Loans
The following types of assistance are available to students at the University of Kentucky:
Federal Perkins Loan
A Federal Perkins Loan is federal assistance which must be repaid. It is based on need. Repayment begins 9 months after you cease to be at least a half-time student. You must sign a promissory note and complete entrance counseling; both steps are completed at ipromise.campuspartners.com prior to disbursement/credit of your loan funds. The AVERAGE award is $1,000 per year. For more details, please visit the Department of Education's web site.
Federal Direct Loan
A Federal Direct Loan is federal loan assistance which must be repaid. Repayment begins 6 months after you cease to be at least a half-time student. You must attend a one-time entrance counseling meeting and you must sign a promissory note. There are two types of Direct Loans:
- Subsidized
The government pays your interest while you are enrolled in school at least half-time. Interest begins to accrue when you drop below half-time status. - Unsubsidized
Interest accrues immediately. You may either pay the interest quarterly or you may request that interest be capitalized (added to the loan principle).
| Grade Level | Dependent Student | Independent Student |
|---|---|---|
| Freshman (1-29 hrs) | $5,500/yr | $9,500/yr* |
| Sophomore (30-59 hrs) | $6,500/yr | $10,500/yr* |
| Junior (60-89 hrs) | $7,500/yr | $12,500/yr** |
| Senior (90+ hrs) | $7,500/yr | $12,500/yr** |
| Graduate Student | $8,500 | $20,500/yr*** |
*At least $6,000 of this amount must be in unsubsidized Federal Direct Stafford Loan.
**At least $7,000 of this amount must be in unsubsidized Federal Direct Stafford Loan.
***At least $12,000 of this amount must be in unsubsidized Federal Direct Stafford Loan.
Parent - Federal Direct PLUS Loan
Parents of a dependent undergraduate student may borrow a Federal Direct PLUS Loan. Parents are eligible to borrow up to an amount that does not exceed the student's cost of attendance minus other financial aid. Parents who wish to apply could download applications for the Federal Direct Parent PLUS Loan Request form (PDF) and mail or fax it to the Financial Aid Office.
The parent will receive a PLUS Loan Eligibility Acceptance Statement and the PLUS Master Promissory Note (if needed). A credit check will be processed after these forms are completed and returned to the Financial Aid Office. The Federal Student Aid Common Origination and Disbursement Center will notify the PLUS borrower of the credit check approval or denial. If the credit check is approved, the Master Promissory Note will be processed. If the credit check is denied, the parent and student will be notified of additional loan options.
The current interest rate is 7.9% fixed. The first payment of principal and interest is due within 60 days of the final loan disbursement of the academic year.
Graduate/Professional Students - Federal Direct PLUS Loan
The Federal Government has instituted the Graduate/Professional PLUS Loan. This loan can be borrowed in addition to the Federal Direct Subsidized and Unsubsidized Loans. A Graduate or Professional student is eligible to borrow up to an amount that does not exceed their cost of attendance minus other financial aid. Download applications for the Federal Direct Graduate/Professional PLUS Loan (PDF) and mail or fax it to the Financial Aid Office.
The student will receive a PLUS Loan Eligibility Acceptance Statement. A credit check will be processed after the PLUS Loan Eligibility Acceptance Statement is completed and returned to the Financial Aid Office. The student will be notified if the credit check is denied. The student must sign a grad/PLUS electronic promissory note.
The current interest rate is 7.9% fixed. A Graduate/Professional PLUS borrower may receive a deferment while enrolled at least half-time. The repayment period begins 60 days after the final loan disbursement of the academic year, unless deferred. If the borrower drops below half-time status, they will not receive a 6 month grace period on the loan.
Federal Family Education Loan (FFEL)
Returning students enrolled in the Colleges of Education, Law, and Nursing may be participating in the Federal Family Education Loan (FFEL) program because of benefits that may possibly be available at the time of repayment.
If you graduate with a degree from the College of Education, Law, or Nursing, are employed in specific career areas, work in the state of Kentucky, and meet certain other criteria, interest and loan principal forgiveness benefits may be available to you when you repay your FFEL loan if it was disbursed prior to June 30, 2008.
Download FFEL Lender Comparison Chart (PDF) for details about repayment benefits and options. It is important that you review the information carefully before making a decision. Links to each lender's website are provided. Please note that you may borrow from any lender offering FFEL Stafford Loans and are not limited to the lenders on this chart.