EKU Student Loan Code of Conduct
The purpose of the federal student loan program is to provide the best
possible loan terms and service for students and parents who borrow
to help finance higher education. Eastern Kentucky University students
and families receive trustworthy, reliable guidance from our institution
about financial aid. The university’s first priority in conducting
business with student loan providers is to ensure they have borrower
benefits and services that provide for the best interests of student
and parent borrowers. The following guidelines are a framework to provide
the best possible loan servicing and benefits for the students served
by the Eastern Kentucky University and to avoid conflicts or the appearance
of conflicts of interest.
- Eastern Kentucky University is prohibited from receiving anything
of value from any lending institution in exchange for any advantage
sought by the lending institution. This prohibits any inappropriate
financial arrangements between lenders and the university and specifically
prohibits "revenue
sharing" arrangements and opportunity loan pools. Lenders cannot pay
to get on the university’s recommended lender list.
- EKU employees are prohibited from soliciting or accepting gifts
of more than a nominal value from any lender, servicer, or guarantor.
This includes a prohibition for financial aid officers and other
university officials from trips, catered meals, athletic or entertainment
events, etc. paid for by lenders.
- Financial Aid personnel do not participate on lender advisory
boards, but may discuss student loan services and products for EKU
students and parents with lenders.
- The university’s list of recommended lenders must be based solely
on the best interests of the students or parents who may use the
list, without regard to financial interests of the university. This
ensures that lenders will be those the university has determined
offer the best loan services and benefits that are compatible with
the needs of students/parents and the university’s automated student
loan systems. The recommended lender list should be prominently displayed
on the campus website.
- The process by which recommended lenders are selected must be
fully disclosed to students. The process should be prominently displayed
on the campus website. Students should also be informed that they
have the right to use a lender of their own choosing. EKU will continue
to ask students to name their selected lender at the onset of the
student loan process for each new borrower and will not select a
lender for a first-time borrower. The university will not refuse
to certify or delay certification of any loan based upon the borrower’s selection
of a particular lender or guaranty agency.
- The university must ensure that employees of lenders never identify
themselves to students as employees of the university. No employee
of a lender may ever work in or provide staffing assistance to the
university’s
financial aid office.
- Financial Aid personnel are not to purchase stocks or accept stocks
from banks that provide student loans to EKU students.
- EKU departments and affiliated organizations should not enter
into any contractual preferred student loan consolidation arrangement
with any lender, servicer or guarantor.
|
Loans
Student loan programs provide long term, low interest loans to students
demonstrating a need for financial assistance. In order to apply for
a federal student loan students must complete the FAFSA application.
Students may access the FAFSA application online at www.fafsa.ed.gov.
Federal Stafford Loans
Eastern Kentucky University participates in the Federal Family Education
Loan Program (FFELP). The FFELP provides incentives and services that
benefit our students and parents. Student loans are borrowed money that
must be repaid.
Federal Stafford Subsidized Loans
Federal Stafford Subsidized Loans are based on financial need as well
as annual and aggregate loan limits. Interest on this loan does not
accrue during eligible periods of enrollment and stated grace periods.
The interest rate is capped at 8.25%. Both interest
accrual and repayment begins six months after graduation or when a
student is no longer enrolled at least half time (6 semester hours
for both undergraduate and graduate). Federal Stafford Unsubsidized Loans
Federal Stafford Unsubsidized Loans are based on annual and aggregate
loan limits and is not based on financial need. Interest on this loan
begins to accrue upon the first disbursement. The interest rate is variable
not to exceed 8.25%. Principal repayment begins six months after graduation
or when the student is no longer enrolled at least half time (6 semester
hours for both undergraduate and graduate)
Entrance Counseling
Students must complete the Entrance Counseling requirement before
a Stafford Loan funds can be certified. KHEAA is our student loan
partner for all Stafford Loans. Investing in Your Future, KHEAA’s
online student loan entrance counseling provides details about
what a student loan is. Advice on how much you should borrow,
and when you should expect to repay your loans. To complete Entrance
Counseling, visit KHEAA
 .
After your data is submitted, KHEAA will notify our office electronically
within 24-48 hours that you have completed the requirement.
Exit Interview
During the term that you expect to graduate, you will be asked to complete
an Exit Interview if you have had a Stafford or Direct student loan
while at Eastern Kentucky University. To complete the Exit Interview
Requirement, visit KHEAA
. At this time, information regarding your rights and responsibilities
relative to the repayment of your loan will be provided. When your grace
period ends and your loan becomes due, you will be sent a repayment
schedule from your lender outlining the monthly principal and interest
payments and number of months required to repay your loan balance. It
is very important to notify your lender of address changes so that you
will receive your repayment information.
ESign MPN
You will be required to sign a Master Promissory Note
(MPN) prior to your funds disbursing to your account. After you
have accepted your Stafford Loan, you will be notified by KHEAA
that your MPN is ready to sign, you may ESign your MPN with KHEAA
.
When you ESign, you will be asked to select a lender.
