Loans

Loans

Even though student loans are a primary source of financial aid, it is recommended that you explore all possible grant and/or scholarship options before applying for a loan.

Please visit the National Association of State Student Grant & Aid Programs website to see if you may qualify for grant and/or scholarship assistance from your home state prior to applying for a student loan. Keep in mind that all loans, including student loans, represent debts that must be repaid. Most student loans do not go in to repayment until after you leave school or graduate.

In addition to delayed repayment, most student loans have relatively low interest rates, several repayment options from which to choose, circumstances under which you can postpone repayment, and other favorable terms and conditions.  For additional information regarding the Direct Student Loan, please refer to the Direct Loan Basics for Students brochure, or the Direct Loan Website.

To apply for any type of Federal Direct Student Loan (subsidized, unsubsidized, and/or a PLUS loan), you must complete the financial aid application process at Kettering College.  For more information regarding this process refer to How to Apply.

During the processing of federal student loans, students and/or parent borrowers will have their loan information submitted to the National Student Loan Data System.  This information will be accessible by guaranty agencies, lenders, and institutions determined to be authorized users of the data system.

Loan Options

Federal Direct Loans

Nursing Student Loan

Nurse Education Assistance Loan Program (NEALP)

Alternative Loans

Parent PLUS Loan

Graduate PLUS Loan

Federal Direct Loans (Subsidized and Unsubsidized)

The main source of student loans is the federal government. Kettering College participates in the Federal Direct Student Loan Program.  Kettering College disburses your loan funds on behalf of the United States Department of Education.  No bank or guarantee agency is involved in the direct lending process.  The Federal Direct Loan that you, the student, can borrow in your own name can be either subsidized or unsubsidized or a combination of both.  The interest rate on your Federal Direct Subsidized or Unsubsidized Loan is a variable rate that is adjusted each July 1.

After you have applied for financial aid at Kettering College, you will receive an Award Letter, which lists the maximum loan amounts you are eligible to borrow from both the subsidized and/or unsubsidized loan programs.  Once you are awarded a Federal Direct Loan, you must complete a Master Promissory Note (MPN) on the web at www.studentaid.gov and Entrance Counseling on the web at www.studentaid.gov.  The Direct Subsidized and Unsubsidized Combined Annual and Aggregate Loan Limits are as follows:

• Dependent Undergraduates
• Student Year Annual Limit Aggregate limit
• First year $5,500
• Second year $6,500
• Third, fourth, and fifth years $7,500 / $31,000
• Independent undergraduate
• Student Year Annual Limit Aggregate limit
• First year $9500
• Second year $10,500
• Third, fourth, and fifth years $12,500 / $57,500
• 1 – No more than $23,000 of this may be in subsidized loans
• 2 – No more than $3,500 of this may be in subsidized loans
• 3 – No more than $4,500 of this may be in subsidized loans
• 4 – No more than $5,500 of this may be subsidized loans
• 5 – No more than $23,000 of this may be in subsidized loans

In order to qualify for a Federal Direct Subsidized Loan, you must have financial need.  To determine if you have financial need, your Expected Family Contribution from your FAFSA and any additional aid you may have coming to you is subtracted from your “cost of attendance.”  If you do qualify for a subsidized loan, the federal government pays the interest on the loan, i.e., subsidizes the loan while you are in school, during your six-month grace period prior to repayment, and during any authorized period of deferment.

Students without financial need are eligible for the Federal Direct Unsubsidized Loan.  This means that you will be responsible for the interest on the loan from the time you receive the funds until the loan is paid in full.  You have the option of allowing the interest to accumulate, or accrue, on the loan while you are in school and during your six-month grace period prior to repayment.

You also have the option of paying the interest on the loan as it accumulates.  If you decide to delay interest repayment, the interest that accumulates will be “capitalized,” that is, will be added to your loan principal when you begin repayment.

Entrance Counseling

Before you receive your first Federal Direct Loan at Kettering College, the federal government requires you to participate in Entrance Counseling on the web at www.studentaid.gov. The purpose of Entrance Counseling is to educate you about student loans so you will be a well-informed borrower. Entrance Counseling covers such topics as interest rates, repayment options, your rights and responsibilities, the consequences of default, etc.

**According to federal law, no funds can be disbursed to any student until the Entrance Counseling requirement has been met.**

Exit Counseling

If you received a Federal Direct Loan while a student at Kettering College, then you are required to complete Exit Counseling at www.studentaid.gov if one of the following happens:

•  you have applied to graduate at the end of the current semester – OR –
• you have withdrawn for the current semester – OR –
• you are not enrolled at least half-time for the current semester.

