Financial Aid - Loans
Federal Loans
Graduate students may borrow up to $8,500 per academic year from the Subsidized Federal Stafford Loan Program and up to $23,110 for the chiropractic program and $12,000 for the acupuncture/oriental medicine program from the Unsubsidized Federal Stafford Loan Program. The aggregate loan limits for students under the program is $138,500 for acupuncture/Oriental medicine students, and $189,500 for chiropractic students.
The Subsidized Federal Stafford Loan program is obtained through private lenders, such as banks, savings and loans plus credit unions. The cumulative maximum a student may borrow is $65,500 when combined with undergraduate level loans. The interest rate is fixed at 6.8% and accrued interest during enrollment is paid by the federal government.
Unsubsidized Federal Stafford Loans have the same terms and conditions as the Subsidized Loan, except that the borrower is responsible for the interest that accrues during the educational process. The cumulative maximum that may be borrowed is $138,500 when combined with undergraduate level loans and all Subsidized Loans for acupuncture/Oriental medicine students, and $189,500 for chiropractic students.
For both Loans, there is a six-month grace period after graduation before repayment begins and up to 10 years can be taken to repay under the standard repayment plan. Other repayment plans are available that allow students longer to repay their loans at a lower monthly rate.
When you apply for a loan, you agree to repay all of the funds your borrowed plus interest and fees. Capitalization, the interest banks defer and add to the principle amount of the loan, occurs only once, at repayment. Please note: unlike grants and scholarships, loans must be repaid.
Processing Fees
All Federal Stafford Loans are subject to both origination and guarantee (insurance) fees that are paid to the Federal Government and the Guaranty Agency. These fees will be deducted from your loan each time it is disbursed, unless your lender is participating in a program which waives the fees for the loans you have at S.C.U. Lenders on S.C.U.'s suggested lender list do not currently charge borrowers fee's. Of course you are welcome to use any lender who offers the federal Stafford Loans.
GradPLUS Loan
Graduate students can borrow a GradPLUS loan to supplement their subsidized and unsubsidized Federal Stafford loans. Student borrowers must complete a Free Application for Federal Student Aid (FAFSA) and first borrow the maximum (based on eligibility and determination of need) in Stafford Loans before borrowing the GradPLUS. Eligibility is NOT based on financial need or income, but you cannot have adverse credit history. The interest rate on GradPlus is 8.5% and federal GradPLUS loans are subject to a 3% origination fee which is deducted from your loan amount. Fees are taken out of the proceeds of the loan, so there is no up-front money required to obtain the loan. A Federal Default Fee of 1% is assessed by the guarantor of the loan. Repayment begins 60 days after the final disbursement is made
Private Educational Loans
These private alternative loans are designed for those who do not qualify for the Stafford Loan Program or are international students. They are based on an individual’s credit history and, in some cases, projected future earnings. Graduate students can defer both interest and principal while in school.
Loan Disbursement
Loans are disbursed in two equal amounts – one half each trimester.
Loan Counseling
First time borrowers and graduating students at SCU must complete Loan Counseling before a loan application can be certified or graduation clearance can be given.
Note: The U.S. DEPARTMENT OF EDUCATION has announced that Southern California University of Health Sciences 2005 FISCAL YEAR DRAFT COHORT DEFAULT RATE is: 0.0
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