Financial Aid
General Regulations for Federal Loans

Kilgore College General Regulations for Federal Loans

It is important that you understand the following regulations that will apply to your loan(s). Please take a few moments to read and understand the following terms which will affect your federal loan.

Your loan request will not be processed until you complete your loan award on the website listed under Steps to Completing the Loan Process at Kilgore College.

• Loan money has to be paid back including any deducted fees and accrued interest.
• Repayment of loan money starts 6 months (or sooner) after the student has dropped below half time status (less than 6 hours), withdrawn or graduated.
• To be eligible for the loan during a semester, a student must be registered for at least 6 hours during that semester.
• Up to 3% in fees may be deducted from the amount of the loan before the student receives the funds.
• All loans must be disbursed in at least two installments according to Federal Regulations. A student cannot receive more than half of the annual amount at any one time. For a Fall and Spring student, half will disburse in the Fall and half will disburse in the Spring. For a one semester only student, half will disburse early in the semester and half will disburse after the mid-point of the semester.
• If you withdraw from school, all future loan disbursements will be cancelled.
• Loan funds can be reduced or cancelled if the student receives additional financial aid including scholarships, grants, or work-study.
• All loans will disburse to Kilgore College 30 days after the first day of the semester and excess funds checks will be released to the student 14 days later.
• Entrance Loan Counseling and a Master Promissory Note (MPN) must be completed before loans can be processed. The MPN is a legally binding document with the student’s chosen lender that sets the terms of the student loan.
• The lender must have the student’s Master Promissory Note on file before funds can be disbursed.
• Exit Loan Counseling must be completed when a student withdraws, graduates or drops below half time. Students who do not complete Exit Loan Counseling will have a hold placed on their account which will keep them from receiving transcripts or registering for a future semester.
• Various repayment plans are available with a minimum monthly payment required of $50 but can be more or less depending on the payment plan the student chooses.
• Students need to keep all information about their student loan and inform their lender when any contact or school enrollment information changes.
• Students need to be aware that they will owe the loan back even if they are dissatisfied with or don’t complete their education or are unable to get a job after they complete their program.
• Students having trouble making their payments need to contact their lender immediately so that a deferment or a forbearance can possibly be arranged.

Kilgore College will determine your eligibility for Subsidized and Unsubsidized loan amounts. The Government pays the interest on Subsidized loans while you are in school but not on Unsubsidized loans.