Loans

Student Loans and Student Work-Study are considered to be self-help aid.  Before applying for student loans, students should consider applying for student work-study.  Students who have applied for financial aid may be eligible to work for different departments on campus. 

Student loans are borrowed money that the student will have to repay with interest.  Subsidized and Unsubsidized Direct Loans are the most common source of student loan funds however; there are other sources of funds.

Federal Subsidized Loan

These low-interest loans are available to students to pay educational costs. The interest is paid on behalf of the student as long as the borrower is enrolled at least half-time (6 semester hours) in an eligible program.

Federal Unsubsidized Loan

These low-interest loans have been added to the Higher Education Amendments to provide funding for middle and upper income borrowers who do not qualify for interest subsidies under the Federal Loan Program. Unlike the Federal subsidized loan, the interest will not be paid (subsidized) by the Federal Government. The borrower may make interest payments or the interest will be capitalized.  Borrowers who qualify for interest subsidies under the Federal loan Program, may also choose to accept an Unsubsidized Loan in addition to their Subsidized Loan if their estimated family contribution is greater than zero; and all other eligibility requirements are met. 

Federal Parent PLUS Loans

The Federal PLUS is a variable interest rate loan created by the federal government to help parents pay for their dependent student’s education beyond high school. Federal PLUS loans are not restricted to financial need. The Department of Education will perform a standard credit check with a national credit bureau before approving the loan. If approved, the parent must pay the principal amount of the loan(s) and all interest that accrues from the date of the disbursement until the loan is paid in full. The loan amount may not exceed the dependent student’s cost of attendance less estimated financial aid the student has been or will be awarded for the period of enrollment. A complete financial aid file and a William D Ford PLUS Loan Request Form for Parents is required to be signed by the parent borrower and returned to SPC before a Plus Loan will be awarded. The form authorizes SPC to issue a check, direct deposit or Texan Card credit to the dependent student for any remaining PLUS Loan funds after the student’s account is paid in full.

Alternative Loans

Numerous lenders offer other types of educational loans. The student must be enrolled at least half time and a complete financial aid file is required before SPC will certify these applications. The loan will be certified according to the terms of the loan program.

Defaulted Student Loans

In the event South Plains College receives notice from the Texas Guaranteed Student Loan Corporation, the Department of Education or other loan agency that a student or prior student has a defaulted student loan, a hold will be placed on the student’s academic records. The hold will be released when SPC receives a written paid-in-full notice from the agency that owned the note. At the discretion of the Financial Aid Office, a hold may be temporarily released upon receipt of written notice from the agency owning the note that the note is current. The hold may be temporarily released for an official academic transcript or to allow the student to enroll in classes. A current letter is required each time the hold is released.

Unavailable Loan Programs

South Plains College does not participate in the following loan programs: Perkins Loan, Hinson-Hazlewood Loan Program, HEAL Loan Program, HELP Loan Program and the CAL Loan Program.