Loan Programs

KCU makes applying for a student loan simple. 

Federal Direct Unsubsidized Loan

The Direct Unsubsidized loan is NOT based on financial need. The student is responsible for paying the interest, which begins accruing as soon as the loan is disbursed. There is a six month grace period after graduation or dropping below half-time before repayment is required. The unsubsidized loan DOES accrue interest while the student is in school. Students can choose to make interest payments while in school or let the interest capitalize. When a student loan capitalizes the interest is added to the principal amount of the loan.

Priority Deadline: March 15,  however, students can apply anytime during a current academic year

Eligibility Requirements:

  • Must complete a Free Application for Federal Student Aid (FAFSA)
    Must be admitted to a graduate or professional program
    Must be a U.S. citizen or eligible non-citizen
    Must be enrolled at least half-time
    Must not have adverse credit history as determined by federal regulations
    Must not be in default on any student loan

Application: Must have completed the Free Application for Federal Student Aid (FAFSA) at fafsa.gov and the Federal Direct Loan Application/Master Promissory Note at studentloans.gov.

First time borrowers at KCU must complete the online entrance counseling at studentloans.gov.

Interest Rates: 

First Disbursement Graduate/Professional
July 1, 2016 - June 30, 2017    5.31%
July 1, 2015 - June 30, 2016 5.84%5.41%
July 1, 2014 - June 30, 2015 6.21%
July 1, 2013 - June 30, 2014 5.41%
July 1, 2006 - June 30, 2013   6.8%

Loan Origination Fees:

First Disbursement Graduate/Professional
Oct. 1, 2016 - Sept. 30, 2017      1.069% 
Oct. 1, 2015 - Sept. 30, 2016 1.068%
Oct. 1, 2014 - Sept. 30, 2015 1.073%

Does the unsubsidized loan have to be repaid? 

Yes. Repayment begins six months after graduation or dropping below half-time.

Award Maximum:

  • Graduate students $20,500.
  • Medical Students $40,500  (students enrolled for more than 9 months may be eligible for additional funds)
  • Medical students enrolled in 10months can borrow $42,722
  • Medical students enrolled in 11 months can borrow $44,944
  • Medical students enrolled in 12 months can borrow $47,167

Need based: No

Enrollment: Must be enrolled at least half-time.

Repayment Options: You can learn more about loan repayment options available at studentaid.ed.gov/sa/repay-loans. This Department of Education site is designed to assist you managing your repayment.

Federal Direct Graduate Plus Loan

The Direct Grad PLUS loan is a federally guaranteed credit based loan. Only graduate and professional students are eligible to apply for this loan.

The Federal Loan Origination Applicant Services (LOAS) center will conduct a credit check on the Federal Direct Graduate PLUS loan applicant.

For purposes of qualifying for a Direct PLUS Loan, you’re considered to have an adverse credit history if:

  • you have one or more debts with a total combined outstanding balance greater than $2,085 that are 90 or more days delinquent as of the date of the credit report, or that have been placed in collection or charged off (written off) during the two years preceding the date of the credit report; or
  • during the five years preceding the date of the credit report, you have been subject to a
    • default determination
    • discharge of debts in bankruptcy
    • foreclosure
    • repossession
    • tax lien
    • wage garnishment
    • write-off of a federal student aid debt

Meeting any of the criteria above will result in the Grad PLUS loan will be denied.

The LOAS will issue a loan denial letter to the applicant that will identify the name and telephone number of the agency who provided the credit information. The applicant should call the agency and request a copy of the credit report. After reviewing the report, if the credit data is inaccurate, the loan denial decision may be appealed. Please note that our office is not provided any information about the specific reason for the denial. All loan denial appeals are handled by the LOAS. The LOAS may be contacted at 800-557-7394, or you may write to the Direct Loan Origination Center at: Applicant Services, PO Box 5691, Montgomery, AL 36103-5691.

If the denial decision was based on accurate information, the applicant has the option to obtain an endorser, which is similar to a co-signer, on the loan. The LOAS will include an Endorser Promissory Note and information with the denial letter mailed to borrower.

Priority Deadline: March 15 however, students can apply anytime during a current academic year

Eligibility Requirements:

  • Must complete a Free Application for Federal Student Aid (FAFSA)
  • Must be admitted to a graduate or professional program
  • Must be a U.S. citizen or eligible non-citizen
  • Must be enrolled at least half-time
  • Must not have adverse credit history as determined by federal regulations
  • Must not be in default on any student loan

Application: Must have completed the Free Application for Federal Student Aid (FAFSA) at fafsa.gov and the Federal Direct Loan Application/Master Promissory Note at studentloans.gov.

First time borrowers must complete the online entrance counseling at studentloans.gov.

Interest Rates: 

First Disbursement Graduate/Professional
July 1, 2016 - June 30, 2017       6.31%
July 1, 2015 - June 30, 2016 6.84%
July 1, 2014 - June 30, 2015 7.21%

Loan Origination Fees:

First Disbursement Graduate/Professional
Oct. 1, 2016 - Sept. 30, 2017       4.276%
Oct. 1, 2015 - Sept. 30, 2016 4.272%
Oct. 1, 2014 - Sept. 30, 2015 4.292%

When does repayment on a Direct Grad PLUS Loan begin?

  • For loans first disbursed on or after July 1, 2008, borrowers may be eligible for in-school deferment if enrolled at least half-time, and may be eligible for deferment of loan repayment for the six-month period following any period of borrower’s half-time enrollment.
  • Repayment begins 60 days after the final disbursement for loans disbursed prior to July 1, 2008.

What types of repayment plans are available?

You can view the repayment plan options at studentaid.ed.gov. You can contact your loan servicer if you would like to discuss repayment plan options. There multiple plans available (including income-based) available.

How much can I borrow?

Graduate and professional students are eligible to borrow up to their full cost of attendance, minus other financial aid and resources.

Example:                     

                                        $ 73,299 Cost of Attendance
                                     -- $ 44,494 less other aid awarded  (Federal Direct Unsubsidized Loan)
                                        $ 28,355 is the amount a student can borrow in a Federal Direct Grad PLUS loan

Need based: No

Enrollment: Must be enrolled at least half-time

Repayment Options: You can learn more about loan repayment options available at studentaid.ed.gov/sa/repay-loans. This Department of Education site is designed to assist you managing your repayment

Primary Care Loans 

Students will be required to complete a separate Primary Care Loan (PCL) Application. Students in their third and fourth year are only eligible for PCL. The Financial Aid Office will notify students when the applications become available by email.

Alternative/Private Loans

Alternative loans are not guaranteed by the federal government, they must be insured privately. This is a cost that the private loan lenders may pass on to the borrower in the form of hidden fees and interest rates. Terms and conditions can vary according to the specific lender. 

Alternative loans cannot be consolidated with federal loans and will have different repayment options than those of federal loans.

How much can I borrow? 

The amount you can borrow is determined by the cost of attendance (COA) less other financial aid and resources. The lender may have a loan minimum/maximum. 

    Example: COA $50,000

    Less other aid awarded: $20,500

    The amount you can borrow in an alternative loan: $29,500

What are the eligibility requirements?

These requirements may vary by lender but are the most common:

  • Undergraduate or graduate/professional student in an eligible degree or certificate program
  • Enrolled at least half-time
  • Be a credit worthy borrower or borrower with a credit worthy co-signer
  • You may be required to be a U.S. citizen, permanent resident or eligible non-citizen
  • Making satisfactory academic progress

Please complete the following steps to apply for a private loan:

  • Complete the online application with a lender you choose
  • Complete the Alternative Loan Request Form and return it to our office