Federal Stafford Loan Program Information
Federal Stafford loans are available to classified students who are enrolled at least half-time (6 credits) to help pay the cost of their educational expenses. The interest rate is as follows:
|
School Year |
Subsidized Loan |
Unsubsidized Loan |
|
2009-2010 |
5.6% |
6.8% |
|
2008-2009 |
6.0% |
6.8% |
|
2007-2008 |
6.8% |
6.8% |
|
2006-2007 |
6.8% |
6.8% |
|
Prior to July 1, 2006 |
Variable not to exceed 8.25% |
Variable, not to exceed 8.25% |
Repayment begins six months from the date of graduation, withdrawal, or enrollment of less than half-time. There is no prepayment penalty.
A Stafford loan may be listed on your financial aid award offer, but you must complete all of the loan requirements.
There are two types of Federal Stafford loans
Subsidized:
Awarded to students who demonstrate financial need as determined by the Financial Aid Office. Interest is paid by the Federal government while you are enrolled at least half-time and during the six-month grace period after leaving school.
Unsubsidized:
Typically awarded to students who do not demonstrate financial need or may be used to supplement a Subsidized Stafford loan. You are responsible for interest that accrues on the loan, which starts after the loan is disbursed. Although, principal payments can be postponed; interest will be capitalized, meaning the lender will add the accrued interest to the principal balance you owe.
The Master Promissory Note
If you accept a Federal Stafford Loan, you must complete a Master Promissory Note (MPN) confirming to the lender that you will repay funds that you borrow under this loan program.
The first year you borrow at KCC, you will need to complete the MPN. The MPN covers all Stafford loans borrowed while you remain at KCC and continue borrowing from the same lender.
The MPN eliminates the need to complete a promissory note every year to receive additional loans (in most cases). You will confirm the amount of loan funds requested for each academic year through the Federal Stafford Loan Request Form.
Annual Loan Limits
|
Class Level |
Dependent Student |
Independent Student |
|
Freshmen |
||
|
Base Stafford loan eligibility (subsidized and unsubsidized) |
$ 3,500 |
$ 3,500 |
|
Additional Unsubsidized Stafford loan eligibility |
$ 2,000 |
$ 6,000 |
|
Maximum Freshmen Eligibility |
$ 5,500 |
$ 9,500 |
|
Sophomore |
||
|
Base Stafford loan eligibility (subsidized and unsubsidized) |
$ 4,500 |
$ 4,500 |
|
Additional Unsubsidized Stafford loan eligibility |
$ 2,000 |
$ 6,000 |
|
Maximum Sophomore Eligibility |
$ 6,500 |
$ 10,500 |
Apply for a Federal Stafford Loan
If you are interested in borrowing a Federal Stafford Loan, you will need to go online to complete the three step process:
1) Stafford Entrance counseling
2) Stafford Loan Request Form, and
3) Master Promissory Note (MPN).
If you haven't already done so, you must complete the Free Application for Federal Student Aid (FAFSA) before applying for these loans. For more information, see "Steps to Apply for a Federal Stafford Loan" under the Related Links section.
