Federal Direct Student Loans 2013-2014 Interest Rates
Subsidized Student Loan - fixed rate 3.86%
Unsubsidized Student Loan — fixed rate 3.86%*
Parent PLUS Loan — fixed rate 6.40%* (parents may borrow up to the cost of attendance for a dependent student).
The 3 year default rate on student loans at KVCTC is 18.2%.
Students must be enrolled at least half time (six semester hours) in order to receive student loan funds. All loans are subject to an origination fee up to 2%. You will receive a loan disclosure statement showing the net amount of your loan disbursement.
*All loans disbursed prior to July 1, 2013 carry a variable interest rate which is capped at 8.25% for student loans and 10.5% for Parent loans.
All first time freshman student loan borrowers are subject to a mandatory thirty day delay on the first disbursement of student loan funds. This pertains only to the first semester disbursement. First time freshmen who met the deadline can expect disbursement of loan funds thirty days from the first day of class.
Subsidized loans are need-based aid and interest does not accrue while you are in school. Unsubsidized loans are not need-based and the interest will accrue on a quarterly basis. You will receive a quarterly interest statement from the Loan Servicer. You may pay the interest if you choose but, you are not required to do so.
A Master Promissory Note is a binding document between you and the lender in which you promise to repay the loan funds you are borrowing. The Division of Student Services will begin certifying loans after July 15, each year. A Master Promissory Note will be valid for ten years. You will only need to sign a Master Promissory Note one time during your college career unless you change lenders or schools.
Deadlines for Loan Promissory Notes:
FALL SEMESTER. . . . . . . . . . . . . . . .DECEMBER 1
SPRING SEMESTER. . . . . . . . . . . . . APRIL 25
SUMMER SEMESTER . . . . . . . . . . . .JUNE 15
Please NOTE: Master Promissory Notes submitted after the above dates may not be processed in time for the funds to be released by the end of the semester. Loan funds cannot be released after the end of the semester.
A) Freshman ..................$5,500.00*
*For dependent undergraduate students, the loan limit includes both subsidized and unsubsidized loans.
For Independent students, the student has additional unsubsidized loan eligibility of:
A) Freshman ..................$4,000.00
Subsidized loans are need-based aid and interest does not accrue while you are in school. Unsubsidized loans are not need-based and the interest will accrue on a quarterly basis. You will receive a quarterly interest statement from the Loan Servicer. You may pay the interest if you choose, but you are not required to do so.
Kanawha Valley Community and Technical College adheres to a strict Code of Conduct in processing student loans.
How Much Should You Borrow?Borrow only the amount of student loans that you need for direct costs, such as tuition and fees, room and board and books. Remember that each dollar you borrow is a loan against your future earnings.
Students may borrow an aggregate maximum of $23,000 in subsidized loans and an aggregate maximum of $34,500 in unsubsidized loans or a combined total of $57,500 as undergraduates.
If you borrow your maximum annual student loan eligibility each year, you will have reached your aggregate loan maximum after only nine semesters.
Learn about the advantages of "Income-Based Repayment" in this new video from IBRinfo.
Loan Repayment OptionsFord Federal Direct loans begin repayment after you graduate or after you cease to be enrolled in school at least half time. There is a six month grace period after you graduate or cease half time enrollment before repayment actually starts.
There are some loan forgiveness options available: