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 2008-2009 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 have been denied a PLUS loan. The Financial Aid Office
must have 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 annual entrance counseling session 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 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 the borrower’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 to the student. The anticipated interest rate
for 2008-2009 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.
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