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Federal Stafford Loans
Federal Stafford Loans are low-interest, educational loans insured by Guarantee Agencies and reinsured by the Federal government. These loans help students finance their educational expenses. We urge you to borrow conservatively. Don’t borrow more than you need! The interest rates on these loans are less than commercial rates and repayment begins after you leave school or drop below half-time enrollment.
KVCC participates in the Federal Family Education Loan (FFEL) Program. Loans made through this program are guaranteed by the federal government and funds are provided by banks, savings and loan associations and credit unions. Repayment is made to the bank or private lender that made the loan. Student borrowers have the right to choose which lender they wish to use. A list of participating lenders are available online at www.kvcc.edu. KVCC will certify a loan with any eligible FFEL lender and guarantor. If eligible, it is recommended that students with previous and/or outstanding student loans select the same lender for all subsequent loans.
Federal Stafford Loans are available for undergraduate, graduate and professional degree students. You must be enrolled at least half-time (6 or more credits at KVCC) and be pursuing a certificate or degree program. Certificate of Achievement, Post Associate Certificate, and Unclassified Programs are not considered eligible programs for federal or state financial aid.
Types of FFEL Loans Subsidized Stafford: Eligibility for this need-based loan is determined by the Financial Aid Office based on your FAFSA results. Interest is paid by the federal government while you are enrolled at least half-time (minimum six credit hours a semester.)
Unsubsidized Stafford: This non-need based loan is identical to the Subsidized Stafford Loan except that the student is responsible for the interest while in school. The student has the option of paying the interest or having it capitalized which means the lender may add the accrued interest to the principal you owe.
Borrowing Limits for Stafford Loans: The amounts listed are the federal limits for an academic year. Grants, work-study and scholarships may have an impact on your loan eligibility.
*Denotes additional Unsubsidized Stafford Loan
Processing Fees All Federal Subsidized and Unsubsidized Stafford Loans are subject to a 1.0% origination fee and up to a 1.0% default fee, which may be deducted proportionately from each of your loan disbursements. For example, if you borrow $3,500, you will receive $3,430.00. ($3,500 x 2.0% = $70, $3,500 - $70 = $3,430).
Loan Disbursement Your loan will be disbursed in two installments, usually at the beginning of each semester. You will be notified by email (KVCC will use your KVCC email address) when each disbursement arrives. Your loan funds will be sent to KVCC and applied directly to your student account. Your loan funds may be included in your book and supply authorization and/or balance check. Refer to appropriate class schedule for initial balance check release dates. Balance checks are processed weekly; however, it may take up to 14 days to receive your check.
Loan Counseling (Important) All borrowers at KVCC must complete Entrance and Exit Loan Counseling. Entrance Loan Counseling must be completed before your loan is certified, and is required every academic year. Exit Counseling is required prior to completion of your program at KVCC.
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