Student Loans

Loan Information - What Do I Need to Know Before I Borrow?

Federal Student Loans

The William D. Ford Federal Direct Loan Program provides students Subsidized and Unsubsidized and Parent PLUS loans from the Department of Education. Awards are determined by using the information provided on the FAFSA and your Cost of Attendance. The amount of your awards also depends on your Dependency Status and Grade Level.

• Direct SUBSIDIZED loans are offered to students who demonstrate financial need. Interest is paid by the federal government while the student is enrolled at least half-time status (6 credits or more) and up to 6 months after graduation.
• Direct UNSUBSIDIZED loans are typically offered to students who do not demonstrate financial need. The student is responsible for interest during all periods, from the time the loan is disbursed. If the student does not pay the interest while they are in school and during grace periods, deferment periods, or forbearance periods, the interest will accrue (accumulate) and be capitalized (added to the principal amount of the loan).

Interest Rates

Student loans are subject to interest rates which may be variable/fixed. View current interest rates.

Loan Fees

Student loans are subject to a loan fee of approximately 1% of your loan, which will be automatically deducted from each loan disbursement.

Disbursement

All student loans require two separate disbursements, one at the beginning of the loan period and the second at the midpoint of the loan period. In addition, first-year, first-time borrowers are required to complete 30 days of their first semester before receiving their first loan disbursement.

Repayment

Repayment begins six months (grace period) after the student ceases to be enrolled at least half-time, graduate, completely withdraw, transfer, or stop attending classes.

Before you decide to borrow and how much to borrow, consider how much financing you will need to cover your educational cost.

• Full Time
• Half Time

Student A: Full time student - 12 credits each semester

Financial aid offered	Pell Grant: $7,395 Loan: $5,500
Direct costs to attend college full time	Tuition: $3,144 Fees: $79 Books/Supplies: $1,350 Total educational cost: $4,573/year
Off-campus living costs	Plans to live at home with parents and has some savings, so decides there will be no additional living expenses that need to be covered (housing, food, or transportation and personal expenses).

Since the Pell Grant is more than enough to cover the direct costs, Student A decides they do not need a loan at this time.

Student B: Full time student - 12 credits each semester

Financial aid offered	Pell Grant: $7,395 Loan: $10,500
Direct costs to attend college full time	Tuition: $3,144 Fees: $79 Books/Supplies: $1,350 Total educational cost: $4,573/year
Off-campus living costs	Student lives off-campus with roommate. Rent/utilities: $1000/month Groceries: $400/month Transportation: $150/month Personal Expenses: $100/month Total living cost per month: $1,650 Total living cost (9 months): $14,850
Part-time work	Earns $1,000/month Total: $9,000 for 9 months
Total cost to attend full-time	Total educational cost: $4,573 Total living cost: $14,850 Total: $19,423 Pell Grant: ($7,395) Student Income: ($9,000) Student needs approximately $3,527 to cover remaining cost

Student considers options such as decreasing expenses, increasing work hours and applying for scholarships. If options don’t work out, student may borrow up to $10,500 to cover the difference.

Student A: Half time student - 6 credits each semester

Financial aid offered	Pell Grant: $3,698 Loan: $5,500
Direct costs to attend college half time	Tuition: $1,572 Fees: $79 Books/Supplies: $1,350 Total educational cost: $3,001/year
Off-campus living costs	Plans to live at home with parents and has some savings, so decides there will be no additional living expenses that need to be covered (housing, food, or transportation and personal expenses).

Since the Pell Grant is more than enough to cover the direct costs, Student A decides they do not need a loan at this time.

Student B: Half time student - 6 credits each semester

Financial aid offered	Pell Grant: $3,698 Loan: $10,500
Direct costs to attend college half time	Tuition: $1,572 Fees: $79 Books/Supplies: $1,350 Total educational cost: $3,001/year
Off-campus living costs	Student lives off-campus with roommate. Rent/utilities: $1000/month Groceries: $400/month Transportation: $150/month Personal Expenses: $100/month Total living cost per month: $1,650 Total living cost (9 months): $14,850
Part-time work	Earns $1,000/month Total: $9,000 for 9 months
Total cost to attend half-time	Total educational cost: $3,001 Total living cost: $14,850 Total: $17,851 Pell Grant: ($3,698) Student Income: ($9,000) Student needs approximately $5,153 to cover remaining cost

Student considers options such as decreasing expenses, increasing work hours and applying for scholarships. If options don’t work out, student may borrow up to $10,500 to cover the difference.

Please Check the Cost of Attendance Page

Additional Information about Student Loans

Federal Direct Subsidized and Unsubsidized Student Loans

How Much Have I Borrowed?

If you are a previous borrower, to review your outstanding balance and preview what your monthly payments might be:

• Go to studentaid.gov
• Log in with your FSA ID and password
• Under your name on the top right corner, click on "My Aid"

If you are interested in taking a student loan...
Go to the Financial Aid Forms page, and complete the “Federal Direct Loan Request Form”
Contact the Kauai CC Financial Aid Office on your campus for assistance or more information.