Types of Financial Aid

Student Loans for 2007/08 Aid Year (Fall 2007, Spring 2008 and Summer 2008)

Student Loans
Federal Stafford Loans
Federal PLUS Loans
Federal Perkins Loans
Nursing Student Loan Program
Loan Entrance and Exit Counseling
Private Student Loans
Student Loan Repayment
Student Loan Lender Information via National Student Loan Data System

Student Loans

Loan	Eligibility	Amount for Academic Year	Interest Rate	Notes
Federal Perkins Loan	FAFSA required. Preference given to borrowers with exceptional financial need enrolled at least half-time.	$1,000 maximum	5.00% fixed	Awarded to undergraduate students based on exceptional need and availability of funds. No origination fee. Payments deferred while you are enrolled at least half-time. Maximum undergraduate aggregate: $20,000.
Federal Subsidized Stafford Loan	FAFSA required. Must show financial need and be enrolled at least half-time.	Varies based on need, year in school, dependency status, & previous borrowing.	6.8%	Payments deferred and no interest charged while you are enrolled at least half-time.
Federal Unsubsidized Stafford Loan	FAFSA required. Must be enrolled at least half-time.	Varies based on need, year in school, dependency status, & previous borrowing.	6.8%	Payments deferred and interest begins accruing at the time of loan disbursement.
Nursing Student Loan Program	FAFSA required. Must be enrolled at least half-time in the Bachelor of Science in Nursing program with an IU overall grade point average of 2.00 or higher and financial need.	Maximum of $1,000	5.0%	Awarded based on receipt of FAFSA and confirmation of student’s eligibility and cost of attendance minus other financial aid
Federal PLUS Loan	PLUS loan application. FAFSA recommended for student of a parent borrower and required for a Graduate student borrower. For parents of an undergraduate student or graduate students. Enrolled at least half-time. Borrower must complete a separate PLUS application.	Maximum equal to cost of attendance minus other financial aid.	8.5%	You must complete a PLUS application. Lender will require borrower to meet credit criteria. For parents, repayment begins within 60 days after the final loan disbursement.
Private Alternative Loan	Private loan application. Credit Worthiness (Other eligibility requirements vary by loan and lender.)	Maximum equal to cost of attendance minus other financial aid.	Varies	Borrower must meet credit criteria. Cosigners may be required. Payments deferred and interest begins accruing at the time of loan disbursement.

To receive federal student aid, you must:

Demonstrate financial need (except for certain loans),
Have a high school diploma or a General Education Development (GED) certificate, pass a test approved by the U.S. Department of Education, and meet other standards your state establishes that the Department approves, or complete a high school education in a home school setting that is treated as such under state law.
Be working toward a degree or certificate in an eligible program.
Be a U.S. citizen or eligible noncitizen.
Have a valid Social Security Number (unless you're from the Republic of the Marshall Islands, the Federated States of Micronesia, or the Republic of Palau).
Register with the Selective Service if required. You can use the paper or electronic FAFSA to register, you can register at www.sss.gov, or you can call 1-847-688-6888. (TTY users can call 1-847-688-2567.)
Maintain satisfactory academic progress once in school.
Certify that you are not in default on a federal student loan and do not owe money on a federal student grant.
Certify that you will use federal student aid only for educational purposes.

Additionally, student loan recipients must be enrolled at least half-time (undergraduate students - 6 semester hours / graduate students - 4 semester hours).

Federal Stafford Loans

You apply for the Federal Stafford Loan by filing the Free Application for Federal Student Aid (FAFSA) for each aid year. The IU Kokomo school code is 001814. To maximize your consideration for all types of financial aid, you need to file the FAFSA each year by the March 10 Priority Application Receipt deadline.

Details

Interest rates:

For loans first disbursed between July 1, 1998 and June 30, 2006, the interest rate is variable (adjusted annually on July 1st)
but will not exceed 8.25 percent.
For loans disbursed on or after July 1, 2006, the interest rate is fixed at 6.8 percent.

Two types of Federal Stafford Loan:

Subsidized: a need-based loan with the U.S. Department of Education paying the interest while you are enrolled at least
half-time.
Unsubsidized: a non-need based loan with interest accruing on the loan after disbursement.

