SC Student Loan Review: Exclusive Services for Students in South Carolina

What you need to know:

• South Carolina Student Loan is a nonprofit lender offering student loans specifically for South Carolina residents and for non-residents attending a South Carolina school.
• A combination of low interest rates and no origination fees makes this lender competitive with the Direct PLUS Loan program.
• It offers private student loans for parents and students, teacher loans and forgiveness programs, and loan refinancing.

South Carolina Student Loan is a local, nonprofit student loan lender that was founded in 1973 in Columbia, South Carolina. It offers private student loans exclusively to South Carolina families — as well as non-resident students who attend a school in the state.

Due to its nonprofit status, SC Student Loan can provide low interest rates that are comparable to the federal Parent PLUS program.

But, unlike the PLUS program that charges loan fees around 4%, SC Student Loan doesn’t charge any origination fees. This makes it a favorable option for South Carolina families and students.

Read on for our SC Student Loan review, including rates, terms and eligibility requirements.

SC Student Loan overview

South Carolina Student Loan’s primary student loan program is called the Palmetto Assistance Loan (PAL). It’s available to parents and students, and covers education expenses for undergraduate or graduate school.

Here’s what you can expect with the PAL Parent Loan and PAL Student Loan.

*As of December 17, 2020. Rates might include an autopay discount and are subject to change without notice.

The primary difference between the PAL Parent Loan and PAL Student Loan relates to the in-school repayment options.

Students may opt to fully defer payments until the completion of a six-month grace period. But parents are required to begin making full or partial payments immediately.

Pros and cons of SC Student Loan

Pros

• Flexible in-school repayment options. Parents and students can choose $25 fixed monthly payments or interest-only payments. Students have an additional option to fully defer payments until their grace period is complete.
• Six-month grace period available. Full payments will begin six months after the student drops to less than half-time enrollment. Parent borrowers don’t have a grace period.
• Autopay discount. SC Student Loan includes a 0.25% interest rate reduction.
• No application or origination fees. More of your loan funds are available for school expenses, instead of loan fees.

Cons

• Limited to South Carolina residents and schools. This is a local lender with strict residency and school eligibility requirements.
• No cosigner release available. Currently, the only option to release a cosigner is to refinance or consolidate your loans.
• No option to check rate with a soft credit pull. Once you submit your application online, SC Student Loan will perform a hard credit check.

Eligibility requirements

To be eligible for a PAL loan, the applicant must be a South Carolina resident attending an eligible school in the U.S. or be an out-of-state resident attending an eligible South Carolina school (or be the natural or adoptive parent of a qualifying student).

Additional eligibility requirements include:

• Must be a U.S. citizen, national or permanent resident
• Must be the age of majority in your state of residence
• Must be enrolled at least half-time in a public or nonprofit college in the U.S.
• Must maintain satisfactory academic progress and be in good standing on other educational loans
• Must be creditworthy (parent borrowers must be employed, retired or disabled)

SC Student Loan doesn’t require a cosigner, but it might help you qualify for the loan or score a better interest rate.

Application process for South Carolina Student Loan

The PAL loan application can be completed online within minutes. And you’ll receive an initial credit decision immediately.

You’ll need to answer a few screening questions about your state residence and enrollment status.

You’ll then provide personal information, including your name, address, social security number, date of birth, citizenship status and contact information.

Once you complete all of the paperwork and accept the loan terms, SC Student Loan will work with your school’s financial aid office and disburse funds based on the school’s recommended date.

If your loan application is denied, SC Student Loan recommends adding a creditworthy cosigner and verifying whether your credit report is correct.

Your denial letter will include the address of the credit bureau that was used for the credit check. If there’s an error, you can dispute the issue with the credit bureau. Then, notify SC Student Loan when the mistake has been resolved.

Should you take out a loan with SC Student Loan?

South Carolina Student Loan is a competitive private student loan option for students and parents who qualify.

Its interest rates are consistently low, with current averages around 6% to 7%. And you don’t have to worry about fees on SC loans that can quickly add to your student debt.

Keep in mind that your actual interest rate depends on your (or your cosigner’s) creditworthiness, selected loan term and preferred in-school repayment option. For example, student borrowers can expect a higher rate if they choose to fully defer payments until after graduation.

SC Student Loan also offers private loans and forgiveness programs that are specific to teachers in the South Carolina school system (e.g. SC Teachers Loan Program). And it provides refinancing loans to qualifying South Carolina residents.

So, if you live or go to school in South Carolina, SC Student Loan is worth exploring. But be sure to shop around with at least three private student loan lenders to find the best rate and terms for your situation.