Loans

Students must be enrolled at least half-time (6 program applicable credit hours or more) to be eligible to borrow a student loan. The maximum amount of loans you can borrow is determined by 1) how many credit hours you have successfully completed, and 2) whether you are a dependent or independent student, as determined by the FAFSA, and 3) your Cost of Attendance at BSCTC.

All loans borrowed will be submitted to the National Student Loan Data System (NSLDS: National Student Loan Data System). Students can access their loan information, as well as keep track of how much they have borrowed, on their studentaid.gov account. The information on this website will also be accessible by loan guaranty agencies, lenders, and institutions determined to be authorized users of the data system.

We offer the following types of Direct Loans. Depending on your financial need, you may be eligible to receive a combination of the following loans; however, the borrower must not exceed the annual loan limits set forth by the U.S. Department of Education.

Subsidized Direct Stafford Loan

Subsidized loans are available to students who demonstrate financial need. The U.S. Department of Education pays the interest on a subsidized loan while the borrower is enrolled at least half-time and during the loan grace period. The amount of subsidized loan you borrow cannot exceed your financial need. Repayment begins 6 months after 1) you drop below half-time, 2) leave school, or 3) graduate, whichever happens first.

Unsubsidized Direct Stafford Loan

The borrower is responsible for paying the interest that accrues on an unsubsidized loan from the time the loan is disbursed, and until the loan is paid in full. The borrower can pay the interest while in school or can allow the interest to accrue and have the interest added to the principal amount of the loan. If the borrower chooses not to pay the interest while in school, this will increase the total amount of loan that the borrower will have to repay because it will be charged interest on a higher principal amount. Repayment begins 6 months after 1) you drop below half-time, 2) leave school, or 3) graduate, whichever happens first.

Direct PLUS Loan

Parents of dependent students can borrow from the PLUS loan program. Loan funds are borrowed from the U.S. Department of Education. The dependent student must complete a current FAFSA in order to determine eligibility. A PLUS loan applicant must not have an adverse credit history, as a credit check will be conducted. A PLUS loan is borrowed in the parent's name (unlike Direct Subsidized and Unsubsidized loans) and repayment begins 60 days after the final disbursement of the loan has been made. Find out more information about the PLUS loan program from the Federal Student Aid office.

Please note: Our school does not participate in the Federal Perkins Loan program.

Steps to Borrow a Student Loan

To borrow a student loan, you must:

• File your FAFSA;
• Meet all BSCTC’s Admission and Financial Aid requirements;
• Maintain Satisfactory Academic Progress | BSCTC;
• Enroll (and remain enrolled) in 6 program applicable credit hours or more for the term for which you are borrowing the student loan.

Steps to Request a Student Loan:

1. If you are a first-time borrower as a BSCTC student, you will need to log in to Federal Student IDwith your FSA ID and password (your FAFSA login credentials) and complete an Entrance Counseling and a Master Promissory Note (MPN). You will find these under Loans and Grants and under Get a Loan.
2. To request a loan: A link to the online loan request is available in your Student Self-Service account. If you would like to request a loan, login, click on the link and follow the instructions.
3. Keep track of your indebtedness

Loan Exit Counseling

Once you have graduated, dropped below half-time status, OR have stopped attending school, all loan borrowers are REQUIRED to complete Loan Exit Counseling. Please note: even if you do not complete the Exit Counseling, you are still responsible for re-paying the loan, as detailed in the Master Promissory Note.

Code of Conduct for Education Loans

Student Loan Code of Conduct

BSCTC has adopted this Student Loan Code of Conduct to serve as the formal guiding principles in ensuring the integrity of the student aid process and ethical conduct of employees in regard to student loan practices. The Student Loan Code of Conduct applies to all employees who work in the Office of Financial Aid, award Scholarships, and all college employees, including agents of the college who have responsibilities related to educational loans or other forms of student financial aid. The Student Loan Code of Conduct has been established to meet the requirements contained in the 2008 Higher Education Opportunity Act. Items in this Code of Conduct provide additional standards of conduct for employees with responsibility for student financial aid and do not replace any existing or future requirements imposed by the State of Kentucky or KCTCS related to codes of conduct, conflict of interest policies, ethics training, or other such requirements.

The Student Loan Code of Conduct also confirms that BSCTC does not have preferred lender arrangements of any kind or a preferred lender list.

Revenue Sharing

The College and its employees will not enter any type of revenue-sharing arrangement with any lender, guarantor, or servicer.

Gifts

Employees of the Office of Financial Aid and Scholarships are prohibited from soliciting or accepting any gift from a lender, guarantor, or servicer of education loans. Gifts include any gratuity, favor, discount, entertainment, hospitality, loan, or other items. This includes a gift of services, transportation, lodging, or meals, whether provided in kind, by purchasing a ticket, payment in advance, or reimbursement after the expense has been incurred. Gifts to family members of a college employee are considered a gift to the employee if the gift is given with the knowledge and consent of the employee and there is reason to believe the gift was given because of the official position of that employee.

Contracting Arrangements

Employees of the Office of Financial Aid and Scholarships shall not accept from any lender or affiliate of any lender any fee, payment, or other financial benefits (including the opportunity to purchase stock) as compensation for any consulting arrangement or other contract to provide services to a lender or on behalf of a lender relating to education loans.

Preferred Lender Status

BSCTC participates in the William D. Ford Federal Direct Loan Program, which provides student loans through the U.S. Department of Education. Lenders in the private student loan industry will not be given a preferred status. BSCTC has no preferred lender arrangements that give any lender an advantage in securing business from our students. The college does not provide students with a preferred lender list from which to select a lender for a private student loan. All loans are processed without regard to the lender or mode of transmission (i.e., electronic or paper). BSCTC will neither recommend a private loan lender nor accept material benefits, including revenue or profit sharing, to the institution, an officer, or an employee of the institution or an agent.

Private Loan Certification

The college will not assign a borrower's private student loan to a particular lender; all decisions will be made by the borrower in his/her independent review of borrower benefits and lender services. The college will not refuse to certify or delay the certification of any loan based on the borrower's selection of a particular lender or guaranty agency.

Opportunity Pool Loan

The college will not request or accept from any lender any offer of funds to be used for private education loans (as defined in section 140 of the Truth in Lending Act), including funds for an opportunity pool loan to students in exchange for BSCTC providing concessions or promises regarding providing the lender with (i) a specified number of federal loans made, insured or guaranteed; (ii) a specified federal loan volume; or (iii) a preferred lender arrangement for such loans.

Staffing Assistance

BSCTC will not request or accept from any lender, guarantor, or servicer of student loans any assistance with call center staffing or financial aid office staffing.

Advisory Board Compensation

Employees of the Office of Financial Aid and Scholarships who serve on an advisory board, commission, or group established by a lender, guarantor, or group of lenders or guarantors are prohibited from receiving anything of value from the lender, guarantor, or group of lenders or guarantors, except that the employee may be reimbursed for reasonable expenses incurred in serving on such advisory board, commission or group.