Federal Stafford Student Loan Policy
Federal regulations prohibit the receipt of federal student aid (grants and/or loans) at more than one school for the same enrollment period.
KCKCC requires students to complete a new Loan Request form for each time loan funds are requested.
Students must be enrolled in at least six (6) credit hours and in attendance of those six (6) hours of course work. All loans will be delivered in two (2) disbursements each semester. Enrollment is verified for each disbursement. The disbursement dates are set by the school according to when the student begins attendance in six (6) credit hours of coursework. The disbursement date of your loan is the date the lender releases the loan funds to KCKCC.
Processing of Student Loan Applications
Students must be enrolled in courses before loan applications will be processed. This will allow disbursement dates to match course start dates. Early enrollment for summer and fall semesters begins in April; early enrollment for spring semester begins in November.
Students will be sent an official Award Notice by the KCKCC Student Financial Aid Office indicating the loan amount approved for each semester. Included with the award notice will be instructions for completing a Federal Stafford Loan Master Promissory Note (MPN). You will have the option of completing the master promissory note online or completing a hard copy application/promissory note. Loan funds will not be released to KCKCC until this last step is completed. The MPN must be completed by the last day of the semester in which the loan is requested.
All loans will be delivered in two (2) disbursements each semester. Disbursement dates are set by the school according to when the student begins attendance in six (6) credit hours of coursework. The disbursement date is the day that your bank has been asked by the Student Financial Aid Office to send your funds to the college. The disbursement date is not the day that you will receive your funds.
Right to Cancel
Students have the right to cancel all or a portion of a federal student loan prior to disbursement. To cancel a student loan, the student must do so in writing to the Student Loan Coordinator in the Student Financial Aid Office.
New Student Loan Borrowers
Student loan borrowers who have not previously received a student loan at KCKCC are "New Student Loan Borrowers." Those students who have not received federal student loans at any other institution are required to wait 30 days after the first day of class before student loan funds can be disbursed. Students who have previously received federal student loans at another institution will not have to wait 30 days before student loan disbursement. All new student loan borrowers at KCKCC must complete the Borrower Entrance Counseling Session on the Internet at www.kckcc.edu/admissions/financial-aid. New borrowers must complete the Borrower Entrance Counseling session before student loan applications will be processed.
Outside Financial Assistance
Any financial assistance received from an outside source for educational expenses must be reported to the Student Financial Aid Office (example: scholarships, VA benefits, Vocational Rehab, JTPA, etc.)
Once a student defaults on a federal student loan, no aid (loans or grants) will be processed until the default is cleared. In order to verify the default has been cleared, the student must submit to the Student Financial Aid Office a copy of a letter from the agency that reported the default. This letter must verify the default has been cleared and the student is now eligible to receive federal Title IV aid.
Total and Permanent Disability Claims
Students who have had federal student loans discharged because of total and permanent disability are eligible to receive additional loans after certifying the disability has improved sufficiently to engage in substantial gainful activity. Any federal student loans received based on this certification may not be cancelled. The necessary forms must be obtained from and returned to your lender or guarantor.
When a student is withdrawn or dropped to less than six (6) credit hours, the lender will be notified. This notification will result in the return of any available loan funds and the cancellation of any pending disbursements. If a student submits another loan application, it will not be processed until grades are posted and academic progress has been determined for the semester in which the withdrawal occurred.
Students placed on "Financial Aid Exclusion," for not making satisfactory academic progress are not eligible to receive federal Title IV funds, which includes Pell Grant funds, ACG funds, SEOG funds, work-study funds, and student loan funds.
Student Loan Disbursements & Delivery
In completing the Loan Request form, the borrower must provide a name of a lender (banking institution). The lender must participate in the Federal Family Education Loan Program. A lender list is provided to assist new borrowers in choosing a lender. Students with prior loans should select the lender used previously. Students may find their previous loan history at the National Student Loan Data System (NSLDS).
In an effort to assist borrowers to keep one source of contact for loan repayment, KCKCC reserves the right to change the lender choice indicated on the student's application if the student has borrowed a previous loan with another lender. If the student wishes to change lenders they should contact the KCKCC Student Loan Coordinator.
Electronic Funds Transfer (EFT) - Student loan funds are electronically received by KCKCC and credited to the student's account. The KCKCC Business Office will deduct from the loan funds any tuition, fees and/or bookstore charges owed to the college. The remaining funds will be mailed to the student, by the Business Office, at the address on file in the KCKCC Admissions Office.
After the lender disburses the loan funds to the college enrollment status will be checked and then the student loan funds will be credited to the student's account. The Business Office will deliver any excess funds to the student by mail within 13 days after your disbursement date.