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.

Subsidized Loans

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).

Unsubsidized Loans

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.

 

ESign MPN

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.

 

ENTRANCE AND EXIT COUNSELING

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.

 

Entrance 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.

Exit Counseling

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.

 

Maximum Annual Loan Limits

 

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.

 

*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.

 *Source:  Studentloans.gov