Financial Aid Loan Programs
Southwestern Michigan College participates in the student loan programs. Students and parents should explore all scholarship and grant opportunities before deciding to apply for a student loan.
A student loan is a debt that must be repaid. Students and parents should carefully review the details of each loan program before applying and signing any promissory note. Student loans are processed for Fall and Winter semesters only.
Federal Loan Programs
Federal Perkins Loan
This loan program is administered by Southwestern Michigan College and provides long-term, low-interest loans to students. The repayment period and interest begin nine months after the completion of studies. Before receiving a Perkins Loan, a student must complete a pre-loan counseling session and complete the Free Application for Federal Student Aid (FAFSA).
A student must have sufficient need according to the FAFSA results in order to qualify for a Perkins Loan. A promissory note (promise to repay) is signed by the recipient. Funds are disbursed during the semester. Students may apply between April 1 and December 31, although the priority deadline is August 1. Because Perkins Loan funds are limited, students are encouraged to apply as soon after April 1 as possible.
For more information on the Federal Perkins Loan Program see Related Link on this page. The required online Perkins Loan Entrance Counseling may be completed online by following the Related Link on this page between April 1 and Dec. 31 each year.
Federal Parent Loan for Undergraduate Students (PLUS Loan)
This is a non-need based source of loan funds available to parents of dependent students. In this program, the parent is the borrower, and repayment of interest and principal must begin within 60 days of disbursement of the loan. Parents may borrow up to the cost of education minus other aid. For more information on the Federal PLUS Loan Program or to apply for a PLUS loan online, follow the appropriate Related Links on this page.
Stafford Loan Exit Interviews
If you previously borrowed a Stafford Loan and received a letter from SMC indicating you must complete required Exit Counseling. Follow the link provided under Related Links on this page to complete this counseling online.
Alternative/Private Education Loans Policies and Procedures
Alternative/Private educational loans are student loans offered through agencies other than the federal government. These loans are based on the creditworthiness of the borrower and/or co-signer, if applicable. SMC works with all alternative lenders, but has found that the loans and lenders below offer exceptional customer service and competitive interest rates. Before you apply for or accept an alternative/private loan, you should ask yourself the following questions:
- How much do I actually need to borrow for my education?
- What is the interest rate, and is it fixed or variable?
- How long do I have to repay the loan?
- When does repayment begin?
- How long has the lender been in business?
- What borrower benefits are offered and are those subject to change?
Finally, review SMC's Alternative/Private Education Policies and Procedures linked under Related Links on this page before applying for one of these loans.
Michigan Alternative Student Loan (MI-LOAN)
The MI-LOAN Program is administered by the Michigan Higher Education Student Loan Authority and is intended to provide students and their families an alternative source of loan funds to assist in meeting the costs of higher education.
Students or parents can borrow under the MI-LOAN Program. Under the MI-LOAN Program, the borrower must be creditworthy. The borrower can choose between fixed or variable interest rates. For more information on the MI-LOAN Program and to apply online or print a paper application, follow the link under Related Links on this page.
As of February 15, 2008, the MI-LOAN program has been temporarily suspended. No new loans are being originated for students at this time through this program.
The Sallie Mae Signature Loan
Sallie Mae is the nation’s leading lender of student loans. The Signature Student Loan for Community Colleges is a low-cost, private loan available to students who are attending community colleges at least half-time and are pursuing a degree. Interest rates and fees may very depending on the borrower’s credit history. For more information on the Sallie Mae Signature Loan Program and to apply online, follow the Related Link provided on this page.
TERI Alternative Loan Programs
TERI, The Education Resources Institute, Inc., guarantees private education loans that help students and families cover the cost of education. TERI is the most experienced and largest nonprofit guarantor of private education loans and has provided more than $20 billion in guarantees. TERI's private education loans are offered by over 30 highly respected institutions and available at more than 5,000 schools. On-line processing and approval enables campuses and borrowers to access up-to-the-minute loan status online and by phone. For more information on the alternative loans offered through TERI or to go straight to the online loan application, please follow the Related Links provided on this page.