Investing in SC’s students: How state-led solutions help navigate federal loan reforms

Across the nation, headlines about federal student loan reforms are creating concern among families.

Recently, many parents and students have celebrated high school graduations and are thinking about attending colleges and universities this fall. Meanwhile, parents are worried about how their children will afford this education and repay loans.

While some welcome reform, others are asking: What does this mean for us?

We understand how unsettling these changes can be.

That’s why South Carolina Student Loan Corp.’s leadership has been actively engaging with elected representatives and government officials on Capitol Hill, as well as collaborating with industry experts and student loan lenders nationwide, to stay informed and effectively advocate for borrowers.

While we can’t predict what will happen, history shows that we’re ready to adapt.

For more than 50 years, South Carolina Student Loan Corp. has proudly served as the only lender of education loans based in the state.

In 2010, the U.S. Department of Education made changes to the federal loan program, which included taking the funding of certain loans back in-house. When that occurred, we adapted, and students and families were able to receive much-needed financial aid.

Today, we stand ready to adapt again to minimize disruption to students’ educational journeys.

What sets us apart as a student loan lender is our nonprofit mission and deep roots in South Carolina.

Created by the South Carolina General Assembly in 1973, we were intentionally designed from the start to serve students and families. We see educational lending as a long-term investment in our great state’s future.

Since our inception, we have provided more than 2 million loans to approximately 487,000 students and families, totaling $8.7 billion in student loan assistance. That averages to helping 9,500 South Carolinians each year pursue their education goals.

Because of our commitment to reinvesting our earnings into our products, not corporate profits, we can champion affordable, accessible education for all. That mission-driven difference continues to guide how we serve South Carolina families today in a time of potential federal student lending transition.

Recent challenges at the U.S. Department of Education have also shed light on the student loan system as a whole and present an opportunity for us to understand the system holistically.

Student lenders, like us, work alongside federal programs, stepping in to cover education expenses not fully met by federal aid, scholarships, or other funding sources.

However, we still encourage students to complete the Free Application for Federal Student Aid (FAFSA) and take advantage of federal grants and low-interest loan programs in the student’s name.

As lawmakers are considering changes to federal loan programs like Graduate PLUS or Parent PLUS loans, we are prepared to offer loans to help cover tuition, living costs, and other educational expenses to qualified borrowers.

Unlike the PLUS program, we do not charge any loan origination fees, resulting in additional savings to South Carolina families, which can be significant over the lifetime of the loan.

If local lenders become more heavily involved in financial aid processes, there could be a real benefit.

That’s because individual lenders have a deep understanding of their region’s unique educational and economic landscape, allowing them to guide students toward grants, scholarships, and affordable loan options aligned with local job markets.

And as a not-for-profit, South Carolina Student Loan can reinvest its dollars back into loan programs that support our students and strengthen our state with a strong workforce.

As always, our best advice for students is to start the application process in June. That way, no matter what happens, you have a plan.

Remember, loan amounts can always be reduced if needed. Qualifying unlocks your lending options; it’s not a binding commitment.

At South Carolina Student Loan Corp., we know that when we invest in our students, we invest in South Carolina’s future.

So, with so much uncertainty, we encourage our leaders and families to remember that supporting smart, state-driven solutions and investing in our students today builds a brighter, more prosperous South Carolina for generations to come.