includes Subsidized and Unsubsidized Loans.
Both types of loans have a fixed interest rate, and repayment begins after you leave school or drop below half-time.
- The subsidized loan is need based, and the government pays the interest while you are in school.
- The unsubsidized loan is not need based, and interest will accrue while you are in school.
Interest Rates
The interest rate for direct subsidized and unsubsidized Loans is 6.39% for loans disbursed between July 1, 2025, and June 30, 2026.
| 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) |
| Grade Classification | Annual Limit | Aggregate Limit |
|---|---|---|
| Freshman | $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.
Federal Direct PLUS Loan
A Federal Direct PLUS Loan is a loan that a parent borrows to help their child pay for educational expenses.
Private Loans
If more financial assistance is needed, you have the option of applying for additional student loans from private education loan programs. These loans typically have higher interest rates and most require a co-signer. Private loans 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.
- 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.
