A student loan is money borrowed from the government or a private lender to help pay for college costs, such as tuition, supplies, books, living expenses, or other fees. Unlike scholarships or grants, which are gifts that don't need to be paid back, a loan accumulates interest and has to be paid back. Because of this, it's critical that you only borrow what you need.
If you must borrow, borrow wisely!
WHO QUALIFIES?
Eligibility is determined by the Ivy Tech Financial Aid office, based on the results of your Free Application for Federal Student Aid (FAFSA), your estimated cost of attendance, and other financial aid you are receiving.
To borrow a Federal Direct Loan (see the table below for more info), you must be enrolled at least half-time in an aid-eligible academic program. All enrolled students must also meet Ivy Tech's Satisfactory Academic Progress policy.
Types of LOANS
After you've explored free money for college (scholarships and grants), you may want to look into federal student loans, which are provided by the government, and then private student loans, which are provided by banks and other financial institutions, to help you pay for college.
Don't forget, with both federal and private student loans, you'll have to pay back the money you borrow plus interest. Borrow only as much as you absolutely need.
The U.S. Department of Education is the lender for Federal Direct Loans.
These loans are not based on your credit rating/score and do not require a credit check.
Direct Subsidized Loans are based on need.
Interest on the Direct Subsidized Loan does not accrue while you are in school and during your grace period. The government pays interest for you while you're in school and during your post-graduation grace period.
How to Apply for a Direct Subsidized Loan:
Complete your Free Application for Federal Student Aid (FAFSA) at 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.
Register for and attend at least 6 credit hours in a financial aid-eligible degree or certificate program each semester of the requested loan period.
Some students will be offered subsidized loans as part of their financial aid package automatically:
Students who had a loan with Ivy Tech Community College in the prior academic year
If you are not automatically offered a loan with your other financial aid awards, complete the Federal Direct Student Loan Request. Students who need to submit a loan request form:
New borrowers with Ivy Tech Community College (unless you have a bachelor’s degree)
Students who have 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
You may also need to complete one or both of the following:
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 StudentAid.gov and sign in using your FSA ID. Click on “Complete Master Promissory Note” and follow the steps to complete this process.
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 StudentAid.gov and sign in using your FSA ID. Click on “Complete Entrance Counseling” and follow the steps to complete this process.
Select the Award for Aid Year link and then select the appropriate academic year.
Click on the Accept Award Offer tab.
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.
The award decision for all funds is displayed for your information.
Borrowing Limits
There are federal 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.
Dependent Status
Independent Students
(Except students whose parents are unable to obtain PLUS Loans)
(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
$9,500; No more than $3,500 may be in subsidized loans
Sophomore
$6,500; No more than $4,500 may be in subsidized loans
$10,500; No more than $4,500 may be in subsidized loans
Maximum Lifetime
$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.
Posting and Refunds
All federal student aid, including Direct Subsidized 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 Subsidized Loan after all applicable charges have been paid, a refund will be generated. Learn more about the financial aid posting and refunding process
The date that refunds are posted depends on numerous factors, including when your classes begin, if you are a first-time borrower, and when your loan requirements were complete. Therefore not every student's financial aid will be posted exactly on the financial aid posting date. Note: Loan funds for first-time, first-year loan borrowers cannot be posted until 30 days after your courses have started. Also, all single-semester loan funds 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 studentaid.gov and click on the “Complete 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 you borrowed and which repayment plan you choose. For information on the various repayment plans, visit studentaid.gov.
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 nslds.ed.gov using your FSA ID.
Loan Simulator
StudentAid.gov's Loan Simulator helps you calculate student loan payments and choose a loan repayment option that best meets your needs and goals. You can also use to decide whether to consolidate your student loans.
The U.S. Department of Education is the lender for Federal Direct Loans.
These loans are not based on your credit rating/score and do not require a credit check.
Direct Unsubsidized Loans are NOT based on need.
Interest on the Direct Unsubsidized Loan accrues once the loan is disbursed.
How to Apply for a Direct Unsubsidized Loan:
Complete your Free Application for Federal Student Aid (FAFSA) at 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.
Register for and attend at least 6 credit hours in a financial aid-eligible degree or certificate program each semester of the requested loan period.
Students who have 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
You may also need to complete one or both of the following:
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 StudentAid.gov and sign in using your FSA ID. Click on “Complete Master Promissory Note” and follow the steps to complete this process.
