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Federal Stafford Loans
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.
|
Grade Level |
Dependent |
Independent |
|
Freshman
(0-23 credits) |
$3,500 + $2,000* |
$3,500+ $6,000* |
|
Sophomore
(24 credits or more) |
$4,500 + $2,000* |
$4,500 + $6,000* |
*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.
Steps
to Apply
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