Skip to main content

Student Loans 

Discover how student loans can support your journey at MUSC with tools and guidance to help you borrow responsibly and plan for repayment. 

Student loans can help cover educational costs after scholarships, grants, personal resources, and other aid are considered. Before you borrow, review your loan options, understand your eligibility, and compare loan types carefully so you borrow only what you need.

Eligibility Requirements

  • Be enrolled at least half-time
  • Show financial need on your FAFSA or Renewal FAFSA need analysis report
  • Not have defaulted on or owe a refund to any previous aid program
  • Maintain satisfactory academic progress

Federal Direct Loans

Federal Direct Loans are federal student loans made through the U.S. Department of Education. Eligible students and parents may use these loans to help pay education costs at participating schools.

Federal Direct Subsidized Loans are need-based federal student loans available to eligible undergraduate students. Students may receive this loan based on demonstrated financial need, as determined by federal guidelines.

For Federal Direct Subsidized Loans first disbursed between July 1, 2026, and June 30, 2027, the interest rate is 6.52%, and a loan origination fee of 1.057% is deducted from each disbursement before the funds are credited to the student’s account.

The U.S. Department of Education pays the interest on Federal Direct Subsidized Loans while the student is enrolled at least half-time, during the six-month grace period after the student leaves school or drops below half-time enrollment, and during certain authorized deferment periods. Repayment of principal begins after the grace period ends.

Federal Direct Unsubsidized Loans are federal student loans available to undergraduate and graduate students and are not based on financial need. Students may receive this loan if they are ineligible for a Federal Direct Subsidized Loan or have reached their annual or aggregate subsidized loan limits.

For Federal Direct Unsubsidized Loans first disbursed between July 1, 2026, and June 30, 2027, the interest rate is 6.52% for undergraduate students and 8.07% for graduate or professional students. A loan origination fee of 1.057% is deducted from each loan disbursement.

Interest accrues on Federal Direct Unsubsidized Loans from the date of disbursement. The U.S. Department of Education does not pay the interest during periods of enrollment, the six-month grace period, or during authorized deferment or forbearance. Borrowers may choose to pay interest while enrolled or defer interest payments until repayment begins. Any unpaid interest will be capitalized, increasing the total amount repaid over the life of the loan.

Parents of dependent undergraduate students may borrow a Federal Direct Parent PLUS Loan to help cover educational expenses not met by the student’s financial aid. Parents may borrow up to the full cost of attendance minus other financial aid received, as determined by the school. There is no aggregate (cumulative) borrowing limit.

Federal Direct Parent PLUS Loans are the legal responsibility of the parent borrower, not the student. If a student agrees to make payments on the loan but does not do so, the parent remains fully responsible for repayment.

The Parent PLUS Loan is a credit-based federal loan. For loans first disbursed between July 1, 2026, and June 30, 2027, the loan has a fixed interest rate of 9.07%. A loan origination fee of 4.228% is deducted from each disbursement before funds are credited. Interest is not subsidized and begins accruing at the time of disbursement.

Repayment generally begins 60 days after the loan is fully disbursed, and the standard repayment term is up to 10 years. Parent PLUS Loans do not have a standard six-month grace period. However, parent borrowers may request an in-school deferment while the student is enrolled at least half-time, as well as a six-month post-enrollment deferment after the student graduates, withdraws, or drops below half-time enrollment. Parent borrowers may also request deferment if they are enrolled in college at least half-time. Interest continues to accrue during all deferment periods and may be capitalized, increasing the total cost of the loan.

Eligibility for a Federal Direct Parent PLUS Loan is based on a credit check to determine whether the parent has an adverse credit history.

If a dependent student’s parent is denied a Parent PLUS Loan, or the school’s financial aid administrator determines that the parent is likely to be denied, the student may become eligible for additional Federal Direct Unsubsidized Loan funds. Only one parent is required to apply and be denied for the student to qualify for the increased unsubsidized loan limits. If one parent is denied but another parent is approved for a Parent PLUS Loan, the student is not eligible for the increased unsubsidized loan amount.

Under the One Big Beautiful Bill Act, Federal Direct Grad PLUS Loans will no longer be available to new borrowers for loan periods beginning on or after July 1, 2026. They continue to be available for legacy borrowers. Learn more about Federal Direct Grad PLUS Loans.

Federal Direct Grad PLUS Loans are federal student loans available to graduate and professional students to help pay for educational expenses not covered by other financial aid. These loans are not based on financial need and require the borrower to pass a credit check demonstrating no adverse credit history. 

