Kanawha Valley Community and Technical College
There are three types of low interest Federal Loans available:
| *First Disbursement of a loan | Interest Rate on Unpaid Balance | |
|---|---|---|
| Made on or After | & Made Before | |
| July 1, 2008 | July 1, 2009 | 6.0 percent |
| July 1, 2009 | July 1, 2010 | 5.6 percent |
| July 1, 2010 | July 1, 2011 | 4.5 percent |
| July 1, 2011 | July 1, 2012 | 3.4 percent |
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, 2006 carry a variable interest rate which is capped at 8.25% for student loans and 9% 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 promissory note is a binding document between you and the lender in which you promise to repay the loan funds you are borrowing. KVCTC Office of Student Financial Assistance will begin certifying loans after July 15, each year. You will receive a letter from Sallie Mae when it is time to sign your promissory note. 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.
Deadlines for Loan Promissory Notes:
FALL SEMESTER. . . . . . . . . . . . . . . .DECEMBER 1
SPRING SEMESTER. . . . . . . . . . . . . APRIL 25
SUMMER SEMESTER . . . . . . . . . . . .JUNE 15
Please NOTE: 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. No loan money can be released after the end of the semester.
Loan Limits (beginning 2007-2008):
A) Freshman ..................$5,500.00*
B) Sophomore.................$6,500.00*
* 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
B) Sophomore.................$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.
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
Kanawha Valley Community and Technical College is set up to process student loans electronically with the following lenders: Student Loan Funding, Dollar Bank, Fifth Third Bank, Nellie Mae, and Sallie Mae Education Trust. Click here for more information on each lender and to complete an MPN. Our guarantor is United Student Aid Funds. The electronic process allows the Office of Student Financial Assistance to process student loans and make funds available within twenty-four hours after the electronic Master Promissory note is completed.
If you wish to use a lender not listed here, our electronic process will not be fully available to you. You will need to know your lender code and will need to enter it in the MPN in Open Net. Please check with your lender, prior to completing your loan application, to ensure that your lender will continue to participate in the FFEL program with KVCTC. In some cases your lender choice may mean that you will need to do a paper loan application. Your loan funds will come to the school via paper check and the Cashier's Office will notify you of availability.
If you accept student loan proceeds and you are a first-time student loan borrower, you will need to complete a loan entrance interview which will explain the loan program and your rights and responsibilities as a borrower. Loan entrance counseling is available for KVCTC students. Loan awards are not considered finalized until all promissory notes are signed and you have completed an entrance interview, if required.
Freshmen students who have not completed any college course work will not have student loan proceeds applied to their student account until 30 days after the start of the first term they are attending. Federal regulations require that a student complete 30 days of college course work prior to receiving any Federal Stafford Student Loan proceeds.
Federal Stafford Loans are deferred from payment while a student is attending school at least half-time. When a student graduates or ceases to be enrolled at least half-time, the repayment cycle begins. Students have a six month grace period before repayment must begin.
For more information on your student loans visit: NSLDS
Federal Stafford 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. You may also want to visit the Sallie Mae web site for more information on Income Based Repayment (IBR).
There are some loan forgiveness options available: