Direct Unsubsidized Loan
This non-need based loan is identical to the Subsidized Direct 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. Federal Direct student loans have annual and lifetime limits. Additionally, students cannot borrower more than the cost of attendance minus other financial aid.
Actions you MUST take to receive your 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 complete the Pre-Loan Certification Form
- You must complete Entrance Loan Counseling if you are a new or first-time borrower at Valley
- First-time loan borrowers at KVCC must also submit a KVCC Loan Request/Adjustment Form with verification attached demonstrating that they have completed Financial Awareness Counseling
- 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 received loans at another college, you must also complete the Transfer Certification Form and attach a copy of your "Financial Aid Review" page from www.nslds.ed.gov.
Processing Fees
All Federal Direct Subsidized and Unsubsidized Stafford Loans that first disburse on or after July 1, 2013 are subject to a 1.051% origination fee. For example, if you borrow $3,500, you will receive $3,463.21. ($3,500 x 0.01051= $36.79, $3,500 - $36.79 = $3,463.21)
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.