The purpose of Exit Counseling is to select a repayment plan; review deferment, forbearance, and cancellation provisions; discuss loan consolidation; and review the serious consequences of delinquency and default. You will receive a notice when it is time for you to complete the Exit Counseling requirement.  You must complete Exit Counseling before we can release your degree or transcripts.

Federal Direct Loan Repayment

If you think you might have a problem making a scheduled payment on your student loans, you should contact the organization that services your loan. If you do not know who your servicer is, you can look it up at https://nsldsfap.ed.gov.

Default occurs when a Federal Direct Loan borrower becomes 270 days delinquent in making a loan payment. There are numerous adverse consequences that will result if you default on your student loan. These negative consequences include, but are not limited to, the following:

•  You will not be eligible for future federal financial aid.
• Your account may be turned over to a collection agency.
•  Your credit rating will be damaged.
• Your federal income tax refund may be withheld from you.
• Your wages may be garnished.
• Your car and other possessions may be repossessed.
• The federal government can sue you.

Nursing Student Loans

The United States Department of Health and Human Services administers the Nursing Student Loan (NSL) Program. The NSL Program provides long-term, low interest loans to both full- and half-time students pursuing a degree in nursing. You must show financial need in order to qualify.  Each school participating in the NSL Program is responsible for selecting the loan recipients.

Application Process

Since funds are limited, in order to be considered for the Nursing Loan, you must apply for financial aid at Kettering College by the priority deadline of March 31, be enrolled in the nursing program, and demonstrate financial need.  Students demonstrating the highest financial need will be considered first.  For more information regarding this process, refer to How to Apply.  You will be notified if you are eligible by email during the fall semester.  In general, Kettering College makes Nursing Loans that average $2,000 per school year, to be disbursed in two equal payments, i.e. $1000 per semester for two semesters.

Repayment Terms

The Nursing Student Loan interest rate is currently 5%.  No interest accumulates while you are enrolled at least half-time or during the nine-month grace period.  Repayment of principal and interest begins nine months after you graduate, withdraw, or drop below half-time enrollment.  Borrowers may be allowed up to ten years for repayment of this loan.

If you ARE a recipient of the loan, you will be notified by e-mail during fall semester. You will be directed to complete the Master Promissory Note/Entrance Counseling:

• Log on to Heartland-ECSI’s website at https://www.ecsi.net/prom2U
•  Confirm your identity.
• Completely read the Promissory Note.  Once you have read it, you must electronically sign it at the bottom of the page.  The electronic signature includes a check-off box plus your full legal name.
• If you received a Nursing Student Loan while a student at Kettering College, then you are required to complete exit counseling BEFORE you leave school or graduate.  Read below on how to do exit counseling.

Exit Counseling

Exit interview counseling is designed to prepare you for the repayment of your student loan(s), provide you with detailed information regarding deferment and/or cancellation privileges, and to assist you with personal financial management.  Exit counseling must be completed before we can release your grades, diploma, transcripts, etc.

You are required to complete exit counseling when:

• you have applied to graduate at the end of the current semester – OR –
•  you have withdrawn from the current semester – OR –
• you are not enrolled at least half-time for the current semester.

To complete your online exit interview, please access Heartland-ECSI’s web site at www.ecsi.net:

• Under Heartland Campus Solutions – Click on the grey arrow under ECSI
• Click on “manage your Student Loan Account”
• School code: 2U
• Account number: Social Security Number
• PIN Number: Number assigned to borrower by Heartland-ECSI
• Click the “Login” option to begin the process

If you have any trouble completing your online exit interview, please contact Heartland-ECSI at 1-888-549-3274.

Parent PLUS Loan

The Federal Direct Parent Loan for Undergraduate Student (PLUS) is a loan for the natural parent, adoptive parent, or legal guardian of a dependent undergraduate student. In certain circumstances, a stepparent may be eligible to borrow.

First Apply for Financial Aid – Once you have applied for financial aid (refer to How to Apply), your parent will be sent a Direct PLUS Loan Credit Authorization to complete. The parent borrower must have a good credit history to borrow a PLUS Loan. If you have questions about your Direct PLUS Loan credit history, contact the U.S. Department of Education at 1-800-433-3243.
If the parent-borrower does not pass the credit check, the loan may be denied outright, or the parent may be offered the option of obtaining a creditworthy endorser.
The PLUS Loan interest rate is fixed and is adjusted each July 1.   You can find out the current interest rate on Direct PLUS Loans at www.studentaid.ed.gov or by contacting our Financial Aid Office.

