Federal Loan Programs
Loans are considered to be 'self help' and require repayment. There are several different types of loan programs
available to students and these include the Federal Stafford Subsidized Loan, Federal Stafford Unsubsidized Loan,
and the Federal PLUS loan.
Stafford Subsidized Loan
- The Subsidized Stafford Loan is a fixed interest loan awarded on financial
need. If the student qualifies, the federal government PAYS the interest on
your loan while they are in school, during a six-month grace period after
they leave school or drop below half-time enrollment, and during any period
of authorized deferment [postponement of payment].
- The anticipated interest rate for 2007-2008 is fixed at 6.25%.
Annual Loan Limits:
- Students may borrow up to $2,625 if they are a first-year, undergraduate
student.
- Students may borrow up to $3,500 if they are a second-year, undergraduate
student.
Stafford Unsubsidized Loan
- The Unsubsidized Stafford Loan is not based on financial need. Interest
begins to accrue as soon as the loan is disbursed. The federal government DOES NOT pay
the interest on this type of loan. You may pay the interest while you are in school, or the
interest can be capitalized and included in the repayment amount. To set up
interest payments please contact the lender for further information.
- The anticipated interest rate for 2007-2008 is fixed at 6.25%.
Available Amounts:
- Students may borrow up to $4,000 a year if they are an independent, undergraduate student
or a dependent student whose parents have applied and been denied a PLUS loan. The
financial aid office must have a copy of the PLUS loan denial from a lender on file in order
to package a dependent student with the Stafford Unsubsidized Loan.
All borrowers must attend an entrance counseling session annually before their loans can be disbursed. The
Unsubsidized loan requires a separate request which should be picked up from, and returned to Student Services.
Students must attend an exit interview annually and when they graduate, withdraw, or drop below half-time enrollment
before their final official transcripts can be released.
Federal PLUS Loan
- PLUS loans are loans taken out by parents, stepparents, or legal guardians of dependent
undergraduates to assist them with educational expenses.
Eligibility Requirements:
- Financial need is not a requirement to qualify for this loan, however, this loan is based on a
parent’s credit history each applicant is subject to a credit check.
Available Amounts:
- The Federal PLUS loan may not exceed the annual cost of education at KCC, less any
financial aid awarded tothe student. The anticipated interest rate for 2007-2008 is fixed at
8.25%.
- The parent/stepparent/guardian is responsible for the re-payment of the loan including the
interest that accrues on the loan during any period.
Special information:
- These loans may require repayment to begin before the student has graduated. Specific
repayment information should be obtained from the lender. Interest begins to accrue as
soon as the loan is disbursed.
Federal Work-Study
- Work-Study is considered to be ‘self help’ and requires the student accept part-time
employment as a means of financial assistance.
- Work-Study provides part-time employment, at both on-campus and approved off-campus
sites, for students who meet eligibility requirements. Students may work up to 20 hours per
week during the academic year to earn the amount listed on their Award Notification.
Eligibility Requirements
- Students must demonstrate financial need.
Available Amount
- The awarded amount will vary each year. For the 2006-2007 award year the maximum
award was $3,000. Wages for Work-Study are currently $7.50 per hour. This is subject to
change each year.
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