Student Loans

These loans are back by the federal government. A credit check is not required. An origination fee is charged by the U. S. Department of Education and is paid from the loan disbursement.

There are two types of Stafford Loans: subsidized and unsubsidized. Students must have a financial need and able to complete their program of study within 150% of the time needed to complete the program in order to receive a subsidized Stafford Loan. The U.S. Department of Education will pay the interest on a subsidized Stafford Loan during certain enrollment periods. Graduate students are not eligible for subsidized Stafford Loans. The interest rate is subject to change.

Federal unsubsidized loans will charge interest while in school. The interest can either be paid or applied to the principle. The interest rate is subject to change.

Federal Stafford Loans have yearly limits. The limits are:

All students are required to accept the loans in PAWS, complete a promissory note, and entrance counseling in studentaid.gov. Please borrow responsibly.

The Federal Student loan is awarded during our awarding process, based on the information received from the FAFSA. Loans are awarded based on need, after grants and scholarships are awarded. If awarded, students will have the option to accept, adjust or decline the federal student loan on PAWS. Students must be attending at least half-time (6 hours for undergraduates or 5 hours for graduate students) for funds to disburse. Dropping below half-time will result in subsequent loan disbursements being canceled or removed.

These loans are back by the federal government. The borrower must be a parent of the student. A soft credit checks are required. The initial payment starts approximately sixty days after the loan has been fully disbursed to the student’s account. The Direct Parent Plus Loans are made through the William D. Ford Federal Direct Parent PLUS Loan (Direct PLUS Loan) Program. An Origination Fee will be charged and taken out of the loan. Interest rates are variable, but capped at 9%. Students must be enrolled for at least 6 hours.

Federal Direct Parent Plus Loans are completed on the FAFSA. Approved loans take 3-5 business days to reflect in your financial aid award. A copy of the parent’s photo ID must be emailed to [email protected] as verification of the parent’s signature on the loan application.

Denial of the Federal Direct Parent Plus Loans may result in additional Federal unsubsidized loans being offered to your student. Loan decisions take 3-5 business days to reflect in your financial aid award. The new Federal unsubsidized loan offer is not automatically accepted. The student must login to PAWS and accept the new award.

Please note when borrowing: It is recommended to request the amount for the entire remaining balance for academic year.

Many private lending institutions offer loans to students and families seeking assistance to meet expenses related to attendance at Savannah State University. There are an increasing number of these loans and the terms of these loans change frequently. An alternative/private loan is not guaranteed by the federal government, requires a credit check and .may require a co-signer.

When researching private loans, students should pay close attention to the borrower benefits, fees, interest rates and payment options. To calculate the interest, lenders use the LIBOR average, Prime Rate, or the 91 Day T-Bill.

Students should consider an alternative/private loan if:

• They have reached the Federal Direct Loan borrowing limit
• Have expenses that financial aid (Pell grant, federal loans, scholarships, GI Bill, etc.) does not cover
• Have a balance from a previous semester to pay
• Plan on doing a study abroad program in an upcoming term

To compare lenders and loan options and apply for an alternative/private loans, apply at FASTChoice. The Office of Financial Aid will be notified by the lender to certify the alternative/private loan. Funds will be forwarded to the school and applied to the student’s account.