Loans

Loans may be available to you as part of your financial aid awards to help fund your education.  Remember: A loan is money that must be repaid and may accrue interest.  You should only borrow what is necessary to help you with your education.  Be sure you understand the terms and conditions of your loan if you decide to borrow.

In partnership with the U.S. Department of Education, Ivy Tech is taking steps to help students reduce student loan debt.  Like many institutions, we have noticed our students’ increased borrowing. Given our low tuition costs, we find this trend to be very concerning.  We do not want our students to be overly burdened with loan debt when they graduate. 

Under our partnership with the U.S. Department of Education, we are implementing two new processes for 2013-14:

  • First, all students who want to receive an unsubsidized loan must complete a loan request form and return it to their local financial aid office.  The loan request form can be downloaded and printed from our Forms page.
  • Second, we are reducing annual maximum unsubsidized loan limits for independent students by $2,000.  For details regarding annual and aggregate loan limits, please click on the William D. Ford Federal Direct Student Loan drop-down arrow below.  This only affects unsubsidized loans and will only affect independent students attempting to borrow a combined Subsidized and Unsubsidized loan amount of $7,501 and above.

All students must meet certain eligibility requirements to be eligible for a student loan or a parent PLUS loan:

  • Complete a FAFSA each year - www.fafsa.gov – and submit all required documents as directed
  • Enroll in at least 6 credit hours/semester in an aid-eligible degree program;
  • Meet Satisfactory Academic Progress (SAP) requirements;
  • Meet all other requirements to be eligible for federal student aid.

There are a number of resources available to help you with the student loan process. The U.S. Department of Education’s Federal Student Aid Office has two websites that should answer most of your questions - http://studentaid.ed.gov/types/loans and https://studentloans.gov. You can also contact your campus Financial Aid Office for assistance or more information on any of the topics on this website.

William D. Ford Federal Direct Student Loan (Direct Loan)
In the Direct Loan program, the U.S. Department of Education is the lender for your student loan. There are two types of student loans in the Direct Loan program – subsidized and unsubsidized. These loans are not based on your credit rating/score and do not require a credit check.
  • The Direct Subsidized Loan is based on need. Interest on the Direct Subsidized Loan does not accrue while you are in school and during your grace period.
  • The Direct Unsubsidized Loan is not based on need. Interest on the Direct Unsubsidized Loan does accrue once the loan is disbursed.

Application Process: To apply for a Direct Loan,

  1. You must complete your Free Application for Federal Student Aid (FAFSA) at www.fafsa.gov with Ivy Tech Community College listed as one of your school choices (school code: 009917). If you are required to submit any other documents, those must also be reviewed by the Financial Aid Office before your loan eligibility can be determined.
  2. Submit a Federal Direct Loan Request form if you are not automatically offered a loan with your other financial aid awards. Some students will be offered loans as part of their financial aid package automatically. If you are not offered a loan with your other financial aid awards, you can submit a Federal Direct Loan Request Form (found here) to your campus Financial Aid Office.

    Students who will be offered

    a Subsidized loan automatically:

    Students who need to submit a

    loan request form:

    • Had a loan with Ivy Tech Community College in the prior academic year
    • Meets Satisfactory Academic Progress criteria (SAP)
    • New borrower with Ivy Tech Community College (unless you have a bachelor’s degree)
    • Is on Probation with Satisfactory Academic Progress (SAP)
    • Has withdrawn from all classes during any semester in the previous two years
    • All students requesting an Unsubsidized loan for any semester
    • All students requesting a summer loan, even if you had a loan during the fall/spring semesters
  3. You may also need to complete one or both of the following:
    1. Master Promissory Note (MPN) – the MPN is your promise to repay your Direct Loan.  You must complete an MPN before your loans can post to your Ivy Tech account.  To complete your MPN, visit www.studentloans.gov and sign in using your FAFSA PIN.  Click on “Complete Master Promissory Note” and follow the steps to complete this process.
    2. Entrance Counseling – this will walk you through your rights and responsibilities of borrowing a Direct Loan.  This is required for students who have never borrowed a Direct Loan.  To complete Entrance Counseling, visit www.studentloans.gov and sign in using your FAFSA PIN.  Click on “Complete Entrance Counseling” and follow the steps to complete this process.

