Loans
If a student applies for financial aid, they may be offered student loans as part of their school’s financial aid offer. A loan is money that is borrowed and must pay back with interest. Kentucky State University currently participates with the following loan programs:
- Direct Subsidized Loans - eligible to undergraduate students who demonstrate financial need to help cover the costs of higher education at a college or career school.
- Direct Unsubsidized Loans - eligible undergraduate, graduate, and professional students, but eligibility is not based on financial need.
- Direct PLUS Loans - made to graduate or professional students and parents of dependent undergraduate students to help pay for education expenses not covered by other financial aid. Eligibility is not based on financial need, but a credit check is required. Borrowers who have an adverse credit history must meet additional requirements to qualify.
- Alternative Loans – a loan offered through a private bank or other lending institution.
Students applying for a Federal Direct Loan for the first time must:
- Complete the Entrance Counseling
- Complete a new master Promissory Note
- KSU Students must accept or decline student loan(s) on their WIRED account. This must be completed each academic year or whenever a new loan is offered. The amount of loan you accept will be divided into two disbursements. If you are accepting in the Fall, the amount will be split between Fall and Spring semesters.
**First-Time Loan Borrowers must wait 30-days after the first day of classes before
funds are disbursed.
Direct Lending Information
|
Direct Loan Dependent Undergraduate Federal Annual Limits |
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|
|
Freshman |
Sophomore |
Junior |
Senior |
|
Subsidized |
|
|
|
|
|
|
|
|
|
|
|
Total |
$5,500 |
$6,500 |
$7,500 |
$7,500 |
|
Federal Direct Loan Independent Undergraduate Annual Limits |
||||
|
|
Freshman |
Sophomore |
Junior |
Senior |
|
Subsidized |
|
|
|
|
|
Unsubsidized |
$6,000 |
$6,000 |
$7,000 |
$7,000 |
|
Total |
$9,500 |
$10,500 |
$12,500 |
$12,500 |
|
Federal Direct Loan Undergraduate Aggregate Limits |
|
|
|
$31,000 |
|
|
$57,500 |
|
Federal Direct Loan Graduate Aggregate Limits |
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|
|
|
Loan Counseling
Entrance Counseling
Entrance counseling ensures you understand the terms and conditions of your loan and your rights and
responsibilities. You'll learn what a loan is, how interest works, your options for
repayment, and how to avoid delinquency and default. Students are required to complete
entrance counseling before the receipt of their first Direct Subsidized or Direct
Unsubsidized Loan ( as either an undergraduate or a graduate/professional student)
or their first Direct PLUS Loan (as a graduate/professional student).
Exit Counseling
You must complete exit counseling when you leave school or drop below half-time enrollment. The purpose of exit counseling
is to ensure you understand your student loan obligations and are prepared for repayment.
Master Promissory Note
The Master Promissory Note (MPN) is a legal document in which the borrower promises to repay the loan(s) and any accrued
interest and fees to the U.S. Department of Education. It also explains the terms
and conditions of the loan(s).
Loan Interest Rates and Fees
If a student receives a federal student loan, they will be require to repay that loan with interest. Be sure to understand how interest is calculated and the fees associated with the loan. Interest rates and fees are gnerally lower for federal student loans than private student loans. The chart below for the interest rates for Direct Loans first disbursed on or Afer July 1, 2023, and before July 1, 2024.
| Loan Type | Borrower Type | Fixed Intest rate |
| Direct Subsidized Loans & Direct Unsubsidized Loans |
Undergraduate | 5.50% |
| Direct Unsubsidized Loans | Graduate or Professional | 7.05 |
| Direct PLUS Loan | Parents and Graduate or Proffesional Students | 8.05% |
Most federal student loans have loan fees. These fees are a percentage of the total loan amount. A loan fees comes out of the amount of money that is disbursed (paid out) to the student while they are in school. This means the money that is received will be less than the amount that is actually borrowed. The student is responsible for repaying the entire amount borrowed and not just that amount that is received. The chart below shows the loan fees for Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans first disbursed on or after October 1, 2020 and before October 1, 2024.
|
|
First Disbursement Date |
Loan Fee |
| Direct Subsidized & Direct Unsubsidized Loans |
On or after 10/1/20 and before 10/1/24 | 1.057% |
| Direct PLUS Loans | On or after 10/1/20 and before 10/1/24 | 4.228% |
For more information regarding Direct Loan interest rates and loan fees, please visit the studentaid.gov website.