This non-need based loan is identical to the Subsidized Direct 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 borrow 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 complete the KVCC Financial Aid Adjustment Form and request an unsubsidized loan.
- 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 student loans in the past, you must also complete the Loan Debt Awareness Form.
Processing Fees
All Federal Direct Subsidized and Unsubsidized Loans that first disburse on or after October 1, 2015 are subject to a 1.068% origination fee. For example, if you borrow $3,500, you will receive $3,462.62. ($3,500 x 0.01068= $37.38, $3,500 - $37.38 = $3,462.62)
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.