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 StudentAid.gov and sign in using your FSA ID. Click on “Complete Entrance Counseling” and follow the steps to complete this process.
Select the Award for Aid Year link and then select the appropriate academic year.
Click on the Accept Award Offer tab.
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.
The award decision for all funds is displayed for your information.
Borrowing Limits
There are federal 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.
Dependent Status
Independent Students
(Except students whose parents are unable to obtain PLUS Loans)
(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
$9,500; No more than $3,500 may be in subsidized loans
Sophomore
$6,500; No more than $4,500 may be in subsidized loans
$10,500; No more than $4,500 may be in subsidized loans
Maximum Lifetime
$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.
Posting and Refunds
All federal student aid, including Direct Unsubsidized 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 Unsubsidized Loan after all applicable charges have been paid, a refund will be generated. Learn more about the financial aid posting and refunding process
The date that refunds are posted depends on numerous factors, including when your classes begin, if you are a first-time borrower, and when your loan requirements were complete. Therefore not every student's financial aid will be posted exactly on the financial aid posting date. Note: Loan funds for first-time, first-year loan borrowers cannot be posted until 30 days after your courses have started. Also, all single-semester loan funds 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 studentaid.gov and click on the “Complete 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 you borrowed and which repayment plan you choose. For information on the various repayment plans, visit studentaid.gov.
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 nslds.ed.gov using your FSA ID.
Loan Simulator
StudentAid.gov's Loan Simulator helps you calculate student loan payments and choose a loan repayment option that best meets your needs and goals. You can also use to decide whether to consolidate your student loans.
Federal Direct Parent PLUS Loan (Direct PLUS Loan)
Key Highlights
The U.S. Department of Education is the lender for Federal Direct Loans.
Available to parents of a dependent undergraduate student who is eligible for financial aid.
No minimum credit score is needed to get a parent PLUS loan, but a credit check is required and parents won't qualify if they have an adverse credit history.
How to Apply for a Direct Parent PLUS Loan:
Complete your Free Application for Federal Student Aid (FAFSA) at 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.
Sign on to StudentAid.gov using your FSA ID. Under “Apply for Aid” click on the link to “Apply for a Parent PLUS Loan” and follow the steps. Note: A credit check will be performed.
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.
Your information will be sent to Ivy Tech Community College, where the 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 half for the fall semester and half for the spring semester.
If your credit is not approved:
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 Parent 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, the 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.
Posting and Refunds
All federal student aid, including Direct Subsidized 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 Subsidized Loan after all applicable charges have been paid, a refund will be generated. Learn more about the financial aid posting and refunding process
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 studentaid.gov and click on the “Complete 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.
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 you borrowed and which repayment plan you choose. For information on the various repayment plans, visit studentaid.gov. Note: You cannot transfer repayment of a Direct PLUS Loan to your student. You, as the parent borrower, are responsible for repaying a Direct Parent 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 nslds.ed.gov using your FSA ID.
Loan Simulator
StudentAid.gov's Loan Simulator helps you calculate student loan payments and choose a loan repayment option that best meets your needs and goals. You can also use to decide whether to consolidate your student loans.
A private (alternative) loan is not a federal loan, but it is considered part of a student’s estimated financial aid.
The funds are typically loans provided to you by a private lender.
Students should explore all types of federal student aid before considering a private (alternative) loan. For a list of reasons on why federal student loans are usually a better option than private (alternative) loans, visit StudentAid.gov.
Below is some information you should know if you choose to apply for a private (alternative) loan.
Eligibility Requirements: Even if your lender approves your loan, you must also meet certain eligibility requirements to receive the funds at Ivy Tech. These requirements include:
File a Free Application for Federal Student Aid (FAFSA) and resolve any outstanding issues related to your FAFSA,
Be awarded all other eligible aid, including federal loans,
Your Cost of Attendance (COA) minus all other aid is greater than $0,
If you have extenuating circumstances as to why you cannot meet the eligibility requirements above and you have been approved for a private (alternative) loan by your lender, contact your Financial Aid Office for options.
Borrowing Limits
The maximum amount you can borrow is based on your enrollment and other financial aid received. Based on these factors, your 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
Rates and fees vary by lender. Be sure to read all the terms and conditions of your loan to know how the rates and fees are determined for your loan.
