Loans

Federal Direct Subsidized Loan
The Federal Direct Subsidized Stafford loan is awarded to undergraduate students who demonstrate financial need.  Because the U.S. Department of Education subsidizes the interest, borrowers are not charged interest while they are enrolled in school at least halftime and during grace and deferment periods. The interest rate of the Federal Direct Subsidized Stafford Loan first disbursed between July 1, 2010, and June 30, 2011, is 6.8% for graduate students and 4.5% for undergraduate students. Repayment of the loan begins six months after a student leaves college or drops below halftime status.

Effective July 1, 2012, subsidized Stafford loans are no longer available for graduate students. This means the interest will begin accruing at disbursement for all graduate Stafford loans and will continue to accrue until the loan is repaid.

Federal Direct Unsubsidized Loan
The Federal Direct Unsubsidized loan is awarded to students regardless of financial need. Borrowers are responsible for paying the interest that accrues during any period. Interest payments should be made, if possible, as the interest is added to the unpaid principal amount of the loan. Borrowers can contact the Direct Loan Servicing Center directly to ask about interest payments. The interest rate of the Federal Direct Unsubsidized Stafford Loan first disbursed between July 1, 2010, and June 30, 2011, is 6.8% for all students. Repayment of the loan begins six months after a student leaves college or drops below halftime status.

Stafford Loan Limits
Stafford loan eligibility depends upon a student's year in school. Borrowers can visit the Department of Education Stafford loan website, to determine their annual and aggregate loan limits for Stafford loans.

The Federal Direct PLUS loan is a loan offered to parents of dependent undergraduate children who are enrolled at least halftime. The parent borrower is responsible for the interest that accrues immediately upon the PLUS loan disbursement. Interest may be paid quarterly while the borrower is enrolled at least halftime. The parent borrower may also elect to defer all interest payments until completion of the student's degree program. If this option is chosen, interest will be capitalized and added to the principal at the time of repayment. The interest rate for PLUS loans first disbursed on or after July 1, 2006, is a fixed 7.90%.

Eligibility Requirements

A PLUS loan applicant and the student must meet general eligibility requirements, as well as not have adverse credit history. For example, the PLUS loan applicant must:

• be a United States citizen or eligible noncitizen,*
• not be in default* on a federal student loan, and
• not owe a refund on a federal education grant.

If a parent or student has adverse credit history, they might still be able to receive the PLUS loan by documenting extenuating circumstances or by obtaining an endorser without adverse credit history. An endorser is someone who agrees to pay the loan if the borrower fails to do so.

Parent Plus Loan Application Process
Here are the steps to apply for the parent plus loan:

1. 1. Complete and submit the Federal Direct Parent Plus Loan Application, to the Department of Education.
   2. Department of Education completes credit check.
      1. Not approved
         1. If the credit check denies the parent for the Plus loan, the Office contacts the student directly with next steps.
      2. Approved
         1. Parent can complete the Plus Loan process.
   3. Master Promissory Note
      1. If the parent is approved for the loan, then the Parent must complete a Master Promissory Note with the Department of Education.
         1. Your parent must login to the Department of Education website using your Department of Education-issued PIN. If your parent does not have a PIN, he/she may request one from the official PIN site.
         2. After 5-7 business days, if you cannot complete the MPN, please contact our office, so we can check the loan status.
   4. Department of Education sends us list of loans approved for disbursement.
   5. MPN financial aid requirement is satisfied.
   6. Loan disburses to account after the add/drop date for the current term.
   7. Submit proof of citizenship document for parent who submitted plus loan application.

   Failure to complete all the steps above will cause processing delays for your Federal Direct Parent Plus Loan. If you have any questions or want to further discuss the Federal Direct Loan process, please visit the Office of Financial Aid in Room 104 of Main Building to speak with a Financial Aid Counselor, or contact us directly at finaid@iit.edu.

Failure to complete all the steps above will cause processing delays for your Federal Direct Parent Plus Loan.

The Federal Direct PLUS loan is a loan offered to students pursuing a graduate or professional degree who are enrolled at least halftime. The graduate borrower is responsible for the interest that accrues immediately upon the PLUS loan disbursement. Interest may be paid quarterly while the borrower is enrolled at least halftime. The graduate borrower may also elect to defer all interest payments until completion of the student's degree program. If this option is chosen, interest will be capitalized and added to the principal at the time of repayment. The interest rate for PLUS loans first disbursed on or after July 1, 2006, is a fixed 7.90%.

Eligibility Requirements

A PLUS loan applicant must meet general eligibility requirements, as well as not have adverse credit history. For example, the PLUS loan applicant must:

• be a United States citizen or eligible noncitizen,*
• not be in default* on a federal student loan, and
• not owe a refund on a federal education grant.

If a student has adverse credit history, he or she might still be able to receive the PLUS loan by documenting extenuating circumstances or by obtaining an endorser without adverse credit history. An endorser is someone who agrees to pay the loan if the borrower fails to do so.

