Loans

A Federal Direct Loan is federal loan assistance which must be repaid.  At least half-time enrollment status as defined by your program of study is required.  Enrolled hours must count toward your program of study to count toward financial aid eligibility.  Half-time status is defined as follows:  

Undergraduates - 6 credit hours 

PharmD - 6 credit hours 

Graduate, Professional Doctorate and Law - 5 credit hours.  

You must complete entrance counseling and you must sign a promissory note at www.studentaid.gov to receive a Federal Direct Loan. 

There are two types of Direct Loans:  

• Subsidized where the government pays your interest while you are enrolled in school at least half-time. Interest begins to accrue six months after you graduate or drop below half-time status.  
• Unsubsidized Interest accrues immediately. You may either pay the interest quarterly or you may request that interest be capitalized (added to the loan principle).  

The maximum Direct Loan Amount is:  

• Freshman (1-29 Hours): $5,500/year for a dependent student ; $9,500/year * for an independent student or a dependent student whose PLUS Loan is denied 
• Sophomore (30-59 Hours): $6,500/year for a dependent student ; $10,500/year ** for an independent student or a dependent student whose PLUS Loan is denied 
• Junior (60-89 Hours): $7,500/year for a dependent student ; $12,500/year ** for an independent student or a dependent student whose PLUS loan is denied 
• Senior (90+ Hours): $7,500/year for a dependent student ; $12,500/year *** for an independent student or a dependent student who PLUS loan is denied 
• Graduate Student: $20,500/year 

Note: *At least $6,000 of this amount must be in unsubsidized Federal Direct Stafford Loan. **At least $7,000 of this amount must be in unsubsidized Federal Direct Stafford Loan.  

Aggregate Loan Limits for Subsidized and Unsubsidized Direct Loans: 

• Dependent Undergraduate - $31,000 - No more than $23,000 of this amount may be in subsidized loans. 
• Independent Undergraduate - $57,500 - No more than $23,000 of this amount may be in subsidized loans. 
• Graduate - $138,500 for graduate or professional students. The graduate aggregate limit includes all federal loans received for undergraduate study. 

The loan origination fee for the Federal Direct Subsidized and Unsubsidized Loans is currently 1.057%.  The loan origination fee is subject to change on October 1, 2025.  This fee will be deducted from the gross loan amount prior to disbursement of the funds to the student’s UK account.       

The interest rate for loans first disbursed on or after July 1, 2024 and before July 1, 2025 is 6.53% fixed for Subsidized and Unsubsidized Loans for Undergraduate students.  The interest rate is 8.08% fixed for Unsubsidized Loans for Graduate students.   

Use Federal Student Aid's Loan Simulator to determine your monthly payment and whether you should consider loan consolidation.   

Repayment begins 6 months after you graduate or cease to be at least a half-time student. Exit Counseling is required when you leave school or drop below half-time enrollment.   

A biological or adoptive parent of a dependent undergraduate student may borrow a Federal Direct PLUS Loan.  The loan will not be processed by the school if your relationship to the dependent student is not as a biological or adoptive parent.  If interested in this loan a FAFSA (Free Federal Form for Financial Aid) must first be completed.  The FAFSA is required so the school can determine aid eligibility for the student.  The parent borrower is responsible for repaying this loan.  The loan cannot be transferred to the student for whom you are borrowing this loan.  Prior to completing a Federal Direct PLUS Loan application you may want to obtain information about this loan here. 

The student must be enrolled at least half-time. Half-time status is defined as six credit hours. Parents are eligible to borrow up to an amount that does not exceed the student's cost of attendance minus other financial aid. Parents who wish to apply may go here. You will need an FSA ID that is assigned to you in order to complete the PLUS Loan application.  If you as the parent do not have an FSA ID there is a link on this web page that allows you to request a FSA ID.  If more than one parent is applying for the PLUS Loan, each parent must complete a loan application using their assigned FSA ID to sign in.  The application allows parents to apply for the loan, receive immediate notification of the credit check and complete the Electronic Master Promissory Note (eMPN).  All first time Parent borrowers of the Federal Direct PLUS Loan must complete an MPN to receive the funds.  In most cases, the parent will be required to complete the MPN only once during their student's attendance in college.  

The repayment period for Federal Direct PLUS Loans begins the day the loan is fully disbursed. The first payment of principal and interest is due within 60 days of the final loan disbursement. However, parents may request the payment be deferred as long as the student is enrolled at least half time. Federal Direct PLUS Loan funds for one semester only will be released at the beginning of the term in which the student is enrolled.  The loan origination fee for the Federal Direct PLUS Loan is currently 4.228%.  The loan origination fee is subject to change on October 1, 2025.  This fee will be deducted from the gross loan amount prior to disbursement of the funds to the student’s UK account. The interest rate for Federal Direct PLUS on or after July 1, 2024 and before July 1, 2025 is 9.08% fixed. The repayment period begins 60 days after the loan disbursement, unless deferred.  

