Direct Loans
Federal Direct Loans
Federal Direct loans are available to both undergraduate and graduate students. Students who have completed one bachelor's degree and are enrolled for a second bachelor's degree may also apply for loan assistance.
There are two types of Federal Direct loans awarded by the federal government, each differing in amounts awarded and requirements for repayment. To qualify for either loan, students must:
- be matriculated at King's College
- enrolled for a minimum of six credits to qualify for federal Direct Loan assistance as an undergraduate or three credits to qualify as a graduate student.
Subsidized Direct Loan amounts are based on grade level, dependency status, and financial need. Qualifying students will not have to pay interest on subsidized loans while enrolled.
Unsubsidized Direct Loan amounts are available to otherwise eligible students who do not qualify for the interest subsidy. Students have the option to pay the interest while enrolled or to have it capitalized.
Federal Direct Loan Amounts and Limits
The U.S. Department of Education under the Higher Education Act has determined the maximum allowable loan amounts for borrowers.
A new lifetime loan limit of $257,500 includes all loans borrowed across all Federal Direct Loan Programs (excluding Federal Direct Parent PLUS loans borrowed by parents on their student’s behalf), and will include loans borrowed from undergraduate, graduate, and professional degree enrollment combined. Prorated annual loan limits for students with less than full-time enrollment will be forthcoming from the federal government.
Dependent Undergraduate Student Limits
For traditional undergraduate students who qualify for federal loans.
| Credit / Level | Subsidized | Unsubsidized | Total |
|---|---|---|---|
|
First-year students (0-29 credits completed) |
$3,500 |
$2,000 |
$5,500 |
|
Second-year students (30-59 credits completed) |
$4,500 |
$2,000 |
$6,500 |
|
Third and fourth-year students (60+ credits completed) |
$5,500 |
$2,000 |
$7,500 |
Independent Student Limits
For independent undergraduate students or dependent undergraduate students whose parents have been denied PLUS loans.
| Credit / Level | Subsidized | Unsubsidized | Total |
|---|---|---|---|
|
First-year students (0-29 credits completed) |
$3,500 |
$6,000 |
$9,500 |
|
Second-year students (30-59 credits completed) |
$4,500 |
$6,000 |
$7,500 |
|
Third- and fourth-year students (60+ credits completed) |
$5,500 |
$7,000 |
$12,500 |
Graduate and Professional Student Limits
For students pursuing graduate and/or professional degree programs.
| Credit / Level | Subsidized | Unsubsidized | Total |
|---|---|---|---|
|
Graduate students |
N/A |
$20,500 |
$20,500 |
Direct Loan Interest Rates
Interest rates for Direct loans are first disbursed on or after July 1, 2024, and before July 1, 2025. .
| Loan Type | Borrower Type | Fixed Rate |
|---|---|---|
|
Direct Subsidized |
Undergraduate |
6.53% |
|
Direct Unsubsidized |
Undergraduate |
6.53% |
|
Direct Unsubsidized |
Graduate or professional |
8.08% |
|
Direct PLUS |
Parents and graduate or professional students |
9.08% |
Securing Federal Loans
To apply for Federal Direct loans, please complete the Free Application for Federal Student Aid (FAFSA) at studentaid.gov. All eligible students are offered a Federal Direct loan. If you want to reduce or decline your loan entirely, please email the Office of Financial Aid at finaid@kings.edu, include "Cancel/Reduce My Loan" in the subject line, provide your King's College Student ID, first and last name, and ask to reduce or adjust your loan in the body of the email. Students can also decline/reduce their loan(s) through the Student Self-Service Portal, under Financial Aid/My Awards.
Complete the Master Promissory Note (MPN) and Loan Counseling
The Office of Financial Aid will originate your loan electronically with the U.S. Department of Education. If this is your first Direct Loan, you must visit studentaid.gov to complete and sign a ).
