South Carolina Student Loan Options: A Comprehensive Guide

For students aspiring to pursue higher education in South Carolina, understanding the available student loan options is crucial. This article provides an overview of federal and private student loans, as well as South Carolina's scholarship and grant programs, to help students make informed decisions about financing their education.

Understanding the Landscape of Student Loans

When considering how to pay for school, it's important to remember that a loan, unlike a scholarship or grant, must be repaid. Student loans generally collect on the loans as soon as you are out of school. Borrow only what you need, and be aware of your rights and responsibilities as a borrower.

Federal Student Loan Options

The U.S. Department of Education is the primary source for federal student loans. To access these loans, you must complete the Free Application for Federal Student Aid (FAFSA). Completing the FAFSA as soon as possible is crucial.

Types of Federal Student Loans

Direct Subsidized Loans: These are need-based loans available to undergraduate students. The federal government pays the interest on these loans while you are in school, during the grace period, and during periods of deferment.
Direct Unsubsidized Loans: Available to both undergraduate and graduate students, regardless of financial need. Interest accrues from the time the loan is disbursed.
PLUS Loans: Parents of undergraduate students (Parent PLUS Loans) and graduate students (Graduate PLUS Loans) can use these loans to cover educational expenses. A credit check is required for PLUS Loans.

Interest Rates and Fees

Most federal student loans have loan fees. For loans disbursed between July 1, 2025, and June 30, 2026, interest rates are as follows:

Direct Subsidized Loans (Undergraduate): 6.39%
Direct Unsubsidized Loans (Undergraduate): 6.39%
Direct Unsubsidized Loans (Graduate): 7.94%
Parent PLUS Loans: 8.94%
Graduate PLUS Loans: 8.94%

Graduate PLUS loans also charge a loan origination fee of 4.228%, which is deducted from each disbursement.

Read also: Applying to USF Doctoral Programs

Repayment

Repayment terms vary. Federal Direct Subsidized Loans have repayment deferred until after you graduate, withdraw, or enroll less than half-time. PLUS loans do not have a grace period, but students are eligible for deferment while enrolled at least half-time and for an automatic six-month post-enrollment deferment after graduation.

Loan Limits

The government limits how much funding you can take out in federal student loans. Subsidized Loans can only make up $23,000 of the $31,000 lifetime maximum for undergraduate students.

South Carolina Student Loan Programs

South Carolina doesn't have unique student loan programs to help its students pay for college. However, the South Carolina Student Loan Corporation (SCSL) offers various loan programs to help students reach their educational goals.

South Carolina Scholarship Programs

South Carolina offers several scholarships to students who want to attend college in the state.

Palmetto Fellows Scholarship

This merit-based program recognizes academically talented high school seniors and encourages them to attend college in South Carolina. Palmetto Fellows may receive up to $6,700 their freshman year and up to $7,500 for their sophomore, junior, and senior years. The Palmetto Fellows Scholarship Enhancement increases the number of students who major in mathematics and science in South Carolina. Eligible students may receive up to $10,000 per year.

Read also: Supporting South High Students

LIFE Scholarship

The Legislative Incentive for Future Excellence (LIFE) Scholarship is a merit-based scholarship program administered by the financial aid office at each eligible public and independent college and university in South Carolina. The LIFE Scholarship may be used towards the cost of attendance for up to eight terms.

HOPE Scholarship

The SC HOPE Scholarship Program is a merit-based scholarship for students attending a four-year institution who do not qualify for the LIFE or Palmetto Fellows Scholarship. The scholarship is awarded during the freshman year of attendance only.

South Carolina Grant Programs

South Carolina also has a grant program to provide need-based financial aid to South Carolina residents.

Need-Based Grant

The purpose of the S.C. Need-based grant is to provide additional financial aid to South Carolina’s neediest students. A student may receive up to $3,500 annually if enrolled full-time or up to $1,750 annually if enrolled part-time as a degree-seeking student at an eligible S.C. public institution. The funding for the grant is split in half between any two semesters out of the academic year (i.e., fall, spring, or summer), assuming continued eligibility.

