Loan Programs
PAL Consolidation Loan
The PAL Consolidation Loan is a no-fee private loan that allows borrowers to consolidate all of their private education loans into one convenient loan.
If your payments are too high, too often, or spread
Select each of the options below to learn more:
out among multiple lenders, consider consolidating!
Combine the convenience of one monthly payment with dealing with one local, non-profit lender who will never sell your loan.
To apply for a PAL Consolidation Loan, simply download and complete a PAL Consolidation Loan Application.
Eligibility Requirements
All private (alternative) student loans in a grace period or repayment are eligible – except for loans used for the Bar Exam, such as the Law PREP, or loans for residency and relocation, such as the PAL R&R. Consolidating Law PREP and PAL R&R consolidation eliminates the interest deductibility of your loan for tax purposes.
To be eligible for this loan, you must:
- Provide proof of identity (copy of a valid driver's license, military ID or passport/visa) if you are a new borrower with SC Student Loan.
- Be creditworthy (if 24 years of age or older) or be able to supply a creditworthy cosigner. Borrowers under the age of 24 are required to have a cosigner who is at least 24 years of age and is employed or retired. Cosigners can download and complete a Cosigner Application.
Loan Process
- We will review your application and create a new loan to payoff your existing eligible private loans. This payoff is based on the information you provide, so be sure to contact the holder of your private loan(s) to ensure you are requesting the correct payoff amounts.
- We will send checks to each of the lenders you listed to pay the loans in full.
- You will then receive important documents outlining your new repayment terms and conditions from us.
Current Loan Maximum Amounts
$5,000 is the minimum and $150,000 is the maximum amount of PAL Loans you may have outstanding.
Repayment Information
Longer repayment periods are the key to lowering your monthly payments. Your new loan will be structured with the longest repayment period applicable. Your term will be 10, 12, 15, 20, 25, or 30 years in length, depending on the total amount of your SC PAL Consolidation Loan.
We offer:
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Standard Payment Plan
This plan provides substantially equal monthly payments during the entire life of the loan. Each payment includes a portion of both interest and principal. This option is always the least costly as it results in the lowest total interest charges over the life of the loan (assuming all payments are made on time). -
Graduated Payment Plan
With a periodic increase in your payments, this plan provides for the greatest relief from the “cash crunch” of starting your career. In the early years, your payment may go totally toward interest.
Interest Rate
Loan applications received on or after June 1, 2008 will bear interest at a variable rate, indexed off of the 3-month LIBOR rate published by Bloomberg, L.P.®, adjusted each calendar quarter. The LIBOR (London Inter-Bank Offered Rate) rate is defined as the quoted 3-month rate two business days prior to the end of each calendar quarter. The current interest rate is the 3-month LIBOR + 4.5%, adjusted quarterly.
Loan applications received prior to June 1, 2008 will bear interest at a variable rate, indexed off of the Prime Rate published by Bloomberg, L.P.®, adjusted each calendar quarter. The Prime Rate is defined by the “bank prime loan” interest rate as reported on the last business day prior to the beginning of each calendar quarter.
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