Types of Financial Aid: Loans

Loans are available to students and parents. Eligibility is determined through the FAFSA. Separate loan forms and processes must be completed. Repayment is in accordance with the terms of the loan. 


Federal Direct Student Loan Program

  • Available to all students enrolled in at least 6 credits.
  • There are two types of federal Direct Student Loans, Subsidized (interest paid by taxpayer funds) and Unsubsidized (interest paid by borrower). Some students may only be eligible for the Unsubsidized Loan.
  • Students must be enrolled in an eligible degree or certificate program (non-matriculated students not eligible).
  • Student must be making required satisfactory academic progress.
  • Making required satisfactory academic progress.
  • Eligibility for loan funds is determined by need, cost of attendance, estimated family contribution and the number of credits completed in your program of study.
  • Interest rate is 6 % for Subsidized loans, 6.8% for Unsubsidized loans; loan fees are approximately 0.5% of the amount borrowed
  • Repayment begins 6 months after dropping below half-time (below 6 credits). All students who receive a loan must complete Exit Counseling upon withdrawal or graduation from Shoreline.  
  • Eligibility is determined through the federal application process.  Students must submit the FAFSA, the Shoreline Data Sheet and complete all other required steps, including submitting the Loan Request Form, and the electronic Master Promissory Note, and the Entrance Counseling.

Parent Plus Loan

Federal loan available to parents of dependent students; not based on student "need;"4% loan fees; 7.9% interest rate. Students must first complete all steps in the financial aid application process.

  1. Parents must complete the Master Promissory Note for Parent PLUS loans. This is completed on the web: https://dlenote.ed.gov; choose "Complete New MPN for Parent PLUS Loans."
  2. Student and Parent borrower complete the Parent PLUS Loan Form and submit it to the Financial Aid Office at SCC. This form is available in the Financial Aid Office at SCC or here on the SCC Web site. The U.S. Department of Education will conduct a credit check on the parent borrower.

Nursing Student Loan

These loans are for students admitted to the Nursing program. A completed financial aid file is required to apply for the Nursing Student Loan. Loans up to $2,500 a year may be made to those who demonstrate financial need. These loans must be repaid during a 10-year period after completing the degree program. Interest rate is 5% and is deferred as long as the student is enrolled at least half-time (6 credits) while pursuing a degree in the Nursing field.


Alternative/Private Loans

As higher education costs continue to rise, many college students find that they need to look beyond traditional financial aid. Before considering a private loan, make sure you've applied for any financial aid you might be eligible to receive:

  • Talk to the financial aid staff at SCC or the school of your choice.
  • Research scholarship possibilities. If you need help with the application process, ask for help from the financial aid office. A good place to start is www.fastweb.com, a free scholarship search Web site.
  • Explore all other financing options including work-study programs, scholarships and grants, and federal Stafford, Perkins and PLUS Loans.
  • Before borrowing, check with your financial aid office to determine how a private loan affects your aid eligibility. These loans usually count as a part of your financial aid package and can reduce your eligibility for other aid.
  • Ask if your school has a list of banks, savings and loans, and credit unions that they recommend for private loans.