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 implemented two new processes beginning with the 2013-14 award year:
- The loan request form can be downloaded and printed from the menu below.
- 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 - 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.
BEFORE YOU BORROW:
Here are some things to consider before borrowing a student loan.
- The Federal Direct Student Loan is a type of student financial aid, even though it must be repaid, with interest. Get all the details at studentaid.ed.gov/sa/.
- Direct Loans can be subsidized (the federal government pays the interest while you’re enrolled at least half-time) or unsubsidized (YOU pay the interest, even while you’re in school). Some students borrow a combination of both types.
- Eligibility is determined by the College 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 Direct Loan, you must be enrolled at least half-time in an aid-eligible program. Click here to download and print the request form.
- All enrolled students must meet the College’s Satisfactory Academic Progress policy.
- Borrow only much as you absolutely need! If you carefully manage expenses while you’re in school, you’ll have a lower loan balance to repay after college. Need help with budgeting strategies? See wwwcc.ivytech.edu/lifeskills.html.
- There are limits on how much you can borrow and for how long you can borrow.
- How much you can borrow: select the William D. Ford Federal Direct Student Loan (Direct Loan) from the drop-down list below and scroll down to the “Borrowing Limits” table.
- For how long you can borrow: if you borrowed your first subsidized loan on or after 7/1/13 and you meet all eligibility requirements, you may borrow subsidized loans for up to 150% of your current program length. Example: if you’re enrolled full-time in an associate degree program (two years, or four semesters), your maximum eligibility for subsidized loans is six semesters (4 x 150% = 6 semesters). This time limit is pro-rated for part-time enrollment.
- Once you’ve borrowed for 150% of your program length you may not borrow more subsidized funds.
- Also, if you didn’t complete the program and then you continue at least half-time enrollment in the same program after borrowing for 150% of your program length, you lose the interest subsidy on the earlier loans.
- If you transfer to a four-year program, you’ll have six years of subsidized loan eligibility, or 12 semesters, minus any semesters of subsidized loans you have already borrowed at any institution for any other program.
- If you must borrow, borrow WISELY!
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 - studentaid.ed.gov/types/loans and studentloans.gov. You can also contact your campus Financial Aid Office for assistance or more information on any of the topics on this website.