Skip Navigation Links
Skip Navigation Links
About
Admissions
Academics
Continuing ED
Alumni
Community
Donate
Skip Navigation LinksKCC Home > Financial Aid > Federal Direct Loan

Students seeking a loan under the William D. Ford Federal Direct Loan Program must complete a Free Application for Federal Student Aid (FAFSA) to determine their eligibility. 

Eligibility for William D. Ford Federal Direct Loans

To be eligible for a Federal Direct Loan, a student must:

  • be a U.S. Citizen or permanent resident
  • maintain satisfactory academic progress
  • not be in default on a prior educational loan(s)
  • be matruculated and registered for a minimum of 6 undergraduate credits per semester.

Maximum Annual Loan Amounts

Dependent Students

Base Amount (may be subsidized or unsubsidized)

Additional Unsubsidized Amount

Total Subsidized and Unsubsidized Amount

1st year - fewer than 30 credits earned

up to $3,500 per year

up to $2,000 per year

up to $5,500 per year

2nd year –30 or more credits earned

up to $4,500 per year

up to $2,000 per year

up to $6,500 per year

undergraduate aggregate maximum

up to $23,000

up to $8,000

up to $31,000

Independent Students

Base Amount (may be subsidized or unsubsidized)

Additional Unsubsidized Amount

Total Subsidized & Unsubsidized Amount

1st year - fewer than 30 credits earned

up to $3,500 per year

up to $6,000 per year

up to $9,500 per year

2nd year - 30 or more credits earned

up to $4,500 per year

up to $6,000 per year

up to $10,500 per year

undergraduate aggregate maximum

up to $23,000

up to $34,500

up to $57,500

There are two types of Federal Direct Student Loans

Subsidized Federal Direct Loan:

The interest on this type of loan is paid by the Federal government while a student is attending college. To be eligible for a Subsidized Federal Direct Loan, the applicant must:

  • file a FAFSA to determine the Expected Family Contribution (EFC)
  • show financial need
  • be enrolled for at least half-time study at an approved institution, be a United States citizen or permanent resident
  • demonstrate satisfactory academic progress
  • not be in default on a prior educational loan

MAXIMUM a student can borrow in SUBSIDIZED LOANS

Cost of attendance - expected family contribution = estimated financial assistance

Unsubsidized Federal Direct Loan:  

The interest on this type of loan is paid by the student while attending school or the interest is accrued and added to the principal loan amount. To be eligible for an Unsubsidized Federal Direct Loan, the applicant must:

  • demonstrate satisfatory academic progress
  • not be in default on a prior educational loan
  • not borrow in excess of the Cost of Attendance

MAXIMUM a student can borrow in UNSUBSIDIZED AND PLUS LOANS

Cost of attendance - estimated financial assistance = maximum loan amounT

Origination Fees

Origintion fees are fees which are a percentage of the total loan amount. The loan fee is deducted proportionately from each loan disbursement students receive. This means the money a student receives will be less than the amount actually borrowed. Students are responsible for repaying the entire loan amount borrowed and not just the amount received.

The chart below shows the loan fees for Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans first disbursed on or after Dec. 1, 2013.

Loan Type

First Disbursement Date

Loan Fee

Direct Subsidized Loans and Direct Unsubsidized Loans

On or after 12/1/13 and before 10/1/14

1.072%

On or after 10/1/14 and before 10/1/15

1.073%

Direct PLUS Loans

On or after 12/1/13 and before 10/1/14

4.288%

On or after 10/1/14 and before 10/1/15

4.292%


Direct PLUS Loan

PLUS loans are federal loans that parents of dependent undergraduate students can use to help pay for college.

The annual limit on a PLUS Loan is equal to the student's cost of attendance minus any other financial aid the student receives.  For example, if the cost of attendance is $6,000 and the student receives $4,000 in other financial aid, the student's parent can request up to $2,000 in a PLUS Loan.

In most cases, the loan will be disbursed in at least two installments, and no installment will be more than half the loan amount. The college will use the loan funds to pay the student's tuition, fees, room and board, and other school charges (in that order.) If any loan funds remain, the parent will receive the remaining amount as a check or other means. Any remaining loan funds must be used for the student's education expenses.

The interest rate is fixed at 7.21%. Interest is charged from the date of the first disbursement until the loan is paid in full. The parent will pay an origination fee of 4.292% of the loan amount, deducted proportionately each time a loan disbursement is made.

The repayment period for a Direct PLUS Loan begins at the time the PLUS loan is fully disbursed, and the first payment is due within 60 days after the final disbursement. However, for Direct PLUS Loans with a first disbursement date on or after July 1, 2008, the parent may defer repayment while the student for whom the PLUS Loan was borrowed is enrolled at least half-time, and for an additional six months after the student ceases to be enrolled at least half-time.

