Student Loans

• Subsidized Stafford Loan
• Unsubsidized Stafford Loan
• How to Apply for a Loan
• Steps to Receive a Student Loan
• How much am I eligible to borrow?
• How am I Paid?
• Important Loan Facts
• Loan Checklist

Subsidized Stafford Loan

Students must show financial need to qualify for the subsidized loan. The federal government, on behalf of the borrower, pays the interest that accrues while the student is in school during authorized deferment periods and for six months after the student ceases to be enrolled at least half time (six semester hours). The borrower begins paying the interest when the loan enters repayment. The fixed interest rate for subsidized loans disbursed between July 1, 2011, and June 30, 2012, is 3.4%. For additional information, go to www.studentloans.gov.

Back to top

Unsubsidized Stafford Loan

Students are not required to show financial need to qualify for the unsubdued loan. Unlike the subsidized loan, the borrower must pay all interest that begins to accrue immediately upon disbursement regardless of enrollment status or loan deferments. Interest can be paid monthly or quarterly or be capitalized (added to the principal balance). The fixed interest rate for unsubsidized loans disbursed between July 1, 2011, and June 30, 2012, is 6.8%. For additional information, go to www.studentloans.gov.

Back to top

How to Apply for a Loan

• File your FAFSA and submit all requested documents to the WKCTC Financial Aid Office.
• Meet all WKCTC Admissions requirements.
• Returning, transfer, or re-entering students must maintain Satisfactory Academic Progress.
• Enroll (and remain enrolled) for at least 6 semester hours in the term for which you are borrowing the student loan.
  
  Summer only: A paper application is required.
  

Back to top

Steps to Receive a Student Loan

!!!Your loan will not disburse and will not be used for a tuition deferment and bookstore charges unless these 3 steps are completed!!!

• STEP 1
  Complete the Online Loan Entrance Counseling at http://www.studentloans.gov for undergraduate, Subsidized/Unsubsidized Loans. All first-time Direct Loan borrowers (the student) must complete this step regardless if you have completed it before. Once completed, the session will satisfy the entrance counseling requirements for WKCTC. “Reviewing” the counseling does not fulfill the requirement. If you are successful you will receive a confirmation statement, and you may print a copy for your records.
• STEP 2
  Complete and E-sign your Master Promissory Note (MPN) for undergraduate, Subsidized/Unsubsidized Loans, at http://www.studentloans.gov, using the same PIN you used to sign your FAFSA. If you are successful you will receive a confirmation statement, and you should print a copy for your records.
• STEP 3 : (you must have created your user profile at the KCTCS User Account Center).
  Once the loan is offered in your KCTCS PeopleSoft Student Self Service account, accept/decline, and submit the acceptance following the link: https://students.kctcs.edu. You do not have to accept the full amount just because it is offered. You can reduce the amount.
  • From the home page in your Student Center, scroll down the page to your Finances section.
  • Click the “View Financial Aid” icon and the “Select Aid Year to View” where you will select year “2012.”
  • This will show you the term awards; i.e., fall/spring, fall, spring, or summer.
  • Go back to Finances and select Accept/Decline Awards.
  • Accept: Click the accept box. If you want to accept all loans offered you can click Accept All.
  • Decline: Click the decline box. If you want to decline all loans offered you can click Decline All.
  • Reduce: Click accept first, the accepted amount will highlight and then you type in the lesser amount you want.
  • After you choose the options for your award, you must click submit at the bottom of the screen.
  • If you have any questions regarding this notice please call the Financial Aid Office at 534-3248.
    Remember the amount will be divided in half. A year loan is half for fall and half for spring. If you have a one semester loan, please contact the office for assistance to reduce the amount. Borrow responsibly! Remember this is money you must pay back with interest and the government has a cap on the amount you can be indebted. If you do not respond within 30 days of the offer, WKCTC reserves the right to cancel the loan offer.
    

Back to top

How much am I eligible to borrow?

Loan Limits are based on the limits set by the U. S. Department of Education. The freshmen level (less than 30 hours earned) loan is $3,500. A one semester freshmen loan amount is $1,750. The sophomore level (30 hours or more earned) loan amount is $4,500. A one semester sophomore loan amount is $2,250. Students graduating loan amounts will be prorated based on the number of hours enrolled. Refer to Loan Limit Chart.