Repayment does not begin until six months after the student graduates or drops below half-time enrollment.
Master promissory note (MPN):

After receipt of your Financial Aid Notification and acceptance of the loan via OneStart Self-Service, new borrowers or continuing
students with a new lender will receive a subsequent email notification from SallieMae/USAFunds (loan servicer/guarantor) to
complete entrance counseling and to sign a Master Promissory Note.
The Master Promissory Note is valid for ten year so continuing students are only required to complete these step if they choose
to change lenders or the ten year limit expires.
A student must be enrolled at least half-time (undergraduate students: 6 semester hours / graduate students: 4 semester hours)
to be eligible for the Federal Stafford Loan.

Federal Stafford Loan eligibility is limited by federal aggregates:
Federal Stafford Loans must be awarded before the final day of the semester. Students are responsible to complete the FAFSA and to
resolve any issues to allow adequate time to determine financial aid eligibility and to award financial aid.

Annual Federal Stafford Loan Aggregate Limits
Class	Subsidized/Unsubsidized Amount Combination	Additional Unsubsidized Independent Student
Freshman	$3,500	$ 4,000
Sophomore	$4,500	$ 4,000
Junior	$5,500	$ 5,000
Senior	$5,500	$ 5,000
Teacher Certification	$5,500	$ 7,000
Graduate	$8,500	$12,000

FEDERAL STAFFORD LOAN AGGREGATE LIFETIME LIMITS
Student Status	Amount
Dependent Undergraduate	$23,000
Independent Undergraduate	$46,000 (no more than $23,000 subsidized
Graduate/Profession	$138,500 (no more than $65,500 subsidized)

Lender Selection Information

Students borrowing funds through the Federal Stafford Loan Program for the first time at Indiana University are required to select a lender. Students who borrowed at IU last year will generally have their loans processed by the same lender used last year unless they request a change. Students may contact our office to choose any participating Federal Family Education Loan Program (FFELP) lender for loan processing.

Recommended Lenders

IU recommends the lenders listed below. All offer very favorable loan terms and conditions, and none charge loan fees (see note below for loans originating in May 2008 or later).

Dollar Bank
Fifth Third Bank
First Bank of Sioux Falls
Sallie Mae Education Trust
Academic Management Services
Student Loan Funding

**Effective May 1, 2008, the lenders listed above began charging borrowers the 1.5% origination fee. The effective date is May 2, 2008 for Sallie Mae Education Trust, Academic Management Services, Student Loan Funding, First Bank of Sioux Falls, and Dollar bank. The effective date is May 9 for Fifth Third Bank. On July 1, 2008, the lenders will charge borrowers the 1.0 origination fees.

Stafford Loan Borrower Benefits

Sallie Mae Education Trust®

Academic Management Services® (AMS®)

Student Loan FundingSM

First National Bank of Sioux Falls

(FNB Sioux Falls)

Dollar Bank

(including Medical)

Fifth Third Bank

0% Loan Origination

Fee 0

0% Loan Origination

Fee 0

0% Loan Origination

Fee 0

0% Loan Origination

Fee 0

0% Loan Origination

Fee 0

0% Loan Origination

Fee 0

Default

Fee 1

Default

Fee 1

Default

Fee 1

Default

Fee 1

Default

Fee 1

Default

Fee 1

0.25 percentage point interest rate reduction for making payments using automatic debit 2

0.55 percentage point interest rate reduction for making payments using automatic debit 2

0.30 percentage point interest rate reduction for making payments using automatic debit 2

5% loan credit based on the scheduled monthly payment amount of each of the first 18 payments made as initially scheduled3

0.25 percentage point interest rate reduction after making the first 12 payments as initially scheduled4

1% Loan Credit - Borrowers can receive a 1% loan credit, based on the original loan amount, after making the first 12 payments as initially scheduled5

0.50% Loan Credit – Borrowers can receive a 0.50% loan credit, based on the original loan amount, after making the first 12 payments as initially scheduled5

0: 0% Loan Origination Fee for Stafford Loan Borrowers – The lenders indicated above will offer Stafford Loans with zero percent loan origination fees. These lenders will pay the origination fee on the borrower's behalf on Stafford Loans guaranteed from 2/1/2008 – 6/30/2009.

