Kansas City Kansas Community College

Federal Stafford Student Loan Policy

Kansas City Kansas Community College

Student Financial Aid Office

KCKCC Federal Stafford Student Loan Policy

Federal regulations prohibit the receipt of federal student aid (grants and/or loans) at more than one school for the same enrollment period.

KCKCC currently participates in the Federal Family Education Loan Program (FFELP).

KCKCC requires students to complete a new Loan Request form each time loan funds are requested.

All loans will be delivered in two (2) disbursements each semester. The disbursement dates are set by the school according to when the student begins attendance in six (6) credit hours of coursework. Students must be enrolled in at least six (6) credit hours and in attendance of those six (6) hours of course work and enrollment status is checked each time a disbursement is received.

Students must be enrolled in courses before a loan request will be processed. This will allow disbursement dates to match course start dates.

Students 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.

All loans will be delivered in two (2) disbursements each semester. Anticipated disbursement dates are set by the school according to when the student begins attendance in six (6) credit hours of coursework. The disbursement date is the day the bank has been asked by the Student Financial Aid Office to send the funds to the college. The disbursement date is not the day the student will receive the loan funds.

Students have the right to cancel all or a portion of a federal student loan prior to disbursement. To cancel a student loan, the student must do so in writing to the Student Loan Coordinator in the Student Financial Aid Office.

Student loan borrowers who have not previously received a student loan at KCKCC are "New Student Loan Borrowers." All new student loan borrowers at KCKCC must complete the Borrower Entrance Counseling Session on the Internet at http://www.kckcc.edu/admissions/financialAid. New borrowers must complete the Borrower Entrance Counseling session before student loan applications will be processed.

Any financial assistance received from an outside source for educational expenses must be reported to the Student Financial Aid Office (example: scholarships, VA benefits, Vocational Rehab, JTPA, etc.)

Once a student defaults on a federal student loan, no federal aid (loans, grants or workstudy) will be processed until the default is cleared. In order to verify the default has been cleared, the student must submit to the Student Financial Aid Office a copy of a letter from the agency that reported the default. This letter must verify the default has been cleared and the student is now eligible to receive federal Title IV aid.

Students who have previously defaulted on a student loan may be required to complete a Borrower Entrance Counseling Session before receiving the first disbursement of his/her student loan funds.

Students who have had federal student loans discharged because of total and permanent disability are eligible to receive additional loans after certifying the disability has improved sufficiently to engage in substantial gainful activity. Any federal student loans received based on this certification may not be cancelled. The necessary forms must be obtained from and returned to the lender or guarantor.

When a student drops and/or withdraws to less than six (6) credit hours, the lender will be notified. This notification will result in the return of any available loan funds and the cancellation of any pending disbursements.

Students placed on "Financial Aid Exclusion," for not making satisfactory academic progress are not eligible to receive federal Title IV funds, which includes Pell Grant funds, SEOG funds, work-study funds, and student loan funds. Any pending loan disbursements will be cancelled as a result.

In completing the Loan Request form, the borrower must provide a name of a lender (banking institution) and that lender’s Department of Education lending code. The lender must participate in the Federal Family Education Loan Program. A recommended lender list is provided to assist new borrowers in choosing a lender. Students with prior loans should select the lender used previously, if still participating in FFELP. Students may find previous loan history at the National Student Loan Data System (NSLDS) web-site: www.nslds.ed.gov

In an effort to assist borrowers to keep one source of contact for loan repayment, KCKCC reserves the right to change the lender choice indicated on the student’s LRF if the student has borrowed a previous loan with another lender.

Electronic Funds Transfer (EFT) – Student loan funds are electronically received by KCKCC. The KCKCC Business Office will deduct from the loan funds any tuition, fees and/or bookstore charges owed to the college.

On the disbursement date the lender disburses the loan funds to the college, the enrollment status will be checked and then the student loan funds will be credited to the student’s KCKCC account. Remaining loan funds will be delivered to the student by the KCKCC Business Office through HigherOne Bank according to the delivery preference selected by the student at www.kckccdebitcard.com Excess funds will be delivered to the student within 13 days after the loan disbursement date.

A list of lenders is provided by KCKCC. The lenders on the list provided by KCKCC have been selected based on past experience and qualifications. KCKCC and/or the Student Financial Aid Office do not benefit from referring students to any lender. Even though we provide the list, students are free to choose any lender that participates in FFELP. Should the student prefer to use a lender that is not on the list provided by KCKCC, the Student Loan Coordinator should be contacted at (913) 288-7144 and arrangements will be made to process the loan request as expeditiously as possible?

Paper Check – If the lender chosen does not work with KCKCC electronically, the funds may be disbursed in a paper check. Paper student loan checks sent to KCKCC by a lender are made payable to both the student and KCKCC, therefore, it will be necessary for the student to endorse the paper check. Students will be notified by mail as to when the check is available for to endorse. Students must obtain a release form from the KCKCC Financial Aid Office to take to the KCKCC Business Office before endorsing the check. The KCKCC Business Office will then deposit the funds into the student’s account and deliver to the student the amount of funds remaining in the account after tuition, fees and books have been deducted.