Loans

Federal Direct Loans

Federal Direct Loans are low-interest loans for students and parents to help pay for the cost of a student's school. The lender is the U.S. Department of Education rather than a bank or other financial institution. Student and Parent Plus Loans are borrowed funds so unlike grants and work-study funds, loans must be repaid with interest.

Think twice before you borrow! Take a moment to assess exactly how much you truly need, as this can help keep your loan debt under control and make repayment much more manageable. Knowing what you need and avoiding unnecessary borrowing can make a big difference in your financial journey! Visit StudentAid.gov to learn more about the federal loan programs or speak to a USCB Financial Aid Counselor in the Financial Aid Office.

Types of Direct Loans

There are two types of Federal Direct Loans:

Subsidized Federal Direct Loan
A subsidized Federal Direct Loan is offered based on financial need and the U.S. Department of Education pays the interest while the student is enrolled in school at least half-time, during the grace period or during periods of deferment.
Unsubsidized Federal Direct Loan
An unsubsidized Federal Direct Loan is not dependent upon need. Interest accrues from the time the loan is disbursed until final payment. The student has the option to make interest payments while in school and during the grace period.

For the period of July 1, 2024 through June 30, 2025, the following interest rates are in effect:

6.53% fixed rate on an undergraduate Subsidized Federal Direct Loan
6.53% fixed rate on an undergraduate Unsubsidized Federal Direct Loan
8.08% fixed rate on Parent Loan for Undergraduate (Dependent) Students (Parent PLUS Loan)

Students who have completed and submitted a FAFSA will automatically be offered the subsidized and unsubsidized Federal Direct Loans, first offering the maximum subsidized amount, then the maximum unsubsidized amount according to program limits and your eligibility. Not all students meet the eligibility criteria for the subsidized loan. First-time borrowers and new USCB students must complete entrance loan counseling and sign a promissory note with the U.S. Department of Education online at StudentAid.gov prior to disbursement of funds.

Annual Maximum Loan Amounts

Annual Maximum Loan Amounts
The Federal Direct Loan program provides up to $5,500 for the first year of undergraduate study, $6,500 for the second year, and $7,500 per academic year for upperclassmen. The Unsubsidized Direct Loan provides increased annual maximums for independent students (and some dependent undergraduates if a parent is denied a PLUS loan) up to $9,500 for the first year of undergraduate study, $10,500 for the second year, $12,500 per academic year for upperclassmen.

Federal regulations require the limitation or reduction of the amount of an unsubsidized or subsidized Federal Direct Loan under certain prescribed conditions. These conditions are as follows: (1) the borrower is an undergraduate, applies for a Stafford Loan and is enrolled less than a full academic year (fall and spring semesters) or (2) the borrower will complete all degree requirements at the end of the semester or term. If both of these conditions occur, the Direct Loan amount may be reduced and the borrower will be sent notification to review the revised award letter on SSC.

If a Direct Loan is processed for the full academic year (Fall and Spring), half of the loan will be disbursed at the beginning of the Fall semester and the second half will be disbursed at the beginning of the Spring semester. You must also sign your promissory note before loan processing will be completed.

Action Required to Receive Direct Loans

COMPLETE LOAN ENTRANCE COUNSELING
New loan borrowers and new USCB students must complete Entrance Counseling before receiving Direct Loan funds. Visit StudentAid.gov to complete Direct Loan Entrance Counseling and avoid delays in receiving your loan funds!
COMPLETE MASTER PROMISSORY NOTE
Visit StudentAid.gov to complete a Direct Loan MPN electronically and avoid delays in receiving your loan funds!
ACCEPT, MODIFY, DECLINE LOAN(S) ON SELF SERVICE CAROLINA.

If you have been offered a Federal Direct Loan, subsidized and unsubsidized, you can view the details and other financial aid offers on Self Service Carolina.

If you plan to borrow the loan(s) that you were offered, you must do the following:

Go to Self Service Carolina.
Click on the "Financial Aid" tab.
Click on the "Financial Aid Dashboard" tab
Select the "Aid Year" and "USC Beaufort" campus
Click on the "Offer" tab

After you click on the "offer" tab, follow the instructions given. You can either accept, modify, or decline each loan individually by using the drop down menu on this screen. Students also have the option of reducing his/her loan amounts, before accepting the offer. If you decide to take out a reduced amount after you have accepted the original offer, you must submit a signed statement or a copy of your "Financial Aid Awards" page with the requested amount to one of the Financial Aid Offices in Beaufort or Bluffton. Please specify if the changes are for one or both semesters.

If you do not accept your loans or complete the Entrance Loan Counseling and sign the MPN, they will not be automatically applied to pay your tuition and fees.

Federal Direct Parent Loan for Undergraduate Students (PLUS)

Federal Parent Loan for Undergraduate Students (PLUS) provides loans to parents for their dependents from the U. S. Department of Education (DOE). Loan amounts under this program are limited to the student’s cost of education minus other financial aid offers. Parents may be denied a PLUS loan due to adverse credit history. If the PLUS is denied, the student is eligible for an additional Unsubsidized Stafford Loan.

