Loans

Federal Direct Loans

Direct Loans are awarded as part of your financial aid package, along with any grants you are eligible to receive. IPFW students with Direct loans will borrow their funds from the federal government instead of from private banks and credit unions.

Unlike grants and scholarships, loans will not automatically be accepted for you. You will have to log into your myIPFW account and accept your loans.  If you are a first time borrower, or  if you have never taken Direct Loans at IPFW, you will have to complete the loan requirements below.

Loan Requirements

There is no actual application for Direct Loans.  They are awarded to students who file a FAFSA, are not in default on prior student loans, and are not at the lifetime aggregate limit. 

There are 2 requirements that students must complete in order to receive Stafford Loan funds.

The Direct Loan Master Promissory Note (MPN) is a promise to repay your loans once you are no longer enrolled in classes.  It is completed online and IPFW is notified electronically in 1 to 2 business days when it is complete.  You can check the status of your MPN at any time by logging back on to StudentLoans.gov and clicking on the View Completed MPNs button on the left hand side.  You will need your FAFSA PIN to complete.   If you don't know your PIN, you can request a duplicate PIN.

 

The Direct Loan Entrance Counseling must also be completed to receive Stafford Loan funds.  Entrance Counseling informs students of their rights and responsibilities, and is completed online and IPFW is notified electronically in 1 to 2 business days when it is complete.  You will need your FAFSA PIN to complete.   If you don't know your PIN, you can request a duplicate PIN. 

You must designate IPFW (INDIANA PURDUE UNIVERSITY - Fort Wayne) as your school. IPFW will be notified that your requirements are complete and our system updated within 1 to 2 business days.

Please note:

• Students who had Stafford Loans under the FFELP program (funds came from a lender) must still complete a Direct Loan Master Promissory Note (MPN)
• Signing a Direct Loan Master Promissory Note does not obligate you to take out a student loan. However, you cannot receive student loan funds unless an MPN is on file.
• You will still need to accept your loans on myIPFW once you have been awarded your financial aid package. 

Read more about Stafford loans at The Department of Education's website and Federal Aid First.

Types of Direct Loans

There are two types of student loans; Subsidized and Unsubsidized.  The difference between them is that the federal government will pay the interest on your Subsidized loan while you're in school.  On an Unsubsidized loan, the interest will accrue while you're in school.  You can either make payments on the interest while you're in school, or you can defer the interest until after you leave school and it will be added to your principal balance.

Calculators

If you are unsure on how much you will need to borrow, we recommend visiting the Department of Education's website to learn about repayment options and costs.

Loan Limits

There are limits to how much a student can borrow in federal student loans.  How much you are able to receive depends on your grade level and if you're a dependent or an independent student.

Lifetime (Aggregate) Loan Limits

There is a maximum lifetime limit that a student can borrow in federal loans.   This is called the Aggregate Loan Limit.  Once a student reaches their aggregate loan limit, they cannot borrow federal student loans until the loans are paid down.

Dependent undergraduate students have an aggregate loan limit of $31,000, of which no more than $23,000 can be subsidized loans.

Independent undergraduate students have an aggregate loan limit of $57,500, of which no more than $23,000 can be subsidized loans.

Graduate students have an aggregate loan limit of $138,500, of which no more than $65,500 can be subsidized loans.

Things to know about Direct Loans:

• If you are enrolled in an Associate's degree program, you may not receive more than a Sophomore loan amount, since it is a 2 year program.

• Eligibility for subsidized loans is determined by your financial need, which is figured when you fill out the FAFSA.

• If you do not demonstrate great financial need, you might only be eligible for an unsubsidized loan.

• Although an academic year is Fall, Spring and Summer semesters, aid is awarded for only the Fall and Spring semesters.

• If you plan on taking Summer classes, you must keep some of your loans from Fall and Spring to pay for Summer.
  
