Direct Loan | ACTC

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 4.53% (Parent PLUS Loan is 7.08%), for loans that disburse between July 1, 2019 and June 30, 2020

Maximum Total Loan Debt Limits (Maximum amounts over an academic career)
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,

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. To create a username & password, go to

Complete ACTC Budget Form

  • First time loan borrowers must complete the ACTC Budget form and submit back to the financial aid office before the loan will be packaged or posted to student account.

Complete Entrance Counseling

  • Log on to
  • 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

Complete Master Promissory Note

  • Log on to
  • 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 Student Self-Service by going to
  • Click on the Financial Aid box 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. 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


A school is subject to loss of eligibility to participate in the William D. Ford Federal Direct Loan (Direct Loan) Program, and/or Federal Pell Grant Program due to FY 2011, FY 2010, and FY 2009 official cohort default rates of 30% or greater for three consecutive years..

  • Fiscal Year 2013 - 29.9%
  • Fiscal Year 2012 - 27.6%
  • Fiscal Year 2011 - 28%
  • Default Rate Source:  

Repayment Plans

Standard (not to exceed 10 years)
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
Graduated (not to exceed 10 years)
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
Income Contingent (income=$25,000) for Direct Loans only - Single
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
Income Contingent (income=$25,000) for Direct Loans only - Married/HOH
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 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 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.