APPLYING FOR LOANS

FEDERAL DIRECT LOAN PROGRAM

In the fall of 2010, Indiana Wesleyan University began participating in the William D. Ford Federal Direct Loan Program. Students and parents now get Student, Parent PLUS, and Graduate PLUS Loans directly through the U.S. Department of Education, rather than through lenders participating in the Federal Family Education Loan Program (FFELP). The terms and conditions of both programs are similar.

All new and returning students who have not previously borrowed a Federal Direct Loan while attending Indiana Wesleyan University must complete a new Master Promissory Note (MPN) for the Direct Loan Program. All new and returning students who have not previously borrowed while attending Indiana Wesleyan University must complete an Entrance Counseling Session for the Direct Loan program.

You can contact the Direct Loan Servicing Center at 800-848-0979 or visit their website to get loan account information, request a deferment or forbearance, obtain a deferment or forbearance request form, change repayment plans, make payments, set up automatic payments, and much more.

Federal Direct Loans

A Federal Direct Subsidized Loan is awarded to students to meet financial need after other resources are subtracted or to the annual maximum loan limit, whichever is lower. It is the U.S. Department of Education's major form of self-help aid and is available through the William D. Ford Federal Direct Loan Program. For undergraduate students, Federal Direct Subsidized loans offered beginning July 1, 2013, have a fixed interest rate of 3.86%. The federal government pays interest on the loan until you graduate or drop to less than half-time (6 hours) enrollment.

A Federal Direct Unsubsidized Loan is not based on your financial need. It is available to you through the William D. Ford Federal Direct Loan Program, if your Estimated Cost of Attendance (COA) is greater than your financial aid and you have not reached your annual maximum loan limit through the Federal Direct Subsidized Loan Program. The interest rate for Federal Direct Unsubsidized Loans is fixed at 3.86% (5.41% for graduate students). You are charged interest on this loan from the time the loan is disbursed until it is paid in full. If the interest is allowed to accumulate, it will be added to the principal amount of the loan and increase the amount to be repaid.

A loan fee of 1.072% is deducted from your loan before it is applied to your student account, for loans with first disbursements on or after 12/1/13.

To be eligible for a Federal Direct Loan, you must be enrolled for at least six credit hours per semester. If you are eligible for this loan, it will be included on your Financial Aid Award Letter.

To apply for this loan, follow the steps below:

  1. File the Free Application for Federal Student Aid (FAFSA). All requested documents must be submitted to the Financial Aid office.
  2. Complete the Federal Direct Loan Request Form. Once this step is completed, you will receive additional instructions on the Web. Please read carefully.
  3. Complete the Federal Direct Loan Entrance Counseling Session. This process requires either the borrower's Social Security Number or Federal Student Aid PIN.
  4. Complete the Federal Direct Loan Master Promissory Note (MPN). This will require your Federal Student Aid PIN. If you don't have this yet or have forgotten it, you can get it here.

To find more answers to frequently asked questions and to learn more about repayment options before receiving a Direct Loan, you may visit the Federal Direct Loan website or contact the Federal Student Aid Information Center at 800-4-FED-AID (800-433-3243).

You can complete Loan Exit Counseling through the Federal Student Loan Servicing website.

Federal Direct Parent Plus Loan Information

Parents may borrow a Federal Direct Parent PLUS Loan to help defer the education expenses of their dependent undergraduate student enrolled at least half-time in an eligible program at IWU. When you apply for a Federal Direct PLUS Loan, the Department of Education will check your credit. To be eligible, you must not have an adverse credit history. If you are found to have an adverse credit history, you may still borrow a Federal Direct PLUS Loan if you get an endorser who does not have an adverse credit history. An endorser is someone who agrees to repay the Federal Direct PLUS Loan if you do not do so. The endorser may not be the student on whose behalf a parent obtains a Federal Direct PLUS Loan.

The interest rate for Federal Direct Parent PLUS Loans is fixed at 6.41% with a loan fee of 4.288%, for loans with first disbursements on or after 12/1/13. Which is deducted before it is applied to the student's account. A parent may borrow the student's cost of attendance minus any financial aid (e.g., grants, scholarships, work-study, federal student loans) the student is already receiving for the school year.

If a Federal Direct Parent PLUS Loan Application is denied, it may be possible for the student to borrow an additional amount of unsubsidized loan. The dependent student annual maximum allowable loan limit will be replaced by the independent student maximum allowable loan limit at the same class level. If the application is denied, the student should contact the Financial Aid office for more information.

To apply for this loan, follow the steps below:

  1. File the Free Application for Federal Student Aid (FAFSA). All requested documents must be submitted to the Financial Aid office.
  2. Complete the "Request a Direct PLUS Loan" Process
  3. Complete the Federal Direct Loan Master Promissory Note (MPN).

