Types of Aid

Private Student Loans

Prior to considering private student loans, students are strongly encouraged to complete the Free Application for Federal Student Aid (FAFSA). Private Student Loans should be considered after all other sources of financial aid (grants, scholarships, federal work-study, and federal student loans) have been exhausted. 

Students can apply for this type of loan on their own if credit-worthy.  If not, a credit-worthy cosigner will be required.  Students can borrow up to the total cost of attendance, minus other aid received.

The IU East Office of Financial Aid and Scholarships will review and certify Private / Alternative Loans for eligible students with your preferred lender.

Truth in Lending Requirements

New provisions in the Truth in Lending Act, implemented in February 2010, have resulted in a number of changes. Lenders must now comply with the following requirements:

  • Lenders must provide 3 separate loan disclosures to borrowers
    • one at the point of application
    • one when the loan is approved
    • one before the loan is disbursed
  • A waiting period of 3 business days is required between the time the borrower receives the final loan disclosure and the time the loan is disbursed.
  • Students must also sign an Applicant Self-Certification form and submit it to the lender before the loan can be disbursed.

Private Student Loan Self-Certification

Your lender should provide you with a copy of the required Self-Certification Form. If you do not receive one from your lender, you can download the form . If you download the form here, we recommend that you contact your lender for your application ID or other identifier that will help the lender match the form with your application.

You will need to know your cost of attendance and estimated financial assistance, to complete the Applicant Self-Certification form. If you receive financial aid, this information can be found through the Financial Aid section in Onestart.

Student Self-Service > SIS Student Center > View Financial Aid > Select 2012 Aid Year > Financial Aid Need Summary

If you are not receiving financial aid, use estimated Cost of Attendance information.

Remember to send your completed Applicant Self-Certification form to your lender. Your loan cannot be disbursed until your lender receives it.

Private Student Loan Options

Though we encourage students to utilize employment opportunities and summer earnings to finance their education, we realize there are some situations where students need to borrow beyond this.  It is our goal to help each student understand the financial obligations they commit themselves to when borrowing.  When selecting a private loan lender, carefully examine the rates and terms associated with the loan.  The borrower’s and/or co-borrower’s credit will be examined to determine approval of the loan.  Eligibility of the loan amount applied for will be determined by cost of education minus the total of financial aid received.
 
ATTENTION: FEDERAL LOAN ALTERNATIVES
You may qualify for Federal education loans or other assistance. Please check your financial aid award and/or contact the Office of Financial Aid and Scholarships regarding your eligibility. Current interest rates for federal loans:
 

Loan Program

Current Interest Rates by Program Type (2013-2014)

Stafford

(For students)

3.86% fixed

Undergraduate subsidized

3.86% fixed

Undergraduate unsubsidized

PLUS

(For parents)

6.41% fixed

Federal Direct Loan

*Custodial and Non-custodial parents may each apply


APPLYING FOR A PRIVATE LOAN

Listed below is an application tool that will provide access to multiple lenders. The ISM Marketplace will allow you to compare lenders and rates for possible alternative loans. As a borrower, you have the option to select any lender you choose. Please understand that we will process a loan with a lender that is not listed. If you have any questions regarding the process used to select the lenders included in the ISM Marketplace, please contact our office.

View ISM Marketplace Lenders' TILA Application Disclosures: