Indiana University Northwest
notice

Office of Financial Aid and Scholarships

Student Loans

Student Loans

A type of aid that must be repaid. Students and parents both may borrow loans to help cover college costs. The type and amount of loan for which a student is eligible depends on the student's financial need, class level, and previous borrowing history.

General Requirements  
  • Students must have filed the Free Application for Federal Student Aid (FAFSA) or contact the IU Northwest Office of Student Financial Aid Services to complete a paper FAFSA. IU Northwest's school code is 001815.
  • Students must be U.S. citizens or eligible non-citizens.
  • Men age 18 and older must register with the Selective Service (you can give the Selective Service permission to register you by checking the appropriate box on the FAFSA or you can register online).
  • Students must be admitted to a degree or certain certificate programs.
  • Half-time enrollment required
    • Undergraduate students must be enrolled at least half time (at least 6 credit hours for fall or spring semester, and 6 credit hours for summer I or summer II, or a combined total of 6 credit hours for both summer I and II) to qualify for a Federal Stafford loan.
    • Graduate students must be enrolled at least 4 credit hours for fall or spring semester, and 4 credit hours for summer I or summer II, or a combined total of 4 credit hours for both summer I and summer II.
  • Students must maintain satisfactory academic progress to continue to be eligible for their loan(s). Review the Satisfactory Academic Progress Policy.
Student Rights and Responsibilities  

First time borrowers at IU Northwest must complete entrance counseling and sign a Master Promissory Note (MPN) on-line. The MPN must be signed only one time as long as the student stays with the same lender and attends the same school. Contact the Financial Aid Office if assistance is needed in completing the MPN.

  • IU Northwest applies the loan funds to the student's bursar account. Remember that you must be enrolled at least half time at the time of disbursement in order to receive your loan. Loans cannot be released more than 10 days prior to the beginning of the academic term.

  • The Bursar Office mails any remaining funds to the current address you have filed with the Registrar Office. If you would like the remaining funds directly deposited into your checking account, then visit the Bursar web site to determine methods of payment.

Any of the following conditions could delay the processing of your loan request:

  • Not being admitted to a degree-seeking program.
  • Not having a FAFSA on file for the appropriate year.
  • Not meeting Satisfactory Academic Progress.
  • Having loan debt that exceeds yearly or cumulative federal maximum limits.
  • Not completing the verification process if you were asked to submit additional information.
  • Not responding to requests for additional information/documentation by the Office of Financial Aid.
    Loan Types  

    Direct Loans:

    • Direct Stafford - Subsidized  - If students meet certain financial need criteria based upon FASFA information, the federal government will pay the interest on their loan while they attend school at least half time or during times when they qualify for an authorized deferment.
    • Direct Stafford- Unsubsidized - If students do not meet the financial need criteria to qualify for a subsidized loan, they still can apply for an unsubsidized loan. Students are responsible for paying the interest while they are in school.
    • Direct Plus Loans-Are unsubsidized loans for the parents of dependent students and for graduate/professional students. PLUS loans help pay for education expenses up to the cost of attendance minus all other financial assistance. Interest is charged during all periods.

    There is a loan fee on all Direct Subsidized and Unsubsidized Loans. The loan fee is a percentage of the amount of each loan you receive. For loans first disbursed on or after July 1, 2010, the loan origination fee is 1.0%. Direct Loans will deduct the loan origination fee proportionately from each loan disbursement. The specific loan origination fee that you are charged will be reflected in a disclosure statement that we send to you.

    Federal Direct Loan Limits

    Undergraduate Federal Direct loan limits are determined by student class standing and dependency status. See the chart under the "Loan Limits" tab that represents the maximum available per academic year. However, the individual student's loans may be less, depending on the cost of the student's program, estimated family contribution, and other financial aid awarded.

    Loan Limits  

    Annual Loan Limits

    Dependent Student

    Independent Student

    Freshman (beginning Fall, 2008)

    $5,500 (max $3500 Subsidized)

    $9,500 (max $3500 Subsidized)

    Sophomore (beginning Fall, 2008)

    $6,500 (max $4,500 Subsidized)

    $10,500 (max $4,500 Subsidized)

    Junior & Senior

    $7,500 (max $5,500 Subsidized)

    $12,500 (max $5,500 Subsidized)

    Graduate*

    Not applicable

    $20,500*

    Lifetime Loan Limits 

    • Dependent undergraduates $31,000 (no more than $23,000 may be in subsidized loans)
    • Independent undergraduates $57,500 (no more than $23,000 may be in subsidized loans)
    • Graduate students $138,500 (no more than $65,000 may be in subsidized loans*)

    *As of July 1, 2012 subsidized loans will not be available to graduate students.

    Loan Rates  

    Current Interest Rates

    Direct Subsidized Loans:

    • Undergraduate students—If the first disbursement of your subsidized loan is between July 1, 2013 and June 30, 2014, the interest rate on your loan is fixed at 3.86%.

    Direct Unsubsidized Loans:

    • The interest rate is fixed at 3.86% for all borrowers (undergraduate).
    • Graduate and professional degree students—The interest rate is fixed at 5.41%.

    Direct PLUS Loans:

    • Parents and Graduate or Professional Students. The interest rate is fixed at 6.41%