The lenders listed have been selected based on customer service, borrower benefits and participation with our main guarantor, Kentucky Higher Education Assistance Authority (KHEAA), in the EFT (electronic fund transfer) process. Borrowers are free to choose any lender that participates in the FFEL program even if they are not on this list. Borrowers who select a non-KHEAA lender, may be required to submit a paper application. Neither Eastern Kentucky University nor the EKU Office of Student Financial Assistance benefits from a borrower’s choice of lender.
Annual Loan Limits
Maximum
Annual Loan Limits Chart - 2009-10
Subsidized And Unsubsidized Direct and FFEL (Federal) Stafford
Loans |
|
Dependent
Undergraduate
Student |
Independent
Undergraduate
Student |
Graduate/Professional
Student |
Freshman
(0-29 semester hours) |
$5,500 |
$9,500 -- No more
than $3,500 of this amount may be in subsidized loans. |
$20,500
-- No more than $8,500 of this amount may be in subsidized loans. |
Sophomore
(30-59 semester hours) |
$6,500 |
$10,500 -- No more than $4,500
of this amount may be in subsidized loans. |
Junior/Senior
(60 or more hours) |
$7,500 |
$12,500 -- No more than $5,500
of this amount may be in subsidized loans. |
| Maximum Total Debt from
Stafford Loans When You Graduate |
$31,000 -- No more than $23,000
of this amount may be in subsidized loans. |
$57,500 |
$138,500 -- No more than
$65,500 of this amount may be in subsidized loans.
The graduate debt limit includes Stafford Loans received
for undergraduate study. |
| NOTE: For periods of study shorter than an academic year,*
the amounts you can borrow will be less than those listed.
Remember, you might receive less if you receive other financial
aid that's used to cover a portion of your cost of attendance.* |
|
Your school can refuse to certify your loan application
or can certify a loan for an amount less than you would
otherwise be eligible for if the school documents the
reason for its action and explains the reason to you
in writing. The school's decision is final and cannot
be appealed to the U.S. Department of Education. |
|
Students pursuing a Rank
I certification are not eligible for federal financial assistance
(i.e. Stafford, Perkins or GRAD PLUS Loans) according to guidelines
from the U.S. Department of Education.
Disbursement of Federal Stafford & Parent Loans
All Federal Stafford Loans and Federal Parent Loans must be disbursed
in two equal disbursements per Federal regulations. The first disbursement
can be made no earlier than 10 business days before the loan period
begins. The second disbursement can be made no earlier than the mid-point
of the loan period. Please see examples below.
| Academic Term |
Loan Period |
Disbursement Dates |
| Academic Year |
August - May |
August & January |
| Fall Semester |
August - December |
August & October |
| Spring Semester |
January - May |
January & March |
| Summer Term |
May - July |
May & June |
Federal Parent Plus Loans
Federal Parent Plus Loans are available for parents of dependent undergraduate
students. Parents may borrow up to the cost of attendance minus any
other financial aid the student will receive. The FAFSA is required.
PLUS loans are subject to a credit check.
Interest begins to accumulate on the date of the first loan disbursement.
The repayment period begins on the date the loan is fully disbursed.
The first payment is due within 60 days after the final loan disbursement.
Borrowers who have no outstanding PLUS Loan balance and who receive
funds for the first time after July 1, 1994, will have a rate of interest
not to exceed 9 percent on new Federal Parent Loans.
Parent borrowers may sign their Master Promissory Note (MPN) with KHEAA
.
The lenders listed have been selected based on customer service, borrower benefits and participation with our main guarantor, Kentucky Higher Education Assistance Authority (KHEAA), in the EFT (electronic fund transfer) process. Borrowers are free to choose any lender that participates in the FFEL program even if they are not on this list. Borrowers who select a non-KHEAA lender, may be required to submit a paper application. Neither Eastern Kentucky University nor the EKU Office of Student Financial Assistance benefits from a borrower’s choice of lender.
Federal Perkins Loan
Federal Perkins Loans are
federally funded loans that are awarded to students with exceptional
financial need. Repayment and accrual of interest at the rate of 5%
begin nine months after the student is no longer enrolled at least half
time (6 semester hours). The minimum repayment is $40 per month and
repayment may be extended for up to 10 years.
Students must electronically sign their Perkins MPN with a US Department
of Education PIN number. Students can apply for a PIN number at www.pin.ed.gov.
Federal Student Aid Ombudsman
If a problem or dispute regarding your federal education loan(s) arises
that cannot be resolved through reasonable efforts, you may contact
the Federal Student Aid Ombudsman. The U.S. Department of Education's
Ombudsman office can propose solutions that may help you and other parties
come to a final agreement. Before you call, make sure you have good
records of people you've talked to and what they've said.
U.S. Department of Education
FSA Ombudsman
830 First Street, NE
Fourth Floor
Washington, DC 20202-5144 |
877-557-2575 (toll-free)
202-275-0549 (fax)
http://ombudsman.ed.gov
fsaombudsmanoffice@ed.gov |
Non-federal Alternative Loans
Many private lenders offer Alternative Loans to supplement
federal eligibility. Applications are available through the individual
lenders.
The lenders listed have been selected based on customer service and borrower benefits. Borrowers are free to choose any lender even if they are not on this list. Neither Eastern Kentucky University or the EKU Office of Student Financial Assistance benefits from a borrowor's choice of lender.
|