*Effective May 1, 2008, the lenders listed above began charging borrowers the 1.5% origination fee. The effective date is May 2, 2008 for Sallie Mae Education Trust, Academic Management Services, Student Loan Funding, First Bank of Sioux Falls, and Dollar bank. The effective date is May 9 for Fifth Third Bank. On July 1, 2008, the lenders will charge borrowers the 1.0 origination fees.

1: 0% Default Fee – The 1% federal default fee will be paid on the borrower’s behalf on Stafford and Grad PLUS Loans made to IU borrowers that are guaranteed by USA Funds 2/1/08 through 6/30/09.

2: Direct RepaySM – Borrowers who authorize the automatic debit of funds from their checking or savings accounts to cover their monthly education loan payments will receive an interest rate reduction in the amount indicated above on their eligible loans. This benefit
remains available during active repayment for as long as the borrower’s monthly payment is successfully deducted from the borrower’s account.

3: Loan Credits -- In addition to a zero origination fee, Sallie Mae Education Trust offers loan credits: Students will receive loan credits of 5% based on the scheduled monthly payment amount for each of the first 18 payments made as initially scheduled. As such, if a student only makes payments 2, 3, 7, 10 and 11 on time, the student can earn 5% of each of those payments. In summary, the student’s ability to earn the benefit in each of the first 18 months is not impacted by any late payments in other months during that period. To qualify for these loan credits, borrowers simply also do the following:

Complete online credit education tutorial
Certify completion of program of study, and
Prior to entering repayment, sign up to receive account information by email

These credits will be applied to the borrower’s Sallie Mae loan account after he/she makes the 18th scheduled payment to Sallie Mae and the loan is in a non-delinquent or non-default status

4: Interest Rate Reduction - To qualify for interest rate reductions, borrowers must also, prior to entering repayment, sign up on Manage Your LoansSM to receive account correspondence and information by email. Borrowers must continue to pay as initially scheduled to retain the interest rate reduction.

5: Loan Credit – Borrowers can receive a loan credit in the amount indicated above, based on the original loan amount, after making payments as initially scheduled (as indicated above). To qualify, a borrower must also, prior to the first payment due date, sign up on
Manage Your Loans to receive account correspondence and information by email.

How to Indicate Your Lender Choice

If you are a new borrower, you will receive a Financial Aid Notification from the Office of Scholarships and Financial Aid and you will need to accept (with an option to decline) loans offered to you through OneStart Self-Service. When you accept a loan, the seven lenders
will be presented and you can choose among them. If you have borrowed before and want to change lenders or prefer another lender not listed, please contact the Office of Scholarships and Financial Aid.

The Lender Selection Process

Indiana University initiated a Request for Proposals (RFP) for processing federal student loans. Information was requested from most of the major participants in the federal student loan industry and IU received responses from lenders across the country. A committee
reviewed these to determine which lenders currently offer the best borrower benefits.

Specific issues considered by the committee included; origination and default fees charged, interest rates, benefits offered during loan repayment, frequency of interest capitalization, borrower information sharing practices, and level of loan processing automation including
electronic data exchange to expedite loan processing and fund disbursement.

This rigorous review process resulted in Indiana University’s decision to select Sallie Mae to serve as the preferred federal loan servicer. The individual lenders selected represent the Sallie Mae participants with the most attractive collection of terms and benefits, based on
the factors weighed in the review process.

Federal PLUS Loans

Parents of dependent undergraduate students and graduate students may apply for a Federal PLUS Loan.
The Federal PLUS Loan requires an additional application and the borrower must pass a credit check. A
graduate student Federal PLUS Loan applicant must submit the Free Application for Federal Student Aid
(FAFSA) for the applicable aid year.

Undergraduate dependent students are encouraged to submit the FAFSA by the March 10 Priority Application Receipt Deadline each year to allow maximize consideration for financial aid.

