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

Parents of a dependent undergraduate student may borrow a Federal Direct PLUS Loan. 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. 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.

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 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. However, the parent may defer the loan as long as the student is enrolled at least half time.

There is a new loan counseling requirement for parent applicants who are determined to have an adverse credit history, but who qualify for a Federal Direct Parent PLUS Loan by documenting extenuating circumstances or obtaining an endorser. The parent 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.

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 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. 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

University of Kentucky