Financing USC: Loans Edition

January 31, 2017
by Jessica

The most common questions I’m asked from prospective and admitted students are always about the cost of USC and how students pay for it. Rightfully so — USC is definitely a financial investment! However I do think it’s worth it — the caliber of the professors and quality of education you get here makes your USC degree truly valuable. I’m going to briefly share about some of the options you have in order to finance your OT education at USC. This post will focus on student loans.

Federal Loans
Most students do take our loans in order to pay for a majority of their tuition, fees, & living costs while in the program. Federal loans are the most common, and typically have lower interest rates than private loans. As a graduate student, you are typically eligible for the Direct Unsubsidized Loan (also referred to as Direct Stafford Loan) and the Direct PLUS Loans. To be eligible for the Direct Unsubsidized Loan, you just need to be enrolled half-time and don’t necessarily need to demonstrate financial need. Most students will qualify for this loan, and you will be eligible to receive this loan for the duration of the program each semester. Graduate students are eligible for up to $20,500 per academic year, with the current interest rate set at 5.31%. Also, you will not need to start paying back this loan until after you graduate. The other loan that most students use to supplement is the Direct PLUS Loan. This is also a federal loan, and you must be enrolled at least half-time with no adverse credit history. With this loan, the maximum you can borrow is the full cost of USC minus any other financial aid you receive. The current interest rate for this loan is 6.31%. Like the Direct Unsubsidized Loan, you do not need to make any payments until after you graduate.

Public Student Loan Forgiveness
If the thought of taking out these loans is daunting (which it is for most), keep in mind that there currently is a Public Service Loan Forgiveness Program that you may be eligible to enroll in after graduation.  This is a federal program that will forgive the remaining balance on your Direct Loans after you have made 120 qualifying monthly payments (~approx. 10 years) while working full-time for a qualifying employer. Qualifying employers for this program include government organizations, non-profit organizations that are tax-exempt under Section 501(c)(3) or provide a qualifying public service. This is definitely something to consider and take advantage of, if it is still in place when you graduate.

I hope this brief summary of some of your loan options was helpful! Stay tuned for more posts about other financial aid options.

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