Student Loan Information
Claflin University participates in several loan programs to assist families in meeting their educational costs. The William D. Ford Direct Loan program includes the subsidized and unsubsidized Stafford Loans made to students, PLUS loans made to parents and to graduate/professional students, and consolidation loans made to borrowers. Student and parent borrowers will receive funding for their federal Stafford and PLUS loans directly from the U.S. Department of Education. Direct Loans are loans made with federal capital and owned by the federal government. Loan repayments are made to the government, and Direct Loans are never sold. The Federal Perkins Loan program is a low interest rate (5%) loan made to undergraduate students with exceptional need. The Federal Perkins Loan is made through the Office of Financial Aid and students are contacted by the office to sign the promissory note. The school is the lender and the funds are made available through the federal government. The loan is repaid to the school. Alternative student loans (also referred to as a private student loan) offers additional funding for students who need it. Alternative loans are not federal student loans, but one through a private bank or lending institution. Generally, alternative loans have interest rates, repayment terms and deferment options that are substantially less favorable than those of the Direct Stafford, Perkins Parent and Grad PLUS Loan programs.
Students and parents receiving Title IV education loans will have their information submitted to the National Student Loan Data System (NSLDS). This information will be accessible by the student and institutions determined to be authorized users of the data system.
The Office of Financial Aid administers the loans; determines your loan eligibility; approves the loan; confirms the promissory note, when necessary; receives the funds from the federal government; and credits the loan amount directly to your University student account.