Loans

HCC participates in the Federal Direct Loan Program. Direct Lending is when eligible students and parents borrow directly from the federal government. Direct Loans include Direct Subsidized and Unsubsidized Loans, and Direct PLUS Loans. Borrowers will repay these loans directly to the U.S. Department of Education.

To be eligible for student loans (during any semester) a student must maintain enrollment in at least 6 hours.

Direct 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%. 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).

Direct Stafford Unsubsidized Loans are based on annual and aggregate loan limits and is not based on financial need. Unlike the subsidized loan, the borrower must pay all interest that begins to accrue immediately upon the first disbursement regardless of enrollment status or loan deferments. Interest can be paid monthly or quarterly or be capitalized (added to the principal balance). The interest rate is variable not to exceed 8.25%. Principal repayment begins six months after graduation or when the student is no longer enrolled at least half time (6 semester hours).

To request a loan click this link for instructions.

Your eligibility will be determined within 10 days, and if eligible, loan awards will be noted in your financial aid package. Applications that have been selected for Verification may take longer than 10 days for processing.

Please review your KCTCS Student Self-Service to view your loan awards within approximately 10 days. Also, please be sure to complete your MPN and Entrance Counseling as required. (Visit studentloans.gov for more information.)

You are encouraged to visit the NSLDS Student Site to find out more about your current student loan debt and repayment schedule.

You will be required to sign a Master Promissory Note (MPN) prior to your loan funds disbursing to your account. You may ESign your MPN at studentloans.gov.

Federal Direct Loan student borrowers are required to complete mandatory on-line entrance and exit counseling. The purpose of the counseling is to provide the student with information regarding their rights and responsibilities; the commitment that comes with the acceptance of a student loan; and to help the student understand how to manage their student loans. It is important for all borrowers to realize that student loans are not grants or scholarships; they require repayment.

You will need to have an FSA ID to access the entrance and exit counseling web sites. If you used an FSA ID to apply for federal financial aid, you will use that FSA ID to complete entrance and exit counseling.

Online entrance counseling is required for all first-time Federal Direct Stafford loan borrowers. Entrance counseling takes approximately 20-30 minutes to complete. After signing in on the studentloans.gov website to complete entrance counseling, be sure to click on the Entrance Counseling link, not the Financial Awareness Counseling link.

The Office of Student Financial aid receives results of entrance counseling. Federal Direct Stafford loans will not disburse until entrance counseling has been completed.

All student borrowers who leave Hopkinsville Community College either by graduating, withdrawing, or failing to return for a subsequent semester are required by Federal Law to complete exit counseling on the web at studentloans.gov. Student borrowers must complete exit counseling. Exit counseling takes approximately 30-40 minutes to complete.

Year Dependent Students (except students whose parents are unable to obtain PLUS Loans Independent Students (and dependent undergraduate students whose parents are unable to obtain PLUS Loans)

First-Year
Undergraduate Annual
Loan Limit

$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.

Second-Year
Undergraduate Annual
Loan Limit

$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.

Third-Year and
Beyond
Undergraduate
Annual Loan Limit

$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 Students Annual Loan Limit Not applicable (all graduate and professional students are considered independent) $20,500 (unsubsidized only)
Subsidized and Unsubsidized Aggregate Loan Limit $31,000--No more than $23,000 of this amount may be in subsidized loans.

$57,500 for undergraduates--No more than $23,000 of this amount may be in subsideized loans.

$138,500 for graduate or professional students--No more than $65,500 of this amount may be in subsidizedloans.  The graduate aggregate limit includes all federal loans received for undergraduate study.

