Loans
- Student Loans
- Federal Stafford Loans
- Federal PLUS Loans
- Federal Perkins Loans
- Loan Counseling
- Private Loans
- Loan Forgiveness
- Finding Your Loans
- Loan Default Rates
Student Loans
| Loan | Eligibility | Amount for Academic Year | Interest Rate | Notes |
|---|---|---|---|---|
| Federal Perkins Loan | FAFSA required. Preference given to borrowers with exceptional financial need. | $1,500 |
5.00% fixed | Based on exceptional need and availability of funds. No origination fee. Payments deferred while you're enrolled at least half-time. Max. undergrad aggregate: $20,000. |
| Federal Subsidized Stafford Loan | FAFSA required, but no deadline. Must show need and be enrolled at least half-time. | Varies according to need, year in school, previous borrowing. | 6.0% Undergraduate
|
Payments deferred and no interest charged while you're enrolled at least half-time. |
| Federal UnSubsidized Stafford Loan | FAFSA required but no deadline. Must be enrolled at least half-time. | Varies according to cost of attendance, year in school and previous borrowing. | 6.8% | Payments deferred and Interest begins accruing at the time of loan disbursement. |
| Federal Parent PLUS | FAFSA required but no deadline. For parents of dependent undergrad's enrolled at least half-time. You must complete a PLUS application. |
Enough to meet cost of attendance | 7.9% | You must complete a PLUS application. Repayment begins within 60 days after the final loan disbursement. |
| Private Alternative Loan | Credit Worthiness (Other eligibility requirements vary by loan and lender.) | Max: Enough to meet cost of attendance | Varies | Cosigners may be required. Payments deferred and Interest begins accruing at the time of loan disbursement. |
You must not be in default on prior educational loans.
Federal Stafford Loans
Details
- Interest rates:
- For loans disbursed before July 1, 2006: variable interest rate subject to change each July 1 (but not to exceed 8.25%); currently at 6.54% for loans in in-school, grace, and deferment periods.
- For loans disbursed July 1, 2006 - June 30, 2008: fixed interest rate of 6/8% for all Subsidized and Unsubsidized Stafford Loans.
- For loans disbursed between July 1, 2008 and June 30 2009: fixed interest rate of 6.0% for undergraduate Subsidized Stafford Loans, 6.8% for all other Stafford Loans.
- Two types of Federal Stafford Loan:
- Subsidized: a need-based loan, on which the government pays the interest while the student is enrolled at least half time.
- Unsubsidized: a non-need-based loan, on which interest begins accruing immediately upon the loan’s first disbursement.
- Repayment does not begin until six months after the student graduates or drops below half-time enrollment.
- Master promissory note (MPN):
- First time borrowers of Federal Direct Stafford Loans must sign a Master Promissory Note.
- After a student signs the Federal Stafford MPN for IUS, the MPN remains valid for ten years.
- To Complete an MPN:
- 1. Accept/reduce loans on OneStart
- 2. First time borrowers must complete Direct Loan Entrance Counseling
- 3. Complete Master Prmoissory Note Online
- Federal Stafford Loan eligibility is limited by federal aggregates:
STAFFORD LOAN LIMITS (Beginning July 1, 2008)
| Class | Subsidized/Unsubsidized Amount Combination |
Additional Unsubsidized Dependent Student |
Additional Unsubsidized Independent Student |
| Freshman | $3,500 | $2,000 | $ 6,000 |
| Sophomore | $4,500 | $2,000 | $ 6,000 |
| Junior | $5,500 | $2,000 | $ 7,000 |
| Senior | $5,500 | $2,000 | $ 7,000 |
| Teacher Certification | $5,500 | N/A | $ 7,000 |
| Graduate | $8,500 | N/A | $12,000 |
Loan Limits include summer term
Federal Direct Loan Program
Checkout the official press release that details IU's decision to switch to the Federal Direct Loan Program
Indiana University to use Direct Loan Program at all campuses
If you take out a Federal Direct Loan, you or your family will not be borrowing money from a bank. Direct Loans are loans made with federal capital and owned by the federal government. Loan repayments are made to the government, and Direct Loans are never sold.
The Office of Financial Aid administers the loans; determines your loan eligibility; approves the loan; confirms the promissory note, when necessary; receives the funds from the federal government; and credits the loan amount directly to your University student account.
Please note: Because IU Southeast participates in the Direct Loan program; we do NOT process Subsidized or Unsubsidized Stafford Loans, PLUS Loans, or Grad PLUS Loans through private lenders.
Federal PLUS Loans
Direct Parent PLUS Loan
Parents of dependent students may apply for loans from a non-need-based program, the Federal Direct Parent PLUS Loan Program. The parent may borrow an amount up to the cost of attendance minus other financial aid. At disbursement, the funds will first be transferred into the student’s University account to pay for school charges. If any money remains, the parent of the student will receive the balance, unless the parent designates that the student should be the recipient.