If the loan is denied due to the credit check, and the parent does not appeal the credit decision or complete the endorser information, the parent and student will be notified of additional unsubsidized loan options.  The student will be eligible to receive up to $4,000 in an additional unsubsidized loan as a freshman or sophomore or up to $5,000 as a junior or senior.   

Loan counseling is required for applicants who are determined to have an adverse credit history, but who qualify for a Federal Direct PLUS Loan by documenting extenuating circumstances or obtaining an endorser. The applicant must complete counseling at www.studentaid.gov after they are approved for the loan.  No loan funds can be disbursed by the school until the PLUS counseling is completed.   

Important Information about your Federal Direct PLUS Loan application  

If your Federal Direct PLUS Loan application is approved, the University of Kentucky will award the loan for either the requested application amount or the maximum allowable loan amount. You may then view the amount of your loan by requesting that your student go to their myUK Student Account > Financials > Financial Aid > View and Accept Awards.  

Submission of your on-line application constitutes an active confirmation that you do want the loan.  Therefore, your loan will be automatically accepted in the student’s financial aid package and you will not be required to re-accept the loan in order for the loan funds to credit your student’s account.  

If you wish to reduce the approved loan amount please send a fax to (859) 257-4398 with the student’s name, UK ID number and the amount you want to borrow for the year. The amount must be divided evenly between the fall and spring semesters.  Or you may email the above information to the student’s financial aid counselor. If more than one parent has applied for the Federal Direct PLUS Loan please contact the financial aid office so we can discuss with you the processing of the loan.  

If you indicated on the Federal Direct PLUS Loan application, you as the borrower wish to receive any residual refund a paper check will be issued.  The refund check will be created and mailed within 14 days after the funds have posted to the student’s UK account.  The check will be mailed to the home address on the Federal Direct PLUS Loan application.  If your address changes it is important you contact the student’s financial aid counselor via email to report the new address.   

Please note that we cannot change the person to whom the refund will go once the first disbursement has occurred.  If you request that your refund is to be processed to your student, any Federal Direct PLUS Loan proceeds remaining will be processed by direct deposit within one week after disbursement.   

If you wish to reduce or cancel the Federal Direct PLUS Loan after the loan funds are disbursed you have 120 days from the disbursement date to make the change.  You should contact our office at (859) 257-3172 or OSFAS@UKY.EDU.   

The Federal Direct PLUS Loan is a loan that requires the borrower to reapply each academic year.  If you wish to receive this loan for the next academic year you must reapply. The student must also complete the Free Application for Financial Student Aid (FAFSA) each academic year.  

The Federal Government has instituted the Graduate/Professional PLUS Loan program. 

At least half-time enrollment status is required. Half-time status is defined as follows: PharmD - six credit hours; graduate, professional doctorate and law - 5 credit hours. 

This loan can be borrowed in addition to the Federal Direct Loans. A Graduate or Professional student is eligible to borrow up to an amount that does not exceed their cost of attendance minus other financial aid. Students may apply for this loan here. The application allows students to apply for the loan, receive immediate notification of the credit check and sign a grad/PLUS electronic promissory note and complete entrance counseling.  

The interest rate for Federal Direct PLUS on or after July 1, 2024 and before July 1, 2025 is 9.08% fixed. A Graduate/Professional PLUS borrower may receive a deferment while enrolled at least half-time. The repayment period begins 60 days after the final loan disbursement of the academic year, unless deferred. This loan has a 6 month grace period. The loan origination fee for the Federal Direct PLUS Loan is currently 4.228%.  The loan origination fee will change on October 1, 2025.  This fee will be deducted from the gross loan amount prior to disbursement of the funds to the student’s UK account. 

There is a new loan counseling requirement for applicants who are determined to have an adverse credit history, but who qualify for a Federal Direct Graduate PLUS Loan by documenting extenuating circumstances or obtaining an endorser. The applicant must complete counseling here, after they are approved for the loan.  

Health Professions Loans are available to students enrolled in the College of Dentistry and the College of Pharmacy.  Students must supply parental income information to be considered for the Health Professions Loan, even if they are considered self-supporting (independent) for financial aid purposes.  Application is made through the Student Forms app.  Funds are limited and are offered on a first-come, first-served basis. 

After a student is offered a Health Professions Loan, they must complete verification and an electronic promissory note to receive the funds.  Students use Student Forms to submit information for verification.  The promissory note is processed electronically through Heartland ECSI, the university’s third-party student loan servicer.  Heartland ECSI emails students awarded HPLs a link to access their account on Heartland ECSI’s website and complete the promissory note and Truth in Lending Act requirements.  Students should check their spam folders for the message. 

