How Much Can I Borrow?

To be eligible for a Direct Subsidized or Unsubsidized Student Loan, you must:

• Be a U.S. citizen or an eligible non-citizen.
• Be enrolled or accepted for enrollment in an eligible program of study at least half time for the entire loan period.
• Be making satisfactory academic progress, if currently enrolled, with at least a 2.0 GPA or more and a completion ratio of at least 67 percent.
• Not be in default or owe a refund on any federal education grant or loan unless, satisfactory arrangements have been made to repay the outstanding debt.

Additional Requirements:

• All first-year, first-time undergraduate students, including transfer students from other institutions, may not be eligible to receive a Direct Student loan their first term of enrollment at SFSC. Once you have completed at least 12 hours at SFSC with at least a 2.0 grade point average (GPA) and at least 67 percent completion ratio, you may be considered for a loan. Exceptions may be made on a case-by-case basis.
• All returning students must have an overall cumulative (all colleges) GPA of 2.0 with at least 67 percent completion ratio. Transfer grades are included in the calculation of your GPA and your completion ratio. It is your responsibility to make sure all transfer work is evaluated by SFSC registrar and you have been accepted into a Title IV eligible program of study before your loan will be processed.
• You must be enrolled and attending at least half-time (6 or more credit hours and 8 or more clock hours) to be eligible to receive a loan. This does not include consortium agreement hours and audit (X) courses; they will not be considered in the hour calculation for loan processing.
• As part of SFSC’s Default Management Plan, if you have a prior defaulted loan status, you will be required to go through additional loan counseling.

Apply for financial aid by completing the Free Application for Federal Student Aid at www.fafsa.gov. In step 6 of the application, list SFSC School Code 001522. If you do not have a PIN, please apply for one at www.pin.ed.gov before submitting the Free Application for Federal Student Aid (FAFSA); this will expedite the process.

• Complete the Federal Direct Student Loan Request Form, and submit it to the SFSC Financial Aid Office.
• At SFSC, all FIRST-TIME borrowers are required to go through Entrance Counseling prior to a loan being processed. You may complete this requirement at www.studentloans.gov.  To complete this requirement, you will use the same Federal Student Aid PIN you used to complete the FAFSA. Entrance counseling provides information on what it means to borrow funds and your responsibility toward repayment.

WHY? Although you may have previously signed an MPN to receive FFEL Program Loans, a FFEL MPN cannot be used to make Direct Loans. ALL borrowers must complete a Direct Loan Master Promissory Note (MPN).

The MPN is the legal document through which you promise to repay your Direct Loans and any accrued interest and fees to DOE. It also explains the terms and conditions of your loans. A Direct Loan MPN can be used to make loans for up to ten (10) years.

LOG ON and complete a Direct Loan MPN electronically at www.studentloans.gov. To complete a Direct Loan MPN electronically, you will use your Federal Student Aid PIN that you used to complete the FAFSA.

• Once your loan has been approved, you will receive notice through your student e-mail, accessible through Panther Central, that your loan has been processed. You will receive a separate e-mail regarding your loan disbursements. (NOTE: Single-term loans are made in two disbursements.)
• Your loan funds will automatically be credited to your student account, if the Direct Loan Processor has a valid MPN on file for you and you have completed the loan Entrance Counseling.
• Your loan funds cannot be disbursed until you begin 6 credit hours or 8 clock hours during the term and will be paid in two equal disbursements (e.g. ½ of the loan in fall and ½ in spring term).
• Your loan check will be disbursed based on federal regulation requirements. Please be sure that SFSC Admissions Office has your correct mailing address.
• All debt owed to the college will be deducted before the remaining balance check is mailed. If the amount of your loan proceeds does not cover your obligation in full, you will be responsible for paying the balance to SFSC Cashier’s Office.