financial need. These loans carry an annual 5 percent simple interest charge, and the payment begins six or nine months after graduation or if the borrower ceases to be enrolled on at least a half-time basis. This is a federally-funded, low interest loan, and legal action will be taken if repayment is not made as agreed to by the student. The FAFSA must be filed in order to determine eligibility for this loan.

Also called Direct Subsidized Loans: The federal government pays the interest on these loans while students are in school at least half-time and during grace period prior to entering into repayment. Students must demonstrate financial need to receive this type of loan. (Financial Aid determines need based on the information provided on the Student Aid Report).

Also called Direct Unsubsidized Loans: Students can get these loans regardless of financial need, but will have to pay all interest charges. Interest may be capitalized while in-school and during grace period prior to entering into repayment.

Must be completed by all direct loan borrowers. It is a legally binding contract between the U.S. Department of Education (lender) and a borrower. The promissory note contains the terms and conditions of the loan, including how and when the loan must be repaid. One Master Promissory Note (MPN) covers both the Federal Direct Subsidized and the Federal Direct Unsubsidized Loans. The amount of subsidized and/or unsubsidized loan does not show on the MPN but will be included in the most recent financial aid award notification from the Office of Financial Aid. A disclosure statement from the common origination and disbursement center will be sent to the borrower. This statement will provide comprehensive information about the types of loans that were processed by the school, including both direct subsidized and/or direct unsubsidized loans, the loan period, and the anticipated disbursements. It is important for the student to remember that he/she will be responsible to repay only the loans he/she actually receives at the school.

For parents of dependent students to pay for their children’s education. Parents are responsible for all interest charges. In order to apply, a parent must complete a PLUS Loan Request form, and the Federal PLUS Application and Master Promissory Note (MPN) at www.studentloans.gov.The parent will be notified if he/she is eligible for the PLUS loan. Generally, the parent is eligible if he/she does not have an adverse credit history (a credit check will be done), is not in default on a federal student loan (including Federal PLUS loans), and meets the other eligibility requirements outlined on the loan application. The interest rate is variable and is adjusted each year on July 1, but is currently capped at 9 percent. The interest begins to accumulate on the date of the first loan disbursement. The loan will be disbursed in at least two payments and generally will be credited to the student’s account for payment of tuition and other school charges. Any leftover funds will be paid to the parent by check or, with his/her written permission, either left in the student’s account or paid directly to the student. The repayment period begins on the day the loan is fully disbursed. First payment is due within 60 days after the final loan disbursement. The U.S. Department of Education Direct Loan Servicing Center manages Direct Loan Accounts and handles all payment plans.

The Federal Work-Study Program provides jobs for students who have established financial need through the U.S. Department of Education. This is completed by filing the FAFSA. FWS approved positions are on campus. Students are paid semi-monthly as work is completed.

Kentucky State University employs students under the Green to Gold Employment Program for up to 20 hours per week. Information about this program may be obtained by contacting the Green-To-Gold coordinator or by visiting the University Student Open Stop (SOS) Shop.

Kentucky State University is an educational institution approved for training of veterans and other eligible persons. Students who wish to determine their eligibility for benefits under veteran’s laws should contact either the Veterans Administration (1-800-829-2050) or the University’s VA Coordinator (502-597-6795).

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