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FINANCIAL AID LOANS

DO I QUALIFY FOR FEDERAL STAFFORD LOAN?

• Completed a FAFSA and listed our school code: 001614

• You must be a Kaua'i CC major

• Enrolled in at least six credits

• Be making Satisfactory Academic Progress

• Not in default on a prior student loan or obligated to repay a federal grant

WHAT IS A FEDERAL STAFFORD LOAN?

A Federal Stafford Loan is a low interest, long term loan program.

• Subsidizied Stafford Loan (SUB): Is awarded to students who demonstrate financial need. The federal government will subsidize or pay the interest on the loan during deferment periods.

• Unsubsidized Stafford Loan (UNSUB): This loan is typically awarded to students who do not demonstrate financial need, but it may also be used to supplement a Subsidized Stafford Loan. Unlike the subsidized loan, interest will begin to accrue upon receipt of the loan check and the borrower is responsible for repaying all accrued interest.

WHAT IS THE INTEREST ON THIS LOAN?

The interest rate is 5.60% for loans disbursed between 7/1/09 to 6/30/10
The interest rate is 6.00% for loans disbursed between 7/1/08 to 6/30/09

WHEN DO I REPAY THIS LOAN?

Repayment on a Federal Stafford Loan begins six months after you leave college or drop below half-time.

HOW MUCH CAN I BORROW?

Kaua'i CC is a two year college and can only certify 1st and 2nd year education levels, see the tables below by dependency for your annual loan limit.

Borrow conservatively, only what you will need to meet your educational expenses while you are enrolled at Kaua'i CC.
Always keep in mind that student loans must be repaid. Some lenders charge loan fees so your net amount may be different from your requested amount.

The Smart Student Guide to Financial Aid at finaid.org has some excellent loan calculators to help students figure out how much to borrow, analyze the best repayment options, loan comparisons, and much, much more.

HOW DO I APPLY?

Complete and return a Stafford Loan Request form to the Financial Aid Office. You must select a Lender. Lenders use Loan Servicers to help them manage their student loan portfolios. A Loan Servicer will either mail you a MASTER PROMISSORY NOTE, if you do not already have a promissory note (p-note) on-file OR will refer you to go on-line to complete a p-note. You must complete, sign, and return the p-note to the Loan Servicer for processing.

WHEN WILL I GET MY MONEY?

The Loan Servicer will mail you a Notice of Loan Guarantee and Disbursement letter with the dates that your loan will leave the bank. Electronic funds are deposited into the University's account and released no earlier than 10 days before the start of a term. The University receives deposits on a weekly basis and runs disbursement regularly to credit your student account. If your lender does not participate in electronic fund transfer and mails a paper check, the Financial Aid Office will contact you to pick up your check from the office. Please bring a valid picture identification for your check to be released. Loan checks are disbursed twice during your period of enrollment.

There may be a 30-day delay if you are considered a first-year; first-time borrower.

LOAN ENTRANCE INTERVIEW

If you are a first-time borrower at our college, you must complete a loan entrance interview. You can do this by either going on-line or requesting an appointment to meet with Financial Aid Office Staff.

PROBLEMS KEEPING TRACK OF YOUR STUDENT LOAN?

Track your students loans on the NSLDS website. You will see the dates you took out the loan, the orginal amount, what you owe now, the interest rate, and the amount of accumulated interest. You will also se the status of each loan such as whether you loan is in repayment or paid in full.

ARE YOU RETURNING TO COLLEGE AND
DO YOU NEED A DEFERMENT FORM?