Application Process
Each lender has its own application process. Almost all private (alternative) loans are based on the borrower’s credit. You may need to apply with a co-signer to be approved if you are not deemed as credit-worthy by the lender. If your loan is approved by the lender, the lender will send Ivy Tech a certification request. We will review your eligibility and send your lender a completed certification if you are eligible to receive the loan.
Posting and Refunds
Just like other forms of financial aid, any funds sent to Ivy Tech will first apply to your tuition, fees and other charges. Any remaining funds will be issued as a refund to you, if permitted by the lender. Private (alternative) loans follow the same posting and refund schedule as other types of financial aid. Visit ivytech.edu/refunds for more information on this process. Private (alternative) loans will not show as Estimated Financial Aid on your Student Account until the funds arrive from the lender and post to your account. If you do not have other types of financial aid to pay your balance due, you should contact your Bursar/Business Office for payment options until the funds post to your account.
Bookstore Credit Line
Funds from your private (alternative) loan are not available to use as part of the bookstore financial aid credit line. The bookstore financial aid credit line is only available based on federal, state, and institutional funds.
Repayment
Repayment terms and amounts vary by lender and depend on how much you borrow. Typically, the repayment options for a private (alternative) loan are not as good as the Federal Direct Student Loan Program.
As a service to our students and parents we’ve listed a private loan research tool (INvestEd Marketplace) and a no-interest loan opportunity (Accelerate Indiana) below on our preferred lender list.
Accelerate Indiana is a new state-funded program to help Indiana residents accelerate their careers through fast-paced training programs for high-wage, high-demand jobs.
Accelerate Indiana is an Income Share Agreement (ISA). This means you’ll pay a percentage of your monthly income for a set number of months after graduation or course separation.
Accelerate Indiana’s ISA offers zero interest, zero fees, and forbearance protections for economic hardship, military service, disability, and disaster.
Payments are capped at 5% of your monthly income, and no payment is owed if you earn less than before your enrollment or less than $42,500/year.
Repayment begins 6 months after graduation or course separation.
Maximum term of 84 months. Nothing extends the repayment term. Any outstanding obligation is forgiven at expiration of repayment term.
Students who stay in Indiana during the first 36 months of repayment qualify for a 5% credit.
Accelerate Indiana’s ISA funds are currently available to use for Indiana students pursuing the CDL-A Workforce (Non-Credit) training at our Fort Wayne, Terre Haute, and Lafayette campuses. Student must be at least 18 years of age, Indiana residents, and not currently using the Workforce Ready Grant.
Students are not limited to the options above. We will process loans for students and parents who meet eligibility requirements from any lender.
Lenders are included on our preferred lender list by meeting some or all the following criteria:
Students who have selected a lender in the past and have received good service regarding such things as timeliness of disbursements, availability of lender representatives to answer questions, etc.
A lender is willing to share the information for comparison in the INvestEd Markeplace.
A lender provides students with beneficial repayment terms.
INvestEd Marketplace allows students and parents to instantly compare rates and terms from a multitude of private lenders.
Private parent loans are non-federal education loans that are borrowed by the parent (or guardian or sponsor) of an undergraduate student.
Offered by banks and online lenders.
Only the parent borrower is obligated to repay the debt. (This is in contrast with private student loans, where the loan is borrowed by the student and usually cosigned by the parent.)
Things to Consider
Before taking out private parent student loans, make sure that your child has maxed out federal student loan options.
If you have very good or excellent credit, a private parent loan may charge a lower interest rate and lower fees than the Federal Parent PLUS loan. Also, some parents prefer a private parent loan because they are the only borrower. This avoids the need to rely on the student to make the monthly loan payments.
Non-Education Loans
Other borrowing options for parents include non-education loans, such as a 401(k) loan or a home equity loan or line of credit.
Loan Resources
Each student has unique financial aid needs and no single loan is the best choice for everyone. Some students borrow a combination of both types. Compare the most common types of student loans below to see find the best fit for you.
