Direct Loans
Federal Direct Loans
Federal Direct loans are available to both undergraduate and graduate students. Students who have completed one bachelor's degree and are enrolled for a second bachelor's degree may also apply for loan assistance.
There are two types of Federal Direct loans awarded by the federal government, each differing in amounts given and requirements for repayment. To qualify for either loan, students must:
- be matriculated at King's College
- enrolled for a minimum of six (6) credits to qualify for federal Direct Stafford Loan assistance.
Subsidized Direct Loan amounts are based on grade level, dependency status, and financial need. Qualifying students will not have to pay interest on subsidized loans while enrolled.
Unsubsidized Direct Loan amounts are available to otherwise eligible students who do not qualify for the interest subsidy. Students have the option to pay the interest while enrolled or to have it capitalized.
Federal Direct Loan Amounts and Limits
The U.S. Department of Education under the Higher Education Act has determined the maximum allowable loan amounts for borrowers.
Dependent Undergraduate Student Limits
For traditional undergraduate students who qualify for federal loans.
| Credit / Level | Subsidized | Unsubsidized | Total |
|---|---|---|---|
|
First-year students (0-29 credits completed) |
$3,500 |
$2,000 |
$5,500 |
|
Second-year students (30-59 credits completed) |
$4,500 |
$2,000 |
$6,500 |
|
Third- and fourth-year students (60+ credits completed) |
$5,500 |
$2,000 |
$7,500 |
Independent Student Limits
For independent undergraduate students or dependent undergraduate students whose parents have been denied PLUS loans.
| Credit / Level | Subsidized | Unsubsidized | Total |
|---|---|---|---|
|
First-year students (0-29 credits completed) |
$3,500 |
$6,000 |
$9,500 |
|
Second-year students (30-59 credits completed) |
$4,500 |
$6,000 |
$7,500 |
|
Third- and fourth-year students (60+ credits completed) |
$5,500 |
$7,000 |
$12,500 |
Graduate and Professional Student
For students pursuing graduate and/or professional degree programs.
| Credit / Level | Subsidized | Unsubsidized | Total |
|---|---|---|---|
|
Graduate students |
N/A |
$20,500 |
$20,500 |
Direct Loan Interest Rates
Interest rates for Direct loans are first disbursed on or after July 1, 2023, and before July 1, 2024. Please visit studentaid.gov to learn more about interest rates.
| Loan Type | Borrower Type | Fixed Rate |
|---|---|---|
|
Direct Subsidized |
Undergraduate |
5.50% |
|
Direct Unsubsidized |
Undergraduate |
5.50% |
|
Direct Unsubsidized |
Graduate or professional |
7.05% |
|
Direct PLUS |
Parents and graduate or professional students |
8.05% |
Securing Federal Loans
To apply for Federal Direct loans, please complete the Free Application for Federal Student Aid (FAFSA) at studentaid.gov. All eligible students are offered a Federal Direct loan. If you want to reduce or decline your loan entirely, please email the Office of Financial Aid at finaid@kings.edu, noting "Cancel/Reduce My Loan" in the subject line and providing your King's College Student ID, first and last name, and instructions to reduce or adjust your loan in the body of the email. Students can also decline/reduce their loan(s) through the Student Self-Service Portal, under Financial Aid/My Awards.
Complete the Master Promissory Note (MPN) and Loan Counseling
The Office of Financial Aid will originate your loan electronically with the U.S. Department of Education. If this is your first Direct Loan, you must visit studentaid.gov to complete Entrance Loan Counseling and sign a Direct Loan Master Promissory Note (MPN).
Receive Your Loan Funds
After you have completed Entrance Loan Counseling and signed the MPN, your loan will be scheduled for disbursement. If your loan is for the full academic year, your loan will be disbursed in two equal disbursements: one at the beginning of the fall semester and one at the beginning of the spring semester. Your loan funds will be applied to outstanding charges you owe the College for the semester, and after your charges are paid in full, a refund of any excess loan proceeds will be disbursed to you by check.
The National Student Loan Data System (NSLDS) is the U.S. Department of Education's centralized resource for information about all federal student loans that you have borrowed. You can find information about all of your current and prior student loans, even those you may have borrowed at a prior college.
Summer Loans
For loans used over the summer, you must submit a Loan Request Form to the Office of Financial Aid. Loan request forms are available online. Completed loan requests are to be submitted to the Office of Financial Aid indicating the loan terms and loan amount you want to borrow. You will be notified using your King's College e-mail when the College has certified your loan.
Student loan money can be used to cover tuition, fees, housing costs, books, and supplies. If the amount of loan funds received by the College is more than your outstanding charges, the credit balance will be refunded to you.
Resolving Loan Disputes and Problems
The Federal Student Aid Ombudsman Group has been created by the U.S. Department of Education to help student loan borrowers resolve loan disputes and problems, such as those with loan balances and payments, disbursements, repayment options, and more. Please visit the FSA Ombudsman Group webpage for more information.
Federal Direct Loan Repayment
If you've taken a Federal Direct loan, you will enter re-payment six (6) months after separating from school (i.e., graduating or withdrawing)or after enrolling for less than six (6) credits. Upon separation, borrowers must complete exit counseling online at studentaid.gov. Upon entering repayment, the student pays both interest and principal. To learn more, please refer to helpful repayment resources at studentaid.gov.
Returning Students with Current Loans
Students who are currently repaying prior student loans may apply to their loan servicer for an in-school deferment. Please contact your servicer for the necessary paperwork. You may view loan servicer information at National Student Loan Data System for Students. You will need your FSA ID to access your information. In-school deferment forms should be submitted to the college Registrar for verification of enrollment.
Federal Direct Plus Loan
Also provided by the U.S. Department Education, PLUS Loans are used by credit-worthy parents of undergraduate dependent students-or graduate or professional students enrolled at least half time-to supplement student borrowing. The maximum amount borrowed equals the cost of attendance less all sources of financial aid.
Interest rates for 2022-23 are fixed at 7.54%. Repayment can be deferred while the student is enrolled at least half time. To apply for a PLUS Loan or learn more, please visit the PLUS Loans page of studentaid.gov.