Direct Subsidized Loan

Federal Direct Loans (Direct Loans) are low-interest, educational loans. Funds are provided 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 rate on these loans are generally less than commercial rates and repayment begins after you leave school or drop below half-time enrollment.


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 at KVCC) and pursuing a certificate or degree program.

  • Freshman annual limit: $3,500
  • Sophomore annual limit: $4,500
  • Undergraduate aggregate limit: $23,000

Actions you MUST take to receive a Direct Loan

  • You must be enrolled at least half-time (minimum of 6 credit hours).
  • You must accept your loan by accessing your MyValley account.
  • You must agree to the Pre-Loan Certification information on your MyValley Account.
  • You must complete Entrance Loan Counseling if you are a new or first-time borrower at Valley.
  • You must complete and sign a new Master Promissory Note (MPN) if you have not previously borrowed under the Direct Loan program.

If you have borrowed loans in the past, you must complete the Loan Debt Awareness Form.

Processing Fees

All Federal Direct Subsidized and Unsubsidized Loans that first disburse on or after October 1, 2017 are subject to a 1.066% origination fee. For example, if you borrow $3,500, you will receive $3,462.69. ($3,500 x 0.01066 = $37.31, $3,500 - $37.31 = $3,462.69)

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 credit balance/refund. Refer to appropriate class schedule for initial credit balance/refund release dates. Credit balance/refunds are processed weekly; however, it may take up to 14 days from the date your loan has disbursed to your account before you receive your credit balance/refund.