Details
- Parent must complete the Parent PLUS Request Form each time they borrow through the PLUS program. The completed form is returned form to the Financial Aid Office.
- PLUS borrowers must complete a Master Promissory Note (MPN).
- To complete MPN:
- Go to https://dlenote.ed.gov and select “Complete New MPN for Parent PLUS Loans”
- To complete MPN:
Eligibility
Parent PLUS Loans
- You need to be the natural or adoptive parent of the student for whom the Federal PLUS Loan is being borrowed. A stepparent is also eligible to borrow.
- You need to be a U.S. citizen, U.S. national, or permanent resident of the United States.
- Your child needs to be an eligible dependent undergraduate student who is enrolled at least half time in a program leading to a degree or certificate.
- Student needs to have a current FAFSA on file
- You and the student must not be in default on a federal student loan and not owe a refund on a federal education grant.
- You need to meet specified credit requirements.
- If parents are denied a PLUS loan due to adverse credit, the student will become eligible for additional unsubsidized Stafford loans. Amounts vary depending on the student's academic level. Contact the financial aid office if you have been denied a PLUS loan.
Graduate Plus Loan
- Must have exhausted all Federal Direct Stafford Loan eligibility first.
- Must have current FAFSA on file.
- You need to be a U.S. citizen, U.S. national, or permanent resident of the United States.
- You must be enrolled at least half-time in a program leading to a degree or certificate.
- You must not be in default on a federal student loan and not owe a refund on a federal education grant.
- You need to meet specified credit requirements.
Borrowing Limits
You may not borrow more than your cost of attendance less other aid received.
Interest Rates
- Fixed rate at 7.9 percent for loans first disbursed on or after July 1, 2006.
- Interest begins to accumulate on the date of the first loan disbursement.
- A 4 percent origination fee is deducted before disbursement.
Repayment
After you receive the full disbursement of the Federal PLUS Loan for the school year, the repayment period begins. You will make your first payment within 60 days after the entire PLUS Loan is disbursed for a school year. Keep in mind, this usually means that repayment begins while your child is still in school. You make monthly payments directly to the lender.
Federal Direct Loan Program
Checkout the official press release that details IU's decision to switch to the Federal Direct Loan Program
Indiana University to use Direct Loan Program at all campuses
Federal Perkins Loans
This loan program is based on need and availability. Financial need is determined by completing the FAFSA and is required. The interest rate on these loans is 5% and repayment begins 9 months after the student leaves the university. Interest does not accrue while you are an enrolled student. A Master Promissory Note is required for the Perkins loan before disbursement. Once you have received your Financial Aid Notification letter you be sent an email directing your to a Web site to complete the Promissory Note through the Student Loan Administration.
At this session you will:
- Complete your Entrance Interview Questionnaire.
- Review your student loan Rights & Responsibilities.
- Review and sign your student loan promissory note.
- Print your signed promissory note.
- Read counseling summary and links to other helpful websites.
Loan Counseling
Entrance Counseling
Entrance Loan counseling is required for all students taking out their first Federal Stafford loan. Federal Stafford counseling is done on the web. Loan funds cannot be disbursed until counseling is completed.
If you are unable to complete the counseling on the web or have any questions, please contact the Office of Financial Aid.
Exit Counseling
Exit Counseling is required for both the Federal Perkins and Federal Stafford loan programs. Counseling is required when you separate from the institution either by dropping below 1/2 time or by graduating. To complete loan counseling follow the links below. If you have any problems with the web or have questions, please contact the Office of Financial Aid.
For Stafford Loan assistance you may also contact your lender. If you do not know who your lender is, please review how to find your loans. For Federal Perkins counseling, you may contact the Student Loan Administration in Bloomington at 812-855-4511 or toll-free at 1(866)485-6267 (1-866-IULoans).
Failure to complete Exit counseling will result in a "hold" being placed on your records. You may also access information on your loans by accessing the National Student Loan Data System (NSLDS). Through this website you can see all federal loans in your name, including Parent Plus loans. You can track individual loans, and find contact information for your lender, guaranty agency, servicer and school.
Begin Exit Counseling for Stafford Loans Disbursed Before August 2008
Begin Exit Counseling for Stafford Loans Disbursed After August 2008
| Begin Exit Counseling for Perkins Loans|
Private Loans
Some students may need to consider applying for a private alternative student loan. You need to be enrolled at least half-time before we will review your eligibility for a private alternative loan. When looking for a private loan, be sure to do your homework. Many lenders offer private educational loans with varying terms and interest rates. Be sure to shop around and find the private educational loan that works best for you. Be mindful that lenders will offer you more money than you may need.
Private loans should only be considered when all other resources (such as Stafford or PLUS loans) have been exhausted. Because alternative loans are not guaranteed by the Federal Government, they must be insured privately. This extra cost is passed on to the borrower in the form of higher fees and interest rates. In addition, the lender will look at your credit history as well as other factors to determine if they will lend to you.