Also, just because you requested the full amount does not mean you are eligible to receive that amount. Several factors are involved in determining the amount. Wait until you receive notification of your loan amount from your lender before you begin planning on those funds. As additional educational funds are posted to your account, i.e. WIA, scholarships, VA, waivers, etc.; your loan amount may be reduced.

You may reduce or cancel your loan amounts by completing a WKCTC Loan Adjustment Form. This form is available in the WKCTC Financial Aid Office. You have the right to cancel all or a portion of the loan within fourteen days of notification of disbursement. After the fourteen days you must contact the lender to repay any amounts.

Back to top

How am I Paid?

Loans are required to be paid in two disbursements. An academic year loan (fall/spring) is paid half for fall and half for spring. The first disbursement for a one-semester loan is paid before mid-term and the second disbursement is paid after mid-term. Freshmen, first-time borrowers first payment is delayed for 30 days. During fall/spring all students’ first disbursements are set for the fifth week of school. During the summer the first disbursement is set for the third week of the regular summer dates (June-August).

If your courses have varying start dates, your loan disbursements will occur with the regular disbursement schedule. However, if you drop classes or never begin classes and your enrollment drops below 6 semester hours, you are not entitled to the loan and you will owe the full amount of the loan back immediately.

The Department of Education sends the money to the College and the money is applied to your WKCTC student account. The College will deduct any costs from the funds and any remaining money will be sent to the student through the normal KCTCS refund process. Refunds are processed by the WKCTC Business Office.

For additional information, please contact the Financial Aid Office at 270-534-3248 or 270-534-3253, or come by the office in the Anderson Technical Building, Room 107.

Back to top

Important Loan Facts

• Loans are processed for fall/spring, fall only for December graduates, spring only, or summer.
• If you receive the yearly loan limit in the fall and spring semesters there is not a remaining amount for the summer term.
• Spring disbursements of fall/spring loans are canceled when a student withdraws or drops below 6 hours during the fall term. To request another loan the student must be registered and complete the WKCTC Loan Adjustment Form (can be found in Financial Aid Office).
• If the student withdraws, any pending disbursements of loans that the student is not eligible to receive are canceled.
• Loans are not processed after mid-term of a semester/term.
• Loans will not be certified after a semester ends.
• Cost of attendance items for childcare, transportation, and above average cost for a program are only adjusted upon the student’s written request. Documentation will be required.
• Exit counseling is a requirement of your student loan. Whenever you drop below 6 semester hours (half-time status) or complete a certificate, diploma, or degree, you are required to complete the exit counseling at http://www.studentloans.gov, Exit Counseling. You must also contact the financial aid office and your lender, even if you plan to re-enroll the next semester at this college or another college. WKCTC Financial Aid Office will notify you of exit counseling through your student email account within 15 days of the change. Failure to do so can affect your loan eligibility and your repayment rights.
• It is your responsibility to know when your first loan payment is due. You must make payments on time even if you do not receive a payment booklet or a billing notice. If there is a problem contact your lender immediately. Late payments can affect your credit rating.
• Defaulting on a student loan will adversely affect your credit history, will make you ineligible for all Federal student aid programs, and the State and Federal government will keep your income tax refunds. The complete list of consequences is available in the entrance and exit counseling information.
• When a recipient of Title IV funds (Loan, Pell, or FSEOG) withdraws from a school or stops attending before 60% of the term, the school must determine the amount of Title IV aid the student has earned as of the student’s withdrawal date. Unearned funds must not be disbursed or must be returned to the Title IV programs depending on the student’s withdrawal date. Students should always contact the Financial Aid Office before withdrawing from a class to see how this might affect their financial aid. If you owe a Return of Title IV Funds to a federal program you will not be eligible for financial aid at any school. The money you owe to the college will keep you from re-enrolling at any KCTCS college or requesting an academic transcript.
  

Back to top

Loan Checklist

Print Loan Checklist so that you can check off each each completed step.

Back to top