Private Education Loans
Effective end of Fall 2018 term, Savannah Technical College will no longer participate in Private Education Loans.
You are encouraged to apply for all federal and state grant and scholarship aid by filing the Free Application for Federal Student Aid (FAFSA) form before considering loan options.
Savannah Technical College no longer participates in the Federal Direct Stafford Student Loan program. As an alternative, we work with Georgia Student Finance Authority to offer the State funded Georgia Student Access Loan – Technical (SAL-Technical) and a few lenders are offering private education loan assistance for short-term and two-year programs of study.
For more information on the Georgia State funded Georgia Student Access Loan – Apply Now! Student Access Loan-Technical is first-come, first-serve. You must be a Georgia resident, enrolled in at least six credit hours, and meeting satisfactory academic progress to be eligible.
It is important to note that Private Education Loans may be used as a last resort to pay for education expenses and require you meet satisfactory academic progress standards. Private Education Loans are different from Federal Direct Stafford Loans in that they are not guaranteed by the federal government, require a credit check, and often require a co-signer. Interest rates, terms, and conditions can be significantly different depending on your credit rating and the lender you select. Consider your options carefully before you apply for a loan.
Savannah Tech offers an online loan comparison tool for you to use called FASTChoice . FASTChoice is designed to assist you in making the educational loan choice that is best for you and provides a side-by-side comparison of the lenders, loan terms, interest rates, repayment options, and the ability to apply online. FASTChoice is not a lender. Please keep in mind that you may select any lender of your choice, even if they do not appear on FASTChoice.
Savannah Technical College selected these lenders to be on the FASTChoice Lender List for the following reasons:
- Competitive borrower rates and terms
- Loans are offered to community college students
- Funds are sent electronically (EFT) when possible
- Easy online application process
- Longevity and stability in private loan lending
To learn more about Private Education Loans, visit FASTChoice.
You can apply for the loan of your choice. Once approved, the lender will notify the financial aid office and we will determine the amount you are eligible to borrow. The amount you may borrow is based on a number of factors, including cost of attendance, other sources of financial aid you are receiving, and if you are enrolled full-time or part-time. After determining the amount you are eligible to borrow, we will certify your loan. The process can take up to 3-4 weeks from the time you apply until funds are received by the school from the lender.
Once the loan proceeds are received by the college they will be disbursed to your STC student account and your outstanding charges, if any, will automatically be deducted from the loan funds. Any excess loan funds (credit balance) remaining after all charges are deducted will be issued to you as a financial aid refund.
Loan funds will be disbursed according to the regular disbursement schedule each semester. Loan funds are disbursed or paid to the college two (2) weeks after the start of the semester (or minisemester). Financial aid and Loan refunds are made available to students approximately four (4) weeks after the start of the semester.
All Loan Changes must be submitted at least 2 weeks prior to the end of the term that the request is being submitted for.
Private Education Loans cannot be used for advance purchases in the bookstore.
Savannah Technical College does not endorse or support any specific lender or student loan program/product and does not have a preferred lender agreement with any of the lenders provided.
Savannah Technical College Cohort Default Rate for FY 2015 is 15.4%.
Attachment 6.6.1p.STC1a1 – Private Loans Information Chart:
|Private Loans||Interest Rates||Terms||Options||Fees|
|Private student loans can play an important role in financing your education. Enrolling students should only apply for a private loan if necessary and should only apply for the loan will best serve their educational needs. Many lenders offer several different private student loans, and you are free to apply for any one you like. You may find this information helpful, but you aren’t obligated to apply for those loans.||Interest rates can vary greatly and can be influenced by your credit history. Lenders usually offer a choice between fixed interest rates (i.e., the interest rate never changes) or variable interest rates (i.e., interest rates may change over time). High interest rates cost more in the long run.||Some loans offer grace periods after graduation, during which no payments need to be made.||There may be options for temporarily suspending loan payments, such as forbearances or deferments. These options provide a safety net in case you someday have trouble making payments.||Sometimes lenders will charge fees when you borrow money. When fees are high enough, they can offset the benefit of a low interest rate.|
|Whether it’s better for the student or the parent to borrow a private loan is a decision that needs to be based on your personal situation. Keep in mind that most private student loans require a credit check, so parents with good credit may find it easier to get loans and may be offered lower interest rates than students with limited or no credit histories.||When banks lend you money, they also charge you interest, which begins to accumulate as soon as you receive the loan. When it’s time to pay back a loan, you have to pay back the amount you borrowed plus interest.||Many loans offer options on how long you can take to repay the loan. A longer repayment period means lower monthly payments, but can cost you more interest.||In addition to the basics of when repayment begins and how long it takes, there are some important repayment options to look for when considering a private loan. Not all lenders offer all of these options for private student loans, but when offered they can allow you some additional time to get on your feet after college or if you have trouble making ends meet.||In addition to the interest you are charged for a loan, lenders may also charge you various fees at different times. These fees should be taken into consideration along with the interest rate when determining the actual cost of a loan.|
|Students can often get private student loans if they have cosigners that agree to take on the responsibility of loan repayment in the event that the student doesn’t make payments. Borrowing private student loans responsibly is one way for students to begin building their own solid credit histories.||Interest rates can be fixed at a specific rate for the entire life of a loan, or they can be variable. Some private student loans have variable rates, meaning the interest rates change at regular intervals (such as once a year). This means your interest rate, and therefore your monthly payment, may increase or decrease over the life of your loan.||Grace Period: A period of time after you leave school, often six months, during which you do not have to make any payments. Incentives: A lower interest rate or other perks may be offered if you make a certain amount of payments on time. These can save you a lot of money!||Deferment: A period of time during which a lender allows you to temporarily suspend loan payments due to meeting certain eligibility requirements. For example, you may qualify for a deferment if you go back to school. Forbearance: A period of time during which a lender allows you to temporarily suspend loan payments due to financial hardship.||Up-front fees, such as origination fees, are charged immediately when the loan is made. Back-end fees, such as repayment fees, are charged just prior to when you begin repayment.|
How much to borrow:
Remember when you take out a loan, that you have to pay back the original amount plus the interest that accrues over time. That’s why it’s important to not borrow more than you need.
The examples presented here assume a fixed 9% interest rate and a 10-year repayment term.