You will receive notification directly from the U.S. Department of Education on your approval/denial. If you are denied a PLUS Loan, you have the following options:

  • Parent may be approved with an endorser (co-signer).
  • Student may apply for an Unsubsidized Direct Loan based on student's eligibility. This will require the submission of a new Federal Direct Loan Request Form along with proof of PLUS denial.

To find more answers to frequently asked questions and to learn more about repayment options before receiving a Direct Loan, you may visit the Federal Direct Loan website or contact the Federal Student Aid Information Center at 800-4-FED-AID (800-433-3243).

Federal Direct Graduate Plus Loan Information

Graduate and professional degree students are now eligible to borrow under the PLUS Loan Program up to their cost of attendance minus other estimated financial assistance. The requirements include a determination that the applicant does not have an adverse credit history, repayment beginning on the date of the last disbursement of the loan, and a fixed interest rate 6.41%. Borrowers must also apply for their annual loan maximum eligibility under the Federal Subsidized and Unsubsidized Stafford Loan Program before applying for a Graduate/Professional PLUS loan.

The interest rate is fixed at 6.41% with a loan fee of 4.288%, for loans with first disbursements on or after 12/1/13. Which is deducted before it is applied to the student's account. A student may borrow the cost of attendance minus any financial aid (e.g., grants, scholarships, work-study, federal student loans) the student is already receiving for the school year.

To be eligible for a Federal Direct Graduate PLUS Loan, you must be enrolled for at least six hours per semester. You must also submit to a credit check by the U.S. Department of Education. You authorize the credit check when you agree to the Award Letter Financial Aid Terms and Conditions.

To apply for this loan, follow the steps below:

  1. File the Free Application for Federal Student Aid (FAFSA). All requested documents must be submitted to the Financial Aid office.
  2. Complete the "Request a Direct PLUS Loan" Process
  3. Complete the Federal Direct Graduate PLUS Entrance Counseling Session. This process requires either the borrower's Social Security Number or Federal Student Aid PIN. The session for a Graduate PLUS Loan is different from that of a Direct Loan (subsidized/unsubsidized), but may be completed at the same time by completing the Combination - Direct and PLUS Loans option.
  4. Complete the Federal Direct Loan Master Promissory Note (MPN).

You will receive notification directly from the U.S. Department of Education on your approval/denial.

To find more answers to frequently asked questions and to learn more about repayment options before receiving a Direct Loan, you may visit the Federal Direct Loan websiteor contact the Federal Student Aid Information Center at 800-4-FED-AID (800-433-3243).

Private/Alternative Educational Loans

Alternative educational loans are available from private lenders and offer additional financial assistance if you have exhausted all other sources of funding for your education. These programs are meant to supplement federal and state aid when the Cost of Attendance (COA) is not fully covered by these programs. Information about the alternative loan process and interest rate calculations should be reviewed carefully.

The IWU Financial Aid Office will process the alternative loan requested by the student; however, we will not certify alternative loans for an amount that exceeds the Cost of Attendance (COA) minus other financial aid. We are unable to provide guidance as to which alternative loan might best meet your needs.

Alternative educational loans require a credit check; therefore most lenders require a co-signer for the loan. IWU will process your educational loan from any lender you choose even if they do not appear on one of the links below.

ISM MARKETPLACE

Many lenders have elected to provide accurate rates and terms for students to compare in the ISM Student Loan Marketplace. The Marketplace provides you the opportunity to instantly compare rates and terms from the following national and local lenders:

  • Charter One
  • Citizen's Bank
  • Eli Lilly Federal Credit Union
  • Evansville Federal Credit Union
  • Hoosier Education Loan Partnership - HELP
  • Mid-Atlantic Federal Credit Union
  • NASA Federal Credit Union
  • PNC Bank
  • Star One Credit Union

Begin the ISM Marketplace process on FASTChoice.
View ISM Marketplace Lenders:
Citizens Bank TruFit Student Loan - Variable and Fixed Rate Disclosures
Hoosier Education Loan Partnership Loan (HELP) Cosigner Disclosures
PNC Alternative Loans - Variable and Fixed Rate Disclosures

LENDER CHOICES

The following lenders have been found to provide good customer service and have competitive interest rates and fees with a variety of repayment options.

  • Charter One
  • Discover
  • Sallie Mae
  • Wells Fargo

Begin the Lender Choice process on FASTChoice.

THE LENDER I PREFER IS NOT LISTED

You must complete the loan counseling process on FASTChoice before selecting a lender that is not listed. When that process is completed, either call or go to the website of the lender you'd like to use and follow their instructions for completing an application.

FAFSA Code: 001822

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Contact Info

Indiana Wesleyan University

Financial Aid Office

4201 S. Washington St.
Marion, IN 46953
866-468-6498
765-677-2116
Fax: 765-677-2809
finaid@indwes.edu

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