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Changes for the 2012-2013 Academic Year for the Federal Direct Loan program
  • Direct Subsidized loans will not be eligible for an interest subsidy during the six-month grace period.
    • This provision eliminates the interest subsidy provided during the six-month grace period for subsidized loans for which the first disbursement is made on or after July 1, 2012, and before July 1, 2014.
    • If you receive a subsidized loan during this timeframe, you will be responsible for the interest that accrues while your loan is in the grace period.
    • You do not have to make payments during the grace period (unless you choose to) but the interest will be added (capitalized) to the principal amount of your loan when the grace period ends.
    • This provision does not eliminate the interest subsidy while the borrower is in school or during eligible periods of deferment.
Kaskaskia College participates in the Federal Direct Loan program. Federal Direct Loans are either Subsidized or Unsubsidized.

To participate in the loan programs, the student must meet Satisfactory Academic Progress requirements. Loans are not processed retroactively for prior completed semesters.

To qualify for a subsidized loan, the student must demonstrate financial need; unsubsidized loans are open to all students. While the student is in school, payment of principal is deferred on both types of loans. Interest on subsidized loans is paid with federal funds, whereas the student is responsible for accrued interest on unsubsidized loans. The amount and type of loan that a student may borrow at Kaskaskia College will vary depending on the student’s financial need and other sources of aid being received.

Loan maximums for students attending Kaskaskia College:

The maximum amount you can borrow each year in Direct Subsidized and Unsubsidized Loans depends on your grade level and on whether you are a dependent student or an independent student. The following table shows the maximum amount of money you may borrow each academic year in Direct Subsidized and Unsubsidized Loans as well as the total (aggregate) amount you may borrow:

Direct Stafford Loan Limits (Subsidized and Unsubsidized)
Undergraduate Students:
  Dependent Independent
1st-Year $5,500 ($3,500) $9,500 ($3,500)
2nd-Year $6,500 ($4,500) $10,500 ($4,500)
Aggregate $31,000 ($23,000) $57,500 ($23,000

*The numbers in parentheses represent the maximum amount that may be subsideized.

Loan Policy

Kaskaskia College (1) will issue loan checks no earlier than 30 days into the semester; second disbursement, no earlier than 30 days into the second semester.


The Direct Loan process consists of three steps. All steps must be completed before your loan can be fully processed.

1.     The Financial Aid Office needs to ensure that all required steps are in order to process your student loan successfully. Your student loan cannot be processed until you complete the FAFSA application. After completing the FAFSA you will also need to complete the Online Entrance Counseling and the Online Master Promissory Note. Please note you must be enrolled in a minimum of 6 credit hours to obtain a loan.

2.     Online Entrance Loan Counseling is the first step in completing your Direct Loan. This process will take approximately 30-45 minutes. At the homepage, click on “Entrance & Exit Counseling”. Next, click on “Entrance Counseling”. Choose a Stafford Loan then click on “Tutorial and Quiz (New Session)”. Review the content and take the quiz. Enter your personal information and select the school you want to receive the confirmation. Print the list of Rights and Responsibilities for your personal records.

Click here to complete Online Student Loan Counseling

3.      Completing the Electronic Master Promissory Note is the next step in the Direct Loan process. Your social security number, driver’s license number, and FAFSA PIN will all be needed while filling out the Promissory Note. If you do not remember your PIN number, you can request a duplicate on the PIN Website at You will also need the names, addresses, and telephone numbers for two references residing at different addresses.

Click here to complete the Electronic Master Promissory Note

First time borrowers at Kaskaskia College must also attend a First Time Loan Seminar after steps 1, 2, and 3 have been completed.

Click here to find out dates, times and locations of the First Time Loan Seminar

Continuing borrowers need to complete steps 1, 2 and 3 then complete the KC Student Loan Request. Students will need to include how much they have borrowed not only Kaskaskia College but all institutions as well. To access this information you will need log into the National Student Loan Data System at: using the steps below:

1)     Go to:

2)     Click on “Financial Aid Review”

3)     Click “Accept”

4)     Click “Accept” again

5)     Students will need the following to log in:

a.     Social Security Number

b.     First two letters of your last name

c.     Date of Birth

d.     PIN

6)     After logging in the student’s loan information will be displayed as well as Pell Grant information if applicable.

                Click here to complete the KC Student Request Form

Kaskaskia College subscribes to a Default Prevention Management Plan for student and school success. The Default Prevention Management Plan requires a student to obtain a GPA of 2.0 or higher after completing their last semester of attendance at Kaskaskia College. Students who fail to meet any of the above requirements will not be eligible for the Federal Direct Stafford Loan Program. Direct Loans work with many loan servicers. To find out who your lender is you an account with the National Student Loan Data System at or go to the Direct Loan website at To access the loan servicers that the Department of Education is in cooperation with click the link below.


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