Federal and state governments as well as private organizations can provide college loans to students and parents. The loans listed below allow you to defer repaying any money until you’re out of college, although interest may accrue.
Students interested in applying for federal loans should file the FAFSA for the current aid year, and then complete the online loan request in Student Workday. Once the loan has been certified, borrowers will receive notification with instructions on how to complete the Master Promissory Note (MPN) and loan entrance counseling. For more information about MPN and Entrance Counseling, refer to www.studentloans.gov.
To view your loan history, visit the National Student Loan Data System website.
Federal Direct Student Loans
The Federal Direct Student Loan is a non-credit based student loan that is funded by the U.S. Department of Education. Students enrolled in two- or four-year degree-seeking programs and eligible certificate programs can apply for these loans. There are three basic types of direct loans: subsidized and unsubsidized that students can apply for and Direct PLUS Loans that parents may apply for to assist students. The subsidized and unsubsidized loans have the same fixed interest rate, which is determined each year on July 1. Students must meet Financial Aid eligibility criteria to be considered for Federal Direct Student Loans. Annual loan limits are determined by class standing (freshman, sophomore, etc.) and dependency status.
The federal government requires that Federal Direct loan recipients complete student loan exit counseling prior to graduating or whenever they cease to enroll at least half-time. The purpose of this session is to help students understand their rights and obligations as a student borrower. The Financial Aid Office will contact you to set up the interview.
Subsidized loans are need-based loans where the government pays the interest while the student is in the deferment period. Once in repayment, the student is responsible for paying the interest on the loan as well as the principal amount borrowed. Your need is based on information collected from the Free Application for Federal Student Aid (FAFSA). New student loan borrowers can only borrow up to 150% of their program under the subsidized program. For example: a student in a two-year program can borrow this loan for up to three (3) years, even if there is a program change. The new program must be of the same length or shorter.
Unsubsidized and PLUS Loans
With these unsubsidized and PLUS loans, the Government does not pay the interest on behalf of the student. Instead, the borrower is responsible for all the interest that accrues and capitalizes from the time the loan disburses. Though it is non-need based aid, the amount of the unsubsidized loan combined with other aid cannot exceed the student’s total estimated cost of attendance.
Parental Loans (PLUS) must be taken out by the parent on behalf of eligible undergraduate dependent students. The student must meet the Standards of Satisfactory Academic Progress, be degree-seeking, and be enrolled in IRSC classes that count toward degree completion for at least six credit hours per term. PLUS loans are credit-based, have a fixed interest rate of 7.9% and may not exceed the student’s cost of attendance less other aid. Repayment begins on the date of disbursement. Parents will determine whether they wish remaining loans funds, after fees are paid, be disbursed to the student or to themselves. Parents may apply for PLUS loans online at www.studentloans.gov.
Annual Loan Limits
The chart below indicated the combined (Fall and Spring) maximum loan amounts per academic year. Class standing is determined by credits earned. If you are a dependent student who is not eligible for a subsidized loan, you can receive an unsubsidized loan.
|Dependent||Maximum Subsidized||Maximum Unsubsidized||Combined Subsidized/
|Freshman (01–29 credits)||$3,500||0.00||$3,500|
|Sophomore (30–59 credits)||$4,500||0.00||$4.500|
|Junior (60–89 credits) / Senior 90-120 credits||$5,500||0.00||$5,500|
|Independent||Maximum Subsidized||Maximum Unsubsidized||Combined Subsidized/