Receive Your Loan Funds
After you have completed Entrance Loan Counseling and signed the MPN, your loan will be scheduled for disbursement. If your loan is for the full academic year, your loan will be delivered in two equal disbursements: one at the beginning of the fall semester and another at the beginning of the spring semester. Your loan funds will be applied to the outstanding balance you owe the College for the semester, and after your balance is paid in full, a refund of any excess loan proceeds will be disbursed to you by check.
The National Student Loan Data System (NSLDS) is the U.S. Department of Education's centralized resource for information about all federal student loans that you have borrowed. You can find information about all your current and prior student loans, even those you may have borrowed previously at another college.
Summer Loans
For loans dispersed over the summer, you must submit a Loan Request Form to the Office of Financial Aid. Loan request forms are available online. Completed loan requests are to be submitted to the Office of Financial Aid indicating the loan terms and loan amount you want to borrow. You will be notified via King's College email when the College has certified your loan.
Student loan funds can be used for tuition, fees, housing costs, books, and supplies. If the amount of loan funds received by the College exceeds your outstanding balance, the outstanding credit will be refunded to you.
Resolving Loan Disputes and Problems
The Federal Student Aid Ombudsman Group has been created by the U.S. Department of Education to help student loan borrowers resolve loan disputes and problems, such as those with loan balances and payments, disbursements, repayment options, and more.
Federal Direct Loan Repayment
If you've taken a Federal Direct loan, you will enter re-payment six months after separating from school (i.e., graduating or withdrawing) or after enrolling for less than six credits. Upon separation, borrowers must . Upon entering repayment, the student pays both interest and principal. To learn more, please refer to .
Returning Students with Current Loans
Students who are currently repaying prior student loans may apply to their loan servicer for an in-school deferment. Please contact your loan servicer for the necessary documents. You may view loan servicer information at . You will need your FSA ID to access your information. In-school deferment forms should be submitted to the college Registrar's Office for verification of enrollment.
Federal Direct Plus Loan
Also provided by the U.S. Department Education, PLUS Loans are used by qualified parents of undergraduate dependent students or graduate/professional students enrolled at least half-time to supplement student borrowing. The maximum amount borrowed equals the cost of attendance less all sources of financial aid.
Interest rates for 2024-25 are fixed at 9.08%. Repayment can be deferred while the student is enrolled at least half-time. To apply for a PLUS Loan or learn more,
2026 Limits and Changes to PLUS Loans
- Effective July 1, 2026, Federal Direct Parent PLUS loans will be capped at $20,000 per student per year, with a $65,000 lifetime limit per dependent student.
- Existing Parent PLUS borrowers who have borrowed for their students before July 1, 2026, can continue with the current limits for 3 more years or until the student’s program ends
- The Federal Direct Graduate PLUS loan program will be discontinued beginning on July 1, 2026. This program will not be available to new borrowers. Federal Direct Graduate PLUS loans will remain available to current students who have borrowed a Federal Direct Loan prior to July 1, 2026, while enrolled in a program of study. The Graduate PLUS loan program will be available for three academic years or the remainder of the expected time to earn their credential, whichever is less. Students must remain in the same program at the same institution to qualify for this legacy provision.
2026 Changes to Repayment and Student Loan Forgiveness
- Public Service Loan Forgiveness (PSLF)
- New limitations on eligibility have been proposed as part of regulatory action.
- New Repayment Plans
- For new loans disbursed after July 1, 2026, the bill eliminates current income-driven repayment plans (IBR, PAYE, SAVE) and replaces them with a new Repayment Assistance Program (RAP).
- Students who have borrowed loans before July 1, 2026, and will borrow a new loan after July 1, 2026, are limited to the new RAP or the standard repayment plans for the new loan.
- RAP borrowers will not be locked into a 30-year plan. They can switch to a standard plan, which ranges from 10 to 25 years.
- Borrowers with no new loans made on or after July 1, 2026, are eligible to enroll in the current income-based repayment plan (IBR), graduated, and extended repayment plans, and can also opt into the new RAP. Current borrowers enrolled in ICR, PAYE, or SAVE plans must transition to a new repayment plan by July 1, 2028. If no selection is made by that date, they will be moved into RAP.
- More information on RAP is forthcoming from the federal government.