Grants & Loans
Information for Grants and Loans
Federal Pell Grant.
The federal government awards Pell grants directly to needy students to help defray educational expenses. Eligibility for the Federal Pell Grant is determined by a standard formula established by Congress. The formula is used to calculate the expected family contribution. The amount of aid a student receives depends on the expected family contribution, the estimated cost of education, enrollment status and whether the student attends school for a full academic year. The maximum award is $4,050 for the 2006-2007 academic year.
Awards in future years are dependent upon program funding.
Federal Supplemental Educational Opportunity Grant (FSEOG).
The FSEOG is for undergraduate students with exceptional financial need, that is, students with the lowest EFC. Priority is given to students who receive Federal Pell Grants. An FSEOG does not have to be repaid. FSEOG awards range from $100 to $4,000 a year. Individual awards are based on need and availability of funds.
Federal Work-Study.
The Federal Work-Study Program provides part-time employment to enrolled students who need the earnings to help defray educational expenses. The amount of the work-study award will depend on the student’s financial need and the amount of money allocated for the program.
In arranging a job and assigning a work schedule, the financial aid officer considers the need for financial assistance, class schedule, health and academic progress. The student works an assigned number of hours each week, usually in a job related to the student’s major or other area of interest. The student is paid current federal minimum wages.
The student must obtain a work-study contract from the Financial Aid Office before reporting to work. The contract will explain the hours the student works, how and when the student will be paid and other terms of the agreement. The student works either for Claflin or an approved off-campus agency. In order to continue to be eligible for work-study, his/her work performance must be satisfactory at all times.
Federal Perkins Loan. 
The Federal Perkins Loan is a low interest (5%) loan for students with exceptional financial need. The amount of the loan will depend on financial need and the availability of Federal Perkins Loan funds at Claflin. The student can borrow up to $3,000 for each year of undergraduate study with a maximum of $15,000 for all undergraduate work.
Federal Perkins Loans must be repaid. When the student leaves Claflin, the student will be interviewed, at which time he/she is reminded of his/her rights and responsibilities. Repayment begins nine months after graduating, leaving school or dropping below half-time status. The monthly payment amount will depend on the size of debt and the length of the repayment period. Minimum payment ranges between $30 and $40 a month. Once you begin to make payments, you may take up to ten years to repay the loan. Under certain conditions your loan can be canceled or deferred, or you may qualify for forbearance.
For more information about Federal Perkins Loans, please contact Claflin’s Office of Financial Aid.
South Carolina Tuition Grant.
The Tuition Grant Program is administered by the South Carolina Higher Education Tuition Grants Commission. Funds are made possible through an annual appropriation by the South Carolina General Assembly.
Apply for a South Carolina Tuition Grant by completing the Free Application for Federal Student Aid (FAFSA). By submitting the FAFSA to the federal processor and listing Claflin in the college choice section, the S.C. Tuition Grants Commission will be able to receive your application electronically from the federal processor. If you meet the other requirements, you will automatically be considered for a South Carolina Tuition Grant.
The purpose of the program is to provide undergraduate assistance to eligible South Carolina residents attending certain independent non-profit colleges in South Carolina on a full-time basis.
To calculate eligibility, the Commission considers: (a) family income, (b) family assets, (c) cost of college, (d) number of family members in a household, and (e) number of household members attending college.
To meet academic standards for eligibility, freshmen must graduate in the upper 3/4 of their high school class or score 900 or above on the SAT or 19 or above on the ACT. Upperclassmen must successfully complete at least 24 semester hours each year and meet Claflin’s academic standards. The maximum grants at Claflin for the 2006-2007 academic year are as follows: $2,800 for all students. The Internet address is: http://www.state.sc.us/tuition grants.
The Federal Family Education Loan Program.
These are low interest loans that the federal government pays directly to students through their schools. They include Federal Stafford Student Loans--subsidized (need-based) or unsubsidized (with no need). For subsidized loans, the government pays the interest charges; for unsubsidized loans, students are responsible for interest.
