Loans

Student Loans

 

All students borrowing to attend KVCC for the first time are required to complete loan entrance counseling.  Students leaving KVCC, dropping below 6 credits, or graduating are required to complete loan exit counseling.

For Online Entrance/Exit Counseling, click here

Information Regarding Student Loans

 

Loans are borrowed and must be repaid with interest.  Do you have student loans? Need help with your finances? Want to be more money savvy?  Get $ALT!  For more information, click here.

 

Subsidized Willaim D. Ford Federal Direct (Stafford) Student Loan:

Based on financial need.  The principal and interest are both deferred as long as the student is enrolled at least half-time (6 credits). In addition, the principal is deferred until six months after the student graduates or drops below 6 credits--this is known as the “grace period.”  Students with Federal Direct Subsidized Stafford Loans that first disburse between 7/1/2012 and 7/1/2014 will no longer have interest-subsidy benefits during the six-month grace period. Payments on the prinicipal will not be due during the grace period, but interest will accrue.

Unsubsidized William D. Ford Direct (Stafford) Student Loan:

Non-need-based. The interest is either paid while a student is in school or capitalized over the life of the loan. (The principal is deferred until six months after a student graduates or drops below 6 credits.)

Direct Loan Interest Rates

The Bipartisan Student Loan Certainty Act of 2013 ties federal student loan interest rates to financial markets.  Under this Act, interest rates will be determined each June for new loans being made for the upcoming award year, which runs from July 1 to the following June 30.  Each loan will have a fixed interest rate for the life of the loan. The interest rate for new Direct Subsidized and Unsubsidized  Loans made on or after July 1, 2013 and before July 1, 2014 is 3.86%.

Direct Plus Loans
(Parent Loan for Undergraduate Students):

This loan is available to parents of a dependent student (parents must have a good credit history to qualify).  As with Direct Subsidized and Unsubsidized student loans, the interest rate for PLUS loans will be determined each June for new loans being made for the upcoming award year, which runs from July 1 to the following June 30.  Each loan will have a fixed interest rate for the life of the loan. The interest rate for new PLUS Loans made on or after July 1, 2013 and before July 1, 2014 is 6.41%.

Loan Fees:

As of December 1, 2013, Federal Direct Stafford Loans have a 1.072% loan fee taken out at disbursement. For Direct PLUS loans, a 4.288% fee is taken out at disbursement.

Annual Loan Limits

Annual loan limits for subsidized and unsubsidized loans are: $3,500 for first year undergraduates $4,500 for second year undergraduates, and $5,500 for students in a post-Associate’s Degree Advanced Certificate. Dependent students may be eligible to borrow an additional unsubsidized loan of up to $2,000 per academic year. Independent students and dependent students whose parents cannot borrow a PLUS loan may be eligible to borrow an additional unsubsidized Stafford Loan of up to $6,000 per academic year.

30-Day Delay in Disbursement for First-time, First-Year Borrowers

If a student is a first-year undergraduate student and a first-time borrower, KVCC cannot disburse his/her first payment until 30 days after the first day of the enrollment period. This practice ensures that students won't have a loan to repay if they don't begin classes or if they withdraw during the first 30 days of classes.

Double-Disbursement of Loans for Students attending only One Semester

If a student is only enrolled for one semester (for example, the student is enrolled for fall and graduating at the end of the fall semester), that student’s loans must be disbursed half on the standard disbursement date and half at the mid-point of the semester.

Loan Proration:

If a student’s final period of enrollment is shorter than the school’s defined academic year (for example, a student who is graduating after the fall semester), federal regulations require financial aid administrators to prorate annual loan limits. Check with the Financial Aid Office for more information.

