The Office of Financial Aid administers a comprehensive program that includes loans and work-study. The financial aid process begins when a student completes and submits the Free Application for Federal Student Aid (FAFSA) for each award year. At IIT, the Office of Financial Aid manages the financial aid process for graduate students, except MBA and Law school students.

All federal programs require students to be in attendance at least halftime (minimum of 4.5 hours) and be admitted to a degree program.

Fellowships, Scholarships, and Assistantships | Alumni Tuition Benefit | Private Scholarships | Student Employment | Loans | Aggregate Loan Limits |Veterans Educational Benefits | University Employee Benefits

Loans

Federal Subsidized Stafford Loan | Federal Unsubsidized Stafford Loan | Graduate PLUS Loan | Private Loans

Federal Subsidized Stafford Loan
Federal Subsidized Stafford Loans are awarded to 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 period.

Before the Federal Subsidized Stafford Loan can be credited to the student’s account, a student must complete a Master Promissory Note (MPN). This process can be completed online here. Students can electronically sign their MPN via the U.S. Department of Education PIN number. Only one signed MPN is needed for a student’s entire career at IIT. For subsequent years, the Office of Financial Aid will electronically confirm loan eligibility by the amount indicated on the award letter. If a student does not wish to receive any of the loans offered on their award letter, the student must notify the Office of Financial Aid in writing or through their Web for Students account.

Federal Subsidized Stafford loans currently have a fixed interest rate of 6.8%. This rate is in effect from July 1, 2007 to June 30, 2008.

Repayment of the loan begins six months after a student leaves college or drops below halftime status.

top

Federal Unsubsidized Stafford Loan
Federal Unsubsidized Stafford Loans are awarded to students regardless of financial need. Borrowers are responsible for paying the interest that accrues during any period. Interest payments should be made as they accrue during enrollment. Independent and students whose parents cannot get a Parent Loan (PLUS) have higher unsubsidized loan amounts.

Federal Unsubsidized Stafford loans currently have a fixed interest rate of 6.8%. This rate is in effect from July 1, 2007 to June 30, 2008.

Repayment of the loan begins following the second disbursement, which occurs during the Spring semester.

top

Graduate PLUS Loan
Recent legislation now allows graduate students to borrow through the Federal PLUS program.  Formerly, this program was only available to the parents of undergraduate, dependent students.  The Graduate PLUS program is a non-need-based federal loan that allows graduate students to borrow up to the full cost of attendance, minus any other financial aid they are receiving.

Federal PLUS loans currently have a fixed interest rate of 8.5%. This rate is in effect from July 1, 2007 to June 30, 2008.

Graduate PLUS vs Private/Alternative Loans
The credit check for the Graduate PLUS Loan will not be as stringent as that of most private/alternative loans, which often look at debt to income ratio. If a student has limited or no credit history, he/she may find it difficult to qualify for an alternative student loan. Graduate PLUS Loans accept borrowers with limited or no credit history.

• Graduate PLUS Loans can be consolidated with other Federal Loans (Subsidized/Unsubsidized), which allows students to have only one payment after graduation (private/alternative loans cannot be consolidated with federal loans).
• Interest Rate: The interest rates for many alternative loans are lower than the Graduate PLUS Loan fixed interest rate of 8.5%. Rates on alternative loans are not fixed rates and generally do not have maximums. The prime rate or LIBOR rates on which alternative loans are typically based may go higher or lower than the fixed rate. Fixed rate loans can be easier to pay at repayment.
• Fees: Graduate PLUS Loans may charge up to a 3% origination fee of the original loan amount. Alternative loans can have lower fees depending on the borrower's credit history and income.

Overview of the Federal PLUS Loan for Graduate Students Program

Description	Eligibility	Terms
Federally funded. Fixed interest rate. Interest rate of 8.5% (may be increased   based on legislation currently pending in Congress).  Interest begins accruing immediately, may be paid periodically or capitalized. Existing PLUS Loans can be consolidated.	Borrower must be a U.S. citizen or eligible non-citizen of the U.S.    Available only to students enrolled in graduate level programs. Non-need-based.  May borrow the cost of attendance minus other aid. Student enrolled at least half-time in degree or certificate program.  Basic credit check: Borrower cannot be 90 days or more delinquent on the repayment of any debt or the subject of a default determination, bankruptcy discharge, foreclosure, repossession, tax lien, wage garnishment or write-off of a Title IV debt during the last five years.	Borrower must complete the Free Application for Federal Student Aid (FAFSA) to apply.  Borrower must first accept all Federal Stafford Loans (Subsidized and/or Unsubsidized) before borrowing through the Graduate PLUS program. Repayment of principal and interest begins 60 days after loan disbursed; however, payments can be deferred while borrower is enrolled at least half-time.

For more information about Graduate PLUS Loans, and to begin the application process, click here.

top

Private Loans
Banks offer private loans to students seeking additional funding options. These loans are credit-based and will 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. Interested students can apply online for private loans here.

top

Aggregate Loan Limits

top