Federal Student Loans

*Important Changes to the Loan Program  Read More

Before applying for a loan, Keystone College, wants to be sure you are aware of all federal grant(s) and loan programs that may be available to you to help meet your educational expenses.  Listed below are the federal programs available at Keystone College and the maximum amounts available for the 2010-2011 academic year:

Federal Grants

Federal Pell Grant	$        5,550.00
Federal Supplemental Educational Opportunity Grant (SEOG)	$        1,000.00

Federal Loans 

Federal Direct Loan	Dependent Student	Independent Student or Dependent Student whose parent is Denied a Parent PLUS Loan
First Year  (0-29)	$5,500 of which no more than $3,500 may be subsidized	$9,500 of which no more than $3,500 may be subsidized
Second Year (30-59)	$6,500 of which no more than $4,500 may be subsidized	$10,500 of which no more than $4,500.00 may be subsidized
Third Year  (60-89)	$7,500 of which no more than $5,500 may be subsidized	$12,500 of which no more than $5,500 may be subsidized
Fourth  Year   (90+)	$7,500 of which no more than $5,500 may be subsidized	$12,500 of which no more than $5,500 may be subsidized
Fifth year/accelerated certificate	$7,500 of which no more than $5,500 may be subsidized	$12,500 of which no more than $5,500 may be subsidized
Federal Perkins Loan:	Annual undergraduate maximum is $4,000

Undergraduate Aggregate Loan Limits

(Effective July 1, 2008)

Undergraduate Dependent Students:	$31,500 (no more than $23,000 of which can be subsidized)
Undergraduate Independent Students: and students whose parents are denied the parent plus loan	$57,500 (no more than $23,000 of which can be subsidized)

Federal Direct loans are available to students enrolled at least half-time (6 credits) in their program of study.  In order to determine eligibility for the federal interest subsidy, all applications are required to file a FASFA (Free Application for Federal Student Aid).  Additionally, a student must complete a Federal Direct Master Promissory Note (MPN).  Before a Federal Direct Loan can be applied to your Student Account with Student Business you must complete "Loan Entrance Counseling".  If you have financial need remaining after your EFC (Estimated Family Contribution determined by the FAFSA), the amount of any federal grants, any state grant assistance, and aid from all sources are subtracted from your cost of attendance, you can borrow a "Subsidized" Stafford Loan to cover all, some or all of the remaining need.  If you are eligible for a subsidized loan, the government will pay the interest while you are in school, for the first six months after you leave school, and when you qualify to have payments deferred.  Depending on your financial need, you may borrow subsidized loan money for up to the annual loan limit for your grade level in school (credits earned).

You might also be able to borrow loan funds beyond your subsidized loan amount or even if you do not have any demonstrated need.  Keystone College will subtract the total amount of your aid, if any, from your cost of attendance to determine the amount for an unsubsidized loan.  Unlike the subsidized loan, you are responsible for the interest from the time the loan is disbursed until it is paid in full.  You can choose to pay the interest or allow it to accumulate and be capitalized (added to the principle amount of your loan).

You can receive a subsidized loan and an unsubsidized loan for the same enrollment period as long as the loans do not exceed the annual loan limit or your cost of attendance.

For information on "Applying for your Federal Direct Loan" click here.