Loan Programs

A loan is a type of financial aid that generally requires repayment. Federal and institutional loans may be awarded to undergraduate and graduate/professional/law students. Loans can be need-based or non-need-based, so financial need may not be required for some loan programs. Information included on the Free Application for Federal Student Aid (FAFSA) is used to determine eligibility for the Federal Perkins Student Loan, Federal Health Professions Student Loan (HPSL), Federal Loan for Disadvantaged Students (LDS), Federal Stafford Loans (Subsidized and/or Unsubsidized), Federal Parent Loan for Undergraduate Students (PLUS), and Federal Graduate PLUS Loan. Students also have the option to consider the University of Kansas Endowment Association (KUEA) Loan and/or other Private/Alternative Loans for additional funding.

To be considered for federal loans, you must meet the following minimum eligibility requirements as well as federal aid eligibility criteria (each individual program may have additional eligibility requirements):

File the FAFSA at www.fafsa.gov (the OSFA recommends you file your FAFSA by the March 1st KU priority date to be considered for limited funded low-interest loan programs)
Be enrolled as a degree-seeking student (financial aid is typically not available for non-degree seeking students or for continuing education coursework)
Generally, you must also be enrolled in at least 6 credit hours to receive a loan and remain in at least 6 hours each semester (Fall and Spring semesters only) to be eligible for an in-school loan deferment (if you drop below 6 hours, your grace period and repayment schedule will begin)

Review the current Financial Aid Guide for details on award amounts.

Note: See the Financial Aid Guide for information regarding circumstances that may cause your aid to be adjusted or cancelled. If you withdraw from classes, you may be required to repay some or all of your aid. Review the Withdrawing and/or Dropping classes publication for details.

See the following sections below for detailed information about each type of loan:

Federal Loans | KU Endowment Loan | Private/Alternative Loans

FEDERAL LOAN PROGRAMS

Many students and families rely on federal loans to finance their college education. Generally, loans must be repaid after you leave school, even if you do not complete your degree. The Office of Student Financial Aid (OSFA) encourages you to borrow only what is necessary based on careful evaluation of your expenses and funding options. Below is a list of the federal loan programs available at KU. The University of Kansas utilizes the Direct Loan Servicing Center (DLSC) to process Federal Stafford and PLUS loans. For questions regarding interest accrual and repayment, please contact the Direct Loan Servicing Center at (800) 557-7394. If you want to select a different lender, please contact the OSFA.

Federal Perkins Loan

The Federal Perkins Loan is a fixed rate, low-interest, need-based loan. Recipients must be enrolled in an undergraduate or graduate/professional/law degree-seeking program, meet Satisfactory Academic Progress (SAP) standards, meet all federal aid eligibility requirements, and meet program-specific requirements (see table below).

Federal Perkins Loan Eligibility Requirements
Financial Need	Student must demonstrate financial need
Repayment Terms	No interest until repayment period begins 9 months after graduating or dropping below 6 credit hours. Interest rate is fixed at 5%.
Eligible Students	Undergraduate and graduate/professional/law students
Minimum Enrollment	6 credit hours. If you drop below 6 credit hours, your grace period and repayment schedule will begin.

Federal Perkins Loan Application Process

File the FAFSA by the March 1st KU priority date. This is a limited funded program, so students with completed financial aid files by March 1st will be given priority consideration.
List the University of Kansas school code (#001948) on the FAFSA.
Follow the steps outlined on the Application Process Checklist.

Federal Perkins Loan Award Amounts

Award amounts vary by year depending on funding. The maximum Federal Perkins Loan award amount for undergraduate students is typically $4,000. The maximum Federal Perkins Loan award amount for graduate/professional/law students is typically $6,000 (up to $4,000 for the academic year and up to $2,000 for Summer).

Award amount also depends on remaining financial need.

Federal Health Professions Student Loan (HPSL) and Federal Loan for Disadvantaged Students (LDS)

HPSL and LDS are fixed-rate, low-interest, need-based federal loan programs only available to students in the PharmD program on the KU Lawrence campus. Parental information must be provided on the FAFSA to be considered for this program, regardless of age or dependency status. The Office of Student Financial Aid will not use the parent information provided by independent students to calculate eligibility for other financial aid programs. Recipients must be admitted to the PharmD program, be enrolled in at least 6 credit hours, meet Satisfactory Academic Progress (SAP) standards, meet all federal aid eligibility requirements, and meet program-specific equirements (see table below).