Private Student Loan Options

If you've exhausted your federal aid options or don’t qualify for state-based programs, you might consider private student loans. Private loans are offered by private lenders, and there are no federal forms to complete. The interest rates and fees you pay on a private student loan are based on your credit score and the credit score of your cosigner, if any. It is better to apply for a private student loan with a cosigner.

Recommended Private Student Loan Lenders

Credible: Helps you shop around and compare options.
College Ave: Offers private student loans and student loan refinancing. You can apply with or without a cosigner.
Sallie Mae: Provides college planning resources and savings accounts alongside its student loans. Cosigners aren’t required, but they are recommended.
Earnest: Offers private student loans of $1,000 to the full cost of attendance with no additional fees.
Ascent: Offers loans to U.S. citizens and residents, international students, and Deferred Action for Child Arrivals (DACA) recipients. Ascent loans are cosigner optional, provided you have at least two years of credit history and a gross annual income of $24,000.

Additional Federal Loan Programs

Loans for Disadvantaged Students (LDS): Provides federal low-interest loans regulated by the Department of Health and Human Services to eligible dental students.
Nursing Student Loan (NSL): A federal loan program that provides federal low-interest loans regulated by the Department of Health and Human Services to eligible nursing students.
Health Professions Loan (HPL): Provides federal loans regulated by the Department of Health and Human Services to eligible dental and pharmacy students.
Federal Nurse Faculty Loan Program: A subsidized loan to cover tuition, fees, books, and other reasonable educational expenses. NFLP’s purpose is to increase the number of qualified nursing faculty by providing subsidized loans to both part-time and full-time students.
Bold Career Pathway Program: A Nursing Faculty forgivable loan program for graduate nursing students who are interested in becoming Nurse Faculty at a public SC College or University after graduation. The annual loan limit is $30,000 per year with a lifetime aggregate limit of $90,000.00.
Perkins Loan: The Perkins Loan program expired September 30, 2017, and regulations do not permit schools to make Perkins Loan awards to students.

Residency and Relocation Loans

Residency and Relocation loans are private loans that typically have higher interest rates and may cost you more than other loans.

Key Considerations Before Taking Out Student Loans

Estimate Your Costs

Research tuition, room and board, textbooks, and other costs at colleges you’re considering. For the 2022 - 2023 school year, average in-state tuition in South Carolina ranged from $5,387 at two-year colleges to $12,280 at public universities.

Compare Loan Options

With your prequalified rates, sort your potential lenders from most to least affordable. Don’t rush the process. Once you’ve exhausted all federal loan options, compare terms on South Carolina state loans and private student loans.

Borrow Only What You Need

It is important to borrow only what you need.

Consider Repayment Options Early

Planning to repay student loans can be challenging. I first recommend only borrowing what’s needed, paying while in school if you can, and begin repaying as soon as you graduate and seek employment. Be willing to revise your repayment blueprint over time, too.

Understand Loan Responsibilities

Understand the responsibilities of borrowing, as well as your rights and responsibilities. Student loans, both federal and private, must be repaid.

Strategies for Managing Student Loan Debt

Refinancing

The South Carolina Student Loan program allows residents to refinance any federal or private student loan (except Perkins loans, loans used for the Bar Exam, or medical residency loans) with competitive rates. You might also look at refinancing your student loans and saving money in interest while also potentially lowering your payment.

Deferment and Forbearance

If you need to delay repayment or temporarily stop making payments on your federal student loans, check to see if you are eligible for a deferment or forbearance.

Income-Based Repayment

If you have other loans, contact the lender about income-based repayment programs to help you set up a more appropriate payment plan.

Loan Forgiveness Programs

Check out South Carolina Student Loan Forgiveness Program page. That page has all the different options available to South Carolina residents to potentially get some of your student loan debt forgiven. If you know the field you want to enter, you can take advantage of benefits like employers paying for college directly and the geographical qualifying areas for teachers.

Resources for Student Loan Education

Equal Justice Works offers a free informational webinar that explains how you can reduce your monthly student loan payments and qualify for Public Service Loan Forgiveness.

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