Accepting Full / Partial Loan Amounts or Declining Your Loan: Once your loan has been offered to you, you must log on to your Campus Connect account to accept the full or partial amount or decline the loan amount.

  1. Log on to your Campus Connect account and click the Awards link under MY IVY TECH.
  2. Select the Award for Aid Year link and then select the appropriate academic year.
  3. Click on the Accept Award Offer tab.
  4. Step by step instructions provided on the page describe in detail what is required to accept the loan offer in full, accept a partial award and/or decline the entire offered loan amount.
  5. The award decision for all funds is displayed for your information.

Once funds are accepted you will no longer be able to make changes online. If you need to change the loan amount accepted or request additional funds (if you accepted a partial amount or declined your loan), contact your campus Financial Aid Office.

Borrowing Limits: There are limits as to how much you can borrow in an academic year and over your lifetime. The limits are based on your grade level and dependency status.

Year Dependent Status (Except students whose parents are unable to obtain PLUS Loans) Independent Students (and dependent undergraduate students whose parents are unable to obtain PLUS Loans)
Freshman $5,500; No more than $3,500 may be in subsidized loans. $7,500; No more than $3,500 may be in subsidized loans.
Sophomore $6,500; No more than $4,500 may be in subsidized loans. $8,500; No more than $4,500 may be in subsidized loans.
Maximum Lifetime (Subsidized and Unsubsidized Loans) $31,000; No more than $23,000 may be in subsidized loans. $57,500; No more than $23,000 may be in subsidized loans.

Interest Rates and Fees: Click here for information on interest rates and fees associated with the Direct Loan program.  (http://studentaid.ed.gov/types/loans/interest-rates)

Posting and Refunds: You can find your expected posting date by visiting www.studentloans.gov and signing in using your FAFSA PIN.  Click on “Disclosure Statements” under “My Loan Documents”.  The date listed on your disclosure statement is the earliest your loan funds can post to your account at Ivy Tech.  However, each student's situation is different based on numerous factors, therefore not every student's financial aid will be posted exactly on that date.  Visit www.ivytech.edu/refunds for more information on the posting and refunding process.

Please note: loan funds for first-time loan borrowers cannot be posted in Campus Connect until 30 days after your courses have started.  Also, all single-semester loans refunds will be disbursed in two installments during that semester.

Exit Counseling: Once you graduate, stop attending or are no longer enrolled in at least 6 credit hours, you will be required to complete Exit Counseling, even if you plan to transfer to another school or return to Ivy Tech Community College in a future semester.  Exit Counseling explains your responsibilities for repayment of your Direct Loan and provides information on how to manage your student loans.  To complete Exit Counseling, visit www.nslds.ed.gov and click on the “Exit Counseling” link.

Repayment:  Since this is a loan, you must repay the funds you borrowed along with any interest or fees that may have accrued. 

There are multiple repayment options. The amount and length of your payments will depend on how much your borrowed and which repayment plan you choose.  For information on the various repayment plans, visit http://studentaid.ed.gov/repay-loans/understand/plans.

Once your loan is in repayment, it will be assigned to a loan servicer.  You will be notified who is servicing your loan(s) before you enter repayment.  You may have multiple servicers depending on your loan history.  To find a complete history of your federal loan borrowing and to find your loan servicer (if your loan(s) have been assigned to a servicer), log on to the National Student Loan Data System (NSLDS) at www.nslds.ed.gov using your FAFSA PIN.

William D. Ford Federal Direct Parent PLUS Loan (Direct PLUS Loan)
In the Direct Loan program, the U.S. Department of Education is the lender for your student loan.  The Direct PLUS loan program is available to parents of a dependent undergraduate student who is eligible for financial aid.  Unlike the Direct Loans for students, though, parents applying for a Direct PLUS Loan must meet certain credit criteria.

