Subsidized/Unsubsidized Loans
Subsidized Loans
Federal Stafford Subsidized Loans are based on financial need as well as annual and aggregate loan limits. Interest on this loan does not accrue during eligible periods of enrollment and stated grace periods. The interest rate is capped at 8.25%. Both interest accrual and repayment begins six months after graduation or when a student is no longer enrolled at least half time (6 semester hours for both undergraduate and 4.5 semester hours for graduate).
Unsubsidized Loans
Federal Stafford Unsubsidized Loans are based on annual and aggregate loan limits and is not based on financial need. Interest on this loan begins to accrue upon the first disbursement. The interest rate is variable not to exceed 8.25%. Principal repayment begins six months after graduation or when the student is no longer enrolled at least half time (6 semester hours for undergraduate students and 4.5 semester hours for graduate students)
Entrance Counseling
Students must complete the Entrance Counseling requirement before Direct Subsidized or Unsubsidized Loan funds can be originated. Online student loan entrance counseling provides details about what a student loan is, advice on how much you should borrow, and when you should expect to repay your loans. To complete Entrance Counseling, visit www.studentloans.gov. After your data is submitted, our office will be notified electronically within 24-48 hours that you have completed the requirement.
Exit Counseling
During the term that you expect to graduate, you will be asked to complete an Exit Counseling if you have ever had a Direct subsidized or unsubsidized student loan. You are also required to complete Exit Counseling if you withdraw or are no longer enrolled at EKU. To complete the Exit Counseling Requirement, visit www.nslds.ed.gov. At this time, information regarding your rights and responsibilities relative to the repayment of your loan will be provided. When your grace period ends and your loan becomes due, you will be sent a repayment schedule from your lender outlining the monthly principal and interest payments and number of months required to repay your loan balance. It is very important to notify your lender of address changes so that you will receive your repayment information.
ESign MPN
You will be required to sign a Master Promissory Note (MPN) prior to your loan funds disbursing to your account. You may ESign your MPN at www.studentloans.gov.
Annual Loan Limits for Federal
Direct Subsidized/Unsubsidized Loans
|
|
|
|
Dependent
Undergraduate Student |
Independent
Undergraduate Student |
Graduate/Professional
Student |
|
Freshman (0-29 semester hours) |
$5,500 | $9,500 -- No more than $3,500 of this amount may be in subsidized loans. | $20,500 -- No more than $8,500 of this amount may be in subsidized loans. |
|
Sophomore (30-59 semester hours) |
$6,500 | $10,500 -- No more than $4,500 of this amount may be in subsidized loans. | $20,500 -- No more than $8,500 of this amount may be in subsidized loans. |
|
Junior/Senior (60 or more hours) |
$7,500 | $12,500 -- No more than $5,500 of this amount may be in subsidized loans. | $20,500 -- No more than $8,500 of this amount may be in subsidized loans. |
| Maximum Total Debt from Sub/Unsub Loans When You Graduate | $31,000 -- No more than $23,000 of this amount may be in subsidized loans. | $57,500 |
$138,500 -- No more than $65,500 of this amount may be in subsidized loans. The graduate debt limit includes loans received for undergraduate study. |
NOTE: For periods of study shorter than an academic year,* the amounts you can borrow will be less than those listed. Remember, you might receive less if you receive other financial aid that's used to cover a portion of your cost of attendance.*
Your school can refuse to certify your loan application or can certify a loan for an amount less than you would otherwise be eligible for if the school documents the reason for its action and explains the reason to you in writing. The school's decision is final and cannot be appealed to the U.S. Department of Education.
Students pursuing a Rank I certification are not eligible for federal financial assistance (i.e. Subsidized/Unsubsidized, Perkins or Grad PLUS Loans) according to guidelines from the U.S. Department of Education.