Student Loans
Understanding Student Loans
Loans need to be repaid, so be sure to review the terms and conditions carefully before accepting. Only borrow what you truly need, and think about what you’ll be comfortable repaying after graduation. Keep in mind most loans accrue interest, so you will pay interest on top of the original loan amount. The type of loan you secure dictates whether interest accrues immediately or waits until after you graduate.
If you have questions or need guidance, we're here to help you make informed decisions every step of the way.
Types of Student Loans
First-time borrowers must complete an entrance counseling session with the Department of Education. Also, first-time borrowers or borrowers who no longer have a valid Master Promissory Note (MPN) on file with the Department of Education must complete the MPN before a Federal Student Loan can be processed. Federal Student Loans will not be applied to your Butler account charges until you have accepted your loan offer, completed entrance counseling and completed the MPN.
We offer all eligible students a Federal Student Loan as part of their financial aid package. You will need to submit a Free Application for Federal Student Aid (FAFSA) and meet standard eligibility requirements. Federal Student Loans are obtained through the U.S. Department of Education and repayment of Federal Student Loans will occur through an assigned Department of Education Loan Servicer. Repayment for a Federal Direct Loan begins six months after the recipient graduates or drops to less than half-time enrollment. The interest rate is fixed for the life of the loan. It’s important to look up current interest rates before taking out a loan.
Subsidized loans do not accrue interest until six months after graduation, or six months after the student is enrolled less than half-time. During this time, the government pays your interest.
Unsubsidized loans begin accruing interest from the date of disbursement.
The Federal PLUS loan Parent Loan for Undergraduate Students (PLUS) allows a biological or adoptive parent of a dependent student to assist in paying for the student’s college education. The interest rate is fixed for the life of the PLUS loan. Repayment begins within 60 days after the last disbursement for the current term unless parents request in-school deferment. Parents can apply for a PLUS loan at studentaid.gov. Butler encourages students to accept all other forms of Federal Financial Aid (grants and subsidized/unsubsidized loans) before a parent applies for a PLUS loan. Student’s must have a valid FAFSA on file, be enrolled at least half-time (6 credit hours or more), and parents cannot be in default on past Federal Student Loans. The maximum amount of a PLUS loan cannot exceed a student’s cost of attendance minus other financial aid received.
Private Student Loans are separate from federally-funded student aid. Federal Student Loans usually have better interest rates, terms and conditions than private loans. Students should understand their private loans and read the fine print. We recommend private loans only be taken out after a student has exhausted all forms of Federal Financial Aid.
Students can use Private Loans to cover a recent or past balance (only certain lenders allow a past balance private loan with specific stipulations). Applications for private loans are initiated by the student through a lending institution of their choice. Butler partners with Great Lakes Higher Education Corporation to provide you with FASTChoice - a tool which will help you compare the loan products our students have historically used. Students have the right to choose any lender that offers a private student loan, even if it is not on our historical list.
Once you have chosen a lender, you will need to:
- Complete the loan application located on the lender's website. Unless you have excellent personal credit, you will most likely need a credit-worthy co-signer (parent, spouse, grandparent, other close relative) to sponsor your loan application. Co-signers are responsible for repaying the loan should the student fail to make timely payments.
- Application passes through credit analysis.
- Application is sent to the school for certification.
- Butler Community College verifies the loan amount requested is within Federal guidelines and student has been counseled regarding Federal Financial Aid options.
- An informational letter will be mailed to you regarding the status of your private loan. If the loan is certified by Butler Community College, this letter will include disbursement date information regarding your private loan. Disbursement dates for private loans will follow the disbursement date schedule for Federal Aid.
- Private loan funds arrive at Butler Community College and are first applied to eligible student account charges then any excess funds are made available to the student. Students can set up direct deposit through MyButlerCC mobile app or MyButlerCC.edu website. Students not setting up direct deposit are issued a paper check mailed through USPS to their address of record.
*Important: Pursuant to Section 155 of the Higher Education Act of 1965, as amended, (HEA) and to satisfy the requirements of Section 128(e)(3) of the Truth in Lending Act, a lender must obtain a self-certification signed by the applicant before disbursing a private education loan. The school is required on request to provide this form or the required information only for students admitted or enrolled at the school. Throughout this Applicant Self-Certification, “you” and “your” refer to the applicant who is applying for the loan. The applicant and the student may be the same person.
