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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 begins 60 days
after the 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 [email protected]

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 HTTP://WWW.STUDENTAID.GOV. These documents are submitted electronically. The Master Promissory Note and Entrance Counseling walk new borrowers through the process of what a loan is, how it works, and what to expect.

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 [email protected].

Exit Counseling

After the borrower graduates or drops below half time status, repayment for the direct loans will begin. To start that process, you will receive an email notice to complete Direct Loan Exit Counseling. Federal Student Aid policies require borrowers to complete Exit Counseling. Exit Counseling is submitted electronically and assists borrowers in repayment options and future management of student loans.

National Student Loan Data System

You can view all student loans which include amounts, schools, lender information and totals at You log in with the same FSA ID that you created when you did your FAFSA.

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. The Private Loan Disclosure and Self Certification Forms are located on FastChoice.