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Financial Planning

Loan Information

BSC participates in the William D. Ford Federal Direct Loan Program, which provides federally insured, low-interest loans to students and parents to cover the costs of college. In this program, the federal government is the lender; BSC determines eligibility and disburses the money.

BSC offers four types of federal loans; most require a FAFSA. For more details on all federal loans, go to www.studentloans.gov.

1. Federal Direct Subsidized Loans are need-based and offered to the student.

  • Annual borrowing limit: ranges from $3,500 to $5,500 depending on year of schooling.
  • Interest rate: 3.86%, starting when repayment begins six months after graduation or upon termination of education.
  • Fee: 1.072%, taken directly from the loan; for example, a $3,500 loan will net $3,462.

2. Federal Stafford Unsubsidized Loans are non-need-based and offered to the student.

  • Annual borrowing limit: $2,000. (Limits are higher for independent students.)
  • Interest rate: 3.86%, starting when loan is disbursed.
  • Fee: 1.072%, taken directly from the loan; for example, a $2,000 loan will net $1,979.

3. Federal Parent PLUS Loans are non-need-based and offered to parents.

  • Annual borrowing limit: yearly cost of education less any other financial aid.
  • Interest rate: 4.2880%, starting 60 days after full amount of loan for a school year has been disbursed.

4. Federal Perkins Loans are for students with exceptional financial need.

In addition, many students and parents choose a private educational loan provider, which will notify BSC when your loan has been approved and request certification; we can then add the loan value into your full financial aid package and apply the loan funds directly to your student account. Your lender will provide details about interest rates, repayment conditions, and more. Please don't hesitate to contact us is you have questions about private loans.

The loan process

  1. If you are offered a loan as part of your financial aid award letter, you must either accept or reject it.
    • Incoming students can email us at finaid@bsc.edu to accept or reject the offer on your behalf or or call (205) 226-4688.
    • Current students should use TheSIS to accept or reject their offer.
  2. First-time borrowers accepting a Direct or PLUS loan must complete an electronic Master Promissory Note (eMPN) online here. This is a legal document outlining the loan requirements and requiring the borrower to promise to repay his or her loan.
    • Students or parents will need a PIN issued by the Department of Education to sign in to complete the eMPN. If you do not have a PIN, you may request one here.
    • You'll receive a disclosure statement with specific information about your loan amount, fees, and disbursement dates.
  3. First-time borrowers accepting a Direct loan must also complete entrance counseling online here.
  4. Perkins recipients may have additional requirements; you can learn more here.

Note: Loan amounts are not credited to a student's account until the Master Promissory Note and entrance counseling is complete and on file.

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