Promissory Notes: The Financial Aid Office will create an electronic Stafford Loan application for you. We will electronic send your loan application to your lender. Once your loan application is received by your lender, instructions for signing a promissory note will be sent to you. If you had a Stafford loan while at USC Columbia for either the 2000-01, 2001-02, or the 2002-03 year and your lender was Bank of America, Chase Manhattan, Citibank, or South Carolina Student Loan Corporation, you will not receive a new promissory note. You already have signed a Master Promissory Note (MPN), which will be valid for all future loans, including your 2007-08 loan. Promissory notes collect reference information and are the legally binding document whereby you agree to repay your loan. No loan will be made official until your lender has a signed, valid promissory note.

For Stafford Loan Promissory Notes:
www.sc.edu/financialaid/fslmpn.html

For parent PLUS Loan Promissory Notes:
www.sc.edu/financialaid/pplusmpn.html

For Graduate PLUS Promissory Notes:
www.sc.edu/financialaid/gplusmpn.html

If you change your lender, you will be required to sign a new promissory note. Your lender will notify you if this is necessary.

Changing Loan Amounts: If the amount of your loan is more than you want, you may reduce it. We strongly encourage you to borrow only what is necessary. To change the amount borrowed, simply follow the instructions provided with your USC e-mail award notification You may also reduce the amount by contacting your lender.

Entrance Counseling: First time Stafford Loan borrowers are required to participate in entrance loan counseling. This is done by connecting to a web site and completing a short quiz dealing with your rights and responsibilities as a student borrower. You can connect to the Entrance Loan site here. You may, of course, contact us if you have any questions not answered through this process.

Paper Stafford Loan Application: If you do not wish to use the electronic loan process, you will need to obtain a paper loan application from your lender and submit it to the Financial Aid Office for manual processing and mailing. Please note that it takes longer to process a paper loan application. You should submit your application at least 45 days prior to the beginning of the term or semester for which the loan is requested.

Subsidized versus Unsubsidized: Stafford Loans are either subsidized and based upon financial need, or unsubsidized, not based upon financial need. Financial need is determined using the information you provide on the FAFSA. The two loans differ in that the unsubsidized loan requires you to pay interest charges on the loan or defer payment and have the interest accrue while enrolled. You are not required to make interest payments on the subsidized loan while enrolled. The interest rate for both loans is the same.