Application Process: To apply for a Direct PLUS Loan,

  1. Your student must complete a Free Application for Federal Student Aid (FAFSA) at www.fafsa.gov with Ivy Tech Community College listed as one of the school choices (school code: 009917).  If you or the student are required to submit any other documents, those must also be reviewed by the Financial Aid Office before your loan eligibility can be determined.
  2. Sign on to www.studentloans.gov using your FAFSA PIN.  Click on the link to “Request a Direct PLUS Loan” and follow the steps for the “Parent PLUS” loan.  This step is where the credit check will be performed.
  3. If your credit is approved, you will need to complete a Master Promissory Note (MPN).  Be sure to complete the MPN for the “Parent PLUS” loan option.
  4. Your information will be sent to Ivy Tech Community College, where your student’s campus Financial Aid Office will determine the maximum amount you can borrow.  The Financial Aid Office will process your loan for the amount requested or the amount available, whichever is greater.  Please note: if you selected the loan period for the entire academic year, your loan amount will be split in to half for fall semester and half for spring semester.

If your credit is not approved during the credit check process, you still have options if you wish to receive the Direct PLUS Loan.  You will be notified of these options after the credit check is complete or you can contact your student’s campus Financial Aid Office for information.  If you are not able to obtain a Direct PLUS Loan, your student may be eligible for additional Direct Unsubsidized Loan funds.  The student should contact his/her campus Financial Aid Office for more information.

Borrowing Limits: The amount a parent can borrow is based on the student’s enrollment, grade level and other financial aid received.  Based on these factors, your student’s campus Financial Aid Office will determine the maximum amount you can borrow.

Interest Rates and Fees: Click here for information on interest rates and fees associated with the Direct Loan program.  (http://studentaid.ed.gov/types/loans/interest-rates)

Posting and Refunds: All federal student aid, including Direct PLUS Loans, must first be sent to Ivy Tech Community College to pay any outstanding tuition, fees or other applicable charges.  If there are excess funds from the Direct PLUS Loan after all applicable charges have been paid, a refund will be generated.  Visit www.ivytech.edu/refunds for more information on the posting and refunding process.

Repayment:  Since this is a loan, you must repay the funds you borrowed along with any interest or fees that may have accrued.  Repayment will begin once the loan is fully disbursed (paid to the school).  Unlike Direct Loans for students, there is no in-school deferment or grace period.  However, you can request a deferment or forbearance if you meet certain criteria.  You should contact your loan servicer for more information.

There are multiple repayment options. The amount and length of your payments will depend on how much your borrowed and which repayment plan you choose.  For information on the various repayment plans, visit http://studentaid.ed.gov/repay-loans/understand/plans.  Please note: You cannot transfer repayment of a Direct PLUS Loan to your student.  You, as the borrower, are responsible for repaying a Direct PLUS Loan.

Once your loan is in repayment, it will be assigned to a loan servicer.  You will be notified who is servicing your loan(s) before you enter repayment.  You may have multiple servicers depending on your loan history.  To find a complete history of your federal loan borrowing and to find your loan servicer (if your loan(s) have been assigned to a servicer), log on to the National Student Loan Data System (NSLDS) at www.nslds.ed.gov using your FAFSA PIN.

Private Alternative Loans
Private (alternative) loans are not federal loans, but are considered part of a student’s financial aid award.  These funds are typically loaned to you by a bank or other non-educational organization.  Students should explore all types of federal student aid before considering a private (alternative) loan.  For a list of reason why federal student loans are usually a better option than private (alternative) loans, visit http://studentaid.ed.gov/types/loans/federal-vs-private.

Borrowing Limits: The maximum amount you can borrow is based on your enrollment and other financial aid received.  Based on these factors, your student’s campus Financial Aid Office will determine the maximum amount you can borrow.  In addition, your lender may have a maximum limit based on your credit rating/score and the type of loan.

Interest Rates and Fees: Varies by lender.  Typically the rates and fees associated with a private/alternative loan are not as good as the Federal Direct Loan program.

Application Process: Varies by lender, but most lenders have an online application process.  If your loan is approved, contact your campus Financial Aid Office for next steps in the process.

Posting and Refunds: Most lenders will send your funds to Ivy Tech Community College to pay any outstanding tuition, fees and other charges.  If there are any funds remaining after these charges have been paid, a refund will be issued to you.  Visit www.ivytech.edu/refunds for more information on the posting and refunding process.  Please note: Private/Alternative loans may not show as expected Financial Aid on your Campus Connect account.

Repayment: Varies by lender.  Typically the repayment options for a private/alternative loan are not as good as the Federal Direct Loan program.