Student Loan Programs
For students who do not qualify for grants or scholarships or need additional funds to meet their educational expenses, there are loan programs to help fund educational needs.
FOR STUDENTS: William D. Ford Federal Direct Loan Program
- Subsidized Direct Loan: A federally subsidized student loan is made on the basis of the student's financial need and other specific eligibility requirements. Subsidized loans have subsidized interest, which means that the federal government pays the interest on these loans while borrowers are enrolled at least half-time.
- Unsubsidized Direct Loan: An unsubsidized student loan is not based on financial need. Eligibility is based on a student's overall financial aid budget. Interest is capitalized and starts to accrue when the loan is disbursed.
To be eligible for a federal student loan, the student must submit a FAFSA, maintain Satisfactory Academic Progress (SAP) standards, be degree seeking, and enroll/attend at least six credit hours per semester.
For both subsidized and unsubsidized loans, the borrower begins repayment after a six month grace period. This grace period begins upon graduating, withdrawing from school, or dropping below half-time.
The Free Application for Federal Student Aid (FAFSA) serves as your application for Direct Loans. If you would like us to include a loan in your award package, please review the PSCC Student Loan Information and Request Form. This tool is located in your MyPellissippi portal under the Financial Aid Tab, Important Forms and Links section. It gives you guidance on how much loan money you can borrow. You should evaluate the amounts carefully, and keep in mind that any amount you borrow must be paid back with interest.
FOR STUDENTS: Private Alternative Loan Program
A private alternative loan is a non-federal educational loan, through a private lending institution, typically issued in the student's name and often requiring a cosigner. These loans vary in the terms, conditions, and eligibility requirements. PSCC does not endorse any private loan lender, so students are encouraged to research which private loan will best meet their needs. Private loans typically have variable and higher interest rates than federal loans, are based on individual credit scores, may require interest payments while you are in school, have more fees, and have less flexible repayment options than federal loans. A student should NEVER consider borrowing a private loan until all federal loan options have been exhausted. For more information on the differences between the federal student loan programs and private education loans, you can visit the Department of Education's Federal Aid First web site.
Many lenders offer private loans to help cover up to 100 percent of the cost of attendance, less other financial aid received. Once a lender approves a private loan, PSCC will be contacted electronically to obtain verification of student eligibility. Private loan funds are disbursed directly to the school via a paper check on PSCC’s standard disbursement date schedule. The student must sign for the check in the cashier’s office.
PSCC does not endorse any lender and is not responsible for the timeliness of private loans. Below are lenders that PSCC students have used in the past. The contact information is provided as a service and not as an endorsement of the lender. You may choose one of these lenders or any other lender of your choice. For all questions related to private loans, you must contact your lender.
FOR PARENTS: Parents' Loan for Undergraduate Students (PLUS)
Federal PLUS loans are for parent borrowers to assist the dependent student with educational expenses. This loan is not based on financial need. Repayment of principal and interest begins within 60 days of disbursement. The annual loan limit is the cost of education minus any other financial assistance the student is receiving.
To be eligible for a federal PLUS loan, the parent’s student must submit a FAFSA, maintain Satisfactory Academic Progress (SAP) standards, be degree seeking, and enroll /attend at least six credit hours per semester.
To apply for a Federal Direct PLUS Loan,