Student Debt Reduction Initiative

Student Debt Reduction Initiative

As outlined in a May 1, 2013 article published in The Atlantic, “Over the last few years the outstanding amount of US student debt has surpassed the stock of automotive, home equity lines of credit and credit card debt.  With just shy of $1 trillion in student loans outstanding, mortgages are the only form of debt Americans have more of.” Additionally, the New York Federal Reserve recently reported more than five million student loan borrowers have at least one loan past due.

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. 

Currently, a full-time Ivy Tech student not living with a parent, with a 0 EFC receiving Pell Grant, Frank O’Bannon Grant, and a full subsided loan would receive approximately $4,800 of financial aid per term, while full-time tuition and fees for that same time equates to approximately $1,400 plus books.

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 borrow an unsubsidized loan must complete a loan request form and return it to their local financial aid office.  A copy of 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.  Currently, an independent, first-year undergraduate may receive up to $9,500 in Stafford Loans for a single academic year, but no more than $3,500 of this amount may be subsidized.  Under our implementation of this debt-reduction initiative the same student may only receive up to $7,500 in Stafford Loans for a single academic year, but no more than $3,500 of this amount may be subsidized.  It is important to remember this only affects unsubsidized loans and will only affect independent students attempting to borrow a combined Subsidized and Unsubsidized loan amount of $7,501 (first year students)/$8,501 (second year students) and above.

For additional information regarding annual loan amounts, please visit ivytech.edu/financial-aid/loans/ or contact your local financial aid office.