KCTCS provides that the primary goal of the institutional financial aid professional is to help students achieve their educational potential by providing appropriate financial resources. To this end, this statement provides that the financial aid professions shall:

  • Be committed to removing financial barriers for those who wish to pursue postsecondary learning.
  • Make every effort to assist students with financial need.
  • Be aware of the issues affecting students and advocate their interests at the institutional, state, and federal levels.
  • Support efforts to encourage students, as early as the elementary grades, to aspire to and plan for education beyond high school.
  • Educate students and families through quality consumer information.
  • Respect the dignity and protect the privacy of students, and ensure the confidentiality of student records and personal circumstances.
  • Ensure equity by applying all need analysis formulas consistently across the institutions full population of student financial aid applicants.
  • Provide services that do not discriminate on the basis of race, gender, ethnicity, sexual orientation, religion, disability, age, or economic status.
  • Recognize the need for professional development and continuing education opportunities.
  • Promote the free expression of ideas and opinions, and foster respect for diverse viewpoints within the profession.
  • Commit to the highest level of ethical behavior and refrain from conflict of interest or the perception thereof.
  • Maintain the highest level of professionalism, reflecting a commitment to the goals of KCTCS.

Students will be reported to the registrar as a no show if they fail to attend the first day of class,if the class meets once a week, or the second day of class, if the class meets more than once a week. A no show for in-person classes is defined as a student who does not attend the first class (and second in the case of classes meeting more than once a week) and has not contacted the instructor by phone, email, or in person before the class meets. A no show for online classes is defined as a student who does not access Blackboard AND participate in a class activity as directed in the class syllabus or contact the instructor by phone, email, or in person before the class meets. Logging in to the class periodically does not constitute attendance.

Students who fail to contact their instructor are completely dropped from the class as if they had never enrolled in it. Students will not be put back into a class after the "add" period as listed on the academic calendar if they are dropped as a no show. There may be serious financial aid consequences for students who are receiving financial aid, since this will reduce the number of enrolled credit hours. If students believe their instructor reported them as a no show in error, they must contact the instructor immediately to resolve the issue.

As a student loan borrower it is important for you to understand your rights and responsibilities.

Once you are no longer enrolled in at least six credit hours, you will have a repayment grace period during which time you may choose to repay your loan without penalty, choose a repayment plan, be notified by your loan servicer of your repayment date, and to update any changes to your address and other contact information to you loan servicer.

The information on this page is designed to help you begin the loan repayment process. Additional information may be found at studentloans.gov. Here are some links to help guide you to a successful repayment plan.

 

Repayment Plans

The How, When, Whom About Loan Payments

Consolidating Loans

Loan Forgiveness

If you work full-time in a public service job, you may qualify for Public Service Loan Forgiveness.

Other opportunities for possible loan forgiveness.

Federal Student Loan tips from KHEAA

 

Failing to repay your student loan will result in default. This can bring severe consequences to the borrower including the following:

  • The Internal Revenue Service can take your federal and state tax refunds.
  • The government can garnish your wages.
  • You lose eligibility for additional federal student aid.
  • It will take years to reestablish your credit and recover from default.
  • National credit bureaus will be notified of your default making it difficult to purchase a car, home or often to rend an apartment.

Hopkinsville Community College Default Rates
FY 2013, 2012, and 2011
OPE ID 001994

  FY 2013 FY 2012 FY2011
Default Rate 23 20.4 17.7
No. in Default 263 165 92
No. in Repay 1,143 807 518
Enrollment figures 6,070 5,511 5,240
Percentage Calculation 18.8 14.6

9.8

**National average for FY2013 11.3%

 

Review the information below on how to stay our of default by choosing the repayment plan that works for you.

Avoiding Default

Getting Out of Default

Resolving Disputes

Loan Deferment and Forbearance

John R. Justice Loan Repayment Assistance Program through KHEAAA

*Loan amounts may be reduced due to other aid awarded. Aid may not exceed Cost of Attendance.

 If the total loan amount you receive over the course of your education reaches the aggregate loan limit, you are not eligible to receive additional loans.  However, if you repay some of your loans to bring your outstanding loan debt below the aggregate loan limit, you could then borrow again, up to the amount of your remaining eligibility under the aggregate loan limits.

Time Limitation on Direct Subsidized Loan Eligibility for First-Time Borrowers on or after July 1, 2013.