Federal student loans offer low interest rates to students even without a credit check
Private student loans often require a cosigner while Federal student loans do not
Before you apply for a private loan, complete the FAFSA to see if you qualify for a federal loan. If you would like to apply for a private loan through a private lender and you do not plan to complete a FAFSA to apply for federal and state funding, please let us know.
IU Kokomo will process a private educational loan from any lending institution.
You can use the INvestEd Student Loan Marketplace to compare actual rates from multiple private student loan lenders. This tool allows you to compare rates and terms to help you find the best option.
The INvestEd Student Loan Marketplace displays interest rates and repayment terms from multiple lenders based on a soft credit check.
For a historical list of lenders, ELMSelect shows a range of rates offered by lenders.
Frequently Asked Questions
If you aren’t eligible for federal aid or weren’t awarded as much federal aid as you need, you might consider taking out a private student loan through a bank, credit union, or another lender.
The eligibility might differ from loan to loan. Some important things to remember:
Most lenders will only loan to degree-seeking students.
You may also be able to apply for a private loan to cover a past due balance.
Your loan period can be any of the following:
Academic year (fall and spring): August–May
Fall only: August–December
Spring only: January–May
Summer: May–August
It is your responsibility to review your lender’s eligibility requirements before you apply.
Remember, you can borrow only up to your estimated cost of attendance, minus any other financial aid you receive. You can use private student loans to pay for your tuition, fees, housing and food, books, and other education-related expenses. Any funds that remain after these items are paid will be refunded to you.
To cancel or reduce your private loan, you must notify us within 14 days of receiving the funds. Once a loan is reduced or cancelled, IU Kokomo cannot increase or reinstate the loan. You will need to apply for a new private loan.
Borrow only what you absolutely need. What you borrow today, you’ll have to pay back later and with interest.
Depending on the terms of your loan, you may be required to start repaying the loan before you finish your education.
Please visit your private loan lender for more information regarding repayment.
You should begin the application process 4 to 6 weeks before you need the funds to ensure timely processing.
Financial aid will be disbursed after the schedule adjustment period for full semester courses or up to 6 weeks after you apply.
Our office cannot certify loans that are submitted too early. The earliest acceptable application dates for each term are:
June 15 for an Academic Year (fall/spring) or fall only loan
November 15 for a spring only loan
March 15 for a summer loan
Once IU Kokomo has certified your loan, it will take an additional 10–15 business days before your funds arrive. (This process may take slightly longer during peak times.) You can view your financial aid in One.IU to see when your loan has been processed. You must continue to meet eligibility requirements once the funds arrive in order for them to be used to pay your bursar account.
If we’re unable to process your private loan, we’ll contact you through your university email address.
Know your rights
Lenders who provide private loans must comply with these Truth in Lending Act requirements:
Your lender must provide three separate loan disclosures to you:
One when you apply
One when your loan is approved
One before your funds are made available
Three business days must pass between the time you receive the final disclosure and the time your funds are made available.
You must submit a signed self-certification form to the lender before your funds can be made available.
Your lender should provide you with a self-certification form that includes your application ID. You’ll need to know your cost of attendance and estimated financial assistance. If you receive financial aid, this information is available through View/Manage My Financial Aid Information in One.IU.