HPSL and LDS Eligibility Requirements
Financial Need	Student must demonstrate financial need
Repayment Terms	No interest until repayment period begins 12 months after graduating or dropping below 6 credit hours. Interest rate is fixed at 5%.
Eligible Students	Pharmacy students who include their parents' information on the FAFSA.
Minimum Enrollment	6 credit hours. If you drop below 6 credit hours, your grace period and repayment schedule will begin.

HPSL and LDS Application Process

File the FAFSA by the March 1st KU priority date. This is a limited funded program, so students with completed financial aid files by March 1st will be given priority consideration.
Include parent information on the FAFSA, regardless of your dependency status.
List the University of Kansas school code (#001948) on the FAFSA.
Follow the steps outlined on the Application Process Checklist.

HPSL and LDS Award Amounts

Award amounts vary by year depending on funding. Generally, the maximum award is the student's estimated Cost of Attendance minus all other aid.

Award amount also depends on remaining financial need.

Federal Stafford Loans (Subsidized and/or Unsubsidized)

Federal Subsidized and Unsubsidized loans (also known as Stafford loans) are educational loan programs that must be repaid, with interest, even if you do not complete your academic program. To receive a Federal Subsidized loan (a loan in which the government pays the interest until you begin repayment), you must demonstrate financial need. Federal Unsubsidized loans require that you pay the interest, which begins accruing as soon as you borrow the loan. Generally, you may choose to make interest payments on the loan while you are in school or have the interest added to your principal balance (capitalized) when your repayment schedule begins. All students, regardless of need, are eligible for Unsubsidized Stafford loans (recipients must still be enrolled in an undergraduate or graduate/professional/law degree-seeking program, meet Satisfactory Academic Progress (SAP) standards, meet all federal aid eligibility requirements, and meet program-specific requirements (see table below). See the current Financial Aid Guide for additional information, such as interest rates, annual and aggregate loan limits, and origination fees.

Subsidized and Unsubsidized Federal Stafford Loan Eligibility Requirements
Repayment Terms	Subsidized Loans: No interest until repayment period begins 6 months after graduating or dropping below 6 credit hours. See the current Financial Aid Guide for information regarding interest rates. Unsubsidized Loans: Interest accrues while in school; repayment period begins 6 months after graduating or dropping below 6 credit hours. Interest rate fixed at 6.8%.
Financial Need	Student must demonstrate financial need for Subsidized loans. Unsubsidized loans do not require financial need, although other eligibility requirements still apply.
Eligible Students	Undergraduate and graduate/professional/law students.
Minimum Enrollment	6 credit hours. If you drop below 6 credit hours, your grace period and repayment schedule will begin.

Subsidized and Unsubsidized Federal Stafford Loan Application Process

File the FAFSA. The OSFA recommends you file by the March 1st KU priority date to be considered for other aid programs. Deadlines for a particular semester may apply. Contact the OSFA for details.
List the University of Kansas school code (#001948) on the FAFSA.
Follow the steps outlined on the Application Process Checklist.

Subsidized and Unsubsidized Federal Student Loan Award Amounts

See the current Financial Aid Guide for award amounts for a particular academic year as well as aggregate limits.

Federal Parent Loan for Undergraduate Students (PLUS)

Federal PLUS loans allow parents with good credit to borrow funds to pay educational expenses for their child's undergraduate education. Each child must be a degree-seeking, dependent, undergraduate student. The student for which the parent is borrowing must meet Satisfactory Academic Progress standards, all federal eligibility requirements, and program-specific requirements (see table below). See the current Financial Aid Guide for additional information, such as interest rates, annual and aggregate loan limits, and origination fees.

Please Note: All PLUS loan communications initiated by the OSFA are directed to the student. It is the student's responsibility to communicate this information with his/her parent. Review the PLUS Loan Checklist for instructions on how to apply for a PLUS loan and what items need to be completed, upon approval, in order for PLUS loan funds to be disbursed. PLUS loan funds cannot be disbursed until all required items have been completed.