150% Direct Subsidized Loan Limit:

First-time borrowers as of July 1, 2013 or students who have paid in full previous FFEL/Direct Loans and are borrowing a new Direct Loan as of July 1, 2013, have a maximum subsidized loan eligibility period of 150% of the published length of the borrower’s academic program. For example, the maximum subsidized loan eligibility period for a two-year Associate’s Degree is three years, generally prorated for less than full-time enrollment. See the following chart:

          Program Length                                              Maximum Eligibility Period

  •  5-year Bachelor’s Degree                                7.50 Years
  • 4-Year Bachelor’s Degree                                 6.00 Years
  • 2-Year Associate’s Degree                                3.00 Years
  • 2-Year Certificate                                            3.00 Years
  • 1-Year Certificate                                            1.50 Years
  • 18-Week Certificate                                         27 Weeks
  • 10-Week Certificate                                         15 Weeks

 

It is important to know that changing programs of study from one program at the same level to another (for example, from one Associate Degree to another) does not reset the measurement to maximum. Eligibility already used is subtracted from maximum eligibility allowed. Students transferring to a four-year degree must subtract eligibility already used from the 6 years they are allowed for a Bachelor’s. 

The Department of Education will calculate a student's remaining loan eligibility based on program-level enrollment data reported by KVCC and other higher-education institutions the student may have attended.  Students who lose subsidized loan eligibility are still eligible for unsubsidized Staffford Direct Loans (provided they meet all other eligibility requirements).  For more information, see "Time Limitation on Direct Subsidized Loan Eligibility."                  

The Student Aid Report (SAR) that you receive from the Department of Education after filling out your 2014-15 FAFSA will indicate whether you are subject to the 150% limit, and if so, will let you know your subsidized usage periods to date, whether you have reached your 150% limit, and if you are now responsible for interest that is accruing. You can monitor your Maximum Eligibility Period or Remaining Eligibility Periods by logging into the National Student Loan Data System

Alternative Loans:

These loans are not federal loans and not federally guaranteed. Borrowers are subject to a credit check, and interest rates vary. For more information, check with the Financial Aid Office.

No Preferred Lender List for Alternative Loans

KVCC does not have a “preferred lender list” for alternative loans. The following lenders have issued alternative loans to KVCC borrowers in the last five years:

  • Bank of America
  • Maine Educational Loan Authority
  • Key Bank
  • Sallie Mae
  • Suntrust Bank
  • TERI
  • Wells Fargo

 

Should KVCC provide information regarding a private education loan from a lender to a prospective borrower, KVCC will provide information to the prospective borrower, including:

  • Information required under Sec. 128(e) of the Truth in Lending Act (15 U.S.C. 1638(e) (see http://www.law.cornell.edu/uscode/15/usc_sec_15_00001638----000-.html)
  • That the prospective borrower may qualify for loans or other assistance under Title IV, HEA programs; and
  • That the terms and conditions of Title IV, HEA program loans may be more favorable than the provisions of private education loans.

 

Monitor Student Debt Via the NSLDS Student Access Website

To monitor all of your federal student loan debt, you may access the National Student Loan Data System (NSLDS) online or call toll-free 1-800-999-8219. You will need your federal PIN number to view your loan history. Please note that this website does not list your alternative or private student loans.

It is important that you know who your loan servicer is so you can contact them prior to going into repayment.  To determine your servicer, click on "Financial Aid Review," then click on the "Accept" button, and again click "Accept" on the following screen.  Type in your Social Security Number, the first two letters of your last name, your date of birth and click "Submit." Then click on "Financial Aid Review."  Your loan information will appear.  You can click on the blue number on the left side of the screen that corresponds with each loan to see the associated servicer and contact information. 

Information on any Stafford loan taken out by a student or parent will be submitted to the NSLDS, and will be accessible by guaranty agencies, lenders, and institutions determined to be authorized users of the data system.

Loan Calculator

Calculate what your monthly payments would be when you go into repayment under various repayment plans with this loan calculator.   

Federal Loan Limits and Refusal to Certify a Stafford Loan:

Through debt management and loan counseling, students are discouraged from borrowing more than the “recommended” eight percent of projected first-year earnings.

Individual, comprehensive counseling by KVCC’s Loan Counselor is recommended for any student wishing to borrow. (Borrowers are encouraged to limit borrowing requests to a combination of subsidized and unsubsidized Federal Stafford loans that does not exceed the College’s average 2012-2013 graduating student’s indebtedness of $11,854 for the 55% of graduating students who had loans.) KVCC reserves the right, as granted by the U.S. Dept. of Education, to refuse to certify a student’s Stafford loan or to certify the loan for an amount less than the established federal limits. In that instance, KVCC must document the reason and provide that written explanation to the student. KVCC’s decision is final and cannot be appealed to the Dept. of Education.

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