Borrowing a Grad PLUS Loan does not reduce eligibility for the Federal Direct Unsubsidized Loan; however, the total amount that may be borrowed in Grad PLUS Loans is limited to the cost of attendance minus other financial aid received, as determined by the school.

For Federal Direct Grad PLUS Loans first disbursed between July 1, 2026, and June 30, 2027, the loan has a fixed interest rate of 9.07%. A loan origination fee of 4.228% is deducted from each disbursement before funds are credited to the student’s account.

Interest begins accruing on Grad PLUS Loans from the date of disbursement. These loans do not have a standard grace period. However, borrowers are eligible for an in-school deferment while enrolled at least half-time and receive an automatic six-month post-enrollment deferment after graduating, withdrawing, or dropping below half-time enrollment. Interest continues to accrue during all deferment periods and any unpaid interest may be capitalized, increasing the total cost of the loan.

Loan Name Fixed Interest Rate for loans disbursed from July 1, 2025 –June 30, 2026 Fixed Interest Rate for loans disbursed from July 1, 2026 –June 30, 2027 Repayment Cosigner or Endorser Needed?

Federal Direct Subsidized Loan

6.39% for Undergraduates

6.52% for Undergraduates

Begins 6 months after you graduate or enroll for less than half-time

No.

Federal Direct Unsubsidized Loan

6.39% for Undergraduates 7.94% for Graduates

6.52% for Undergraduates 8.07% for Graduates

Begins 6 months after you graduate or enroll for less than half-time

No.

Federal Direct Parent PLUS Loan

8.94%

9.07%

Begins 60 days after disbursement of funds (qualifies for in-school deferment)

Dependent upon credit decision.

Federal Direct Grad PLUS Loan

8.94%

9.07%

Begins 6 months after you graduate or enroll for less than half-time

Dependent upon credit decision.

 

 

Maximum Subsidized Amount

Maximum Unsubsidized Amount

Combination Total

Dependent Undergraduates (excluding students whose parents are unable to borrow PLUS)

First Year

$3,500

$2,000

$5,500

Second Year

$4,500

$2,000

$6,500

Third Year and Beyond

$5,500

$2,000

$7,500

Aggregate Loan Limits

$23,000

$8,000

$31,000

Independent Undergraduates and Dependent Undergraduates whose parents are unable to borrow PLUS

First Year

$3,500

$6,000

$9,500

Second Year

$4,500

$6,000

$10,500

Third Year and Beyond

$5,500

$7,000

$12,500

Aggregate Loan Limits

$23,000

$34,500

$57,500

Graduate/Professional Students

Yearly

 

$20,500

 

Aggregate Loan Limits

 

$138,500

 

 

For students in the College of Pharmacy or students in the College of Health Professions seeking a Master in Health Administration (MHA) or Doctorate in Health Administration (DHA), the yearly limits are as follows:

Academic Year Length

Maximum Unsubsidized amount per Academic Year

Additional Unsubsidized Amount per Academic Year

Combination Total

9 Months

$20,500

$12,500

$33,000

10 Months

$20,500

$13,889

$34,389

11 Months

$20,500

$15,278

$35,778

12 Months

$20,500

$16,667

$37,167

 

For students in the College of Medicine or the College of Dental Medicine, the yearly limits are as follows:

Academic Year Length

Maximum Unsubsidized amount per Academic Year

Additional Unsubsidized Amount per Academic Year

Combination Total

9 Months

$20,500

$20,000

$40,500

10 Months

$20,500

$22,222

$42,722

11 Months

$20,500

$24,444

$44,944

12 Months

$20,500

$26,667

$47,167

 

Note: The aggregate limit for the MHA, DHA, COP, COM, and CODM programs is $224,000.

 
 
 
 
 
 
 
 

Health & Human Services Loans

You may qualify for student loan programs offered through the Health Resources and Services Administration (HRSA) Bureau of Health Workforce, an agency of the U.S. Department of Health and Human Services (HHS). Your eligibility depends on your program enrollment, financial need, and other requirements specific to each loan program. While financial aid eligibility must be re-evaluated annually, you must also complete Entrance Counseling and sign a Master Promissory Note (valid for up to 10 years) prior to your first loan disbursement.

Private and alternative education loans

Private and alternative loans help cover the gap between your cost of attendance and the federal loan limits. These loans are offered by private lenders and do not require federal forms such as the FAFSA. Approval is based on creditworthiness.

Interest rates and fees are based on creditworthiness, which may include both your credit score and your cosigner’s score. Applying with a cosigner, especially one with strong credit, can improve your chances of approval and may help you qualify for a lower interest rate. Lenders evaluate credit differently, so some may consider the higher of the two scores, while others use different underwriting methods.

