South Carolina Student Loan

Students

Loan Programs

Palmetto Assistance Loan (PAL)

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The Palmetto Assistance Loan (PAL) is South Carolina Student Loan's low, fixed interest rate, private education loan for students.  (Parent borrowers are no longer accepted.)  The PAL can be used to pay for educational expenses, such as tuition and fees, room and board, books, school supplies, transportation, and a computer. SCSL encourages borrowers to explore available grants and scholarships before applying for any private, alternative loan.

All borrowers under the age of 24 are required to have a creditworthy cosigner, preferably a parent or guardian. Other eligible borrowers are not required to have a cosigner unless they fail to meet credit requirements. Cosigners must be at least 24 years of age, be a U.S. citizen, national or permanent resident, and must be employed or retired.
 
To begin the Palmetto Assistance Loan process, apply online or simply download a PAL application.  

Eligibility Requirements      Back to top

To be eligible for this loan, you must: 

  • Be enrolled on at least a half-time basis in a certificate or degree granting program at an eligible school;
  • Be attending an eligible school within South Carolina or be a South Carolina resident attending an eligible college or university within the U.S.  Due to conflicts with applicable state laws, residents of MA, OK, and WV are not eligible;
  • Maintain satisfactory academic progress as defined by the institution for other financial aid programs;
  • Not be incarcerated;
  • Be creditworthy;
  • Be in good standing on other educational loans; and
  • Be a U.S. citizen, national or permanent resident of the U.S.    

Benefits of a PAL      Back to top

  • No application fee
  • An origination fee as low as 1%
  • Local, non-profit lender located in Columbia, SC
  • The interest rate will never change after loan approval, so you will never be caught off guard by a higher payment amount due to an increase in your interest rate
  • Paying the accrued interest while enrolled in school will help lower your monthly payments once you complete your education
  • Your PAL interest payments may be tax deductible*
  • You will receive excellent service by SC Student Loan for the life of the loan
  • If you have other loans with SC Student Loan, you will receive a single, monthly statement for all of your loans
  • A .25% interest rate reduction if you sign up for Automatic Bank Draft

SC Student Loan reserves the right to alter, suspend, or terminate benefits at any time. Some conditions and/or restrictions may apply to benefit programs.
* We strongly recommend that you consult an expert tax advisor to discuss how the regulations apply to your particular situation, or that you review the tax laws and applicable regulations to determine whether the interest paid on your educational loan is deductible. SCSL cannot ensure that interest paid on individual loan(s) will be tax-deductible.

Loan Amounts     Back to top

The minimum loan amount is $2,000.  You can borrow up to the cost of attendance, minus any other financial aid.    

Maximum Total Debt from a PAL     Back to top

The maximum total debt from a PAL is $100,000 for borrowers and cosigners, including previous PAL loans (with the exception of PAL Law PREP or PAL R&R loans). 

Interest Rate      Back to top

PAL loans first approved on or after August 24, 2012 will have a fixed interest rate of 6.75% for the life of the loan.  If a borrower chooses to postpone payment of interest while they are enrolled on at least a half-time basis, the borrower’s interest rate will be 8.75%.

The actual interest rate applicable to your loan will be disclosed to you in a disclosure statement.

Current Interest Rates

 

Fixed Interest Rate1

APR2

Making interest-only payments during the Enrolled Period, then full payments during repayment

          6.75%

        7.33%

Making a $25/month minimum payment during the Enrolled Period, then full payments during repayment

          8.75%

      10.07%

1  Please note that interest begins accruing after each disbursement and any interest not paid during the Enrolled or Forbearance Periods is capitalized (added to the principal balance) on a quarterly basis.
2  The Annual Percentage Rate (APR) shown is based on a $10,000 loan amount and reflects the accruing interest, the effect of capitalized interest, the origination fee (assuming the maximum origination fee of 3%), an enrollment period consisting of at least four years of half-time enrollment, and making equal payments over the term of the loan. The APR varies with the length of the repayment period. 

Fees      Back to top

PAL loan borrowers will be charged an origination fee of 1-3% that is dependent upon your or your cosigner’s FICO credit score. The fee charged will be based upon the following: 

• FICO scores of 725 and above will be charged an origination fee of 1%;

• FICO scores of 700 to 724 will be charged an origination fee of 2%; and

• FICO scores of 670 to 699 will be charged an origination fee of 3%.

This fee will be deducted from the disbursement amount.

Disbursement of Funds      Back to top

Loan funds will be sent directly to the school via Electronic Funds Transfer (EFT) and credited to the student's account at the school.  The funds will be disbursed according to the dates the school provides SCSL when they certify loan eligibility.

Repayment Information      Back to top

Interest payments are due while enrolled in school unless the borrower elects on the application to postpone interest payments. Interest accrues on the loan from the date of the first disbursement and is capitalized quarterly. Borrowers choosing to postpone full interest payments while enrolled will be required to make a $25 minimum monthly payment per loan (not to exceed $50 per borrower).  Payments made during the borrower's period of enrollment will begin within 60 days of the loan being fully disbursed.   

Full repayment (principal + interest) begins within 60 days after the borrower drops below half-time.  Loans in a full repayment status will maintain that status even if the borrower chooses to return to school at a later date.  New loans obtained upon returning to school will be subject to the interest only or minimum monthly payment requirements during the enrolled period as outlined in the paragraph above. 

Balances less than $17,500 are scheduled to repay within 10 years. Balances of $17,500 or more are scheduled to repay within 15 years. 

Amount

Borrowed

Length of

Repayment*

6.75% Monthly

Payment Amount*

8.75% Monthly

Payment Amount*

$10,000

10 years

$115

$126

$15,000

10 years

$173

$188

$20,000

15 years

$177

$200

$40,000

15 years

$354

$400

$60,000

15 years

$531

$600

           * Example payment amounts and lengths of repayment are estimates based
             on a minimum $50/month payment and the fixed interest rate shown.

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