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.
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.
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.
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.
|Criteria||Subsidized Loan||Unsubsidized Loan|
|Enrollment Requirement:||At least 1/2 time (6 credit hours)||At least 1/2 time (6 credit hours)|
|Interest Rate (Undergraduate Student):||
3.4% fixed rate
|6.8% fixed rate|
|Interest Rate (Graduate Student):||Not Offered||6.8% fixed rate|
No interest is charged while student is in school at least half time.
|Interest is charged from the date the loan funds are disbursed and capitalizes if not paid.|
|Credit History:||Not applicable||Not applicable|
|Repayment:||Begins after grace period||Begins after grace period|
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.
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.
|Grade||Dependent Student||Independent Student|
$5,500 per year
$9,500 per year
$6,500 per year
$10,500 per year
$7,500 per year
$12,500 per year
$20,500 per year
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.
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.
Students who will receive CVO next year must be aware of recent changes made by the state of Indiana. Visit the state of Indiana's website to read more!