Student Loan Information

If you want to accept a Federal Direct Loan listed on your offer letter, you may do so via your My.ButlerCC 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.

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. Current interest rate information can be found https://studentaid.gov/understand-aid/types/loans/subsidized-unsubsidized#what-are-the-current-interest-rates.  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 the Student Aid.gov website.  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. Student Aid.gov website.

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 My.ButlerCC 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.

You may be able to lower your monthly student loan payment by enrolling in an income-driven repayment (IDR) plan. Under an IDR plan, payments are based on your income and family size. Apply for an IDR plan through and select the box to be placed on the repayment plan that will provide you with the lowest monthly payment.

If you’re not eligible for an IDR plan, reach out to your loan servicer. Your loan servicer can work with you to help you understand your options.

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 2020* CDR is: 0.0%

*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.

Private Student Loans are obtained through lending institutions and are NOT part of the Federally guaranteed Student Loan programs offered through Federal Student Aid.  In most cases, Federal Student Loans are more favorable in regards to interest rates and terms/conditions than private loans.  Care should be taken when choosing to apply for a private student loan.  It is important to remember that student loans of any kind must be repaid.  Private Student Loans should be an option only after a student and/or parent have 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, the steps to apply are:

1. Complete the loan application located on the lender's website.  Unless you have excellent personal credit, 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.
2. Application passes through credit analysis.
3. Application is sent to the school for certification.
4. Butler Community College verifies that the loan amount requested is within Federal guidelines and student has been counseled regarding Federal Financial Aid options.
5. Informational letter will be mailed to you regarding the status of your private loan.  If 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.
6. 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 the My.ButlerCC 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.

*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.

The Office of Financial Aid abides by the Kansas Attorney General's Student Loan Code of Conduct which is:

Kansas Attorney General's Student Loan Code of Conduct

1. 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.)
2. 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.
3. 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.
4. 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.
5. Advisory Board Membership - College employees will receive no compensation or anything of value for serving on the advisory board of any lender.
6. 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.