School: Student Loans

How to I apply for Financial Aid?

Most colleges require an application for admission before they will consider you for financial aid, so if you have not done that yet, do so now.

Once you’ve narrowed down your college choices, apply for financial aid as soon as possible after January 1 of the upcoming school year to ensure that you will meet the college’s priority deadline for various types of financial aid. You’ll need to complete the form with your parents and be sure to use the SCSB lender code #804212. Here are the steps you’ll need to take to apply for financial aid:

Complete a FAFSFA (Free Application for Federal Student Aid) available from your high school counselor.

Within a month after completion and submission of the FAFSFA, you’ll receive a Student Aid Report letting you know how much you qualify for.

This Student Aid Report will be reported to the colleges that you list on your FAFSA. Those colleges will then use this information to calculate your Financial Need and eligibility for financial aid at their institutions.

The college will provide you with an award letter which lists the types and amounts of financial aid for which you qualify. Be sure to respond to the college as requested as failure to do so will be interpreted as declining the aid offered.

Any money that you are awarded in financial aid will be sent directly to the school that you choose to attend.

What types of federal financial aid is available?

Grants – financial aid that does not have to be repaid.
Work Study – allows you to earn money for your education
Loans – allow you to borrow money for school and must be repaid with interest.

What kinds of student loans are available?

PLUS loan

Stafford loans

Available to parents borrowing on behalf of dependent undergraduate students and are available to graduate and professional students.

Subsidized and unsubsidized Federal Stafford loans are the most common types of education loans.

Federal PLUS loans:

Are not based on financial need
Require the borrower to pay the interest for the life of the loan
Have a fixed interest rate
Have a 3% federal origination fee and a 1% federal default fee which may be deducted from the loan amount.
Have a loan limit equal to the cost of attendance minus other financial aid received.
Do not have a grace period. Repayment of principal and interest begins approximately 60 days after final disbursement of the loan.

All Federal Stafford Loans:

Have a fixed interest rate if disbursed on or after July 1.
Have a 1.5% federal origination fee and 1% federal default fee which may be deducted from the loan amount
Have a grace period. Repayment begins six months after you graduate, leave school or drop to less than half-time.

Where do I go for more information?

Contact Kathy Mahlberg at SCSB for more information about obtaining a student loan with SCSB as your lender. Another good student loan resource is the Iowa Student Loan Liquidity Corporation, a non-profit organization that provides federal and alternative student loans with its over 300 partnering lenders.