Kansas City Kansas Community College
Student Financial Aid Office
The Federal Stafford Loan Program
The Federal Stafford Loan Program is a federal program that assists students by providing low-interest loans to help cover the cost of education. Repayment begins six (6) months after you graduate, withdraw, or cease to be enrolled at least half-time (6 credit hours). It is important to note, that your loan must be repaid and cannot be forgiven through bankruptcy proceedings. Borrow Responsibly!!
How Much Can You Afford to Borrow?
Before you accept loan funds, take a minute to think about how much you need to borrow and how much you can afford to borrow. Check out starting salaries for your career choice at http://www.salary.com/. It is better to prioritize and make sacrifices while in college than to struggle with large loan payments that limit financial resources for years after graduation.
Stafford Loans may be Subsidized or Unsubsidized.
Subsidized Stafford Loans are awarded based on financial need as determined by your FAFSA results. You will not be required to pay interest while you are in school, during your grace period, or during any authorized periods of deferment. The federal government "subsidizes" the interest during these periods.
Subsidized Loan Calculation:
Cost of Attendance (COA)
- Expected Family Contribution (EFC)
- Other Financial Aid Received
- Subsidized Loan Eligibility
Unsubsidized Stafford Loans are not based on need (the FAFSA is still a requirement). You will be required to pay interest from the time the loan is disbursed until it is paid in full. You may elect to have the interest accumulate while in school, however, this will result in greater load indebtedness.
Unsubsidized Loan Calculation:
Cost of Attendance (COA)
- Other Financial Aid Received
- Subsidized Loan Eligibility
Unsubsidized Eligibility
Student loan funds may be reduced or canceled at any time during the semester if you receive additional financial aid funds which result in exceeding your Cost of Attendance budget.
Maximum Annual Loan Limits
By federal regulation, there are annual limits to the amount you can borrow in both subsidized and unsubsidized loan funds (see below). You may be awarded less than the annual limit if you are receiving other financial assistance that causes you to exceed your Cost of Attendance budget.
Academic Year Maximum Amounts for 2009-2010
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Dependent Undergraduate Students
(Except Students Whose Parents Cannot Borrow PLUS Loans)
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Grade Level
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One Semester Maximum
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Academic Year Maximum
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Freshman
1-29 earned hours
(according to KCKCC transcript)
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$2,750.00
(No more than $1,750.00 may be subsidized.)
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$5,500.00
(No more than $3,500.00 may be subsidized.)
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Sophomore
30 earned hours
(according to KCKCC transcript)
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$3,250.00
(No more than $2,250.00 may be subsidized.)
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$6,500.00
(No more than $4,500.00 may be subsidized.)
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Independent Undergraduate Students and Dependent Students Whose Parents Have Been Denied a PLUS Loan
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| |
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Grade Level
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One Semester Maximum
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Academic Year Maximum
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Freshman
1-29 earned hours
(according to KCKCC transcript)
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$4,750.00
(No more than $1,750.00 may be subsidized.)
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$9,500.00
(No more than $3,500.00 may be subsidized.)
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|
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Sophomore
30 earned hours
(according to KCKCC transcript)
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$5,250.00
(No more than $2,250.00 may be subsidized.)
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$10,500.00
(No more than $4,500.00 may be subsidized.)
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| Note! KCKCC is a two-year college. All students who have over 30 credit hours earned will be classified as a sophomore even though they may be considered at a higher classification at a four-year college or university. |
A dependent student whose parents are denied a Federal PLUS Loan may be eligible to borrow up to the amounts indicated for independent students. Contact the KCKCC Student Financial Aid Office for more information.
Undergraduate Aggregate Loan Limits
In addition to the annual limits, Federal regulations restrict undergraduate borrowers to the following aggregate limits in both Subsidized and Unsubsidized loan funds:
Dependent Student: A dependent undergraduate student's unpaid principal amount of all subsidized and unsubsidized Stafford loans (including all Direct Stafford loans received or any portion of an outstanding Consolidation loan that paid in full a Stafford or Direct Stafford loan) may not exceed $31,000.00 for undergraduate study, with subsidized Stafford loans comprising no more than $23,000.00 of the total limit.
Independent Student: An independent undergraduate student's unpaid principal amount of all subsidized and unsubsidized Stafford loans may not exceed $57,500.00 for undergraduate study, with subsidized Stafford loans comprising no more than $23,000.00 of the total limit. This includes all SLS and Direct Stafford loans received or any portion of an outstanding Consolidation loan that paid in full a Stafford, SLS, or Direct Stafford loan.
An undergraduate student is one who has not yet earned a bachelor's degree.
Entrance and Exit Loan Counseling Requirement
Federal regulations require first-time borrowers at KCKCC to complete on-line Student Loan Entrance Counseling before loan funds will be disbursed. Federal regulations also require on-line Student Loan Exit Counseling if you graduate, withdraw, or drop to less than half-time enrollment (6 credit hours). KCKCC will not release your academic transcript until this requirement has been satisfied.
The Master Promissory Note (MPN) Requirement
KCKCC requires students to sign a new MPN for each academic year in which loan funds are requested. If you are borrowing for the first time at KCKCC, you must complete the Student Loan Entrance Counseling online before your request for loan funds can be processed.
NOTE: The Master Promissory Note is a legal document requiring borrowers to repay the loan. Read it carefully before signing. Print a copy for your records.
Stafford Loan Process At KCKCC
KCKCC does not automatically award students loan funds based on the information you submit on your FAFSA.
If you wish to receive Stafford Loan(s), you must follow the steps below. These steps must be followed in order. Taking the steps out of order could delay the processing of your student loans.
- Complete a “Student Loan Request.” The form is available online and at the main campus Student Financial Aid Office, the TEC Center, and the Leavenworth Center.
- Complete the “Student Loan Entrance Counseling” session if you have not borrowed previously at KCKCC at http://www.kckcc.edu/admissions/financialAid.
- The Student Loan Request will be processed by the Financial Aid Office.
- The student will be mailed an award notice indicating the amount of the loan award and information about when the loan funds will be available.
- The student will be sent an official Award Notice by the KCKCC Student Financial Aid Office indicating the loan amount approved for each semester. Included with the award notice will be instructions for completing a Federal Stafford Loan Master Promissory Note (MPN) at the lender’s website. At this website, students will have the option of completing the master promissory note online or completing a hard copy application/promissory note. Loan funds will not be released to KCKCC until this last step is completed.
Once processed, loan funds are sent to KCKCC in two equal disbursements each semester to pay for your tuition, fees, room, board, and other college expenses. Any remaining funds are released to you in the form of a check. Remaining funds must be used for educational related expenses.
The Process & Players of the Federal Student Loan Program
KCKCC participates in the Federal Family Education Loan (FFEL) Program. Under this federal program, funds are loaned to students by private lenders such as banks or credit unions that participate in the FFEL program. A listing of lenders is attached. The lenders on this list have been selected based on past experience and qualifications. Neither KCKCC nor the Student Financial Aid Office benefits from referring students to any lender. Even though we provide the list below, you are free to choose any lender that participates in FFELP. Should you prefer to use a lender that is not on our list, please contact the Student Loan Coordinator at (913) 288-7144 and arrangements will be made to process your loan request as expeditiously as possible. Interest rates and terms of the loan are set by the U S Department of Education, regardless of the lender selected. For more information on a Lender List.