All students borrowing a student loan for the first time are required to complete loan entrance counseling; students with previous student loans who attend KVCC for the first time are encouraged to complete loan entrance counseling again as a reminder. Students leaving KVCC, dropping below 6 credits, or graduating are required to complete loan exit counseling.
Loans are borrowed and must be repaid with interest.Contact the staff at firstname.lastname@example.org for information regarding loans and your responsibilitites.
Subsidized Willaim D. Ford Federal Direct (Stafford) Student Loan:
Based on financial need. The principle and interest are both deferred as long as the student is enrolled at least half-time (6 credits). In addition, the principal is deferred until six months after the student graduates or drops below 6 credits--this is known as the “grace period.” Students with Federal Direct Subsidized Stafford Loans that first disbursed between 7/1/2012 and 7/1/2014 do not have interest-subsidy benefits during the six-month grace period. Payments on the priniciple will not be due during the grace period, but interest will accrue. For student loans disbursed after 7/1/2014, the deferral of the interest subsidy during the grace period has been restored.
Unsubsidized William D. Ford Direct (Stafford) Student Loan:
Non-need-based. The interest is either paid while a student is in school or capitalized over the life of the loan. (The principal is deferred until six months after a student graduates or drops below 6 credits.)
Direct Loan Interest Rates
The Bipartisan Student Loan Certainty Act of 2013 ties federal student loan interest rates to financial markets. Under this Act, interest rates will be determined each June for new loans being made for the upcoming award year, which runs from July 1 to the following June 30. Each loan will have a fixed interest rate for the life of the loan. The interest rate for new Direct Subsidized and Unsubsidized Loans made to undergraduates on or after July 1, 2016 and before July 1, 2017 is 3.76%.
Direct Plus Loans (Parent Loan for Undergraduate Students):
This loan is available to parents of a dependent student (parents must have a good credit history to qualify). As with Direct Subsidized and Unsubsidized student loans, the interest rate for PLUS loans will be determined each June for new loans being made for the upcoming award year, which runs from July 1 to the following June 30. Each loan will have a fixed interest rate for the life of the loan. The interest rate for new PLUS Loans made on or after July 1, 2016 and before July 1, 2017 is 6.31%.
Federal Direct Stafford Loans first disbursed on or after October 1, 2015 have a 1.068% fee taken out at disbursement, and Direct PLUS loans have a 4.272% fee is taken out at disbursement. As of October 1, 2016, Federal Direct Stafford Loans have a 1.069% loan fee taken out at disbursement and Direct PLUS loans have a 4.276% fee is taken out at disbursement.
Annual Loan Limits
Annual loan limits for subsidized and unsubsidized loans are: $3,500 for first year undergraduates and $4,500 for second year undergraduates. Dependent students may be eligible to borrow an additional unsubsidized loan of up to $2,000 per academic year. Independent students and dependent students whose parents cannot borrow a PLUS loan may be eligible to borrow an additional unsubsidized Stafford Loan of up to $6,000 per academic year.
30-Day Delay in Disbursement for First-time, First-Year Borrowers
If a student is a first-year undergraduate student and a first-time borrower, KVCC cannot disburse his/her first payment until 30 days after the first day of the enrollment period. This practice ensures that students won't have a loan to repay if they don't begin classes or if they withdraw during the first 30 days of classes.
Double-Disbursement of Loans for Students attending only One Semester
If a student is only enrolled for one semester (for example, the student is enrolled for fall and graduating at the end of the fall semester), that student’s loans must be disbursed half on the standard disbursement date and half at the mid-point of the semester.
If a student’s final period of enrollment is shorter than the school’s defined academic year (for example, a student who is graduating after the fall semester), federal regulations require financial aid administrators to prorate annual loan limits. Check with the Financial Aid Office for more information.