Loans and Work Study

AWARD	AMOUNT	APPLICATION PROCESS	COMMENTS
Ministerial Loan/Grant	$4000-$6000		Student must be certified by their local church district. Available only during junior and senior years of study. Transfer students must attend one full year before becoming available for the junior amount ($4000/year) and two full years before receiving the senior amount ($6000/year). This amount is in addition to the funds awarded directly through Wesleyan Headquarters.
Federal Perkins Loan	$200-$3000	Submit FAFSA. Must demonstrate financial need.	Repayment with 5% interest begins 6 or 9 months after the student terminates enrollment at IWU. Until that time, no payments are required and no interest accrues.
IWU Student Loan	$200-$3000	Submit FAFSA. Must demonstrate financial need.	Repayment with interest begins 6 months after the student terminates enrollment at IWU. Until that time, no payments are required and no interest accrues. Interest rate is 8.75% above the Federal Stafford Loan.
Federal Stafford Loan (Subsidized)	$3,500-$5500	Submit FAFSA, and a separate loan application. Must demonstrate financial need.	Interest rate is fixed at 6.0%. Interest is subsidized by the federal government so that no interest accrues to the loan while the student remains enrolled at least half-time. Payment of interest and principal begins 6 months after the last date of enrollment. First-year students may borrow up to $3500, 2nd-year students may borrow up to $4500, and 3rd-year students may borrow up to $5500/year in subsidized funds. The maximum totals for undergraduates is $23000.
Federal Stafford Loan (Unsubsidized)	$3500-$5500	Submit FAFSA, and a separate loan application. Student does NOT need to demonstrate financial need.	Interest rate is 6.8% and payment terms are the same as for the Federal Stafford Loan. However, since the government does NOT pay the interest on the loan, the student may elect to make interest payments while in school OR defer them until after graduation. The total subsidized and unsubsidized loans cannot exceed the maximum for the grade level.
• A Standard Repayment Plan requires you to pay a fixed amount each month -- at least $50 or the interest that has accrued. • Under a Graduated Repayment Plan, your payments will be lower at first and then increase over time. No scheduled payment may be more than three times greater than any other of your scheduled payments. • An Income-Sensitive Repayment Plan bases your monthly payment on your yearly income and your loan amount. As your income rises or falls, so do your payments. No single required payment may be more than three times greater than any other of your required payments. Each of your payments must at least equal the interest accrued on the loan between scheduled payments. In some cases it may be beneficial for you to consolidate one or more of your FFEL Stafford Loans into a Consolidation Loan. Examples of Typical Beginning Payments for FFEL Repayment Plans1 Total Debt When Borrower Enters Repayment Monthly and Total Payments Under Different Repayment Plans Standard2 Graduated3 Income-sensitive4 (Income=$25,000) Per Month Total Per Month Total Per Month Total $50 $3,228 $30 $3,872 $83 $2,927 50 5,827 30 6,345 83 4,818 92 11,039 52 12,009 83 12,049 123 14,718 69 16,012 83 17,783 184 22,078 103 24,018 103 28,265 $2,600 4,000 7,500 10,000 15,000 1Note: Payments are calculated using the maximum interest rate of 8.25% for student borrowers. 2Equal and fixed monthly payments ($50 minimum). 3Interest Payments are for the first 48 months only; equal and fixed payment for the last 72 months. 4Assumes a 5% annual income growth (Census Bureau). Payment equals lesser of interest only or 4% of income. If payment amount is less than under the Standardized Repayment Plan amount in any year, the term is extended by one year. The maximum number of extensions is five. That is, the maximum term is 15 years, the last 10 of which would be under the Standard Repayment Plan (equal and fixed).
Federal Parent Loan	Amount Varies	Submit FAFSA, and a separate loan application.	Interest rate is fixed at 8.5%. Parents may borrow any amount needed for educational expenses not covered by other financial aid. Payment of both interest and principal begins within 60 days of the receipt of the funds or may be deferred unitl student is no longer enrolled.
Federal Work Study	$1500 maximum	Submit FAFSA. Student must demonstrate financial need and be awarded Federal Work Study as a part of the financial aid package.	On-Campus positions pay scale begins at $6.55 per hour. Student is allowed to work 10-12 hours a week. Wages are paid by check twice a month. Students may contract with the business Office to put these funds on their student account, or may receive the funds directly if all University charges have been paid. Job listing are available on the campus intranet.
IWU Employment	Varies		Job listings are available on the campus intranet.