Direct Loan
Steps to Borrowing
The Office of Financial Aid monitors the total amount(s) borrowed and advises students to borrow accordingly. Loan amounts are prorated based on unmet need, unmet cost of attendance, length of program, and length of time of the term. If you choose to borrow private or alternative loans, you must report those amounts to the Office of Financial Aid as a resource.
Current fixed interest rate for Subsidized/ Unsubsidized loans is 6.53% (Parent PLUS Loan is 9.08%), for loans that disburse between July 1, 2024 and June 30, 2025
| Loan Limit | Subsidized Limit |
|---|---|
| Dependent, Undergraduate Loan Limit $ 31,000 | No more than $ 23,000 of this amount may be in subsidized loans |
| Independent, Undergraduate Loan Limit $ 57,500 | No more than $ 23,000 of this amount may be in subsidized loans |
Effective July 1, 2013, the Department of Education has set a limitation on Direct Subsidized Loan eligibility for first time loan borrowers. First time borrowers that have loans disbursed on or after July 1, 2013 may not receive Direct Subsidized loans for more than 150% of the published length of any program of study. For example, enrolled in a 2-year associate degree program, the maximum period for which a student can receive subsidized loans is 3 years. (150% of 2 years = 3 years)
To be eligible for a Direct Student Loan at ACTC, you must:
- File your FAFSA, complete your Financial Aid file at ACTC, and have unmet need.
- Meet all Admission requirements, have a complete Admission file, & be in a financial aid eligible program at ACTC
- Maintain Satisfactory Academic Progress (SAP).
- Be enrolled (and remain enrolled) in at least 6 credit hours in a term for which the loan applies.
- Be a resonsible loan borrower! Borrow what you need to cover the cost of attendance. Minimize your student loan debt. Financial literacy is offered to all student loan borrowers.
Steps to Apply for a Student Loan at ACTC
Note: First time borrowers must complete all three steps. Returning ACTC borrowers will only need to complete Step 3.
You MUST have your Federal Student Aid Username & Password. create a username & password.
Complete Entrance Counseling
- Log on to Federal Student Aid.
- Click Complete Loan Counseling (Entrance, Financial Awareness, & Exit).
- Click “START” button beside Entrance Counseling.
- Select ACTC as a School to Notify on left hand side of screen by selecting the state and school choice.
- Click “I am completing entrance counseling to receive Direct Loans as an undergraduate student.” Click Continue.
- Follow the on-screen instructions to complete Loan Entrance Counseling
- Use your FSA ID to log in (this is the same information you used to electrically sign your FAFSA
- Follow the on-screen instructions to complete Loan Entrance Counseling
Complete Master Promissory Note
- Log on to Federal Student Aid.
- Click Complete Loan Agreement (Master Promissory Note)
- Click “START” button beside MPN for Subsidized/Unsubsidized Loans
- Follow the on-screen instructions to complete the Master Promissory Note
Request Student Loan Amount (Loan Request Link becomes available once student has completed all necessary financial aid paperwork.)
- Log into your KCTCS MyPath
- Click on the Student Self-Service (PeopleSoft Campus Solutions) tile
- Click on the Fin. Aid & Account Balance tile and the FA Loan Request option.
- *Note: You may cancel your request at any time before submitting the final step.
- Verify student information. (◦Home Address ◦Phone Number ◦Email Address)
- *If changes needs to be made, click the “change” hyperlink under the field you need to update.
- Check box to confirm information is correct and click “Continue”.
- Read Loan Request Acknowledgment Statement.
- Check box to confirm and click “Continue”.
- Confirm that you are/are not interested in a student loan by clicking Yes or No.
- Confirm if you will be graduating in December. (Applies to Fall semester graduates only.)
- Enter the amount of loan you would like to request in the Requesting Loan Amount box based on your eligibility the Loan Request displays.
- Click Submit.
If it becomes necessary to request an additional loan, the Office of Financial Aid will review all requests and determine if you are eligible for the additional student loan
The lender of the student loan will deduct a loan fee from the gross amount of the student loan. Once KCTCS approves and receives loan funds, KCTCS applies proceeds first to any assessed charges for the term (tuition, fees, and/or book charges) for which the loan is intended. If no charge exists or once your charges have been paid in full, KCTCS processes a refund directly to you. The refund will come to you in the method you chose when selecting your refund preference with BankMobile Disbursements, a technology solution, powered by BMTX, Inc. The disbursement date on your promissory note is NOT the date you will receive a refund.
