Loans
Federal Stafford Student Loan
Stafford Student Loans are available to students enrolled at least half time (at least 6 credits) in their program of study. In order to determine eligibility for federal interest subsidy, all applicants must file the FAFSA. Additionally, a student must complete a Master Promissory Note (MPN) if they have never received a Stafford loan previously and the student must receive Entrance Loan Counseling. If you have financial need remaining after your EFC, the amount of any federal Pell Grant, the amount of any state grant assistance, and aid from all other sources are subtracted from your cost of attendance, you can borrow a "subsidized" Stafford Loan to cover 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 your 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.
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 other 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 unsubsidized loan is disbursed until it is paid in full. You can choose to pay the interest or allow it to accumulate and be capitalized (that is, 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.
Annual loan limits are determined by grade level and if a student is dependent or independent. These limits are as of January 2006.
Dependent Student Loan Limits are:
- $3,500 for a Freshman (0 to 29 credits completed)
- $4,500 for a Sophomore (30 to 59 credits completed)
- $5,500 for a Junior and/or Senior (60 credits complete or more)
Independent Student Loan Limits are:
- $7,500 for a Freshman (0 to 29 credits completed) and at least $4,000 of this amount must be in unsubsidized loans
- $8,500 for a Sophomore (30 to 59 credits completed) and at least $4,000 of this amount must be in unsubsidized loans
- $10,500 for a Junior and/or Senior (60 completed credits or more) and at least $5,000 of this amount must be in unsubsidized loans.
Loan proceeds are sent directly to the Student Business Services Office, 1st floor Ward Hall, at Keystone College and will be credited to a student's account. Two disbursements will be made for each approved loan. If disbursed by check, proceeds cannot be credited to the account until the student endorses the check. Students will be notified when the check or EFT has arrived or the loan has been disbursed to the account.
Keystone College participates with some lenders in the Electronic Funds Transfer (EFT) of Stafford and/or Plus loans, thereby eliminating the disbursement of loan checks and the need for borrower endorsement.
Federal Carl D. Perkins Loan
The Carl D. Perkins Loan is a low interest (5%) loan that is administered by Keystone College for students who demonstrate financial need. This loan is made through the Financial Assistance & Planning Office. Keystone College is the lender and the loan is made with federal funding. Any student awarded a Perkins loan must complete the required paperwork with Student Business Services prior to the funds being credited to the student's account. You must repay this loan. Repayment begins nine months after graduation, withdrawal, or change to less than half time status. Interest accrues in the student's name beginning in the tenth month after the student ceases to be enrolled on at least a half time basis. The maximum repayment schedule is ten years.
Federal Parent Loan (PLUS)
PLUS loans are available to parents of dependent students to meet educational costs. Through the PLUS program, parents may borrow the difference between a student's cost of attendance less any financial aid.
Eligibility for a PLUS loan is based on credit-worthiness of the parent borrower. The interest rate is fixed and will not exceed 9%. PLUS loan proceeds are sent in two disbursements and are made co-payable to the parent and the school. If the parent has authorized EFT, loan proceeds will be credited directly to the student account and the parent will be notified. If the funds are issued by check, the Student Business Services Office will contact the parent borrower for endorsement and then credit the funds to the student account.