TO RECEIVE A PLUS LOAN:

  • The student must complete a FAFSA application

  • The student and parents must be U.S. Citizens or eligible non-citizens

  • Parents must be able to pass a credit check

  • The students and parents must not be in default of any loan or owe an  overpayment for FSA grant

  • The dependent student must enrolled be at least half-time

    Interest Rates 

    Interest Rates for Direct Loans First Disbursed on or After July 1, 2013

    Loan Type

    Borrower Type

    Loans first disbursed on or after 7/1/13 and before 7/1/14

    Loans first disbursed on or after 7/1/14 and before 7/1/15

    Direct Subsidized Loans

    Undergraduate

    3.86%

    4.66%

    Direct Unsubsidized Loans

    Undergraduate

    3.86%

    4.66%

    Direct Unsubsidized Loans

    Graduate or Professional

    5.41%

    6.21%

    Direct PLUS Loans

    Parents and Graduate or Professional Students

    6.41%

    7.21%

    How to Apply for a Federal Direct Student Loan:

    1.  First-time Direct Loan borrowers at KBCC,  must complete an Entrance Counseling If you are a first-time Direct Loan borrower at KBCC, you must sign an Electronic Master Promissory Note. 
       
    2. Decide the amount you wish to borrow (refer to the maximum loan amount table above)

    Complete and submit an online Federal Direct Loan Request
    (follow the steps below as web guide)

    A paper application is also available under downloadable forms, which may be completed and submitted to the Financial Aid Office in Room U201.


    Increasing/Decreasing/Canceling a Direct Loan:Students who wish to increase, decrease or cancel a Direct Loan before the funds disburse must complete and submit a Direct Loan Adjustment Request, to the Financial Aid Office.

    How to Apply for a Federal Direct PLUS Loan:

    • A PLUS Loan request can be found under downloadable forms, the form must be completed in its entirity and submitted to the financial aid office
    • The parent applying for the PLUS Loan must complete a credit check by visiting: www.studentloans.gov
    • After the credit check is approved, the parent must Complete an Electronic Master Promissory Note for the Parent Plus Loan
    • Once the loan is processed by the Financial Aid Office a "disclosure statement" notification will be sent to parent.

    What Happens Next:

    • It takes approximately two weeks for a loan to be processed by KBCC
    • If an online loan request is submitted, the student will receive a confirmation via e-mail as notification that the loan has been processed by the school.  If a paper application has been submitted a disclosure statement follows.
    • Your request will be processed after we have determined that:
              a. you have filed a FAFSA for the current academic year;
              b. the information you provided on your FAFSA is correct;
              c. you have registered for at least 6 credits or the equivalent.
    • The Bursar will be notified about your request-in-progress within 3 to 5 business days.
    • Once your request has been submitted the student will be sent a Loan Disclosure Statement in the mail  from the Dept. of Education,  that summarizes information about the type of loan, the approved amounts and the estimated dates of disbursement
    • Your electronic Master Promissory Note (e-MPN) must be acknowledged and approved by the Dept. of Education before any funds can be authorized for disbursement
    • If you do not sign the e-MPN, a paper MPN will be mailed to you about two weeks after your loan request is processed. Sign and return the paper MPN in the envelope provided or log-on to the e-MPN web site and complete the MPN electronically. Be aware that utilizing the paper method may delay receipt of your loan funds.    Note: if you previously signed an MPN that did not result in a disbursement of Direct Loan funds, you must resign your MPN for any new loan requests
    • Your loan will be disbursed in at least 2 installments. The first disbursement can be no more than 1/2 of the total approved loan amount. For loans covering the full academic year (Fall & Spring semesters), each disbursement will be about 30 days after the start of the fall and spring semester respectively. For loans covering one semester, the second disbursement will occur midway through the semester
    • Your class attendance will be checked to make sure you actually began attending your classes and are continuing to attend on at least a half-time (6 credit) basis prior to the release of any loan funds. If you receive a disbursement of Direct Loan funds for classes you have never attended, you must return the entire payment immediately to the College.             
    • The Bursar may deduct unpaid tuition charges from your loan before releasing funds to you
    • You will be notified via e-mail as to the date your funds become available. The portion of your loan not deducted for tuition charges will be issued as a payment to your CUNY Scholar Support Prepaid Card or direct deposited to your personal bank account on the scheduled disbursement date. If you have not elected the prepaid card or direct deposit options, your loan proceeds will be available as a check mailed to your home

    Alternative Loans:

    Alternative loans, also called private loans,  are used at KBCC Community College by students and their families when:

    •  the student is not eligible for Federal Direct Loans because they do not meet the federal eligibility requirements
    • the student is receiving the maximum Federal Direct Loans allowed for a particular loan period but still needs additional funds to meet the cost of attendance
    • Alternative loan costs vary widely between lenders. All private lenders will review the borrower’s credit history and some will require a co-signer. The Office of Financial Aid at KBCC Community College does not endorse or recommend any particular alternative loan program or any particular private lender. Students and their families should carefully consider the interest rates, loan fees, and terms of the alternative loan program before deciding on a private lender
    • Some alternative loan programs have restrictions regarding the minimum number of credits for which the student must enroll, as well as the requirement that the student must be matriculated (enrolled in a degree program)

    Students and parents who are eligible for Federal Direct Loan funds should always borrow through the Federal Direct Loan program before turning to alternative loans to finance their education.

     
     
    kccFacebook KCCTwitter
    Privacy Statement | GAINFUL EMPLOYMENT | Disclaimer | LIAISONS | Text Only | Make This Website Talk  

    Kingsborough Community College
    2001 Oriental Boulevard, Brooklyn, NY 11235-2398 | (718)-368-5000
    Kingsborough is CUNY