Loans

Kansas City Art Institute participates in two major federal loan programs: the Federal Perkins Loan Program and the Federal Family Education Loan Program. Each requires a separate promissory note that may be obtained from a participating lender or from KCAI Financial Aid Office.

Perkins Loan

The Perkins Loan is administered by KCAI. There is a nine-month post-enrollment grace period before repayment begins. The interest rate is five percent. As money is repaid by former students, it is re-loaned to those currently seeking an education. The lender is KCAI.

Federal Family Education Loan Program

The Federal Family Loan Program consists of subsidized and unsubsidized loans, as well as parent or PLUS Loans. These loan programs require an outside lender — usually a bank, savings and loan or credit union. If you have prior loans, we recommend that you use the same lender to continue meeting your financial needs. If you have not chosen a lender, the Financial Aid Office can provide a lender list.
 

Parent Loans for Undergraduate Students

Parent Loans for Undergraduate Students (PLUS) provide parents with the option of assisting in the coverage of educational expenses. These loans are available in any amount up to the cost of education as determined by KCAI minus other aid. They have a fixed interest rate of 8.5 percent. Repayment begins within 60 days of the loan being fully disbursed. These loans do not require a needs analysis form to determine eligibility.

Subsidized Stafford Loans

Subsidized Stafford Loans charge no interest to the student as long as the student maintains a 2.0 grade-point average and is enrolled at least half-time in a degree program.

  • There is a post-enrollment grace period of six months before repayment begins.
  • They have a fixed interest rate of 5.6 percent.
  • First-year students have a maximum eligibility of $3,500;
  • sophomores are eligible for $4,500;
  • junior and seniors may be eligible for up to $5,500 per year.

Unsubsidized Stafford Loans

Unsubsidized Stafford Loans are similar to Subsidized Stafford Loans except that the interest on these loans begins accumulating at the time the funds are disbursed. The interest may be capitalized or kept current through quarterly payments. Check with your lender regarding capitalization policies. Repayment of Unsubsidized Stafford Loans, like Subsidized Loans, begins six months after the student no longer maintains at least half-time enrollment in a degree program. Under certain circumstances, independent students and dependent students may be eligible for additional Unsubsidized Stafford Loan amounts. If you need specific information regarding this program, please check with KCAI's Financial Aid Office.

Rights and responsibilities of Stafford Loan recipients:

Prior borrowers may have different interest and repayment terms based on when they borrowed their first loan. Six months after ceasing to be at least a half-time student, the borrower must make formal arrangements with the lending institution to begin repayment. The following regulations apply:

  • Payment amounts are determined by you and the lender. Check with the lender for options available. The minimum monthly repayment will be $50 plus interest. Under unusual and extenuating circumstances, the lender, on request, may permit reduced payments.
  • The maximum repayment period is 10 years.
  • The maximum period of a loan from date of original note may not exceed 15 years, excluding authorized deferments of payments.
  • Repayment in whole or part may be made at any time without penalty.
  • It is the borrower's responsibility to track his or her loans and keep the lender informed of his/her current address and situation.