  
• If the parent of a dependent student is denied a PLUS loan, then that student can borrow up to an additional $4000 from the unsubsidized loan program during that academic year.The student must provide the bank issued letter of denial to Financial Aid along with a written request for the additional unsubsidized loan.

Stafford Loans from a lender or bank

As of July 1, 2010, Direct Loans are the only Stafford loans currently offered. However, some students may also have Federal Family Educational Loan Program (FFELP) Stafford loans from prior years.  Students who have accepted student loans from a lender will continue to have those loans serviced by that lender as long as they hold the loan.  

Some FFELP loans will be sold by the lender to the federal government.  If so, they will be added to your Direct Loan balance and you will receive information from the government if information or payment is needed. 

Perkins Loans

Perkins loans are low interest loans guaranteed by the federal government, but awarded through your school. They are awarded to the students with the greatest financial need.

Because of limited funds, not all students with financial need will be awarded Perkins Loans. The amount of funds available for Perkins Loans depends on how much money is coming in from earlier loans being repaid.

In order to be considered for these loans, students must file the FAFSA and resolve any problems with the processing of the application.

Because Perkins loan funds are limited, not all students with high financial need will receive a Perkins loan. If you are eligible and there are funds available, you will be awarded a Perkins loan as part of your financial aid package.

Since these are loans that you will be responsible for paying back, these loans will not automatically be accepted for you. You will have to log into your myIPFW account and accept your loans.

Perkins Loan Requirements

You must complete a Perkins loan Master Promissory Note and a Perkins Entrance Interview through IPFW's Perkins loan servicer, ECSI, to receive Perkins loan funds.  These reqirements are done seperately from the Direct Stafford Loan requirements.

To complete Perkins Loan requirements

Go to ECSI's website
Click on the "Students" section.
Click on "eSIGN a Promissory Note" on the right side of the page. This will take you through the steps to complete your Perkins Loan Entrance Interview and Master Promissory Note.
Select "Purdue University" from the column on the right.

Once completed, it will take up to 2 business days for our system to be updated.

PLUS Loans

There are two types of PLUS loans, Parent PLUS loans and Graduate PLUS loans.

The Parent PLUS Loan program is a Federal loan program that helps parents fund their dependent child's education. The loan is in the parent's name and will be repaid by the parent.  These loans are based on credit scores.

The Graduate PLUS loan program is a federal loan program that helps graduate students pay for their education.  These loans are based on income.

All PLUS borrowers are required to pass a credit check and may be required to have a co-signer. If a parent does not pass the credit check, and they do not secure a co-signer, then the student may be eligible to borrow a limited amount through the Unsubsidized Stafford Loan program.

Read more in the Direct Loan Basics for Parents or Direct Loan Basics for Graduate/Professional Students from the US Department of Education.

Apply for a PLUS loan

Parent and Graduate PLUS loans can be applied for at the Federal Direct Loan website. You will receive an answer on the spot.  You will need your FAFSA PIN to apply.   If you don't know your PIN, you can request a duplicate PIN.

Repayment Terms

The Direct PLUS Loan Interest Rate is 7.9%

There are two repayment options.  Repayment begins 60 days after the loan is fully paid out or you can elect to defer repayment until the student is no longer enrolled at least half time.  For more information about repayment options, visit Student Aid on the Web

Private Education Loans

In addition to Stafford loans, there are also Private Education Loans. These are personal loans offered by banks, that require that you verify enrollment but do not consider your financial need. Rates, amounts, terms and conditions are set by the lender.

Here are some things to know about private loans:

• You should never consider these loans unless you have exhausted your eligibility for federal loans, like the Stafford loan.


• Your lender may conduct a credit check for this type of loan


• Your lender may require you to have a co-signer


• Your lender can set the interest at whatever percentage they choose


• Terms and conditions will vary by lender so shop around


• Fees may be applied at disbursement and/or epayment


• The loan will be considered a resource in your financial aid package

You can apply for private loans by contacting the lender of your choice or through our loan servicer, FastChoice.