The KU Endowment Loan Program
About KU Endowment
|Before you apply for a loan, please read the following important information:
KU Endowment has partnered with Campus Door to provide a new and improved loan application process. New features include e-signature option for co-signers, and an option for direct deposit of your loan disbursement. To cover the cost of this service, a 2.25% origination fee will be added to your loan amount. We welcome your feedback as we strive to improve this process. Loan processing time is approximately 10 to 14 days. Co-signers are required for all long-term loans for students whose annual income is less than $25,000.
Summer 2012 loans: Applications will be accepted through July 27, 2012.
Fall 2012 loans: Applications will be accepted beginning July 1, 2012.
If you are seeking funding for a study abroad program, please contact our office at 785-832-7450.
KU Endowment is an independent, nonprofit corporation serving as the official fund-raising and fund-management organization for the University of Kansas. It was established in 1891 for the sole purpose of providing support for KU.
Through the years, many KU alumni and friends have made gifts to KU Endowment for the purpose of providing low-interest loans to deserving students. KU Endowment administers these loan funds to ensure maximum financial assistance at a minimum cost to students. Loans are available to students at all four KU campuses — Lawrence, Kansas City, Wichita and Overland Park. These loans are repaid directly to KU Endowment, and these payments are re-issued in the form of new loans to assist succeeding generations of students at KU.
KU offers long-term loans to students who are currently enrolled at KU. Continuing and returning students must have an overall grade point average of at least 2.0. Transfer students who have never attended KU must have a 2.5 GPA. Loans are not available to first semester freshmen. Long-term loans may not exceed the student's cost of attendance as determined by the Office of Student Financial Aid. Short-term loans may be an option for students not meeting the above criteria, or for students experiencing extreme financial hardship.
Loan amounts are contingent upon the availability of sufficient loan funds and are assigned according to the following criteria.
Lawrence / Edwards Campuses
$8,000 maximum (includes amounts borrowed as undergraduate)
Undergraduate, $1,300 maximum
Graduate, $1,500 maximum
KU Medical Center
Each loan must be co-signed by the student’s parent or another responsible adult. Co-signers must be at least 25 years of age, cannot be KU students and must earn at least $25,000 a year. Each co-signer must sign a promissory note and Information Privacy Notice, and also submit a signed and notarized basic financial statement. By signing the promissory note, the co-signer assumes full liability for repayment of the loan in the event of the borrower’s default. Past-due statements will be mailed to the co-signer if the borrower becomes delinquent in making loan payments.
In unusual circumstances, the co-signer requirement may be waived by KU Endowment after special consultation with the student.
Long-term loan repayment terms
Most loans issued by KU Endowment are long-term loans. Terms and conditions of repayment for long-term loans will be set forth in a separate payment schedule and disclosure statement that is agreed to by both borrower and co-signer. The repayment schedule and disclosure statement will be mailed to the student borrower and co-signer prior to graduation or upon cessation of regular enrollment at KU.
For Lawrence or Edwards Campus students, loan repayment will begin on the first day of the fifth month following graduation. For undergraduate or graduate students in nursing or allied health at the KU Medical Center, loan repayment will begin one year after graduation. Medical student loans can be deferred until internship or residency programs are completed.
The sum of all the KU Endowment loans advanced to the borrower, as well as the accrued interest, will be consolidated for repayment purposes, and may be repaid in equal installments of no less than $50 per month for a maximum of ten years. Borrowers may repay all or part of the principal and accrued interest at any time without penalty.
In the event that a borrower ceases to be regularly enrolled before graduating from KU, loan repayment will be due beginning on the first day of the fifth month following the last semester of attendance.
Short-term loan repayment terms
Short- term loans are offered on a case-by-case basis to students who do not qualify for long-term loans, who do not have a co-signer or who need an emergency loan. Repayment of all short-term loans is due within one year of disbursement. However, if the borrower graduates within the year of disbursement, the due date will be established one semester prior to graduation.
Interest and penalty charges
The annual interest rate on student loans is 5 percent from the date of issue to maturity. Delinquent loans are subject to a 14 percent annual interest rate. KU Endowment may assess a late penalty charge equal to 20 percent of the fixed payment amount for each late installment payment for long-term loans. A late fee of $10.00 may be assessed each month for short-term loans that are not paid in full by the maturity date.
If the borrower fails to make a scheduled payment, the entire unpaid balance of the loan, including interest due and any applicable fees, may become immediately due and payable. A hold will be placed on the borrower's transcript, and re-enrollment at KU will not be allowed until the unpaid balance is paid in full.
Borrowers also are responsible for fees assessed for insufficient fund payments, delinquency letters and phone calls. In the event the borrower defaults on the loan, the borrower will be responsible for all costs and fees associated with any collection activity as permitted by Federal and State laws.
Special provisions/other information
Any unpaid indebtedness on a KU Endowment loan shall be cancelled in the event of the borrower’s death.
Other providers of student loans, including federal loan programs, typically do not allow KU Endowment loans to be consolidated into their loans.
Applying for a KU Endowment loan
To apply for a loan, students may fill out the online application form. After submitting the application, the student will receive an immediate confirmation message to indicate that the loan application has been received for review. If any errors are detected, the student will receive a message indicating the section(s) that require correction.
After the loan application is received by KU Endowment, students should allow one to two days for the approval process to be completed. An e-mail message will notify the student of loan approval or denial. For approved loans, the message will include instructions for signing the promissory note and printing the documents that the co-signer must complete. If the loan is denied, the e-mail will include the reason for denial.