Managing Your Loans
The amount you can borrow each year for Federal Direct subsidized and/or unsubsidized loans depends on your grade level and whether you are a dependent or independent student (see chart below). Loan amounts are also limited by additional financial aid you may receive (scholarships, grants, etc.), the cost of attendance and (in the case of subsidized loans) your Student Aid Index (SAI).
| Dependent student | Independent student* | |
| Freshman Undergraduate (0-29 credit hours) |
$5,500 per school year (up to $3,500 of which may be subsidized) |
$9,500 per school year (up to $3,500 of which may be subsidized) |
| Sophomore Undergraduate (30 or more credit hours) |
$6,500 per school year (up to $4,500 of which may be subsidized) |
$10,500 per school year (up to $4,500 of which may be subsidized) |
Aggregate (total) loan limits for all subsidized and unsubsidized Federal Loans, whether solely from the Direct Loan Program or in combination with a previous Federal Family Education Loan Program (FFELP), are:
- $31,000 for a dependent undergraduate student (no more than $23,000 may be subsidized)
- $57,500 for an independent undergraduate student* (no more than $23,000 may be subsidized)
*This includes dependent students whose parents are unable to borrow a PLUS loan.
If you want to accept a Federal Direct Loan listed on your offer letter, you may do so via your MyButlerCC mobile app or the My.ButlerCC.edu website. Once accepted via your Butler portal, you are required to complete online loan entrance counseling and/or a Federal Direct Loan Master Promissory Note (MPN). You must be enrolled in at least six college credits at Butler and be making financial aid satisfactory academic progress in order for your loan to be processed. It may be helpful to review the Steps for Processing Your Direct Loan.
Federal Student Loan funds are disbursed approximately 30 days after the start of a student’s classes for each semester. Funds are first applied to eligible student account charges then any excess funds are made available to the student. Students can set up direct deposit through the MyButlerCC mobile app or My.ButlerCC.edu website. Students not setting up direct deposit are issued a paper check mailed through USPS to their address of record.
The U.S. Department of Education has several repayment plans designed to meet your needs.
If you have previously borrowed federal student loans, you may use your FSA ID to log into studentaid.gov to review your outstanding current loan debt before accepting further loans. Remember to only borrow what you need in Federal Student Loans. It is a good idea to estimate the maximum amount of educational debt you can repay by gathering information about starting salaries in your career field. The Occupational Outlook Handbook provides information on earnings for a wide range of occupations.
Exit Counseling is a Federal requirement that Federal Student Loan borrowers are required to complete before they graduate or cease attendance at Butler Community College. Exit Counseling will review your outstanding Federal Student Loan debt as well as go over repayment options. Students must complete this requirement even if they are continuing their education at another school after Butler.
Policy & Data
An institution’s Cohort Default Rate (CDR) is the percentage of a school’s borrowers who enter repayment on certain Federal Student Loans during a particular fiscal year and default or meet other specified conditions prior to the end of the second following fiscal year. Butler Community College is committed to educating borrowers regarding student loan repayment options and also partners with Wright International Student Services in an attempt to reach out to borrowers prior to defaulting on their student loans
Butler Community College’s Fiscal Year 2021* CDR is: 0.0%
| Fiscal Year 2021 CDR | Fiscal Year 2020 CDR | Fiscal Year 2019 CDR | |
|---|---|---|---|
| Butler Community College | 0.00% | 0.00% | 2.00% |
| National Public 2-3 Year Average | 0.00% | 0.00% | 3.70% |
| National Average for All Institution Types | 0.00% | 0.00% | 2.30% |
*Due to the National Federal Student Loan payment pause, 2020 default rates will inaccurately reflect the financial well-being of loan borrowers for the next several years.
Information regarding a Title IV, HEA loan and its borrower will be submitted to the National Student Loan Data System (NSLDS), and will be accessible by guaranty agencies, lenders and schools determined to be authorized users of the data system. Butler Community College sends student enrollment data to NSLDS via the National Student Clearinghouse (NSC) once a month. Recent changes in enrollment may not be reflected on NSC.
The Office of Financial Aid abides by the Kansas Attorney General's Student Loan Code of Conduct:
Kansas Attorney General's Student Loan Code of Conduct
- Preferred Lender Guidelines - Preferred or suggested lender lists used by colleges will be based solely on the best interests of students and parents who may use the list and without regard to the financial interests of the college. (Butler Community College does not have a preferred lender list.)
- Lender Disclosures - All preferred or suggested lender lists maintained by a college will clearly and fully disclose the criteria and process used to select the lenders included on such lists. Students and parents will also be told that they have the right and ability to select a lender of their choice, regardless of whether such lender appears on a school's lender list.
- Revenue Sharing - Colleges will not accept anything of value from any lender in exchange for any advantage sought by the lender. Lenders will not be required or allowed to pay to be placed on a school's preferred lender list.
- Gifts and Trips - College employees will not accept anything of more than nominal value from any lender. This includes gifts or trips of any kind.
- Advisory Board Membership - College employees will receive no compensation or anything of value for serving on the advisory board of any lender.
- Lender Identification - No employee of any lender may work in or provide staffing in a college financial aid office. In addition, colleges shall direct employees of lenders to clearly identify themselves as employees of the lender and to never identify themselves as college employees when meeting or speaking with students or parents.
In addition, Butler Community College is a member of the National Association of Student Financial Aid Administrators (NASFAA) and acts in accordance with NASFAA's Statement of Ethical Principles and Code of Conduct for Financial Aid Professionals.