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Loan Types

Student loans are an important source of financial aid and are available to help meet
expenses. Most loans offer low interest rates with no interest accruing while you’re
enrolled in school. Repayment for most loans begins after graduation or withdrawal
from college.

Loans Amount Criteria Comments
Federal Subsidized
Direct Loan


Submit FAFSA, awarded based on demonstrate need. Fixed interest rate caps at 4.45%. Interest is subsidized by the federal government
therefore interest does not accrue on the loan while the student enrolled remains
at least half-time. Payment of interest and principal begins the seventh month after
the last date of enrollment.
Federal Unsubsidized
Direct Loan
$2,000-$7,000 Submit FAFSA, no demonstrated need. Awarded with or instead of subsidized loan. Interest rate and payment terms are the same as for subsidized loans. However, since
the government does NOT pay the interest on the loan, the student may elect to make
interest payments while in school OR let the interest capitalize.
Federal Direct PLUS Loan
(for Parents)
As needed up to the cost minus other financial aid Application is made with the lender; must be creditworthy. Parents may borrow the amount needed to cover educational costs minus other expenses
not covered by financial aid. Payment of both interest and principal begin 60 days
after final disbursement of the loan. Variable interest rate capped at 7.00%.

Federal Direct Loans

Apply online for Federal Direct Loans and Direct Parent PLUS loan programs. Click
on the links below to begin the electronic loan application process for Federal Direct
and Direct Parent PLUS loan programs.

Remember: You must accept your loan in the Financial Aid portal.

To apply for an alternative loan please contact the Financial Aid Office at 423.652.4725
or by email at

Consolidation Loans

Consolidation loans are offered on a limited basis after graduation. Contact your
lender for information on whether consolidation is right for you.

New Borrowers

You will need to complete your Direct Loan Master Promissory Note and your Direct
Loan Entrance Counseling.  You can do that at

Once you have completed the electronic loan process and your loan is approved, the
funds are sent to King University via Electronic Funds Transfer (EFT) and applied
to your student billing account.

If you are unable to complete the electronic loan process please contact the Financial
Aid Office at 423.652.4725 or by email at

Private/Alternative Loans

Private Alternative Education Loans are available for students who have exhausted all other avenues of financial aid
(i.e. Federal Stafford Loans, Federal Parent PLUS Loans, outside scholarship opportunities,
etc.). Private loans are credit-based and may require a co-borrower depending on the
student’s credit history.  Because private loans usually have higher fees, origination
costs and variable interest rates, we encourage students to take a private loan only if it is absolutely necessary and only for the amount that is essential to continue their academic studies at King University.

To apply for Private Alternative Education Loans using lenders that King University
students have used over the past three years, visit FASTChoice.  The lenders listed on FASTChoice is in no way an exclusive or exhaustive list of all existing lenders. The King University
Financial Aid Office will honor requests to certify other Private Alternative Educational Loans
that do not appear on this list.