Federal Student Loans
Student loans are the major form of self-help aid available to KSC students who are enrolled at least half-time in a degree-seeking program (six credits per semester for undergraduates or a Department of Education approved certificate program).
Acceptance of all Federal Student Loans reflected on your Award Letter is assumed. If you wish to decline any or all of the loans offered to you, please sign and return a copy of the Financial Aid Change Form to our Office with your adjustments.
The U.S. government is the lender under this Direct Loan program. Questions? Visit our FAQ page.
Types of Direct Student Loans
Subsidized Federal Direct loans are awarded on the basis of financial need as determined by an analysis of the FAFSA. This loan is available to undergraduate students only. Interest is not charged during periods of at least half-time enrollment.
You can find more information about interest rates for loans at the Federal Student Aid website.
Unsubsidized Federal Direct loans are available to undergraduate and graduates students and there is no requirement for the student to demonstrate need. The student will be charged interest from the time the loan is disbursed until it is paid in full. If interest is allowed to accrue (accumulate) while the student is in school, or during other periods of non-payment, it will be capitalized. This means the interest will be added to the principal amount of the loan, and additional interest will be based on that higher amount.
There is an origination fee of 1.057% on Federal Subsidized and Unsubsidized Loans disbursed after October 1, 2020 and before October 1, 2023. More information about origination fees can be found online at the Federal Student Aid website.
Additional Federal loans are available for graduate students who wish to supplement the unsubsidized federal loans they receive may choose to participate in the Federal Direct PLUS program for Graduate Students.
Please note that an approved application, PLUS Master Promissory Note, and PLUS Entrance Counseling are required to receive this Loan.
A student’s total award (including PLUS) cannot exceed the cost of attendance.
Graduate students considering a PLUS are encouraged to contact our office directly for more information about requirements to participate in this program.
The PLUS has a 4.228% origination fee.
To participate in the Federal Direct Student Loan Program, the student must:
- Complete a FAFSA and satisfy any verification requirements
- Be enrolled at least half time in a degree seeking program
- Comply with the federally mandated Satisfactory Academic Progress Standards
- Complete an electronic Master Promissory Note (eMPN) online at Federal Student Aid website (eMPNs are valid at any school participating in the Direct Loan Program for 10 years just as long as you receive a loan disbursement within 1 year of completing the eMPN)
- Complete an entrance counseling session online at the Federal Student Aid website site. Transfer students must complete a new counseling session when starting at KSC
- Be in good standing on all other previously borrowed federal loans
Direct Loan Interest Rates
The chart below displays the interest rates for Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans first disbursed on or after July 1, 2022 and before July 1, 2023.
|Loan Type||Borrower Type||Fixed Interest Rate|
|Direct Subsidized Loans||Undergraduate Student||4.99%|
|Direct Unsubsidized Loans||Undergraduate Student||4.99%|
|Direct Unsubsidized Loans||Graduate Student||6.54%|
|Direct PLUS Loans||Graduate Student or Parents of Dependent Undergraduate Student||7.54%|
The limits reflected below are for loans first disbursed on or after July 1, 2008. Please note limits increase for Independent Undergraduate Students and Dependent Students whose parents are denied for a Federal Parent Loan (PLUS).
Direct Loan Limits (Subsidized and Unsubsidized)
|$5,500 ($3,500)3||$9,500 ($3,500)||$20,500 for each year|
(30- 59 credits)
|$6,500 ($4,500)||$10,500 ($4,500)|
|3rd and 4th year
|$7,500 ($5,500)||$12,500 ($5,500)|
|Aggregate||$31,000 ($23,000)||$57,500 ($23,000)||$138,5004 ($23,000)|
1Except those whose parents are unable to borrow a PLUS loan.
2These limits also apply to dependent students whose parents are unable to borrow a PLUS loan.
3The numbers in parentheses represent the maximum amount that may be subsidized.
4The aggregate amounts for graduate students include loans for undergraduate study.
Average Loan Debt
For KSC undergraduate students who graduated in May 2018, the average amount of Federal loan debt (for those who borrowed Federal loans) was $24,170. Approximately 83% of undergraduate students in that cohort borrowed Federal loans while attending KSC. This debt does not include any Federal Direct Parent PLUS loans or private educational loans, the average private educational loan debt was $39,865.
Federal Student Loan Cohort Default Rate
Keene State College FY16 cohort default rate 3.7%. The national FY16 cohort default rate is 10.1%.