**The Office of Financial Aid cannot recommend a lender for you. If you have any questions about the loan, please contact the lender.
Eligibility Requirements:
Requirements vary according to the lender. Some common requirements are:
- Undergraduate or graduate student in a degree or certificate program
- Enrolled at least half time
- Creditworthy borrower or borrower with a creditworthy cosigner
- Student may be required to be a U.S. citizen, permanent resident or eligible non-citizen
Loan certification
- You must accept and/or decline all other financial aid that has been offered to you before your private loan can be certified.
- Generally the certification process will take 10-14 business days but could be longer during peak times (August through October).
- Can borrow amount up to cost of attendance
- Your certified loan will disburse only after your lender has everything they need from you, e.g., income verification, co-signer addendums, or signed original promissory notes.
You are obligated to repay your private loan regardless of whether you complete your education, are satisfied with your education, or find employment. Generally, private loans go into repayment once you graduate or drop below half-time.
Application status
Indiana University Southeast and most of its lenders manage private loan certifications and disbursements through Education Loan Management (ELM) Resources. You can check the status of private loans that are certified through ELM by registering for this service at the ELM Web site.
What to consider before deciding on an alternative loan:
- What is the interest rate – is it fixed or variable?
- How is the interest rate calculated and capitalized?
- What fees are applied?
- Can principal and interest be deferred?
- When does repayment begin?
How to find a lender and apply for a private loan:
- Contact your own bank to see if they offer an alternative loan program.
- Search for “alternative student loans” on the internet
- Apply online or applications can be obtained by calling the lender.
- Loan must be certified through the Office of Financial Aid
Be a smart consumer!
It is important to keep all borrowing within reasonable bounds – never borrow more than you believe you will be able to repay.
Important Note:
When completing the application, please use the following dates to indicate which academic period you would like to borrow the loan. Using dates other than those listed below may result in processing delays.
Summer 2008 Semester 05/06/2008 - 08/04/2008
2008-2009 Academic Year 08/25/2008 - 05/05/2009
Fall Semester 2008 8/25/2008 - 12/13/2008
Spring 2009 Semester 01/12/2009 - 05/05/2009
Loan Forgiveness
Under certain circumstances, the federal government will cancel all or part of an educational loan. This practice is called Loan Forgiveness. To qualify, you must:
- Perform volunteer work;
- Perform military service;
- Teach or practice medicine in certain types of communities; or,
- Meet other criteria specified by the forgiveness program.
To find out whether you qualify for loan forgiveness, talk to the human resources staff at your employer. Here is additional information concerning Loan Forgiveness.
Finding Your Loans
Have you lost your loan promissory notes? Did you attend another college or two before attending IU Southeast and you cannot remember the type of loan or the lender? Help is available!
The National Student Loan Data System (NSLDS)
NSLDS maintains a central database of student aid for the US Department of Education. NSLDS allows you to access your Stafford Loan(s) and Perkins Loan(s) outstanding balances, loan statuses, and disbursements. The Direct Loan Program, PELL Grant Program and other US Department of Education programs are also on file at the NSLDS website.
STEP 1: Access NSLDS by going to www.nslds.ed.gov. On the NSLDS screen, click on Financial Aid Review and the Gathering Your Information screen will appear.
STEP 2: Read the privacy statement on this screen. If you agree, click Accept to continue the process of finding your loans. The Confirming Your Identity screen will appear after you click Accept.
STEP 3: Enter your PIN, Social Security number (SSN), the first two letters of your last name, and your date of birth to confirm your identity. You can electronically sign documents, including your promissory note(s), and retrieve personal information. Keep your PIN safe and secure.
STEP 4: View the FINANCIAL AID REVIEW screen listing your Title IV loans, including the loan amount, loan date, disbursed amount, canceled amount, outstanding principal and outstanding interest reported to NSLDS by your lenders. If you have questions, you can call the US Department of Education at 800-4FEDAID.
The Federal Student Aid Information Center
To find out who your Stafford and/or Perkins lender(s) are, contact the Federal Student Aid Information Center by calling 1-(800)-433-3243.
Credit Bureau Reports
You can also request a credit report from a credit bureau. There is a charge for this service. Your Stafford and Perkins loans will be listed in your credit history. If you have private, alternative loans, a credit report is the best resource of loan and/or lender information. To obtain a credit report from one of these credit bureaus, call or log onto:
Equifax
(800) 658-1111
www.equifax.com
Experian
(888) 397-3742
www.experian.com
TransUnion
(800) 916-8800
www.transunion.com
Loan Default Rates
Average Stafford Default Rates
Cohort Year |
IU Southeast |
National |
2005 |
2.7% |
4.6% |
2004 |
3.7% |
5.1% |
2003 |
2.9% |
4.5% |
Average Perkins Default Rates
Cohort Year |
IU Southeast |
National |
2005 |
3.31% |
8.1% |
2004 |
2.28% |
8.12% |
2003 |
.48% |
8.29% |
