Loans

Federal Perkins

 

A Federal Perkins Loan is federal assistance which must be repaid. It is based on need. At least half-time enrollment status is required.  Half-time status is defined as follows:  undergraduates - six credit hours; PharmD - six credit hours; graduate, professional doctorate and law - 5 credit hours. 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 https://www.ecsi.net/promRQ  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

A Federal Direct Loan is federal loan assistance which must be repaid.  At least half-time enrollment status is required.  Half-time status is defined as follows:  undergraduates - six credit hours; PharmD - six credit hours; graduate, professional doctorate and law - 5 credit hours.  Repayment begins 6 months after you cease to be at least a half-time student. You must complete entrance counseling and you must sign a promissory note at www.studentloans.gov. 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). Maximum Direct Loan Amount: Freshman (1-29 Hours): $5,500/year for a dependent student ; $9,500/year * for an independent student Sophomore (30-59 Hours): $6,500/year for a dependent student ; $10,500/year ** for an independent student Junior (60-89 Hours): $7,500/year for a dependent student ; $12,500/year ** for an independent student Senior (90+ Hours): $7,500/year for a dependent student ; $12,500/year *** for an independent student Graduate Student: $8,500 for a dependent student ; $20,500/year *** for an independent student Note: *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.
Time Limitation For Subsidized Student Loan New Borrowers: If you are a first time borrower on or after July 1, 2013 there is a limit on the maximum period of time (measured in academic years) that you can receive a Direct Subsidized loan. In general, you may not receive a Direct Subsidized loan for more than 150% of the published program length of your program of study.

Federal Direct PLUS- Parent

A biological or adoptive parent of a dependent undergraduate student may borrow a Federal Direct PLUS Loan.  The parent borrower is responsible for repaying this loan.  The loan cannot be transferred to the student for whom you are borrowing this loan.  Prior to completing a Federal Direct PLUS Loan application you may want to obtain information about this loan at https://studentaid.ed.gov/sa/types/loans/plus.

The student must be enrolled at least half-time. Half-time status is defined as six credit hours. 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 may go to www.studentloans.gov. You will need an FSA ID that is assigned to you in order to complete the PLUS Loan application.  If you as the parent do not have an FSA ID there is a link on this web page that allows you to request a FSA ID.  The www.studentloans.gov website allows parents to apply for the loan, receive immediate notification of the credit check and complete the Electronic Master Promissory note (eMPN).

The repayment period for Federal Direct PLUS Loans begins the day the loan is fully disbursed. The first payment of principal and interest is due within 60 days of the final loan disbursement. However, parents may request the payment be deferred as long as the student is enrolled half time. Federal Direct PLUS Loan funds for one semester only will be released at the beginning of the term in which the student is enrolled.  The loan origination fee for the Federal Direct PLUS Loan is currently 4.276%.  The loan origination fee will change on October 1, 2017.  This fee will be deducted from the gross loan amount prior to disbursement of the funds to the student’s UK account.  Beginning July 1, 2017 the interest rate will be 7% fixed.  

If the loan is denied due to the credit check, and the parent does not appeal the credit decision or complete the endorser information, the parent and student will be notified of additional unsubsidized loan options.  The student will be eligible to receive up to $4000 in an additional unsubsidized loan as a freshman or sophomore or up to $5000 as a junior or senior. 

Loan counseling is required for applicants who are determined to have an adverse credit history, but who qualify for a Federal Direct PLUS Loan by documenting extenuating circumstances or obtaining an endorser. The applicant must complete counseling at www.studentloans.gov after they are approved for the loan.  No loan funds can be disbursed by the school until the PLUS counseling is completed. 

Important Information about your Federal Direct PLUS Loan application

If your Federal Direct PLUS Loan application is approved the University of Kentucky will award the loan for either the requested application amount or the maximum allowable loan amount. You may then view the amount of your loan by requesting that your son/daughter go to his/her link blue account at http://MyUK.uky.edu > Financials > Financial Aid > View and Accept Awards.

Submission of your on-line application constitutes an active confirmation that you do want the loan.  Therefore, your loan will be automatically accepted in the student’s financial aid package and you will not be required to re-accept the loan in order for the loan funds to credit your student’s account.

If you wish to reduce the approved loan amount please send a fax to 859/257-4398 with the student’s name, UK ID number and the amount you want to borrow for the year. The amount must be divided evenly between the fall and spring semesters.  Or you may email the above information to the student’s financial aid counselor.  The counselor’s contact information can be found at http://www.uky.edu/financialaid/contactus

If more than one parent has applied for the Federal Direct PLUS Loan please contact the financial aid office so we can discuss with you the processing of the loan.  The student’s financial aid counselor contact information can be found at http://www.uky.edu/financialaid/contactus

If you indicated on the Federal Direct PLUS Loan application you as the borrower wish to receive any residual refund a paper check will be issued.  The refund check will be created and mailed within 14 days after the funds have posted to the student’s UK account.  The check will be mailed to the home address on the Federal Direct PLUS Loan application.  If your address changes it is important you contact the student’s financial aid counselor via email to report the new address. 

Please note that we cannot change the person to whom the refund will go once the first disbursement has occurred.  If you request that your refund is to be processed to your student, any Federal Direct PLUS Loan proceeds remaining will be processed by direct deposit within one week after disbursement. 

If you wish to reduce or cancel the Federal Direct PLUS Loan after the loan funds are disbursed you have 120 days from the disbursement date to make the change.  You should contact our office at 859/257-3172 and speak with the student’s financial aid counselor about what action is required to make the change.  The counselor’s contact information can be found at http://www.uky.edu/financialaid/contactus

The Federal Direct PLUS Loan is a loan that requires the borrower to reapply each academic year.  If you wish to receive this loan for the next academic year you must reapply at www.studentloans.gov which will begin April 15, 2018 for the 2018-2019 academic year.  The student must also complete the Free Federal Form for Financial Aid (FAFSA) each year.  The 2018-2019 FAFSA will be available on October 1, 2017.  

Federal Direct PLUS - Graduate Student

The Federal Government has instituted the Graduate/Professional PLUS Loan program. At least half-time enrollment status is required. Half-time status is defined as follows: PharmD - six credit hours; graduate, professional doctorate and law - 5 credit hours. 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. Students may apply at www.studentloans.gov. The www.studentloans.gov website allows students to apply for the loan, receive immediate notification of the credit check and sign a grad/PLUS electronic promissory note and complete entrance counseling.
The current interest rate is 6.31% 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. This loan does not have a 6 month grace period.
There is a new loan counseling requirement for applicants who are determined to have an adverse credit history, but who qualify for a Federal Direct Graduate PLUS Loan by documenting extenuating circumstances or obtaining an endorser. The applicant must complete counseling at www.studentloans.gov after they are approved for the loan. The loan counseling requirement will take effect for a credit check that is performed on or after March 29, 2015.

 

Loan Counseling and Repayment Options 

 

Alternative Loans for Students 

 

Alternative Loans for Parents

 

Short Term Emergency Loans