There is no grace period on a Parent PLUS Loan, so interest begins to accumulate at the time the first disbursement is made.  Parent PLUS Loan borrowers whose loans were first disbursed on or after July 1, 2008, may choose either to begin repayment within 60 days of the final disbursement or to have repayment deferred while the student for whom the parent borrowed is enrolled at least half-time and for an additional six months after the student is no longer enrolled half-time.  Interest that accrues during these periods will be capitalized if not paid by the parent during deferment.

Please email the Associate Director of Financial Aid, Shannon Hammons to receive the Direct PLUS Loan Credit Authorization form to complete.

Federal Graduate PLUS Loans

Federal Graduate PLUS Loans are available for graduate students to borrow for educational expenses.  A student can apply for the loan in his or her own name as long as they are enrolled in an approved graduate program.  Once you have applied for financial aid (refer to How to Apply), you will be sent a Federal Graduate PLUS Loan Credit Authorization to complete. The borrower must have a good credit history in order to be able to borrow a PLUS Loan. If you have questions about your Direct PLUS Loan credit history, contact the Department of Education at 1-800-433-3243.  If the borrower does not pass the credit check, the loan may be denied outright, or the student may be offered the option of obtaining a creditworthy endorser.

The Graduate PLUS Loan will be placed into deferment while you are enrolled at least half-time and for an additional six months after you cease to be enrolled at least half-time.  However, the interest on the loan will begin accruing as soon as the loan is disbursed. The PLUS Loan interest rate is fixed. The interest rate is adjusted each July 1.  You can find out the current interest rate on the Direct PLUS Loan at www.studentaid.ed.gov or by contacting our office.

Please email the Associate Director of Financial Aid, Shannon Hammons to receive the Federal Graduate PLUS Loan Credit Authorization form to complete.

Alternative Loan Information

If you feel that your Direct Loans are not enough to cover the cost of your tuition, fees, books, and/or living expenses, there are alternative loans available through independent lenders.  Approval for most alternative loans is based upon a number of factors including:

• credit history
• debt-to-income ratio
• having a creditworthy cosigner (many loans do not require a co-signer if your credit history is good, but many times your interest rate may be reduced if you have a co-signer)

Keep in mind that alternative loans are private education loans that may have less favorable conditions than the Federal Direct Loans.  It is always recommended that students and/or parents apply for federal aid before looking at the private alternative education loans.

Applying for an alternative loan is very much like applying for a mortgage or auto loan.  In order to obtain the most competitive interest rate, origination fee, and/or repayment schedule, you may wish to shop around and apply with different lenders.  Kettering College does not recommend, promote, or endorse any private/alternative loan lender.  Neither Kettering College nor any Kettering-affiliated organization (i.e. Alumni Association, KMC Foundation, etc.) participates in any preferred-lender arrangements.

How to Apply for Alternative Loans

Below are steps students should follow when applying for alternative loans.

1. Explore other loan options first. You may qualify for federal student loans.
2. If you’d like to pursue an alternative loan, contact the lender of your choice for information on how to apply. You may also view a list of alternative loan programs selected by Kettering College on FASTChoice. NOTE: You may choose any loan program/lender, even if they do not appear on FASTChoice. If a lender approves you for an alternative loan, the lender will send a school certification request to the Office of Financial Aid.
3. Federal Regulation requires students who apply for a private/alternative loan to complete a self-certification form. Most lenders will provide the self-certification form during the online application process. The form must be completed and submitted to the lender prior to any disbursements being made to your student account at Kettering College. Students can view their Financial Aid Offer and Cost of Attendance (COA) information needed to complete the form by logging into the JFA student portal. If you have questions about this, please reach out to financial.aid@my.kc.edu.

Please ensure that you have applied for a private educational loan, not a Stafford loan.  Kettering College’s Stafford loans are serviced through Direct Loans.  The school is not responsible for your approval or interest rate.  In addition, any changes to your schedule may impact your eligible amount for private loans and should be brought to the financial aid department’s attention.

While our office suggests disbursement of funding on the first day of each term, you are responsible for contacting your lender of choice to ensure they have all the information that they need for loan disbursement.  If you have any questions, please contact your lender directly.

Contact Us

If you have questions, please contact us! We would love to help.

Student Finance Office Contact
Email: financial.aid@my.kc.edu
Phone: 937-395-6022
Fax: 937-395-8338

Student Finance Office Hours
Monday – Thursday: 8:30 a.m. – 4:30 p.m.
Friday: 8:30 a.m. – 12 p.m.
Closed weekends and holidays