Details

Interest rates:

For PLUS Loans disbursed between July 1, 1998 and June 30, 2006, the interest rate is variable and is determined
on July 1 of every year.
For PLUS Loans disbursed on or after July 1, 2006, the interest rate is fixed at 8.50 percent for FFEL PLUS Loans.
Interest is charged on a PLUS Loan from the date of the first disbursement until the loan is paid in full.

Eligibility:

For a parent borrower, the student must be a dependent student enrolled at least half time in a program leading to a
degree or eligible certificate program.
The parent borrower must be the biological or adoptive parent, or step-parent of the dependent undergraduate student
for whom the loan is being borrowed.
The parent borrower and dependent student or graduate student must not be in default on a federal student loan and
not owe a refund on a federal education grant.
Borrower and/or student must be a United States citizen or eligible noncitizen.
Borrower must meet the lender’s credit requirements.
The student must meet general federal student financial aid eligibility standards and be enrolled at least half-time
(undergraduate students: 6 semester hours / graduate students: 4 semester hours).
If a parent is denied a PLUS loan due to adverse credit, the student will become eligible for a Federal Unsubsidized
Stafford loan. Amounts vary depending on the student’s academic level. Contact the Office of Scholarships and Financial Aid
if you have been denied a PLUS loan.
Federal PLUS Loans must be processed prior to the end of the semester for which the student was enrolled. Therefore,
parents or graduate students are encouraged to complete the application process well in advance of the end of the semester.

Borrowing Limits

The Federal PLUS Loan maximum amount is the student’s cost of attendance minus any financial aid.

Repayment

After a parent borrower receives the full disbursement of the Federal PLUS Loan for the school year, the repayment period begins. You will make your first payment within 60 days after the entire PLUS Loan is disbursed for a school year.

Repayment for a graduate PLUS loan borrower is deferred while you are enrolled at least half-time.

Lender Selection

Students and parents may choose to borrow a PLUS loan from any lender participating in the PLUS loan program. IU recommends the lenders listed below which offer very favorable loan terms and conditions. If you chose to borrow a PLUS loan from one of the lenders listed below you may Complete a PLUS Loan Application Through Sallie Mae. If you choose to use a different PLUS loan lender, contact the lender of your choice for their application process and then notify the Office of Scholarships and Financial Aid.

Parent PLUS Borrower Benefits

Sallie Mae Education Trust

AMS

Student Loan Funding

FNB Sioux Falls

Dollar Bank

Fifth Third Bank

0.50 percentage point interest rate reduction for making payments using automatic debit 2

0.75 percentage point interest rate reduction for making payments using automatic debit 2

1% loan credit after making the first 24 monthly payments as initially scheduled 5

Graduate PLUS Borrower Benefits

Sallie Mae Education Trust

AMS

Student Loan Funding

FNB Sioux Falls

Dollar Bank

Fifth Third Bank

0% Default Fee1

0.50 percentage point interest rate reduction for making payments using automatic debit 2

1% loan credit after making the first 24 monthly payments as initially scheduled 5

2: Direct RepaySM – Borrowers who authorize the automatic debit of funds from their checking or savings accounts to cover their monthly education loan payments will receive an interest rate reduction in the amount indicated above on their eligible loans. This benefit remains available during active repayment for as long as the borrower’s monthly payment is successfully deducted from the borrower’s account.

5: Loan Credit – Borrowers can receive a loan credit in the amount indicated above, based on the original loan amount, after making payments as initially scheduled (as indicated above). To qualify, a borrower must also, prior to the first payment due date, sign up on Manage Your Loans to receive account correspondence and information by email.

Lender Selection

Indiana University initiated a Request for Proposals (RFP) for processing federal student loans. Information was requested from most of the major participants in the federal student loan industry and IU received responses from lenders across the country. A committee reviewed these to determine which lenders currently offer the best borrower benefits.

Federal Perkins Loans

You apply for a Federal Perkins Loan by filing the Free Application for Federal Student Aid (FAFSA) for each aid year. The IU Kokomo school code is 001814. To maximize your consideration for all types of financial aid, you need to file the FAFSA each year by the March 10 Priority Application Receipt deadline.