PLUS Loan Eligibility Requirements
Financial Need	Not required
Repayment Terms	You may choose to wait until six months (i.e. defer repayment) after the dependent student on whose behalf the parent borrowed ceases to be enrolled on at least a half-time basis. You must contact your lender for this option. Because PLUS loans are unsubsidized, you will be charged interest during periods of deferment and if you choose not to pay interest as it accrues, it will be capitalized (added to your outstanding principal balance).
Eligibility	Parents of dependent, undergraduate, degree-seeking students
Minimum Enrollment	6 credit hours

PLUS Loan Application Process

File the FAFSA. The OSFA recommends you file by the March 1st KU priority date to be considered for other aid programs. Deadlines for a particular semester may apply. Contact the OSFA for details.
List the University of Kansas school code (#001948) on the FAFSA.
Parents who want to request a PLUS loan must submit a PLUS Loan Request Form to the OSFA.
Follow the steps outlined on the Application Process Checklist.

PLUS Loan Award Amount

The maximum amount a parent may borrow is the student's estimated Cost of Attendance, as determined by the University of Kansas, minus any other financial aid received by the student.

Federal Graduate PLUS Loan

Graduate PLUS loans are unsubsidized federal loans available to graduate/professional/law students with good credit who need loans in addition to their federal Stafford loans. The Graduate PLUS application process includes a credit check. Generally, you will be approved for a Graduate PLUS loan as long as you do not have an adverse credit history and you are not in default on a federal student loan. Recipients must be enrolled in a graduate/professional/law degree-seeking program, meet Satisfactory Academic Progress (SAP) standards, meet all federal aid eligibility requirements, and meet program-specific requirements (see table below). See the current Financial Aid Guide for additional information, such as interest rates, annual and aggregate loan limits, and origination fees.

Graduate PLUS Eligibility Requirements
Financial Need	Not required
Repayment Terms	Repayment period begins 6 months after graduation or dropping below 6 credit hours.
Eligible Students	Graduate/professional/law students
Minimum Enrollment	6 credit hours. If you drop below 6 credit hours, your grace period and repayment schedule will begin

Graduate PLUS Application Process

File the FAFSA. The OSFA recommends you file by the March 1st KU priority date to be considered for limited funded aid programs. Deadlines for a particular semester may apply. Contact the OSFA for details.
List the University of Kansas school code (#001948) on the FAFSA.
Follow the steps outlined on the Application Process Checklist.
Complete the Graduate PLUS Loan Request Form.

Graduate PLUS Loan Award Amounts

You may request to borrow a Graduate PLUS Loan up to your estimated Cost of Attendance minus any other financial assistance.

THE UNIVERSITY OF KANSAS ENDOWMENT ASSOCIATION LOAN PROGRAM

KU Endowment is an independent, nonprofit corporation serving as the official fund-raising and fund-management organization for the University of Kansas. Through the years, many KU alumni and friends have made gifts to KU Endowment for the purpose of providing low-interest loans to deserving students. The KUEA Loan program is a low-interest loan available to undergraduate and graduate/professional/law students. Recipients must be enrolled in an undergraduate or graduate/professional/law degree-seeking program and meet program-specific requirements (see table below).

KU Endowment Loan Eligibility Requirements
Financial Need	Not required
Repayment Terms	Repayment begins 4 months after leaving the University of Kansas. Interest rate is fixed at 5%.
Eligible Students	Undergraduate and graduate/professional/law students
Minimum Enrollment	6 credits hours for undergraduate students (3 hours during the Summer) and 1 credit hour for graduate/professional/law students

KU Endowment Loan Application Process

Apply online at http://www.kuendowment.org/students/loans/.

KU Endowment Award Amounts

Please review the KUEA Loan Information Sheet for information about award amounts.

PRIVATE/ALTERNATIVE LOAN PROGRAMS

Private loans are funds from private lenders that help cover educational costs. You may want to consider a private loan if federal financial aid is not enough to cover your Cost of Attendance (COA).

Private/Alternative Loan Eligibility Requirements
Financial Need	Generally, not required
Repayment Terms	Varies by lender
Eligible Students	Undergraduate and graduate/professional/law students
Minimum Enrollment	Varies by lender

Private/Alternative Loan Application Process

Many lenders offer private loans. While KU does not endorse any specific private lender, the Private/Alternative Loans Information Sheet includes lenders most frequently selected by KU students in the past year. We encourage you to research various lenders and select the one that best fits your needs. Do not complete a loan application until you have selected your lender. If the loan you select does not meet KU's school certification requirement or if you have already reached your maximum eligibility for financial aid, you will be notified.

Choosing a Lender

There are many things to consider when choosing a lender. Be sure to get answers to the following questions:

What are the loan fees?
What is the interest rate?
When do I have to start repaying the loan?
Do I have to be meeting Satisfactory Academic Progress standards?

KU Office of Student Financial Aid