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%. Get information about current interest rates and origination fees. 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 undergraduate students and 4.5 semester hours for graduate students).
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%. Get information about current interest rates and origination fees. 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 the Federal Student Aid website. After your data is submitted, our office will be notified electronically within 24-48 hours that you have completed the requirement.
Master Promissory Note
You will be required to sign a Master Promissory Note (MPN) prior to your loan funds disbursed to your account. You may sign your MPN electronically at the Federal Student Aid website.
Exit Counseling
During the term that you expect to graduate, you will be asked to complete 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 least half-time at EKU. To complete the Exit Counseling Requirement, visit the Federal Student Aid website. 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 servicer outlining the monthly principal and interest payments and number of months required to repay your loan balance. It is very important to notify your servicer of address changes so that you will receive your repayment information.
Annual/Aggregate Loan Limits Subsidized/Unsubsidized Loans
|
Dependent
Undergraduate Student |
Independent
Undergraduate Student |
|
| Freshman (0-29 semester hours) |
$5,500 — No more than $3,500 of this amount may be in subsidized loans. | $9,500 — No more than $3,500 of this amount may be in subsidized loans. |
| Sophomore (30-59 semester hours) |
$6,500 — No more than $4,500 of this amount may be in subsidized loans. | $10,500 — No more than $4,500 of this amount may be in subsidized loans. |
| Junior/Senior (60 or more hours) |
$7,500 — No more than $5,500 of this amount may be in subsidized loans. | $12,500 — No more than $5,500 of this amount may be in subsidized loans. |
| Graduate or Professional Student | Not Applicable (All graduate and professional students are considered independent.) | $20,500 unsubsidized only — Graduate and Professional students are no longer eligible for subsidized loans. |
| Subsidized and Unsubsidized Aggregate Loan Limit | $31,000 — No more than $23,000 of this amount may be in subsidized loans. | $57,500 for undergraduate students — No more than $23,000 of this amount may be in subsidized loans. $138,500 for graduate or professional students. The graduate aggregate limit includes all federal 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 or Grad PLUS Loans) according to guidelines from the U.S. Department of Education.