The Federal Stafford Loan

The Federal Stafford Loan is a low interest college loan made by a lender (not the college).   To determine eligibility, students must complete the FAFSA, a PTC Federal Stafford Loan Application and a Master Promissory Note (generated by the lender). 

First-time freshman borrowers are ineligible to receive their first payment until 30 days after classes begin.

Types of Stafford Loans

The Federal Subsidized Stafford Loan is a loan in which the federal government pays the interest (subsidizes the interest) while the borrower is enrolled in at least half-time status.  The borrower only pays the interest that accrues once enrollment drops below half-time.

An Federal Unsubsidized Stafford Loan is a loan that the borrower is responsible for paying the interest that begins accruing as soon as the lending agency releases the funds. 

The Financial Aid Office will inform students the type of loan and the amount of the loan they are eligible for.  

Steps for Applying for a Loan:

1. Complete the FAFSA online.
2. First time borrowers must complete online entrance counseling.
3. Complete PTC's Student Loan Application.
4. Complete the lender's Master Promissory Note.
5. Must be enrolled in at least 6 credit hours.

Once the above steps are completed, the Financial Aid Office will determine needs and the loan will be certified for the maximum loan eligibility amount or the requested amount, whichever is less.  A loan will not be certified until the financial aid application process is complete.  If you have been selected for verification by the federal processor, the verification process must also be complete. 

For Continued Loan Eligibility:

Students who have current loan balances in excess of $10,000 (which includes Federal Stafford Loans received while in attendance at other colleges) are required to complete the Loan Counseling Form. 

Students who are not meeting Standards of Academic Progress may not be eligible for a student loan.  Questions regarding this policy should be directed to the Financial Aid Office.

Approval Process:

Piedmont utilizes the S.C. Loan Corporation (SCSLC) for its loan processor. Students will receive information from the S.C. Loan Corporation regarding the approval of the loan.  The lender will notify the student of the requirement to complete the Master Promissory Note (MPN).

Once approved, loan funds are sent directly to the college prior to the beginning of each semester that funds were requested.

The funds are posted directly to the student account to offset tuition and fees, books and other charges.  A disbursement of excess loan funds will be mailed to the address recorded in the Student Records Office within 10 business days from the beginning of the term or when loan funds are received, whichever is later.

Repayment begins six months after graduation or after the student ceases to be enrolled in at least 6 credit hours.  Students must complete Exit Counseling session once enrollment ceases.

The Federal PLUS Loans

The Federal Parent Loans for Undergraduate Students (PLUS) Program is designed to help parents pay the cost of their dependent child's education expenses.  Federal PLUS loans are long-term, low interest, variable rate loans available to parents of dependent undergraduate students who may not qualify for other types of financial assistance.  Federal PLUS loans can help ease the cash-flow burdens by providing a manageable alternative.

Eligibility Requirements

• Borrower and student must be a US citizen/national or must have filed a declaration of intent to become a citizen
• Student must be accepted for enrollment or enrolled on at least a 1/2 time basis in a degree or certificate program of study at an eligible post secondary institution
• Student must be making satisfactory academic progress, as defined by PTC
• Borrower must have a satisfactory consumer credit rating and be the natural or adoptive parents of the dependent undergraduate student (legal guardians my not apply)
• Borrower and students must not be in default on any other student loan nor owe a refund on an education grant

Borrowing Process

Not sure if the parent will be eligible? To pre-qualify, please visit the SC Student Loan Corporation's Online Loan Pre-Approval page.  If the parent qualifies, the student will be notified immediately and the parent will be sent the Federal PLUS application form or the application and promissory note can be downloaded and printed by going to the PLUS Master Promissory Note Download page.  The parent must complete the application and promissory note and submit it to the PTC Financial Aid Office.  PTC will complete its section and forward the application to SCSLC.  The time varies for processing applications, but once all information from both the parent and school has been received by the SC Student Loan Corporation, processing time is usually 2-3 days for loan approval.

If the parent is denied the Federal PLUS Loan, the student may qualify for additional Federal Unsubsidized Loan Funds.  For additional information, please contact the Financial Aid Office.

The Palmetto Assistance Loan (PAL)

The Palmetto Assistance Loan is the SC Student Loan Corporation's supplemental loan for students and parents of undergraduate students.  To download and print the application and promissory note, go to the Palmetto Assistance Loan Application and Promissory Note Download page or pre-qualify by visiting the Online Loan Pre-Approval page at http://www.scstudentloan.org/.  If you qualify, you will be notified immediately and a request for certification will be sent to the Financial Aid Office for processing

Eligibility Criteria

• Creditworthy
• In good standing with other educational loans
• U.S. citizen or permanent resident
• Must have a high school diploma or GED
• Enrolled in certificate or degree granting program at an approved school at least half-time status
• Maintain satisfactory academic progress 

Undergraduates are required to have a cosigner, preferably a parent or guardian.  Graduate students and parent borrowers are not required to have a cosigner unless they have questionable credit.  Cosigners must be at least 24 years of age and must be employed or retired.

The amount that can be borrowed is up to the cost of attendance less any other financial aid.  The Palmetto Assistance Loan can only be used to pay for educational expenses at PTC.  These expenses can include tuition and fees, room and board, books and supplies, and transportation.

Loan checks will be mailed directly to PTC and made payable to the borrower.  The funds will be disbursed according to the dates PTC provides to the lenders.

The variable interest rate is equal to Prime Rate throughout the life of the loan and is adjusted quarterly.  Any unpaid interest that accrues while the student is in school will be capitalized and added to the principal balance when the student enters repayment.  Payments are due 6 months after the student graduates, leaves school, or becomes less than half time.

A postponement of payment for an interim period may be granted during half-time or greater enrollment in an eligible school.  You must contact SCSLC in order to receive a deferment.

Contact Piedmont's Office of Financial Aid if you have questions regarding any of these loan programs.