Loans

Image of hand of person filling out paperwork.Loan information will be submited to the National Student Loan Database System (NSLDS) and will be accessible to students, guaranty agencies, lenders, and institutions determined to be authorized users of the data system.

William D. Ford Federal Direct Loan Program

The Department of Education offers Federal Direct Subsidized Loans to students enrolled at least half-time (minimum six credit hours) who demonstrate financial need. Students may borrow up to $3,500 per academic year as a freshman (less than 24 credit hours earned) and $4,500 per academic year as a sophomore (24 or more credit hours earned). The federal government pays the interest while the student is in school at least half time, during the six-month grace period and during all deferment periods for the Federal Direct Subsidized Loan.

To apply for the Federal Direct Subsidized Loan, students must complete the Free Application for Federal Student Aid (FAFSA) and complete the Request for Loan section on the Kellogg Community College Financial Aid Certification and Loan Application form.

Federal Direct Unsubsidized Loans

These are low interest loans made by the Department of Education which allow students to borrow who are not eligible or have reduced eligibility for a Federal Direct Subsidized Loan. The maximum amount a student can borrow is the same as the Federal Direct Subsidized Loan. Independent students may borrow up to an additional $6,000, depending on eligibility. Dependent students can borrow up to an additional $2000, depending on eligibility. The interest rate for the Federal Subsidized and Unsubsidized Loans is the same. The federal government does not pay the interest for the student receiving a Federal Unsubsidized Loan. Students are responsible for paying the interest on the Federal Direct Unsubsidized Loan while they are in school, during the six-month grace period and during all periods of deferment.

To apply for a Federal Direct Unsubsidized Loan, students must complete the Free Application for Federal Student Aid (FAFSA) and complete the Request for Loan section on the Kellogg Community College Financial Aid Certification and Loan Application form.

Federal Direct Plus Loans for undergraduate students

These are government loans made to parents of dependent students who do not have an adverse credit history. Maximum loan amounts cannot exceed the Cost of Attendance (COA) minus other financial aid. The interest rate on the Federal Direct Plus Loan is a variable rate not to exceed 9%. Payment begins 30 days after the first disbursement.

To apply for a Federal Direct Plus Loan, parents need to complete the Free Application for Federal Student Aid (FAFSA) and the a Federal Direct Parent Loan application. Forms are available in the Kellogg Community College Financial Aid office or in the Student Forms section of this website.

*First-time loan borrowers must complete Entrance Counseling and sign a Master Promissory Note in order for loan funds to be disbursed. Visit StudentLoans.gov for more information.