Federal Loan Updates FAQs

• Private/alternative student loans — View the KCU Private Loans and Preferred Lender List page for more information.
• KCU has a number of Scholarship opportunities for both incoming students and continuing students. You may also explore externally sponsored scholarships.
• Public service programs or employer-sponsored education benefits.
  Examples: Military Health Professions Scholarship Program (HPSP), National Health Service Corps (NHSC), AmeriCorps.
• Monthly payment plans are available through the KCU Student Accounts Office.

Full-time status at KCU by program is defined as:

Example:You are a biomedical sciences student enrolled in 6 credits for the fall term. In your program, you would be expected to take 9 credits or more each in the fall and spring terms to be considered full-time. Therefore, 18 credits during the fall/spring academic year. At 6 credits in the fall term (6/18), you would be eligible for 33.3% of the annual loan limit of $20,500 ($6,833) for the term. If you then enrolled in 9 or more credits for the spring term, your remaining eligibility for the year would be calculated as follows: 6 credits (fall term) + 9 credits (spring term) or 15/18 (5/6) of the annual loan limit ($17,083) minus the $6,833 received in the fall = $10,250 for the spring term.

Effective July 1, 2026, entities that the Department of Education determines engage in illegal activities such that the organization has a substantial illegal purpose will no longer be qualifying employers for PSLF. Examples of illegal activities cited in the updated regulations include aiding and abetting violations of federal immigration laws, supporting terrorism, engaging in the chemical and surgical castration or mutilation of children in violation of federal or state law, engaging in the trafficking of children to another state for purposes of emancipation from their lawful parents in violation of federal or state law and aiding and abetting illegal discrimination. The Department of Education will notify a borrower if it is determined that their employer no longer qualifies.

• New, Tiered Standard Repayment Plan: Fixed monthly payment for 10, 15, 20 or 25 years (number of years is based on the amount borrowed/owed)
• Repayment Assistance Plan (RAP): The plan has a maximum 30-year repayment period, at which point the outstanding balance is forgiven. The monthly payment is 1-10 percent of total adjusted gross income (AGI) for borrowers with AGIs greater than $10,000. The percentage increases by one percentage point per increment of $10,000 in AGI. For AGIs of $10,000 or less, the monthly payment is $10. If you are married and file federal taxes separately, your spouse's AGI and number of dependents will not be included in the payment calculation. $50 will be taken off the monthly base payment per each dependent you have (monthly payment will still be no less than $10). For on-time payments that reduce the principal amount by less than $50, the Department of Education will make a principal payment up to the amount the borrower paid, minus what was applied to the principal or $50, whichever is less. There will be no cap on the monthly payment amount, even if it is higher than the standard repayment plan amount.

  Borrowers with no new federal loans made on or after July 1, 2026, will continue to be eligible to enroll in the current Standard, Graduated, Extended, or current Income Based (IBR) repayment plans. They can also opt to enroll in the new Repayment Assistance Plan (RAP). Current borrowers enrolled in the Income Contingent Repayment (ICR), Pay As You Earn (PAYE), or Saving on a Valuable Education (SAVE) Plans must transition to a different repayment plan (current IBR, current standard, or RAP) by July 1, 2028. If no selection is made by that date, they will automatically be moved into RAP.

  Note: It is highly encouraged for any borrower currently enrolled in the SAVE plan to be aware of the court rulings surrounding the plan, as well as the proposed settlement agreement that ends the plan. You can find more information on studentaid.gov.