Credit checks are typically valid for 90–120 days, so students should avoid applying more than three months before their term starts.

Before you apply, consider using pre-qualification or rate check tools. These use a soft credit check and will not affect your credit score. When you are ready to apply, submit your applications within a 14-day period. This can help reduce the impact of multiple credit checks on your credit report.

How preferred lenders are selected

Our preferred lenders were vetted through a selection and review process based on federal compliance standards, current market conditions, and federal and institutional requirements. The university also follows a Financial Aid Code of Conduct and provides staff training to support ethical and compliant practices.

Lenders included in ELM Select were evaluated using student-focused criteria, including:

  • Competitive interest rates and borrower benefits
  • Flexible repayment options
  • Quality customer service and loan servicing
  • Reliable funding and overall stability
  • Accessibility and eligibility requirements

MUSC reviews its preferred lender list each year and may add or remove lenders based on changes in loan terms, service quality, borrower concerns, or institutional standards. MUSC does not receive financial benefits from any lender on this list.

Understanding the application process

To avoid delays, you are encouraged to apply by June 1 for Fall, October 1 for Spring, and February 1 for Summer.

  1. Select a lender. You may choose to borrow through any private lender, including lenders not listed below. Students selecting a lender not on our preferred list will not delay your certification.
  2. Complete the application. Apply on the lender’s website. You may need a cosigner, depending on your credit. If you are approved, the lender will notify the school.
  3. School certification. After you apply, your lender will send your loan to MUSC to be reviewed, we will confirm your enrollment and the amount you can borrow based on your cost of attendance.
  4. Complete private loan disclosures and self-certification statement. When you apply for a private loan, your lender will provide important disclosures about your loan terms. During the application process, you will also be required to complete a Private Education Loan Applicant Self-Certification Form to confirm your cost of attendance, financial aid received, and the loan amount you are requesting. It is also available from our office upon request.
  5. Loan approval and disbursement. Funds will be sent to MUSC's Office of the Bursar once your loan is approved and certified.

View our list of preferred lenders

To help you evaluate private loan options, MUSC offers a list of preferred lenders through ELM Select. We have selected lenders in the best interest of students and in compliance with federal regulations. The lender list does not represent all available options to students. You are not required to use these lenders and may choose any lender without penalty.

Begin your lender search

Residency & relocation loans

Medicine, dental medicine and pharmacy students in their fourth-year or students that have graduated within the past 12 months of these programs may apply for additional loans for residency interviews and Relocation through the lender of their choice.

Residency and relocation loans are private loans which typically have higher interest rates and may cost you more than other loans. These loans may cover expenses such as:

  • Interview travel and lodging
  • Residency application fees
  • Board exam review courses and fees
  • Board review textbooks and study guides
  • Medical Instruments
  • Internship expenses
  • Moving and shipping costs from Charleston to relocate to residency location.

Residency and relocation loans do not count toward the Cost of Attendance (COA), when calculating a student's budget and are not certified by the Office of Student Financial Aid. However, the lender will require enrollment verification from the Office of the Registrar.

Returning unneeded loan funds

Borrowing only what you need can reduce your future debt. The following guidelines explain how you can return federal and private loan funds you no longer need.

If you anticipate having unneeded funds for a future disbursement (not applied to your tuition bill yet), complete the Loan Adjustment Request Form in the student portal to cancel or reduce the upcoming disbursement at least fifteen days before your semester begins.

After loan funds have been disbursed, students who wish to reduce their borrowing may return unneeded funds through the school within 30 days of the disbursement date. To initiate the return, students must complete the Loan Adjustment Request form available in the student portal. Returning funds within this timeframe may reduce or cancel associated loan fees and interest charges, depending on the loan type and lender requirements.

After the initial 30-day period following disbursement, students, may still reduce their student loan debt by returning funds either through the school, if permitted, or directly to their loan servicer or lender. For federal student loans, payments made within 31 to 120 days of the disbursement date may qualify for a partial cancellation of loan fees and accrued interest on the portion returned.

Borrowers of private loans should contact their Lender directly on their specific procedure of returning unneeded loan funds to them.

Contact the Office of Student Financial Aid

MSC 203
Harper Student Center
45 Courtenay Dr, Fl 3
Charleston, SC 29425-8917

Hours of Operation: Monday-Friday, 8:00 am-4:30 pm

Phone: 843-792-2536

Email: finaid@musc.edu

Visit the Student Portal to find your Financial Aid Advisor under Advisors.

Get Directions