Federal Direct Student LoanS
PRIVATE OR ALTERNATIVE STUDENT LoanS
Direct Subsidized Loans
Direct Unsubsidized Loans
Direct Parent PLUS Loans
Private Student Loans
Private Parent Loans
Who issues the loan
Government
Government
Government
Bank/financial institution
Bank/financial institution
Who takes out the loan
Student
Student
Parent
Student
Parent or creditworthy person
Based on financial need
Yes
No
No
No
No
Credit-based or may need cosigner
No
No
Yes
Yes
Yes
When payments start
After student graduates and 6-month grace period*
After student graduates and 6-month grace period*
As soon as loan is paid out
As soon as loan is paid out
As soon as loan is paid out
When interest starts accruing
After student graduates and 6-month grace period
As soon as loan is paid out, even while student is in school
As soon as loan is paid out
As soon as loan is paid out
As soon as loan is paid out
Key benefits
Typically lower interest rates
Less interest will accrue and total repayment will be lower
6-month payment and interest grace period
Not required to demonstrate financial need
Low, fixed interest rate
6-month payment and interest grace period
Fixed interest rate
Tax-deductible interest
May be a good choice if parent has poor credit
Can borrow as much as you need
No prepayment penalties
Tax-deductible interest
Can borrow as much as you need
If parent has good credit, could qualify for a lower interest rate
Fixed or variable interest rate
* Or, if student drops below half-time enrollment or leaves school.
How "Need" is Calculated
Most financial aid is awarded on the basis of "need", or the gap between a student’s cost of attendance (COA) and the "expected family contribution" (EFC). The cost of attendance includes tuition and fees, plus estimates of books, living expenses, and transportation costs. The expected family contribution is an amount calculated according to a federal formula that determines, based on information from your Free Application for Federal Student Aid (FAFSA), how much you (and your family) should be able to pay toward the cost of attendance.
If a student is not "independent" as defined by federal regulation (at least 24 years old, married, supporting dependents, is a veteran, or meets other criteria), the EFC is based in part on information from the student’s parents, even if the student is self-supporting. A student cannot be considered independent just because parents refuse to provide their information on the FAFSA.
Satisfactory Academic Progress (SAP)
If you receive Title IV federal financial aid to pay for college, you must maintain satisfactory academic progress (SAP) in order to retain your financial aid eligibility. Failure to follow these important requirements will result in loss of the financial aid you may be receiving, which may mean you will not be able to complete your college education goals.
Satisfactory Academic Progress is mandated by federal regulation and includes cumulative GPA, cumulative Completion Rate, and Maximum Time Frame. Dual credit courses are included in these calculations. Students who do not meet standards have one semester of warning before financial aid is terminated. If a student successfully appeals the aid termination, aid is reinstated with the condition that they meet the terms of their Academic Completion Plan (ACP). Failure to meet the terms of the ACP may result in financial aid SAP termination with no further option to appeal.
Ivy Tech provides calculators to help you estimate your academic progress with regard to the above requirements.
Once you graduate, stop attending, or are no longer enrolled in at least 6 credit hours, you will be required to complete Direct Loan 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 studentaid.gov and in the "I'm About to Graduate or Leave College" container, click on the “Complete Exit Counseling” link.
We've included a number of financial aid help videos lower on this page. If you'd like to explore our complete video library about loans, visit the loans section of our financial aid help video website. There you'll find dozens of videos that explain the financial aid process, including the following topics about loans:
If you (or your parents, if they obtained a PLUS loan to pay for your education) are the recipient of one or more student loans to pay for college, you’ll need to start paying back the loans when you graduate, drop below half-time enrollment, or leave college.
Repayment based on Loan Type
Loan Type
When Payback Begins
Direct Subsidized
Six-month Grace Period Before Payback Must Begin
Direct Unsubsidized
Six-month Grace Period Before Payback Must Begin
Federal Family Education Loan
Six-month Grace Period Before Payback Must Begin
Perkins Loan
Nine-month Grace Period Before Payback Must Begin
Direct PLUS Loan
Must Pay Back Once Loan is Fully Disbursed
Your loan servicer (the company that collects your payments) will let you know when your loan payments are due, how many payments you must make to pay off the loan, and the amount of each payment.
Visit the federal Student Aid website to learn more about repaying your loan, the types of loan repayment schedules, and other important information.
Missed Payments
If you’ve missed a payment or struggling to make payments, please contact your loan servicer immediately to discuss options to avoid defaulting on your loans. If you are unsure who your loan servicer is, please contact the Federal Student Aid Information Center (FSAIC) at 1-800-433-3243.
Below are links to sources of additional information.
