• Federal Direct Stafford Loans – Department of Education Title IV
    The interest rate is fixed at 6.8 percent. An origination fee of 1 percent is charged and deducted from the loan proceeds. Additional details are provided below:

    • Federal Subsidized Stafford Loans
      Beginning July 1, 2012, this loan is no longer available to graduate/professional students. 
    • Federal Unsubsidized Stafford Loan
      This program provides $20,500 per year with a cumulative maximum of $138,500, less the amount of subsidized Stafford. Interest begins to accrue at disbursement; unpaid interest will capitalize at repayment.

    Federal Perkins Loan – Department of Education Title IV
    Perkins monies are contingent on the availability of funds and the demonstration of need according to federal regulations and University guidelines. The interest rate is 5 percent. The cumulative amount is $60,000 (including undergraduate loans).

    Federal Direct GradPLUS Loan – Department of Education Title IV
    The Federal GradPLUS loan program was made available July 1, 2006. Congress extended the undergrad PLUS (parent) loan to allow graduate students to borrow on their own signature up to the cost of attendance (less the amount of Unsub Stafford loan and other aid). A credit check is required. The interest rate is fixed at 7.9 percent; requires the borrower to pay a 4 percent origination fee which is deducted from the loan proceeds. The GradPLUS enters repayment immediately after it is fully disbursed, at which time it is placed in an in-school deferment while the student continues in school. The loan enters a six-month post-enrollment deferment at the time the student is no longer enrolled. The same deferment and forbearance options apply as with Stafford Loans.

    For more information regarding federal student loans, go to: http://studentaid.ed.gov/PORTALSWebapp/students/english/funding.jsp

    Application information will be e-mailed to the student who has paid their initial admissions fees in the spring. This will provide instructions needed to complete the online application for Financial Aid.

    Once the student has submitted the required documents and completed forms as listed on the application for Financial Aid, the Financial Aid Office determines his or her aid eligibility. An Aid Award Offer is then sent to the student to notify him or her of eligibility for the following programs:

    • Federal Unsubsidized Stafford Loan
    • Federal Perkins Loan
    • Federal Graduate PLUS Loan

    The calculation to determine financial aid eligibility is: Cost of Attendance (KCU Student Budget) minus Outside Resources (scholarships, etc) equals Eligibility.

    Each student must complete an online Entrance Counseling Session at https://studentloans.gov/myDirectLoan/index.action prior to the release of these funds. Each student must also complete a Direct Stafford loan Master Promissory Note (MPN) and a Direct GradPlus loan MPN online at https://studentloans.gov in order to receive funds from these programs.

    Student Loan Disbursements

    Student loans are dibursed in two equlal disbursements, with the first at the beginning of the academic year, and the second at the midpoint of the academic year.  The student must successfully complete the first half of the academic year with the minimum 2.5 GPA in order to qualify for their second disbursement.

    The student will receive a Disbursement Schedule at the beginning of the academic year to aid in budgeting their student loan funds. Direct loan funds are received into the University's bank account by electronic funds transfer from the U.S. Treasury. The funds are posted to the student's tuition account by the Business Office for the amount due at that time and the remainder is refunded to the student for other educational and living expenses. This process may take up to 14 days.

    Conflicting Information

    If a review of student financial information reveals discrepancies or shows conflicting information, no federal, state or other financial aid will be released until the discrepancy or conflicting information is resolved. The following guidelines concerning discrepancies are in effect:

    • Students who fall into this category may be school-selected for verification. A verification worksheet will be mailed to the student by the Financial Aid Office;
    • The student will be given every opportunity to provide an explanation or documentation to resolve the conflict;
    • If the Financial Aid Office gives an adverse decision, the student may submit a written request for appeal to the Director of Financial Aid.

    Student Portal to Federal Student Aid: https://.studentloans.gov

    Federal Title IV (Dept of Education) Loan History: www.nslds.ed.gov

    The Federal Student Aid Ombudsman Group: www.ombudsman.ed.gov/
    This website offers a resource where individuals can turn after trying other ways to resolve a federal student aid dispute. Assistance request are generated from phone calls, letters and e-mails, and are classified as either general assistance or research problem assistance. In the Dodd-Frank Wall Street Reform and Consumer Protection Act, Congress established an Ombudsman for private student loans within the Consumer Financial Protection Bureau to assist borrowers with private student loan complaints. This means a single federal agency is now responsible for watching out for all students and families who choose to borrow private student loans.

    Federal Student Aid on the Web: https://.studentloans.gov

    Glossary of Federal Student Aid Terms: http://studentaid.ed.gov/glossary

    Free Scholarship Searches:

    FTC Scholarship Scams: www.ftc.gov/bcp/edu/microsites/scholarship/