Federal Direct Stafford Loans

  • Students must enroll for a minimum of 6 credits to qualify for Federal Direct Stafford loan assistance. 
  • Students must be matriculated at King’s College

Federal Direct Stafford 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 Stafford loan assistance.

Subsidized Direct Stafford 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 Stafford loan amounts are available to otherwise eligible students who do not qualify for interest subsidy.  Students have the option to pay the interest while enrolled or to have it capitalized. 

Students who are currently repaying prior student loans may apply to their loan servicer for an in-school deferment.   Please contact your servicer for necessary paperwork. You may view loan servicer information at National Student Loan Data System for Students.   You will need your  FSA ID to access your information. In-school deferment forms should be submitted to the college Registrar for verification of enrollment.

The student will enter re-payment 6 months after separating from school (i.e.: graduating or withdrawing) or enrolling for less than 6 credits.  Upon entering repayment the student pays both interest and principal.  Upon separation from school, Federal Direct Stafford loan borrowers must complete exit counseling.  This requirement can be fulfilled on line at studentaid.gov.

The U.S. Department of Education under the Higher Education Act has determined the maximum allowable loan amounts for borrowers as follows:

Dependent Undergraduate Students:

  • $3,500 Subsidized and $2,000 Unsubsidized        First year students ( 0-29 credits)
  • $4,500 Subsidized and $2,000 Unsubsidized        Second year students (30-59 credits)
  • $5,500 Subsidized and $2,000 Unsubsidized        Third, Fourth year students (60+ credits)

Independent Undergraduate Students / Dependent Undergraduate Students whose Parents have been denied PLUS Loans:

  • $3,500 Subsidized and $6,000 Unsubsidized = $9,500      First year students (0- 29 credits)
  • $4,500 Subsidized and $6,000 Unsubsidized = $7,500      Second year students (30-59 credits)
  • $5,500 Subsidized and $7,000 Unsubsidized = $12,500    Third, Fourth year students (60+ credits) 

Graduate and Professional Students:

  •  $20,500.00 Unsubsidized - Students who have completed the requirements for a Bachelor’s degree and who are currently registered for at least 51% of coursework at the 500-600 level.

*Interest Rates for Direct Loans First Disbursed on or After July 1, 2022, and Before July 1, 2023 (Click here for additional information)

Loan Type                                                             Borrower Type                                                          Fixed Interest Rates

Direct Subsidized & Unsubsidized Loans       Undergraduate                                                                         4.99%

Direct Unsubsidized Loans                                 Graduate or Professional                                                      6.54%     

Direct PLUS Loans                                                 Parents & Graduate or Professional Students                7.54%

Aggregate Loan Limits:

  • Dependent undergraduates: $31,000 with no more than $23,000.00 subsidized.    
  • Independent undergraduates and Dependent students whose parents can’t get PLUS: $57,500 with no more than $23,000 subsidized.
  • Graduate and Professional:  $138,500 with no more than 65,500 subsidized.

If you are interested in Federal Direct Stafford Loans, you must have a valid Master Promissory Note (MPN) on file.  Promissory notes completed after July 1, 2010 are valid for 10 years.  You will need your FSA ID to electronically sign the MPN.

You must also submit a Loan Request Form to the Financial Aid Office. Loan request forms are available on King’s College web site at Financial aid forms. Completed loan requests areto be submitted to the Financial Aid Office indicating the loan terms and loan amount you want to borrow. You will be notified by mail when the college has certified your loan.  Student loan money can be used to cover tuition, fees, housing costs, books and supplies, in general any legitimate educational expense.  If the amount of loan money received by the college is more than your tuition and fees the credit balance will be refunded to you. You may use student loan money to purchase a computer.  However, Federal Regulations prohibit the use of student loan money to purchase a car or luxury items.

All first time student loan borrowers are required to complete Entrance Counseling before loans can be applied to your account.  Entrance counseling can be completed on-line at Studentaid.gov.The information will be electronically transmitted to the college. 

Application of Financial Aid to your Account

The Business Office maintains your tuition account and generates all credit balance refunds. That office will issue you a monthly statement detailing all account activity. Federal Direct Stafford loans are directly applied to your tuition account. The student loan fees of .50% are deducted from the loan amount requested. The loan amount will show as pending financial aid until actual disbursement. The end of month statement will show the application of the loan money when it has been applied to your account.

Certain regulations govern the disbursement of student loans. Different disbursement schedules must be utilized in non-standard length courses and summer session coursesStudents enrolled in Term A/Term B accelerated formats, will experience delayed loan disbursements.

Federal Pell grants and State Grants will be applied directly to your account. Again, they will be visible on the end of month statement issued by the Business Office. As with student loans, those enrolled in non-traditional class formats are subject to delayed disbursements.

If you have any questions about financial aid, please contact us at (570) 208-5868 or e-mail finaid@kings.edu. We will be happy to assist you.