A loan is money borrowed that must be repaid, with interest. Eligible students must be enrolled at least 6 credit hours to receive a federal loan. A promissory note must be sign and complete entrance / exit counseling. Please refer to the Federal Student Guide detail information.
We encourage you and your family to consider the debt from educational loans carefully before accepting any loan offers. Review alternative options available to reduce the amount you borrow. To help you consider the debt from loans:
- Calculate the total debt and monthly payments for loans accrued over the span of your entire educational career, not just one academic year.
- Compare your total debt to your projected future income. Is this a wise investment? Will the payments be manageable?
- Consider your loan co-signers, parents who are borrowing a Parent Plus Loan and others who may be borrowing on your behalf. Will their possible future debt payments be manageable?
Student Access Loan (SAL) Program
The Student Access Loan program requires students to be a resident of Georgia and must complete the FAFSA application and the SAL application (at www.GAcollege411.org). Students must not decline any federal, institutional or private scholarships, grants, loans, or military or veterans educational benefits, when available, in lieu of a SAL. SAL funds are used to cover any part of the student's Cost of Attendance for the academic period and can not be used to offset a student's EFC. This loan has a 1% interest rate. The annual award amount may be the lesser of $10,000 or the student's Cost of Attendance minus the student's Expected Family Contribution (EFC) minus the student's Expected Financial Aid. The aggregate limit is $40,000. Applications will be randomly selected from a pool of eligible applicants.
Federal Direct Stafford Student Loans
These loans are back by the federal government. Credit checks are not required. An origination fee of 1.073% 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. Currently all federal subsidized student loans undergrads have a fixed interest rate of 4.66%. 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. Currently, unsubsidized loans have a fixed interest rate of 4.66%. The interest rate is subject to change.
Federal Stafford Loans have yearly limits. The limits are:
|Classification||Dependent Students (except students whose parents are unable to obtain PLUS Loans)||Independent Students (and students whose parents are unable to obtain PLUS Loans)|
|Freshmen||$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.|
|Sophomore||$6,500 – 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.|
|Junior / Senior||$7,500 – No more than $5,500 of this amount may be in subsidized loans.||$12,500 – No more than $5,500 of this amount may be in subsidized loans.|
|Graduate Students||Not Applicable||$23,000 – Unsubsidized only|
|Subsidized and Unsubsidized Aggregate Loan Limits||$31,000-No more than $23,000 of this amount may be in subsidized loans.||$57,500 for undergraduates-No more than $23,000 of this amount may be in subsidized loans. $138,500 for graduate students-No more than $65,500 of this amount may be in subsidized loans. The graduate aggregate limit includes all federal loans received for undergraduate study.|
All students are required to complete a promissory note and entrance counseling. Please borrow responsibly.
The Federal Student loan is awarded during our awarding process. 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 cancelled.
Federal Direct Parent Plus Loans
These loans are back by the federal government. The borrower must be a parent of the student. Credit checks are required. The initial payment starts approximately sixty days after the loan has been fully disbursed to the student's account. Parent Loans are made through the William D. Ford Federal Direct Parent PLUS Loan (Direct PLUS Loan) Program. A 4% Origination Fee will be charged and taken out of the loan. Interest rates are variable, but capped at 9%. The interest rate is currently 6.21%. Students must be enrolled for at least 6 hours.
Federal Perkins Loan Program
This program offers low interest loan for students that have an exceptional financial need and are enrolled in an eligible program. Awards are generally made on a first-come first serve basis until funds are exhausted. When awarded, the student must complete a promissory note and entrance counseling with a student account representative in Student Financial Services.
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.