WHAT IS A STUDENT LOAN?

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.

Below is an overview of the different types of loans you may be able to get to help pay for your education. You can also compare the features of federal and private loans here.

 

Private or Alternative Student Loans

  • Key Highlights

    • 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 IndianaAccelerate 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.

    Video: What is a private loan?

    Compare federal and private loans

  • Key Highlights

    • 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.

See SAP requirements

SAP Calculators

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. 

SEE SAP CALCULATORS

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:

SEE ALL Help Videos

Paying Back Your Student 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.

Find Local Financial Aid Contact Info

Don't see a nearby Financial Aid location? Call 1-888-489-5463 and we'll get you started.

askanderson@ivytech.edu

Kady Finnerty
Assistant Director of Financial Aid
kfinnerty1@ivytech.edu
765-643-7133 ext 062089

Fax: 765-648-2755

Monday–Thursday, 8 a.m. to 5 p.m. ET
Friday, 8:30 a.m. to 4:30 p.m. ET

812-934-3954
R11express@ivytech.edu

Batesville Financial Aid
1 Ivy Tech Drive
Batesville, IN 47006

Fax: 812-934-4590

Monday–Thursday, 10 a.m. to 5 p.m. ET: Drop-ins and by appointment
Friday: By appointment

812 -330-6160
bloomington-finaid@ivytech.edu

Bloomington Financial Aid
200 Daniels Way
Bloomington, IN 47404

columbus-finaid@ivytech.edu

Columbus Financial Aid
4475 Central Avenue
Columbus, IN 47203

Please contact Financial Aid at our full-service campus located in Richmond.

Please contact Financial Aid at our full-service campus located in Lafayette.

Monday–Thursday, 8 a.m. to 6 p.m. CT
Friday, 8 a.m. to 5 p.m. CT

219-981-1111, x7498
lakecounty-finaid@ivytech.edu

Monday–Thursday, 8 a.m. to 6 p.m. CT
Friday, 8 a.m. to 5 p.m. CT

219-392-3600 x 3212
lakecounty-finaid@ivytech.edu

2024-2025 Office Hours

Monday, Wednesday, & Thursday: 8 a.m. to 5 p.m.
Tuesday: 8 a.m. to 7 p.m.
Friday: 9 a.m. to 4 p.m.

Open Saturdays: 9 a.m. – 12 p.m. during the following dates:
August 10
August 17
December 7
March 15

574-289-7001, ext. 5339
southbendelkhart-finaid@ivytech.edu

Elkhart Financial Aid Office
22531 County Road 18
Goshen, IN 46528

Enrollment Services/Student Affairs Hours: Effective January 2024:
Mondays and Tuesdays: 8 a.m. – 6 p.m.
Wednesday and Thursdays: 8 a.m. - 5 p.m.
Fridays: 9 a.m. - 5 p.m.
First week of classes in January and August: 7:30 a.m. – 6 p.m.

812-429-1429
evansville-finaid@ivytech.edu

Evansville Financial Aid Office
3501 N First Avenue
Evansville, IN 47710

Monday–Thursday, 8 a.m. to 5 p.m. ET
Friday, 9 a.m. to 4 p.m. ET

260-480-4136
fw-finaid@ivytech.edu

Fort Wayne Financial Aid
3701 Dean Drive, Student Life Center, Room 118
Fort Wayne, IN 46835

Fax: 260-480-2054

Please contact Financial Aid at our full-service campus located in Lafayette.

Please contact Financial Aid at our full-service campus located in Columbus.

Monday–Thursday, 8 a.m. to 6 p.m. CT
Friday, 8 a.m. to 5 p.m. CT

219-981-4417
lakecounty-finaid@ivytech.edu

Please contact Financial Aid at our full-service campus located in Terre Haute.

Please contact Financial Aid at our full-service campus located in Columbus.

