Financial aid is the total of grants, scholarships, Federal Work Study, loans and other resources for which students may be eligible. 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 all undergraduate students.

Financial aid funds are generally credited directly to your tuition account. However, financial aid funds cannot be credited to your account until promissory notes are signed, entrance interviews are completed, and federal verification documents are submitted, if necessary.

Scholarships | Grants | Student Employment | Loans | Veterans Educational Benefits | University Employee Benefits

Loans

Federal Subsidized Stafford Loans | Federal Unsubsidized Stafford Loans | Federal PLUS Loans | Federal Perkins Loans | Institutional Loans | Private Loans | Aggregate Loan Limits | Consolidation

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.

The interest rate of the Stafford loan program has a variable rate based on the 91-day Treasury Bill rate plus 3.1 percent, capped at 8.25 percent. The interest rate is adjusted annually July 1.

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.

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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. Independent and students whose parents cannot get a Parent Loan (PLUS) have higher unsubsidized loan amounts.

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.

The interest rate of the Stafford loan program has a variable rate based on the 91-day Treasury Bill rate plus 3.1 percent, capped at 8.25 percent. The interest rate is adjusted annually July 1.

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 six months after a student leaves college or drops below halftime status. For unsubsidized loans, interest payments should be made as they accrue during enrollment.

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Federal PLUS Loan

The Federal PLUS loan is a loan parents can borrow on behalf of their dependent undergraduate children who are enrolled at least halftime. As with the unsubsidized loan, borrowers are responsible for the interest that accrues on PLUS loans throughout the life of the loans.

Before a Federal PLUS loan can be credited to the student’s account, the borrower must complete a PLUS Master Promissory Note (MPN ). For PLUS loans, borrowers are required to apply online each academic year. Borrowers can electronically sign their PLUS MPN via the U.S. Department of Education PIN number. If a borrower does not wish to receive any of the loans offered on their award letter, the borrower must notify the Office of Financial Aid in writing or via Web for Students.

The interest rate is variable, capped at 9.25 percent. The parent 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 may also elect to defer all interest payments until completion of the student’s degree program. If the parents choose this option, interest will be capitalized and added to the principal at the time of repayment.

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.

The repayment period begins on the date the last disbursement is made. Moreover, a PLUS loan borrower’s first payment of interest and principal is due within 60 days after the loan is fully disbursed, unless a deferment condition applies. Parents are responsible for any interest that accrues on the loan.

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Federal Perkins Loan

Federal Perkins Loan is awarded to 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.

For borrowers of Federal Perkins, the Student Loan Office generates Institutional Promissory Notes, which are different from Master Promissory Notes. At the beginning of each academic year, borrowers must sign Institutional Promissory Notes before loan money can be credited to the student’s account. Students can sign these promissory notes at the Student Loan Office, 204 Main Building.

The repayment period begins nine months after borrower ceases to be enrolled at halftime. Perkins loan borrower has 10 years to repay this loan. Students are eligible for a variety of deferment benefits associated with the Perkins loan.

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Institutional Loans

Institutional Loans are awarded to students on a case-by-case basis. They are awarded based on demonstrated need. The features of this loan program mirror that of the Federal Perkins Loan program. Please review the Federal Perkins Loan program for more information.

For borrowers of Institutional Loans, the Student Loan Office generates Institutional Promissory Notes, which are different from Master Promissory Notes. At the beginning of each academic year, borrowers must sign Institutional Promissory Notes before loan money can be credited to the student’s account. Students can sign these promissory notes at the Student Loan Office, 204 Main Building.

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Private Loans

Private loans are awarded to students who are seeking additional funding options. These loans are credit-based and may require a co-signer. Private Loans usually have higher interest rates and should be borrowed only if necessary.

Interested students can apply online for private loans here.

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Aggregate Loan Limits (effective July 1, 2007)

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Benefits of Federal Loan Consolidation

• Consolidation can help ease your monthly payments once you enter repayment by rolling one or more of your federal loans into one payment with one interest rate.
• If you have more than one loan, you can combine the loans into one, fixed rate loan.  There is no minimum number of loans or balances to qualify, however, so borrowers can consolidate even a single small balance loan.
• You can also have more than one consolidated loan.  If you consolidated before, you may choose not to include your previously consolidated loan in your new loan consolidation. 
• Note:  In school loan consolidation is no longer an option; consolidation is only an option after you graduate.
• There is no cost to consolidate. 
• Parents can consolidate their Federal PLUS Loans. 
• Effective for all applications received after June 16, 2006, you may consolidate your loans with the lender of your choice.
• Some lenders offer interest-rate reductions and other benefits on consolidation loans. Note: Be sure to read the fine print. Many lenders require you to submit a form, make a phone call, etc. within a specific time period to receive the promised benefit. Failure to do so will result in the forfeiture of the promised benefit.

Disadvantages of Federal Loan Consolidation

• If you take an extended payment plan, you will pay more interest in the long run. If your loan is large, this could cost you thousands of dollars and have a negative impact on your financial future.
• It’s possible that the consolidated student loan interest rate will be higher than the interest rates on your other loans. If this is the case, consolidation is not to your advantage.
• If you consolidate your loans during the six month grace period after graduation, you lose the remainder of the grace period.
• If you have already paid off a large portion of your student loans, consolidation may not be worth the money or effort.
• Borrowers with a Perkins loan forfeit the special benefits that come with this loan, including cancellation benefits, if they consolidate.

Federal Laon Consolidation Interest Rates

The interest rate of a consolidation loan is the weighted average interest rate on all the loans you are consolidating.

Federal legislation changed the interest rate structure on Federal Direct Stafford Loans and PLUS Loans from a variable interest rate to a fixed interest rate for loans received on or after July 1, 2006.  The fixed interest rates for these loans are:

The interest rate on any loans received prior to July 1, 2006 will remain variable and will change July 1 each year.

Consolidating Other Federal Loans

If you have Perkins, Health Professions, or Nursing Loans, you should determine whether consolidating these loans with your Direct Loans will be to your advantage.  Be aware, however, that when you consolidate, you will lose the cancellation provisions of these loans.  This could be disadvantageous for certain students, such as those who plan to teach in certain designated schools or plan to serve in the Armed Services, Peace Corps, etc.  For Perkins Loan cancellation information, click here. For Health Professions Loan and Nursing Loan cancellation information, see your promissory note. 

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