For questions concerning the repayment terms of Health Professions Student Loans, please contact: 

Student Account Services 

Phone: (859) 257-3406 

E-mail: studentaccts@lsv.uky.edu 

Lender:  University of Kentucky 

Interest Rate:  5% 

Interest Free in School:  Yes 

Loan Fee:  None 

Annual Maximums: 

• Dental students:  $3,000 
• Pharmacy students:  $5,000 

Cumulative Maximums:  None 

Grace Period: 12 Months; begins after enrollment drops below half-time. 

Standard Repayment:  10-25 years 

Institutional loans are available to undergraduate students based on financial need and the availability of funds.  Repayment typically begins 6 months after ceasing at least half-time.  Interest rates vary.  Funds are credited directly to students’ accounts to pay toward allowable institutional charges.

Institutional loans available*:

CATapult Loan funds are available to juniors and seniors (undergraduates) enrolled full-time (except for seniors in their final semester) with unmet need who have suffered a loss of income or have account holds due to unpaid student account balances.  Students must be on-track to graduate and have exhausted all other aid options.  CATapult Loans are complemented by the CATapult Grant. Grant funds cannot be obtained without the loan.  Loans range from $1,000 to $4,000.  OSFAS Counselors determine whether CATapult funding can be offered.  The interest rate is 4.53 per cent and begins to accrue 6 months after ceasing at least half-time enrollment.  In addition to completing Truth in Lending Act requirements and a promissory note through the university’s third-party billing agency, Heartland ECSI, students are encouraged to take advantage of financial literacy services offered through MoneyCATS.

Young Loan funds are available to degree-seeking undergraduate students enrolled at least half-time with unmet need (per FAFSA information) who have exhausted all other aid options.  Applicants must be U.S. citizens or eligible non-citizens, meet satisfactory academic progress requirements, have a 2.5 or higher cumulative GPA, not be in default on a federal student loan or owe repayment on a federal grant, and be in good financial standing with the university.  Loan limits are $500 to $2,500 for Kentucky residents; $500 to $5,000 for non-residents.  The interest rate is 5 per cent and begins to accrue 6 months after ceasing at least half-time enrollment.  Repayment begins 6 months after ceasing at least half-time enrollment.  The Financial Ombud and OSFAS Counselors determine whether Young Loan funds can be offered.  In addition to completing Truth in Lending Act requirements and a promissory note through the university’s third-party billing agency, Heartland ECSI, students are encouraged to take advantage of financial literacy services offered through MoneyCATS.

The College of Medicine offers institutional loans to enrolled COM students. Funding is limited and loan amounts vary.  Interest does not accrue until after graduation or leaving the program.  Most loans offer a 12-month grace period after graduation and 3-year residency deferment with a 5-year maximum to repay.  Recipients must complete loan counseling and promissory notes through the university’s third-party billing agency, Heartland ECSI. Details available from COM Financial Aid.

*This is not a comprehensive list.

• If you would like to access a comprehensive comparison chart of all lenders used by University of Kentucky students within the last three years, please click on the Private Loan Comparison Chart.  
• The University of Kentucky is providing you with information regarding private loans to assist you in making an informed decision about funding your education. We recommend before looking at private loan funding, that you maximize all federal, state, and institutional financial aid funds that are available to you. Free or lower-cost Title IV federal, state, or school student financial aid may be available in place of, or in addition to, a private education loan by filing the Free Application for Federal Student Aid (FAFSA). Also, we encourage you to visit ScholarshipUniverse to explore internal and external scholarships opportunities that may be available to you. 
• The University of Kentucky does not recommend any specific lender to students, nor do we participate in any agreements or arrangements with any lender. You are not limited to the lenders listed on the Comparison Chart and may borrow with any lender of your choice. 
• When applying for a private educational loan, the borrower must complete a Private Education Loan Self-Certification Form and submit it to the private educational lender. 
• Loans will not be processed for a calendar year (January-December) or for a 12-month period of any combination (May-May, August-August, etc.). The loan period will be adjusted to reflect the current academic term or last term of enrollment within the current academic year. 
• Loans submitted after the term for a past due balance will only be processed for the past due amount owed. 
• Students must be enrolled in at least 1 credit hour in the term for which the loan is being requested. 
• If you have questions concerning a specific private loan program, please contact the lender directly. 

The purpose of the Short-Term Loan is to assist students with unexpected expenses and other financial emergencies that may arise during their academic term. They are also intended to assist students whose aid may be delayed due to no fault of their own. These short-term loans are not intended to be recurring sources of funds, an avenue of short-term credit, or substitutions for properly budgeting other sources of financial aid and assistance throughout the term. As such, applications for non-essential reasons may be denied and students consistently requesting short-term loans may be required to complete additional financial wellness steps as a condition for receiving additional funds. 

Applicants requesting short-term loan funds should be currently enrolled students that have upcoming financial aid, or other verified assistance, that will meet or exceed the sum of the short-term loan balance and any other bills and fees already owed to the University of Kentucky. 

To discuss your situation, please contact our office. If you are ready to apply, please complete our online form that will require you to log in with your linkblue email address and password. 

 Please visit here for student loan counseling and repayment information.