Subsidized Federal Direct Student Loan
The Subsidized Federal Student Loan program provides low interest loans through the federal government's Direct Loan Program. Eligibility for this loan is determined by need as calculated using federal methodology for students who are attending at least half-time (6 credits per quarter). The maximum annual loan amount for the first academic year (grade level 01) is $3,500, less origination and other fees (if applicable). The minimum annual amount is $250. The maximum Subsidized Loan for grade level 02 is $4,500 and is capped at $5,500 for grade levels 03 and 04.
Interest does not accrue and payments are not made until six months after the student leaves school. The minimum payment amount is $50 per month as long as the loan can be paid in full in ten years. Subsidized Federal Student Loans provide many flexible repayment plans including a plan which takes into consideration the student’s ability to make payments. For loans first disbursed after 7/1/2013, the interest rate is fixed at 3.86%. Borrowers who have other outstanding loans may be eligible to consolidate these loans into one consolidated loan payment.
Unsubsidized Federal Direct Student Loan
The Unsubsidized Federal Direct Student Loan program provides loan eligibility for students who do not qualify for a full or partial Subsidized Direct Loan based on financial need and who are attending at least half-time (6 credits per quarter).
Additionally, all students may qualify for $2,000 Unsubsidized Direct Loan, and independent students and certain dependent students may borrow additional unsubsidized amounts up to $4,000 per year for the first and second academic years (grade levels 01 and 03), and $5,000 per year for grade levels 03 and 04.
Interest accrued during in-school and deferment periods is not subsidized for these loans, and the borrower is responsible for these amounts. However, these Interest amounts may be capitalized until the loan enters repayment. For loans first disbursed on or after 7/1/2013, the interest rate is fixed at 3.86%. Repayment terms are the same as the Subsidized Direct Loan except as noted above for in-school and deferment periods.
Parent PLUS Federal Loan
The Federal PLUS loan is a credit-based loan available to parents who wish to apply for additional assistance for their dependent child's education. The PLUS loans are made through the federal government. The amount of the PLUS loan cannot exceed the student's cost of attendance less other financial aid.
For the 2013-14 year, the PLUS Loan interest rate is locked at 6.41%. For loans first disbursed after 7/1/2008, the parent may begin making interest and principal payments 60 days after the loan is fully disbursed, or may contact the loan holder to defer payments until six months after the student ceases eligible enrollment.
Federal Perkins Loan Program
The Federal Perkins loan is available based on need and availability of funds. The current interest rate is 5%. Repayment on the loan begins 9 months after the student leaves school. No fees are involved.
The Financial Aid Office will assist borrowers with applications for credit-based alternative or private loan programs utilized by Kendall College students and their families. Additionally, students and their families may consider other consumer loan options available through their current lending institutions.