USC BEAUFORT HAS CHOSEN TO PARTICIPATE IN DIRECT LENDING THROUGH THE FEDERAL GOVERNMENT INSTEAD OF THROUGH THE BANKS AND LENDERS
Due to instability in student loan funding markets along with the impacts of recent federal legislative changes and proposals, the University of South Carolina Beaufort will convert from the Federal Family Education Loan Program (FFELP) to the Federal Direct Loan (DL) Program beginning with the Fall 2010 Semester. These programs are virtually identical and, with loan funding provided directly from the U.S. Treasury, the DL program provides certainty so that access to student and parent loans in the future will not be a concern.
The Federal Direct Loan Program will offer our students greater benefits:
1. There are more repayment plans through the Direct Loan program, specifically, the income contingent plan. If a student does not repay their loans in 25 years, the government forgives the balance of the loan. In addition, the interest never exceeds 10% of the loan principle.
2. Direct Lending has the new Public Service Loan Forgiveness program that will forgive remaining debt after 10 years of eligible employment and qualifying loan payments for people working in key public service professions such as teaching, government, social work, law enforcement, and non-profit 501(c)(3) organizations.
3. Students will only have to track their loans with one lender instead of multiple lenders.
For immediate information about the Direct Loan program and what you and your family will need to do in order to borrow next year,click here . Student and parent borrowers will be provided more complete information in the very near future.
