Kettering University

Federal Education Loan Programs

Kettering University participates in the Federal Direct Stafford Loan Programs:

Subsidized/Unsubsidized Annual loan limits are as follows:

Federal Direct Subsidized Stafford

• This is a need based loan.
• The interest rate is fixed at 6.8% (in school) and 7.22% (in repayment).
• Interest is deferred as long as student is enrolled at least half-time.
• Repayment begins six months after student ceases at least half-time enrollment.

Federal Direct Unsubsidized Stafford Loan

• This loan the borrower accrues interest while in school, and the loan is not need based. 
• Borrower has the choice of paying the interest that accrues over the enrollment period or capitalizing it at the end of the grace period.
• Independent undergraduates may borrow unsubsidized loans IN ADDITION to the subsidized up to $6,000 annually for freshman and sophomores, and $7,000 annually for juniors and seniors.  Graduate students may borrow up to $12000 annually in addition to the subsidized amount.
• Dependent undergraduate students may be eligible to borrow unsubsidized amounts in addition to the $2,000 unsubsidized eligibility if the Parent Loan (PLUS) has been denied.

Federal Plus Loan

• Plus loan is not need-based.
• Parents of dependent undergraduates may borrow up to the cost of education less other types of aid awarded.
• Interest rate is fixed at 7.9%
• A credit check is required of the applicant.
• Payment of principal and interest begins 60 days after the last disbursement is made.  Interest begins accruing after each disbursement is made.
• Parents who have borrowed on or after July 1, 2008, may request to have payments deferred while the student is enrolled in school until six (6) months after graduation or the student ceases to be enrolled at least half-time.
• Monthly payments will be approximately $50 per every $4,000 borrowed.

Questions? Email the Financial Aid Office at finaid@kettering.edu or call 800.955.4464 ext. 7859 or 810.762.7859.