Fall-only and Spring-only (loans for one term only) and Summer (non-standard term) are disbursed in two payments. Again, the disbursement date on your promissory note is NOT the date you will receive a refund. Generally, the first half of the loan disburses approximately the fourth week of the term (fifth week for first time borrowers), and the second half of the loan disburses approximately one month later. Summer-only loans are disbursed according to an individual’s schedule.
ACTC Default Rates
Repayment Plans
| Initial debt when you enter repayment | Per month | Total repaid |
|---|---|---|
| $3,500 | $50 | $4.471 |
| $5,000 | $58 | $6,905 |
| $7,500 | $83 | $10,357 |
| $10,500 | $121 | $14,500 |
| $15,000 | $173 | $20,174 |
| $40,000 | $460 | $55,239 |
| Initial debt when you enter repayment | Per month | Total repaid |
|---|---|---|
| $3,500 | Not available for this loan amount | |
| $5,000 | Not available for this loan amount | |
| $7,500 | Not available for this loan amount | |
| $10,500 | Not available for this loan amount | |
| $15,000 | Not available for this loan amount | |
| $40,000 | $277 | $83,289 |
| Initial debt when you enter repayment | Per month | Total repaid |
|---|---|---|
| $3,500 | $25 | $5,157 |
| $5,000 | $40 | $7,278 |
| $7,500 | $59 | $10,919 |
| $10,500 | $83 | $15,283 |
| $15,000 | $119 | $21,834 |
| $40,000 | $316 | $58,229 |
| Initial debt when you enter repayment | Per month | Total repaid |
|---|---|---|
| $3,500 | $27 | $6,092 |
| $5,000 | $38 | $8,703 |
| $7,500 | $57 | $13,055 |
| $10,500 | $80 | $18,277 |
| $15,000 | $114 | $26,110 |
| $40,000 | $253 | $72,717 |
| Initial debt when you enter repayment | Per month | Total repaid |
|---|---|---|
| $3,500 | $25 | $6,405 |
| $5,000 | $36 | $9,150 |
| $7,500 | $54 | $13,725 |
| $10,500 | $76 | $19,215 |
| $15,000 | $108 | $27,451 |
| $40,000 | $197 | $84,352 |
Note: Interest rate: payments are calculated using a fixed interest rate of 6.8%
Students should contact their loan servicer to choose a student loan repayment plan that is best for them. Choosing a repayment plan based on your income may make a student’s payment more affordable, as well as giving students more time to repay their loan.
Borrower Benefits, Loan Repayment, Consolidation, & Borrower Responsibilities
- Students begin repayment after their grace period.
- During the subsidized loan grace period, students do not have to pay any principle and will not be charged interest.
- During the unsubsidized loan grace period, students do not have to pay any principle, but will be charged interest.
- Borrowers can consolidate (combine) multiple federal student loans with various repayment schedules into one loan.
- Education loans are borrowed money that must be repaid. You cannot have these loans cancelled because you did not like the education you received, did not get a job in your field of study, or you are having financial difficulty. Loans are legal obligations, so before you take out a student loan, think about the amount you’ll have to repay over the years.
- You must notify the lender or loan servicing agency when you graduate, withdraw from school, drop below half-time status, change your name, address, or Social Security number, or transfer to another school.
- You are required to complete Loan Exit Counseling once you drop below half-time status, graduate, or transfer. To complete Exit Counseling: Go to https://studentaid.gov/ and sign in using your FSA Username & Password. (Same Username & Password used to sign FAFSA). Click Complete Counseling link on the left hand side of the webpage. Click the Start Exit Counseling button under Exit Counseling. Exit Counseling will be the fourth option under Choose Loan Counseling Type.
- Know What You Owe-- Review NSLDS. NSLDS provides students with up-to-date loan information regarding all loans borrowed. The NSLDS website will provide you with your loan servicer and loan amounts. Your loan servicer is the company, assigned by the Department of Education, who handles payments and other administrative functions. Your loan payments will be sent to them.
