Loans
IWU Student Loan
Awards in this institutional loan program range from $200 - $3,000 per academic year to students whose parent has been denied the Parent PLUS Loan and who demonstrate financial need. Repayment of principal and interest begins after the student is enrolled less than part-time. Interest is charged at a fixed rate of 8.75%.
Federal Direct Loan
Direct Loans are need-based and/or non-need-based loans for which a student applies through the Direct Loan Program. Repayment begins six months after the student ceases to be at least a half-time student and is typically spread over a period of up to 10 years. Deferments are available if the student meets certain conditions. Dependent freshmen may borrow up to $5,500 per academic year, sophomores may borrow up to $6,500, and juniors and seniors may borrow up to $7,500, based on financial need. The total amount of undergraduate loans may not exceed $31,000. All students must file the Free Application for Federal Student Aid to qualify for a Direct Loan.
Students with financial need may qualify for a 4.45 percent interest rate subsidized Direct Loan, which means the government is paying or subsidizing the interest while the student is in school. Students without financial need qualify for the unsubsidized Direct Loan at 4.45 percent interest, in which their interest is not paid by the government. Students may pay the interest monthly while in school, or the lender will capitalize the accrued interest each year causing the loan to increase more rapidly.
In order to help each student meet the August 15 payment expectation, the Financial Aid Office recommends that all applicable e-paperwork (Master Promissory Note, Federal Entrance Counseling and Federal Direct Loan Request) be completed and submitted prior to July 1 each year.
Federal PLUS (Parent Loan for Undergraduate Students)
Parents may borrow funds through this program to assist with their child(ren)’s educational expenses. The limit is the cost of education per child minus other financial aid. The interest rate is a fixed no more than 9%. Borrowers must be creditworthy and can begin repayment upon disbursement of the funds or request a deferment until the student is no longer enrolled full-time.