After receipt of your Financial Aid Notification, a Federal Perkins Loan recipient must accept (with an option to decline) the award in OneStart Self-Service. After accepting your Federal Perkins Loan, you will be contacted by IU Student Loan Administration at your IU email account and via a To Do item in OneStart to complete entrance counseling and to sign your master promissory note.

Details

Interest rates:

The Federal Perkins Loan interest rate is 5% and is subsidized with the U.S. Department of Education paying the
interest while the student is enrolled at least half-time.

Eligibility:

For the 2008/09 aid year, a student must be an undergraduate student with an expected family contribution of 4041 or less and be enrolled at least half-time.
Since funding is limited for this campus based program, awards are made based on eligibility and early receipt of the student’s FAFSA and completion of any subsequent steps to allow processing of awards for the aid year.

Award Amount Range:

For the 2008/09 aid year, the Federal Perkins Loan amounts range from $100 to $1,000.

Loan Repayment:

Loan repayment begins after graduation or if your Fall or Spring enrollment drops below half-time.
IU Student Loan Administration contacts Federal Perkins Loan recipients to complete online exit counseling. Detailed information regarding repayment is provided during both entrance and exit counseling. For more information, visit IU Student Loan Administration.

Federal Perkins Loans are awarded by the IU Kokomo Office of Scholarships and Financial Aid and the IU Student Loan Administration in Bloomington administers the promissory note and repayment processes.

Nursing Student Loans

You apply for a Nursing Student Loan by filing the Free Application for Federal Student Aid (FAFSA) for each aid year. The IU Kokomo school code is 001814. To maximize your consideration for all types of financial aid, you need to file the FAFSA each year by the March 10 Priority Application Receipt deadline.

After receipt of your Financial Aid Notification, a Nursing Student Loan recipient must accept (with an option to decline) the award in OneStart Self-Service. After accepting your Nursing Student Loan, you will be contacted by IU Student Loan Administration at your IU email account and via a To Do item in OneStart to complete entrance counseling and to sign your promissory note.

The Nursing Student Loan Program was established by the U.S. Department of Health and Human Services for nursing students.

Details

Interest rates:

The Nursing Student Loan interest rate is 5% (loans made on or after November 4, 1998) and is subsidized with the U.S. Department of Education paying the interest while the student is enrolled at least half-time.

Eligibility:

For the 2008/09 aid year, a student must be enrolled at least half-time in the Bachelor of Science degree in Nursing with an overall IU grade point average of 2.00 with remaining financial need.
Since funding is limited for this program, awards are made based on eligibility and early receipt of the student’s FAFSA and completion of any subsequent steps to allow processing of awards for the aid year.

Award Amount Range:

For the 2008/09 aid year, the Nursing Student Loan amounts range from $200 to $1,000.

Loan Repayment:

Loan repayment begins after graduation or if your Fall or Spring enrollment drops below half-time.
IU Student Loan Administration contacts Nursing Student Loan recipients to complete online exit counseling. Detailed information regarding repayment is provided during both entrance and exit counseling. For more information, visit IU Student Loan Administration.

Nursing Student Loans are awarded by the IU Kokomo Office of Scholarships and Financial Aid and the IU Student Loan Administration in Bloomington administers the promissory note and repayment processes.

Loan Counseling

Entrance Counseling for Federal Stafford Loans and Federal Perkins Loans

New Federal Stafford Loan receipts are required to complete entrance counseling. Continuing students that choose a new lender are required to complete entrance counseling. Loan funds cannot be disbursed until counseling is completed. After receiving your Financial Aid Notification and accepting a Federal Stafford and or Perkins loan, you will be notified at your IU email account to complete entrance
counseling.

Federal Stafford Loan Entrance Counseling

Federal Perkins Loan Entrance Counseling

If you are unable to complete the counseling on the web or have any questions, please contact the Office of Scholarships and Financial Aid.

Exit Counseling

Exit Counseling is required for both Federal Stafford and/or Federal Perkins loan programs recipients at graduation or if enrollment drops below half-time during a Fall or Spring semester.

