Loans and Grants

  • Federal Pell Grant

    The Federal Pell Grant is a grant from the federal government that does not have to be repaid, except under certain circumstances. The grant may only be awarded to undergraduate, degree-seeking students who have not already obtained a bachelor's degree. The award amount is based on a student's exceptional financial need, as determined by the Free Application for Federal Student Aid (FAFSA) application.

    A student incarcerated in a federal or state penal institution, is not eligible to receive a Pell Grant.

    Federal Supplemental Educational Opportunity Grant (FSEOG)

    FSEOG is also a grant from the federal government that typically does not have to be repaid. Awards are made to undergraduate students with financial need. SCC has a limited amount of funds to award to eligible students. Eligible Federal Pell Grant recipients with the lowest Expected Family Contribution are considered first for available FSEOG funds.

    Iraq and Afghanistan Service Grant (IASG)

    The IASG provides money to students to help pay educational expenses and does not have to be repaid, except under certain circumstances. A student may be eligible for this grant if their parent or guardian was a member of the U.S. armed forces and died as a result of military service performed in Iraq or Afghanistan after September 11, 2001. The Department of Education determines the student’s eligibility for this grant by information provided on the FAFSA.

    Examples of Circumstances Where All or a Portion of the Grant May Need to be Repaid

    • The student withdraws from the program for which the grant was given
    • The student’s enrollment status changes in a way that reduced their eligibility for the grant
    • The student receives scholarships or grants that reduced their need for federal student aid.

    Nebraska Opportunity Grant (NOG)

    This is a grant the State of Nebraska provides to students who are Nebraska residents, attending a Nebraska postsecondary institution, and have a minimum Estimated Family Contribution as determined by completing the Free Application for Federal Student Aid (FAFSA). The funds are awarded on a first-come, first-served basis to eligible students.

    Nebraska Opportunity Grant complaint process.

    Federal Direct Subsidized and Unsubsidized Loans

    The Federal Direct Subsidized and Unsubsidized Loan program enables students to borrow from the U.S. Department of Education. In order to be eligible, the student must be enrolled in, attend, and maintain a minimum of six (6) semester credit hours. The loan amount is limited to the cost of education minus EFC, and in some instances, minus other financial aid the borrower is expected to receive for the loan period. Dependent, first-year students may borrow a maximum of $5,500 per school year. Dependent, second-year students may borrow a maximum of $6,500 per school year (subject to other restrictions per federal regulations). Independent, first-year students may borrow a maximum of $9,500 per school year. Independent, second-year students may borrow a maximum of $10,500. If a student qualifies for a Federal Direct Subsidized Loan, the government pays the interest on the loan while the student is enrolled in school on at least a half-time basis, during the grace period, and during times of deferment. For Federal Direct Unsubsidized Loans, the student is responsible for the interest from the date of the first disbursement.

    Federal Direct Parent Loan (PLUS)

    The Federal Direct PLUS is a loan for parent borrowers of dependent students and provides additional funds for educational expenses. Federal Direct PLUS loans enable parents with good credit histories to borrow for each dependent child who is enrolled at least half-time, or a minimum of six (6) semester credit hours. Parents borrow Federal Direct PLUS loans from the U.S. Department of Education. Applicants do not have to show financial need, but must undergo a credit analysis. Repayment of the loan begins within 60 days of disbursement, but repayment may be delayed until the student graduates or drops to less than half-time enrollment. If repayment is delayed, the accrued interest is capitalized to the balance of the loan. Deferments are available under certain conditions. Federal Direct PLUS loans cannot exceed the College's estimated cost of education minus other financial aid. Parents may apply for a PLUS loan at: www.studentloans.gov.

    Direct Loan repayment begins six months after graduation or six months after your enrollment falls below half time. Once the loan enters repayment, you must make payments on time to avoid delinquency and default.

    Below is a brief summary of several repayment plans to choose from, including:

    • Standard Repayment – This plan saves you money because your monthly payments may be slightly higher than under other plans, but you will pay off your loan in the shortest amount of time, saving interest over the life of the loan. The repayment length is typically 10 years.
    • Extended Repayment – You will pay on a fixed or a graduated repayment schedule over a period not to exceed 25 years. You must have in excess of $30,000 in loan debt in either the Direct Loan program or the FFEL program to qualify.
    • Graduated Repayment - With this plan, your payment starts out low and increases every two (2) years. The length of repayment is up to 10 years.
    • Income Based Repayment (IBR) – You may be eligible for this plan if you have a high student loan debt relative to your income. Your monthly payments are generally 15 percent of your discretionary income. Payments are recalculated each year based on your income and family size. Repayment term is 20 years if you are a new borrower on or after July 1, 2014. The repayment term is 25 years if you were a new borrower prior to July 1, 2014.
    • Income Contingent Repayment Plan (ICR) – Direct Loans Only – under this plan, your monthly repayments are recalculated annually based on your adjusted gross income, family size, and the total amount of your Direct Loans. Under the ICR plan you will pay each month the lesser of:
      • The amount you would pay if you repaid your loan in 12 years multiplied by an income percentage factor that varies with your annual income, or
      • 20 percent of your monthly discretionary income
      The repayment term is 25 years.
    • Pay as You Earn Plan (PAYE) – To qualify for this plan, you must be a new borrower as of October 1, 2007 and must have received a disbursement of a Direct Loan on or after October 1, 2011. You must have been determined to have a partial financial hardship which is based on student loan debt, income, and family size. Maximum payment amounts are 10 percent of discretionary income. Payments are recalculated every year based on income and family size.
      Repayment term is 20 years.
    • Revised Pay as You Earn Repayment Plan (REPAYE) – No “new borrower” requirement. Payment amounts are 10 percent of discretionary income. Payments are recalculated each year based on income and family size. Repayment term is 20 years if all loans are for undergraduate study, or 25 years if any of the loans are for graduate study.

    For the IBR, ICR, PAYE and REPAYE plans, any loan balance remaining after the end of the repayment period will be forgiven. See https://studentaid.ed.gov/sa/repay-loans/understand/plans/income-driven for more information.

    For more detail on all of the the available repayment plans, information on consolidating your federal student loans, and how to calculate your estimated loan payments, go to https://studentaid.ed.gov/sa/repay-loans.

    Additional information and resources about repaying your federal student loans, can be found at https://studentaid.ed.gov/sa/sites/default/files/repaying-your-loans.pdf.

    Making all of your loan payments on time is very important. If you find yourself in financial difficulty, contact your student loan servicer to find out what options you may have. Never ignore delinquency or default notices from your servicer.

    Defaulting on your loan has serious consequences and may result in losing eligibility for deferment, forbearance, repayment plans, and future student aid. Defaulted loans are assigned to a collection agency and the default will be reported to the credit bureaus, damaging your credit history. Your employer may be required to garnish your wages, the loan holder can take legal action against you, and your tax refunds may be retained by the Department of Education. In some professions, the borrower’s professional license can be revoked for a defaulted student loan. For more information on loan default and how to resolve it, go to https://studentaid.ed.gov/sa/repay-loans/default#consequences.