2009-2010 KCUMB College Catalog - Kansas City University of ...

student’s education. This means the borrower must live on personal expenses of $19,000
($1,900 per month) for the 10-month period of his or her first year from all monies
available to them, including personal resources, parental assistance, awards,
scholarships and loans. Personal income from the previous year, the income of the
student’s spouse, and the income of the student’s parents also are taken into account
when figuring the amount a student can be awarded or can borrow.
Money is available for a student’s direct educational costs and personal support while
he or she receives an education. The student must be frugal and a good money manager
to make the budget work comfortably. The primary federal sources are the subsidized
and unsubsidized Stafford and GradPLUS loan programs. The subsidized Stafford loan is
a low-interest program on which the government pays the interest while the student
borrower is in school and is the loan of first choice. The unsubsidized Stafford and
GradPLUS loans accrue interest from disbursement and are the loans of last resort. Refer
to “Loan Programs and Sources” for maximum borrowing amounts for each program.
A student may not be eligible for the full amount of loans based on his or her needs
analysis application (FAFSA) and the KCUMB standardized student budget (Cost of
Attendance). The amount a student can borrow is based on the cost of his/her education
and potential personal contributions, not on the student’s desire for capital.
Students must carefully consider the repayment implications of loan programs and
avoid excessive borrowing. KCUMB has a federally mandated obligation to keep a
student’s indebtedness to a minimum. A student will receive counseling while in school
about the nature of his/her debt and the projected payment schedule. Borrowing money
from these programs is a privilege, not a right; the regulations controlling these
programs change periodically.
The KCUMB Financial Aid Office personnel are available to assist students in
financing their educations. The staff will help find money for the student, but the primary
responsibility for the financing of a student’s education lies with the student. This means
that such things as supplying personal documentation, supplying family documentation,
ensuring that a student qualifies for loans by having a favorable credit report and
providing monies for prior commitments are the student’s obligations under the system.
Default of a student loan is failure to repay the loan according to the terms agreed to
in the promissory note. Default also may result from failure to submit requests for
deferment on time. If a student defaults, the college, the organization that holds the loan,
the state and the federal government can all take action to recover the money.
The federal government and the loan agencies can deny a school’s participation in the
student loan programs if the school’s default rate is too high. The University will
withhold the transcript of any student who is in arrears or in default under any loan or
loan program where such arrearage or default adversely affects the University in any way.
Standards for Satisfactory Academic Progress
Federal law and regulations require that all students receiving financial assistance
from Title IV and Title VII programs must maintain satisfactory academic progress.
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