Students are expected to provide notification to the Federal Stafford Loan lender/servicer and/or IU Student Loan Administration for Federal Perkins Loans when they graduate or if enrollment drops below half-time.

To complete loan counseling follow the links below:

Federal Stafford Loan Exit Counseling

Federal Perkins Loan Exit Counseling

For Federal Stafford Loan exit counseling assistance, please contact your lender(s) or the Office of Scholarships and Financial Aid

For Federal Perkins exit counseling assistance, contact IU Student Loan Administration.

Failure to complete Exit counseling will result in a "hold" being placed on your records.

You may also access information on your loans by accessing the National Student Loan Data System (NSLDS). Through this website you can view all federal loans in your name, including Parent Plus loans with contact information for your lender, guaranty agency, servicer
and school.

Private Student Loans

Prior to considering private student loans, students are strongly encouraged to complete the Free Application for Federal Student Aid (FAFSA) annually by the March 10 Priority Application Receipt Deadline to receive maximum consideration for financial aid. Private Student Loans should be considered after all other sources of financial aid (grants, scholarships, federal work-study, and federal
student loans) have been exhausted.

The IU Kokomo Office of Scholarships and Financial Aid will review and certify Private / Alternative Loans for eligible students with your preferred lender. IU Kokomo has teamed with SallieMae to offer eligible students the Sallie Mae Signature Loan.

Sallie Mae Signature Loan borrower benefits:

Borrowers can earn a 0.50 percentage point interest rate reduction during active repayment by enrolling in auto debit.
This benefit remains as long as the borrower’s monthly payment is received from the borrower’s account.
Loan application process is complete online.

Eligibility:

The borrower must be a U.S. citizen or permanent resident or international student with a U.S. co-signer at least 18 years of age.
The borrower must be enrolled at least half-time in a degree seeking or eligible certificate program and meet all regular eligibility standards including satisfactory academic progress.
A credit worthy co-signer may help you qualify or qualify for a lower interest rate.
Loan is available to undergraduate and graduate students
Borrower must meet the lender’s credit requirements.

Interest Rate:

Interest rates are variable and are based on the Prime Rate and the borrower’s credit rating

Award Amount

Maximum amount equal to cost of attendance minus all financial aid.

For additional information and to apply for a Sallie Mae Signature loan, please visit Sallie Mae Finding a Student Loan and select the appropriate link for: Student loans for undergrads, Student loans for graduates, or Loans for international students.

If you apply for a Private Signature Loan with another lender, please contact our office so that we review your eligibility to certify the loan.

Student Loan Repayment

For Federal Student Loans, you have a grade period when you graduate, leave school, or drop below half-time enrollment before you
begin repayment.

Six months for a Federal Stafford Loan
Nine months for a Federal Perkins Loan
Nine months for a Nursing Student Loan

For additional information, visit the Department of Education Student Aid on the Web on Repaying Your Loans. The information includes Exit Counseling, Repayment Options, Difficulty Repaying, Loan Discharge (Cancellation), Loan Consolidation, and Loan Default. For print information, you can download Funding Education Beyond High School: The Guide to Federal Student Aid with a section on
Repaying Your Student Loan.

For print information on Federal Perkins Loans and the Nursing Student Loan Program from IU Student Loan Administration, you can download the Repayment Guide for Your IU Student Loans.

Applying for Aid

Qualifying for Aid

Receiving Aid

Types of Financial Aid

Student Loans for 2007/08 Aid Year (Fall 2007, Spring 2008 and Summer 2008)

Student Loans

Federal Stafford Loans

Details

Lender Selection Information

Recommended Lenders

How to Indicate Your Lender Choice

The Lender Selection Process

Federal PLUS Loans

Undergraduate dependent students are encouraged to submit the FAFSA by the March 10 Priority Application Receipt Deadline each year to allow maximize consideration for financial aid.

Details

Borrowing Limits

Repayment

Lender Selection

Lender Selection

Federal Perkins Loans

Details

Nursing Student Loans

The Nursing Student Loan Program was established by the U.S. Department of Health and Human Services for nursing students.

Details

Loan Counseling

Private Student Loans

Student Loan Repayment