The interest rate for all loans is recomputed each year. The rate, which is variable, may not exceed 8.25 percent for student loans and 9 percent for loans to parents. To qualify for one of these loans, students must be enrolled at least half time.
Freshmen may borrow up to $2,625 if they are enrolled in a program of study that is a full academic year in length. Sophomores may borrow up to $3,500 if the remainder of their program is a full academic year in length. Juniors and seniors may borrow up to $5,550 if the remainder of their program is one academic year in length. Higher loan limits are available for dependent students whose parents are unable to obtain Federal PLUS Loans and for independent students.
A four percent fee is deducted proportionately from each loan disbursement. This fee goes to the lending agency to help reduce the cost of the loan. If you do not make your loan payments when they are scheduled, you may be charged collection costs and late fees.
After you graduate, leave school or drop below half-time enrollment, you have six months before you begin repayment. You should receive information about repayment in the mail. However, you are responsible for beginning repayment on time, even if you do not receive the information. Under certain circumstances, you may be eligible to receive a deferment or forbearance on your loan. For information about your Federal Loan, please contact Claflin’s Financial Aid Office.
The Federal Plus Loan for Parents.
Plus loans enable parents with favorable credit histories to borrow funds to help pay the educational expenses of a dependent undergraduate student who is enrolled at least half time. The yearly limit on a PLUS loan is equal to the student cost of attendance minus any other financial aid received. The interest rate is variable, but will never exceed 9 percent. The rate is adjusted each year on July 1.
The loan funds are sent to the institution. In most cases the loan will be disbursed in at least two installments. Funds are used first to pay tuition, fees, room and board and other school charges. If loan funds remain, the parents will receive the amount, unless they authorize the funds to be released to the student.
Generally, repayment begins within 60 days after the final disbursement for the academic year. There is no grace period. This means that interest begins to accumulate at the time the first disbursement is made, and the parent must begin repaying both principal and interest while the student is in school.
The South Carolina Teachers Loan Program
The South Carolina Teachers Loan Program was established by the State of South Carolina through the Educational Improvement Act of 1984 to encourage talented and qualified students to enter the teaching profession. This loan is canceled if recipients teach in South Carolina public schools in an area of critical need.
Recipients must meet the following criteria:
- Be a United States citizen;
- Be a resident of South Carolina;
- Be enrolled in good standing at an accredited institution on at least a half-time basis;
- Be enrolled in a program of teacher education, or have expressed an intent to enroll in such a program;
- Have been ranked in the top 40% of their high school graduating class and have an SAT or ACT score equal to or greater than the S. C. average for the year of graduation from high school or the most recent year for which such figures are available (entering freshmen);
- Have taken and passed the Praxis I and have a cumulative grade point average of 2.75 or better on a 4.0 scale; and
- Be seeking initial certification in a critical subject area if a teaching certificate is already held.
Freshmen and sophomore students may borrow up to $2,500 per year. Juniors and seniors may borrow up to $5,000 per year.
The loan is cancelled at the rate of 20% for each full year of teaching in a critical subject or critical geographic area within South Carolina. If you teach in both a critical subject and a critical geographic area, your loan will be canceled at the rate of 33% for each year of full-time teaching. The subject areas deemed critical at the time you apply will be honored for cancellation when you begin teaching; critical geographic area must be deemed critical at the time of your employment. If you decide not to teach, the interest rate will be determined according to the following: (a) If you have an outstanding teacher loan(s) on the date you signed the application and promissory note, the applicable interest rate will be the same as the applicable interest rate on the outstanding teacher loan(s); (b) if you have no outstanding teacher loan(s), the interest rate on the loan is 12%.
The United Methodist Loan
The United Methodist Loan is a low-interest (6%) loan made available by the United Methodist Student Loan Fund to students who are members of the United Methodist Church. An undergraduate student may borrow between $900 and $1,000 per year, and no more than $6,000 may be borrowed during a student’s entire educational program. Repayments begin six months after graduation or withdrawal from school, and the last payment must be made within 96 months.