For PLUS, repayment begins within 60 days after the loan is fully disbursed or parents may opt for deferment for repayment while the student is in school and for up to six months after the dependent student ceases to be enrolled on at least a half-time basis by contacting DOE directly.

PLUS will be disbursed in at least two installments, generally to coincide with the beginning of the enrollment period covered by the loan. Equal installments of your loan will be disbursed at the start of each semester if your loans cover multiple semesters. A loan that covers only one semester or term, however, will be disbursed in full at the beginning of the semester or term. Parents and students are advised to exhaust their eligibility for other federal student aid programs before considering the PLUS.

Parents can apply for a PLUS online at StudentAid.gov. Parents will need to complete the Plus Default/Overpayment Parent Borrower Statement and return it to the Office of Financial Aid/VA before funds can be disbursed. Parents will also need to complete the Parent PLUS Loan Fee Authorization Form and return it to the Bursar's Office.

For more information on student/parent loans regarding interest rates and repayment calculators, loan repayment plans, cancellation and consolidation, etc., visit Federal Student Aid website.

Federal Student AID

Loan Forgiveness Programs for Teachers

South Carolina Teachers Loan Program

South Carolina Teachers Loan Program provides loans in amounts up to $2,500 for the first and second years of undergraduate study and $5,000 per academic year for upperclassmen and graduate students. Loan indebtedness will be cancelled at the rate of 20% or $3,000, whichever is greater, for each year of full-time teaching in a critical subject or critical geographic area in South Carolina. If you teach in both a critical subject and geographic area simultaneously, your loan shall be cancelled at the rate of 33 1/3% or $5000, whichever is greater, for each full year of full-time teaching.

The subject areas deemed critical at the time you apply will be honored for cancellation when you begin teaching; critical geographic areas must be deemed critical at the time of employment. If you decide not to teach, the interest rate shall be the rate on the Federal Stafford Loan plus 2%. This is a variable rate not to exceed 10.25% annually.

Teacher Loan Forgiveness

The Teacher Loan Forgiveness Program is intended to encourage individuals to enter and continue in the teaching profession. Under this program, if you teach full-time for five complete and consecutive academic years in certain elementary and secondary schools and educational service agencies that serve low-income families, and meet other qualifications, you may be eligible for forgiveness of up to a combined total of $17,500 on your Direct Subsidized and Unsubsidized Loans and your Subsidized and Unsubsidized Federal Stafford Loans. If you have PLUS loans only, you are not eligible for this type of forgiveness. To learn more, visit Studentaid.ed.gov

Career Changers Program

The Career Changers Program provides loans to individuals wishing to enter the teaching profession. The program provides annual loan amounts of $15,000, up to a cumulative amount of $60,000. Loan indebtedness will be cancelled at the rate of 20% or $3,000, whichever is greater, for each year of full-time teaching in a critical subject or critical geographic area in South Carolina. If you teach in both a critical subject and geographic area simultaneously, your loan shall be cancelled at the rate of 33 1/3% or $5,000, whichever is greater, for each full year of full-time teaching.

The subject areas deemed critical at the time of application will be honored for cancellation when you begin teaching; critical geographic areas must be deemed critical at the time of employment. If you decide not to teach, the interest rate shall be the rate on the Federal Stafford Loan plus 2%. This is a variable rate not to exceed 10.25% annually.

Exit Interviews for Loan Recipients
Before leaving the University of South Carolina Beaufort, loan recipients are required to complete an exit interview that covers their rights and responsibilities as loan recipients. Students who have graduated or are no longer enrolled who received Federal Direct Loans must complete exit counseling at StudentAid.gov.

Cohort Default Rate

The cohort default rate is calculated using actual payment records of the student borrower. A 3-year cohort default rate is the percentage of a school’s borrowers who enter repayment on certain Federal Family Education Loan (FFEL) Program or William D. Ford Federal Direct Loan (Direct Loan) Program loans during a particular federal fiscal year (FY), October 1 to September 30, and default or meet other specified conditions prior to the end of the second following fiscal year. Repayment begins 6 months after a student is no longer enrolled for at least 6 credit hours. Default occurs when a student is in repayment, but fails to make their payment for 270 days or more.

In compliance with Federal Requirements and the Department of Defense, if USCB’s Cohort Default Rate (CDR) exceeds the national average CDR, USCB will disclose this information and provide its students with loan repayment data. You can find USCB’s most recent three-year cohort default rate data at this link.

You can find the National Cohort Default rate at this link.

For more information, please refer to the Department of Education's Cohort Default Rate Guide for a more in-depth description of cohort default rates and how the rates are calculated.

Visit Federal Student Aid Loan Repayment for information on how to avoid defaulting on your Federal Direct Loans.

Contact the office of Financial Aid

The school code for USCB: 003450

Office Locations

Beaufort campus:
Monday-Friday, 8:30 AM – 5:00 PM
Sandstone Building, Room 117
843-521-3104
fax: 843-521-3194
uscbfina@uscb.edu

Bluffton campus:
Monday-Friday, 8:30 AM – 5:00 PM
Hargray Building, Room 124
843-208-8000
fax: 843-208-8290
uscbfina@uscb.edu

Mailing Address
University of South Carolina Beaufort
Office of Financial Aid
801 Carteret Street
Beaufort, SC 29902