Federal Direct Promissory Notes
Before a student or parent can receive loan funds, whether federal or institutional, a promissory note must be completed and signed. This new note is called a Master Promissory Note (MPN). When you complete and sign the MPN, you are confirming your understanding that IIT will make new loans for you on an annual basis, once you accept the loans for the academic year. A new MPN needs to be signed every year for the Federal Direct Plus Loan, as this loan is credit based. To complete a MPN online, you must use your Department of Education-issued PIN. If you do not have a PIN, you may request one from the official PIN site.Use the image below to complete an MPN.

 

Perkins Loan or Institutional Loan Promissory Notes
Once a Perkins or Institutional Loan has been accepted on the myIIT Portal, a Master Promissory Note must be signed with IIT's loan servicer, ECSI. At the beginning of each academic year, borrowers must sign a Master Promissory Note before loan money can be credited to the student's account. Students will be contacted at their IIT email address with the promissory note directions once the loan is accepted on the portal.

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Entrance and Exit Counseling
Entrance Counseling and Exit Counseling are especially important for students, who often lack experience repaying and managing debt, or undergraduate or graduate students who change schools or careers. The law requires IIT to provide loan counseling to help a student understand rights and responsibilities as a Direct Loan borrower, provides information so you may make informed decisions.

Complete Entrance Counseling: Department of Education website.
Complete Exit Counseling:  Mapping Your Future website.

Loan Repayment Options
The Department of Education offers various different repayment options to students and parents for each loan. There are several repayment plans: standard, extended, graduated, and income contingent. How much you pay and how long you take to repay your loans will vary depending on the repayment plan you choose. Consolidation loans also have varying repayment plans. Use the links below to determine your repayment amounts under each of the different plans.

Department of Education Repayment Plans: http://www.direct.ed.gov/RepayCalc/dlindex2.html.

Department of Education repayment calculators:
http://www.direct.ed.gov/calc.html.

Loan Consolidation
There may be advantages to consolidating (combining) your federal student loans into one loan, starting with the convenience of making a single monthly payment. Consolidation generally extends the repayment period, resulting in a lower monthly payment. This may make it easier for you to repay your loans. However, you will pay more interest if you extend your repayment period through consolidation since you will be making payments for a longer period of time. Visit the Money Management section of our website for more information about consolidation and personal finance:  http://www.iit.edu/financial_aid/money_management/.

Direct Student Loan Interest Rates and Fees
	Interest Rates1	Loan Fees2
Undergraduate Borrowers
Direct Subsidized Stafford Loans	4.50%	1.00%
Direct Unsubsidized Stafford Loan	6.80%	1.00%
Graduate Borrowers
Direct Subsidized and Unsubsidized Stafford Loan	6.80%	1.00%
Direct Graduate PLUS Loan	7.90%	4.00%
Parent Borrowers
Direct Parent PLUS Loan	7.90%	4.00%

^{1These interest rates are for loans with a first disbursement between July 1, 2010 and June 30, 2011.
2The loan fee is deducted proportionately each time a loan disbursement is made.}

Direct Stafford Loan Aggregate Limits
	Total Limit
Undergraduate Dependent Students
Combined Direct Subsidized and Unsubsidized Stafford Loans             Up to $23,000.00 may be subsidized.	$31,000.00
Undergraduate Independent Students
Combined Direct Subsidized and Unsubsidized Stafford Loan             Up to $23,000.00 may be subsidized.	$57,500.00
Graduate or Professional Borrowers
Combined Direct Subsidized and Unsubsidized Stafford Loan             Up to $65,000.00 may be subsidized.	$138,500.001

^{1This amount is $224,00.00 for Health Professionals.}

The Federal Perkins Loan Program provides low-interest loans to help needy students finance the costs of postsecondary education.  Institutional financial aid administrators at participating institutions have substantial flexibility in determining the amount of Perkins loans to award to students who are enrolled or accepted for enrollment.

The Federal Perkins loan is awarded to undergraduate and graduate students who demonstrate exceptional financial need. IIT strongly encourages all students who wish to be considered for the Federal Perkins to submit the FAFSA to the U.S. Department of Education by the April 15 deadline. These funds are limited and awarded on a first come, first serve basis. The interest rate of the Federal Perkins Loan is 5 percent. Interest will begin to accrue nine months after a borrower ceases to be enrolled at halftime.

Federal Perkins Federal Eligibility Criteria
Federal Perkins Repayment Information

Banks offer private loans to students seeking additional funding options. Generally, private loans have higher fees and interest rates. IIT does not endorse any particular private loan provider. Be sure to read all financial terms before signing for a private loan. These loans are credit-based and will likely require a co-signer. Private Loans usually have higher interest rates and should be borrowed only if necessary. Depending upon credit approval, you may borrow up to the cost of attendance (minus any financial aid) for each academic year.

International Students — U.S. Co-signer needed
International students are eligible to apply for private loan funding if the loan is co-signed by a creditworthy U.S. citizen or permanent resident. There may also be restrictions on the type of visa (F1 or J1). Visit EduPASS Loans for International Students.