LOANS

The University administers a variety of loan programs including federal, state, and institutionally backed loans. The Perkins and Stafford programs require student loan entrance interviews before money can be delivered. The Short Term Loan programs (the J. R. Driggs Memorial Emergency Loan Fund and Kappa Alpha Psi Student Revolving Loan Fund) provide small amounts of money to help students in certain emergency situations.

Federal Stafford Loans (FSL) are loans available to students enrolled at least half-time in an eligible program. The interest rate is annually variable but cannot exceed 8.25 percent. Repayment begins six months after a student ceases to be enrolled at least half-time. Monthly payments vary according to amount borrowed but cannot be less than $50.

FSL's may be subsidized or unsubsidized. To qualify for a subsidized FSL, a student must demonstrate need according to federal guidelines. For any subsidized FSL funds a student receives, the federal government pays the interest while the student is in school, a grace period, or deferment. Unsubsidized FSL's are available to students who do not or only partially qualify for subsidized funds. With unsubsidized FSL's, the student is responsible for paying the interest. Interest accrues immediately and is payable while the student is in school. The principal payments are still deferred. The accrued interest may be periodically capitalized (added to the loan principal) according to the lender's policy.

A student may apply for and receive funds from both subsidized and unsubsidized FSL loans simultaneously as long as the cost of attendance is not exceeded. The maximum yearly borrowing limits for dependent students are $2,625 for freshmen, $3,500 for sophomores, and $5,500 for juniors and seniors. The maximum yearly borrowing limits for independent students are the lesser of the cost of education or $6,625 for freshmen, $7,500 for sophomores, and $10,500 for juniors and seniors. The aggregate borrowing limits for the FSL program are $23,000 for dependent undergraduate students and $46,000 for independent undergraduate students of which a maximum of $23,000 can be subsidized loans. The maximum yearly borrowing limit for graduate students is the lesser of the cost of education or $18,500. The aggregate borrowing limit for the FSL program is $138,500 for graduate students of which a maximum of $65,000 can be subsidized loans.

Federal Parent Loan for Undergraduate Students (PLUS) is a non-need-based loan available to the parents of a dependent student if the student is enrolled at least half-time in an eligible program. The variable interest rate is adjusted annually but can never exceed nine percent. Repayment generally begins within 60 days of check disbursement. Monthly payments vary according to loan amount but cannot be less than $50. The maximum yearly borrowing limit is the student's cost of education as determined by Francis Marion University minus any other financial assistance.

Federal Perkins Loan is a need-based loan available to full-time, degree-seeking students. Interest of five percent begins to accrue at repayment, which is nine months after a student ceases to be enrolled half-time. Monthly payments vary according to amount borrowed but cannot be less than $40. Perkins Loans must be repaid within 10 years. The maximum yearly borrowing limit is $4,000 for undergraduate students and $6,000 for graduate students. The aggregate borrowing limit is $20,000 for undergraduate students and $40,000 for graduate students.

The South Carolina Teacher Loan/Career Changers is a non-need-based loan in which portions of the loan are cancelled in return for teaching in critical geographic or subject areas of need as determined by the State Board of Education. For SCTL, freshmen and sophomores may receive up to $2,500 per year; juniors, seniors, and graduate students may receive up to $5,000 per year. For the Career Changers program, students may borrow $15,000 per year. For more information about this loan or to request an application, call the SC Student Loan Corporation at 1-800-347-2752.

Short-Term Loans – The J. R. Driggs Memorial Emergency Loan Fund was established with the University by the Evening Lions Club. The Kappa Alpha Psi Student Revolving Loan Fund was established with the University by the Kappa Alpha Psi Fraternity, Inc. Emergency loans in modest amounts to defray expenses incident to education at Francis Marion University will be made available to students for brief periods of time (usually 30 days) at an interest rate of 1-1/2 percent per month, or a fraction thereof, payable by the due date or before with the minimum interest charged being $2 per month. Students borrowing money will be fully responsible for repayment of the loan.

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