Financial Aid

Procedures for a Student Loan

Federal Direct Student Loans are financial aid that must be repaid. Federal Direct Student Loans are subject to the same rules and regulations as Federal Pell Grants and other federal aid.

Credit checks and co-signers are not required for Federal Direct Student Loans. However, you must be enrolled for at least 6 credits and you must meet satisfactory academic progress (SAP) standards as established by Federal and College regulations.

  1. Complete the Free Application for Federal Student Aid (FAFSA) online at www.fafsa.gov.  
    Even if you don’t think you qualify for financial aid, the FAFSA must be completed if you want to apply for a student loan.
  2. Provide other documents if requested by the Financial Aid Office.
    Sometimes the FAFSA data is incomplete, or your FAFSA has been selected by the U.S. Department of Education for verification. If the Financial Aid Office needs additional information before determining your loan eligibility, please respond to any requests as quickly as possible.
  3. Complete the Loan Entrance Counseling and Financial Awareness Counseling sessions online at https://www.studentloans.gov.  
    These sessions will help you understand your responsibilities regarding your loan.
  4. Complete the Direct Loan Master Promissory Note (MPN) online at https://www.studentloans.gov.
    The MPN is a legal document in which you promise to repay the loan and any accrued interest and fees to the U.S. Department of Education.
  5. Determine how much you need to borrow and the loan term (Fall/Spring, Fall only, or Spring only).
    BEWARE of student loan debt and borrow only what you need. The maximum amounts per year and the maximum lifetime amounts are listed in the chart on the back of this sheet.
  6. Complete the Loan Request Form and submit it to the Financial Aid Office.
  7. You will receive an award letter by mail once your loan has been certified.
  8. Attend & finish your classes.
    You must attend your classes to be eligible for the loan disbursements.
  9. SCC will receive your funds electronically. You will receive a notice telling you when your funds have been disbursed to the College.  
  10. If you have any remaining funds after your account is credited with your loan disbursement, a refund check will be mailed to you from the Student Accounts Office within 14 days after the funds are received.
  11. When you graduate, leave school, or drop below half-time enrollment, you will be required to complete the Loan Exit Counseling session online at https://www.studentloans.gov.

 

 

NOTE from the U.S. Department of Education:  Your school can refuse to certify your loan application or can certify a loan for an amount less than you would otherwise be eligible for if the school documents the reason for its actions and explains the reason to you in writing. The school’s decision is final and cannot be appealed to the U.S. Department of Education.

A private loan for additional money, not to exceed your cost of attendance/budget, may be applied for by going to ELM Resources at www.elmselect.com. (You must be enrolled for at least 6 credits and meet satisfactory academic progress standards as established by Federal and College regulations.

 

Loan Limits

Loans are borrowed money you must PAY BACK to the federal government. Be smart, borrow what you can afford to repay. Failure to make payments and defaulting on your student loan can be the most damaging mark on your credit report, worse than bankruptcy.

  1. You cannot discharge a student loan in bankruptcy. You can file bankruptcy but not get rid of a student loan in bankruptcy court. You will be required to repay your student loan.
  2. Loans can build credit if you have no credit.
  3. Loans can rebuild credit if you have bad credit by making your payments.
  4. BUT loans can ruin your credit if you fail to make your payments.

 

Students attending a 2-year community college may borrow up to "Second Year" annual loan limits.

Annual (single year) and Lifetime Aggregate (maximum overall for undergraduate) Loan Limits a student may borrow up to:

 

  Dependent Undergraduate Independent Undergraduate
1st Year
(0 to 29 credits)

$5,500

No more than $3,500 of this amount may be in subsidized loans.

$9,500

No more than $3,500 of this amount may be in subsidized loans.

     

2nd Year
(30 or more credits)

$4,500

No more than $4,500 of this amount may be in subsidized loans.

$10,500

No more than $4,500 of this amount may be in subsidized loans.

 Lifetime Limits

$31,000

No more than $23,000 of this amount may be in subsidized loans.

$57,000

No more than $23,000 of this amount may be in subsidized loans.

The annual loan limit amounts are the maximum yearly amounts you can borrow in both subsidized and unsubsidized loans. You can have one type or a combination of both. You cannot borrow more than your cost of attendance minus any other financial aid you have been awarded.

Keep track of how much you’re borrowing
Loans accumulate over the two, four, five years or more that you will attend school. Repaying your student loan(s) is a serious matter. Your federal student loan debt is a legal obligation and can be a 10- to 30-year financial commitment. To keep track of all your federal student loans, access the National Student Loan Data System (NSLDS) at www.nslds.ed.gov. For information on repayment plans and to calculate your estimated repayment amount go to http://studentaid.ed.gov/repay-loans/understand/plans/standard/comparison-calculator.

 

Alternative Loans

Alternative Loans are loans not guaranteed by the Federal government. These loans are offered by private lenders and are somewhat more expensive than the Federal Direct Loan programs. You should always apply for federal student loans before using private lenders. The amount borrowed cannot exceed the cost of education, minus other financial aid.

All private loan programs will do a credit check. Some students may need a creditworthy co-signer such as a parent or other relative in order to obtain one of these loans. Terms and conditions applicable to these loans vary greatly. Factors such as interest rate, APR, length of repayment, loan minimum and maximum, and fees should be carefully considered when researching and choosing an alternative loan.

Visit www.elmselect.com to view the preferred list of lenders at SCC. We recommend these lenders based on the quality of products and services they provide to students and families. We have carefully considered our selections in order to provide you with the best possible list of suggested lenders. However, if you wish to use another lender that is not on this list, you have the right to do so.

The information provided here is for comparison purposes only and is based on an amount of $6,500 borrowed with principal and interest deferred. Simple calculations are utilized assuminig immediate repayment and do not take into account the additional attributes a lender will utilize to calculate actual terms. Visit www.elmselect.com for more information.

 

PNC Solution Loan for Undergraduates (Fixed)

 

  As low as As high as
Total Cost

$10,019.10

$14,795.64

     

Payment

$55.66

$82.20

APR

6.23%

12.99%

Term -180 months

 

StuFund Smart Option Loan by Sallie Mae Fixed

  As low as As high as
Total Cost

$9,709.53

$13,929.26

     

Payment

$53.94

$77.38

APR

5.74%

11.85%

Term -180 months

 

Smart Option Student Loan (Fixed Rate)

  As low as As high as
Total Cost

$9,709.53

$13,929.26

     

Payment

$53.94

$77.38

APR

5.74%

11.85%

Term -180 months

 

New Jersey College Loan to Assist State Students (NJCLASS)

  As low as As high as
Total Cost

$12,019.87

$14,429.37

     

Payment

$50.08

$60.12

APR

6.92%

9.39%

Term -240 months