Monday 8:30 a.m. - 5:00 p.m. ET
Tuesday 8:30 a.m. - 6:00 p.m. ET
Wednesday 8:30 a.m. - 5:00 p.m. ET
Thursday 8:30 a.m. - 5:00 p.m. ET
Friday 9:00 a.m. - 4:30 p.m. ET

317-921-4300, Option 0
HamiltonCounty-FinAid@ivytech.edu

Hamilton County Financial Aid
300 N. 17th Street
Noblesville, IN 46060

Sign Up to Get a Call Back →

Financial Aid Inquiries

Email -  HamiltonCounty-FinAid@ivytech.edu, 

Call -  317-921-4300, Option 0.

Federal Work Study Inquires 

Email - HamiltonCounty-FWS@ivytech.edu 

Call - 317-921-4300, Option 0.

 

Financial Aid Questions for Military & Veterans
HamiltonCounty-VeteransAffairs@ivytech.edu

Monday–Thursday, 9 a.m. to 5 p.m. ET
Friday, 9 a.m. to 5 p.m. ET

1-888-489-5463
indy-finaid@ivytech.edu

Indianapolis Financial Aid Office
50 W. Fall Creek Parkway N.
Indianapolis, IN 46208

Sign Up to Get a Call Back →

Fax: 317-921-4326

Monday–Friday, 8 a.m. to 5 p.m. ET

765-252-5571
kokomo-finaid@ivytech.edu

Kokomo Financial Aid
1815 E Morgan Street
Kokomo, IN 46901

Logansport Financial Aid
1 Ivy Tech Dr
Logansport, IN 46947

In-person Services Wednesdays 8:30am-4:30pm, Virtual Services Monday-Friday 8am-5pm
765-252-5571

Logansport-finaid@ivytech.edu

Please contact Financial Aid at our full-service campus located in Valparaiso.

Monday, Wednesday & Thursday, 8 a.m. to 5 p.m. ET
Tuesday, 8 a.m. to 6 p.m. ET
Friday, 9 a.m. to 5 p.m. ET

765-269-5200
lafayette-finaid@ivytech.edu

Lafayette Financial Aid
3101 S Creasy Lane Ivy Hall 1233
Lafayette, IN 47905

Lake County has 3 full-service locations. Select a location below to see contact information for their Financial Aid department.

888-489-5463

Lawrence Financial Aid Office
9301 East 59th Street
Indianapolis, IN 46216

Monday–Thursday, 8 a.m. to 5 p.m. ET
8:30 a.m. to 4:30 p.m. ET, Friday

812-537-4010 ext. 5305
R11express@ivytech.edu

Lawrenceburg Financial Aid
50 Walnut Street
Lawrenceburg, IN 47025

Fax: 812-537-0993

Monday–Friday, 8 a.m. to 5 p.m. ET

765-252-5571
Logansport-finaid@ivytech.edu

Logansport Financial Aid
1 Ivy Tech Way
Logansport, IN 46947

In-person Services Wednesdays 8:30am-4:30pm, Virtual Services Monday-Friday 8am-5pm
765-252-5571

Logansport-finaid@ivytech.edu

Monday & Wednesday, 8 a.m. to 5 p.m. ET
Tuesday and Thursday, 8 a.m. to 5:30 p.m. ET
Friday, 8 a.m. to 4:30 p.m. ET

812-265-2580, ext. 4100
madison-finaid@ivytech.edu

Madison Financial Aid
590 Ivy Tech Drive
Madison, IN 47250

Financial Aid Team
Julie Wade, Director of Financial Aid
jwade86@ivytech.edu
812-265-2580, ext. 4148

Monday, Thursday, and Friday, 8 a.m. to 5 p.m.
Tuesday and Wednesday, 8 a.m. to 6 p.m.

