Student Loans from Actual People

How much can I borrow?

MINIMUM LOAN
The minimum loan amount is $2,500.  You can borrow up to the cost of attendance, minus any other financial aid (as certified by your school).    

MAXIMUM PAL DEBT
The maximum total debt from a PAL is $150,000 for borrowers and cosigners, including previous PAL loans. 

Do I have to pay up-front fees?

There are no origination fees associated with this loan.  Zero origination fees deducted from your PAL loan means more of your loan funds are available for you to pay your school expenses! 

Origination fees on federal Direct Subsidized and Unsubsidized loans are 1.00% and 4.00% for federal Direct PLUS loans.

Do I need a cosigner?

A creditworthy cosigner is not required but may help you qualify and/or receive a lower interest rate.

You may not serve as your own cosigner. A cosigner must be a U.S. citizen, national or permanent resident, have attained the age of majority in his/her state of residence at the time of loan application, and must be employed or retired to qualify. 

What is the interest rate based on?

A PAL borrower may select a fixed or variable interest rate. 

The actual interest rate approved will be based on creditworthiness, selected loan term, and whether you elect to enter immediate repayment, pay your accruing interest or a required fixed monthly payment during the enrolled period, or for student borrowers, whether you elect to defer required payment during the enrolled period.

Your rate will be disclosed in your Approval Disclosure.

Variable interest rates are based on the 1-Month Term Secured Overnight Financing Rate (SOFR) (the Index). Your rate will be effective quarterly on each January 1, April 1, July 1, and October 1 (the Interest Rate Change Date). We will calculate your new rate by rounding the Index rate, as reported by The CME Group two business days prior to the Interest Rate Change Date, up to the nearest one-eighth of one percent (0.125% or 0.00125) and adding a margin between 0.00% and 11.75% to the Index.  The rate will not increase more than once a quarter, and your interest rate is capped at 12%.  A change in the interest rate may cause the amount of the monthly payment to increase or decrease, or may cause the number of payments to change.

A fixed interest rate means that the interest rate is fixed for the life of the loan.  Fixed interest rates may be as low as 7.125%* . 

By signing up for automatic bank draft with the servicer will reduce your interest rate by .25% and save you more in interest cost. 

Do I have to make payments while I'm in school?

Loan terms and interest rates are based upon the many factors, including the choice of repayment plan when applying for the loan.

Student Borrowers:
Student borrowers taking out the PAL loan in their name have three repayment options during the initial enrollment period: fully deferred payments, monthly interest- only payments, or a required fixed $25 monthly payment plan.   Student borrowers will have a 6-month Grace Period that begins the day after the borrower drops to a less than half-time enrollment status. If the borrower had elected to make required in-school payments, those payments will continue during the Grace Period.

Parent Borrowers:
Parent borrowers who select to have the PAL loan processed in their name can select the interest- only monthly payment option, a required fixed $25 monthly payment, or begin full repayment (principal + interest) immediately.

When do I start making full repayments (principal + interest)?

Student borrowers are required to start making full repayments within 60 days after the end of the Grace Period.  Parent borrowers are required to start making full repayment within 60 days after the benefiting student is no longer enrolled on at least a half-time basis.  

Your servicer will provide you with repayment information and billing statements so it is important that you provide any change of address to them as soon as it is known.

BORROW RESPONSIBLY

We encourage students and families to investigate all options and compare private and federal loans to choose the best loans that fit your needs. Students and families should evaluate all anticipated monthly loan payments, and how much the student expects to earn in the future, before considering a student loan.  The actual interest rate approved will be based on creditworthiness, selected loan term, and whether you elect to enter immediate repayment, pay your accruing interest or a required fixed monthly payment during the enrolled period, or for student borrowers, whether you elect to defer required payment during the enrolled period. Your rate will be disclosed in your Approval Disclosure.

Variable interest rates are based on an index that is a benchmark known as the 1 Month Term Secured Overnight Financing Rate (SOFR) (the ""index"") as published on the website of CME Group or as published by any other authorized benchmark administrator and is displayed on a screen or other information service as selected by South Carolina Student Loan Corporation (SCSLC) in its reasonable discretion. The Index rate will be adjusted on each Interest Rate Change Date based upon the Index value available as of two business days prior to the applicable Interest Rate Change Date which is called the "Current Index", provided that if the Current Index is less than zero, then the Current Index will be deemed to be zero for purposes of calculating my interest rate. Your rate will be set as of the date of the loan and thereafter adjusted quarterly on each January 1, April 1, July 1, and October 1 (the Interest Rate Change Date). The rate will not increase more than once a quarter, and your interest rate is capped at 12%. A change in the interest rate may cause the amount of the monthly payment to increase or decrease or may cause the number of payments to change.
A fixed interest rate means that the interest rate is fixed for the life of the loan.

*APR rates from 6.116% - 9.996%. Low rate shown includes a .25% reduction for bank draft. Rates based on credit and terms.

Autopay Discount – The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. Variable rates may increase after consummation. If the automatic payment is canceled at any time after repayment begins, the discount will be lost until automatic payment is reinstated. The 0.25% interest rate reduction is effective the day after the first payment is made using automatic withdrawal during the repayment period. The discount reduces the amount of interest you pay over the life of the loan. The automatic payment discount may not change your monthly payment amount depending on the type of loan you receive but may reduce the number of payments or the amount of your final payment. ACH payments and discount will discontinue upon entering deferment or forbearance periods. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply.

SCSLC reserves the right to alter, suspend, or terminate benefits at any time. Some conditions and/or restrictions may apply to benefit programs. For loans repaid through consolidation with another lender, any credits or rebates given by SCSLC will be revoked and added to the principal balance owed.