FINANCIAL AID
Loans

1. Federal Stafford Loans
2. Deferred Payment Plans
3. Alternative Loans
4. Federal PLUS Loans

Federal Family Education Loan Programs:

Federal Stafford Loans:
USC participates in the Federal Family Education Loan (FFEL) program. Loans are provided by traditional lending institutions and guaranteed by the Federal government. Federal student loans are offered to students without regard to age or credit history.

Subsidized loans are awarded on the basis of financial need.
Students will not be charged any interest prior to repayment or during authorized periods of deferment. The Federal government "subsidizes" the interest during these periods.

Unsubsidized loans are not awarded on the basis of need. Students are charged interest from the time the loan is disbursed until it is paid in full. Students have the option to capitalize the interest; that is, let it accumulate and be added to the principal amount of the loan. Capitalizing the interest increases the amount to be repaid. If the student chooses to pay the interest as it accumulates, he or she will repay less in the long run.

Students can receive a subsidized loan and an unsubsidized loan for the same enrollment period.

Borrowing Limits
The amounts given below are the maximum yearly amounts a student may borrow in both subsidized and unsubsidized loans. A student may receive less than these yearly maximum amounts if he or she receives additional Financial Aid to cover a portion of his or her cost of attendance.

A dependent undergraduate student at USC can borrow up to:

$3,500 if he or she is a first-year student (0-30 credit hours) enrolled in a program of study that is at least a full academic year.

$4,500 if he or she has completed his or her first year of study (31 credit hours) and the remainder of his or her program is at least a full academic year.

An independent undergraduate student or a dependent student
whose parents are unable to get a PLUS Loan, can borrow up to:

$7,500 if he or she is a first-year student (0-30 credit hours) enrolled in a program of study that is at least a full academic year (only $3,500 of this amount may be in a subsidized loan; the remainder will be unsubsidized).

$7,500 if he or she has completed his or her first year of study (31+ credit hours) and the remainder of his or her program is at least a full academic year (only $4,500 of this amount may be in subsidized loans; the remainder will be unsubsidized).
For periods of study that are less than an academic year, the amount the student can borrow is limited to one-half of the annual award each semester.

Repayment
Repayment plans frequently incorporate minimum monthly payments of $50 over a ten-year term. The interest rate for Federal student loans is variable, reset annually on July 1, and protected by a legal maximum.

Repayment of principal on Federal loans is deferred while a student is enrolled at least half-time (at least six credit hours) and for a six-month grace period thereafter.

* Federal Parent Loan for Undergraduate Students (PLUS):
PLUS Loans enable parents with good credit histories to borrow in order to pay the education expenses of each child who is a dependent undergraduate student enrolled at least half-time.

Borrowing Limits
The yearly limit on a PLUS Loan is equal to the student's cost of attendance, minus any other financial aid he or she receives.

Repayment
Generally, repayment must begin within 60 days after the final loan disbursement for the academic year. There are no grace periods for these loans. This means that interest begins to accumulate at the time the first disbursement is made. Parents must begin repaying both principal and interest while the student is in school