765-651-3100, ext. 3304
marion-finaid@ivytech.edu

Marion Financial Aid Office
261 Commerce Drive
Marion, IN 46953

Monday–Thursday, 8 a.m. to 6 p.m. CT
Friday, 9 a.m. to 5 p.m. CT

219-879-9137
valpo-finaid@ivytech.edu

Michigan City Financial Aid
3714 Franklin Street
Michigan City, IN 46360

Fax: 219-464-9751

Monday–Friday, 8 a.m. to 5 p.m. ET

765-289-2291, ext. 1230
muncie-finaid@ivytech.edu

Muncie Financial Aid
125 S High Street, Ball Building, 2nd Floor
Muncie, IN 47305

Fax: 765-282-2414

Monday–Friday, 8 a.m. to 5 p.m. ET

765-599-2613, ext 4026
pburris4@ivytech.edu

New Castle Financial Aid
3325 IN-3
New Castle, IN 47362

Fax: 765-282-2414

Please contact Financial Aid at our full-service campus located in Columbus.

Please contact Financial Aid at our full-service campus located in Sellersburg.

Please contact Financial Aid at our full-service campus located in Kokomo.

Monday–Friday, 8 a.m. to 5 p.m. ET

765-966-2656, ext. 1219
richmond-finaid@ivytech.edu

Richmond Financial Aid
2357 Chester Boulevard
Richmond, IN 47374

Sign Up to Get a Call Back →

Zoom Video Call
Call 765-966-2656, ext. 1219 to schedule an appointment.

Fax: 765-962-5054

Monday & Wednesday, 8:30 a.m. to 7 p.m. ET
Tuesday & Thursday, 8:30 a.m. to 5 p.m. ET
Friday, 8:30 a.m. to 3 p.m.

765-932-7191
mroller1@ivytech.edu

Rushville Financial Aid
330 N Main Street
Rushville, IN 46173

Virtual meetings or appointments by request. Call 765-932-7191.

Fax: 765-932-5263

Please contact Financial Aid at our full-service campus located in Sellersburg.

Monday, Wednesday, Thursday, 8 a.m. to 5 p.m. ET
Tuesday, 8 a.m. to 6 p.m. ET
Friday, 7:30 a.m. to 4 p.m. ET

812-246-3301, ext. 4504
sellersburg-finaid@ivytech.edu

Sellersburg Financial Aid
8204 Highway 311, Pfau Hall, A2
Sellersburg, IN 47172

Please contact Financial Aid at our full-service campus located in Columbus.

Please contact Financial Aid at our full-service campus located in Columbus.

2024-2025 Office Hours

Monday, Wednesday, & Thursday: 8 a.m. to 5 p.m.
Tuesday: 8 a.m. to 7 p.m.
Friday: 9 a.m. to 4 p.m.

Open Saturdays: 9 a.m. – 12 p.m. during the following dates:
August 10
August 17
December 7
March 15

574-289-7001
southbendelkhart-finaid@ivytech.edu

South Bend Financial Aid Department
220 Dean Johnson Blvd.
South Bend, IN 46601

Sign Up to Get a Call Back →

To meet with a financial aid representative please use the link below:

https://ivytech.zoom.us/my/sbefinancialaid

Please contact Financial Aid at our full-service campus located in Evansville.

Monday–Friday, 8 a.m. to 4:45 p.m. ET

812-298-2293
th-finaid@ivytech.edu

Terre Haute Financial Aid Office
8000 S Education Drive
Terre Haute, IN 47802

Virtual On-Demand Service:
Video | Voice | Chat
Monday–Friday | 8 a.m. to 4:45 p.m. ET
Enter Zoom Room →

Monday–Thursday, 8 a.m. to 5 p.m. CT
Friday, 9 a.m. to 5 p.m. CT

219-476-1001
valpo-finaid@ivytech.edu

Valparaiso Financial Aid
3100 Ivy Tech Drive
Valparaiso, IN 46383

Fax: 219-464-9751

Monday, Wednesday, Thursday & Friday, 8 a.m. to 5 p.m. ET (phone/virtual service)
Tuesday, 8:30 a.m. to 5 p.m. ET (on campus)

574-267-5428
warsaw-finaid@ivytech.edu

Warsaw Financial Aid
2545 Silveus Crossing Room 209
Warsaw, IN 46582