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IUP Code: 003277

Federal Direct Loan

Funded by the federal government and administered by IUP.

There are two types: Subsidized loans are based on financial need, determined by taking the difference between the cost of education and the Expected Family Contribution. Unsubsidized loans may be awarded regardless of need.

Eligibility: Based on students’ cost of education, Expected Family Contribution (calculated from the FAFSA), and other aid resources. Students must be enrolled at least half-time in a given semester: 6 credits of undergraduate level coursework for undergraduate students and 4.5 credits of graduate level coursework for graduate students.

Amount: Undergraduate students are limited in the amount they can borrow each academic year based on grade level.

Year Dependent Undergraduate Independent Undergraduate (and dependent students whose parents are unable to obtain PLUS Loans)
First year (0-29.9 credits) $5,500 (no more than $3,500 subsidized) $9,500 (no more than $3,500 subsidized)
Second Year (30-59.9 credits) $6,500 (no more than $4,500 subsidized) $10,500 (no more than $4,500 subsidized)
Third Year and up (60 credits or more) $7,500 (no more than $5,500 subsidized) $12,500 (no more than $5,500 subsidized)

Important information for first-time undergraduate Direct loan borrowers. New federal regulations may limit the amount of time you are eligible to borrow Subsidized Direct loans. For more information, please read the U.S. Department of Education's announcement

Graduate students are eligible to borrow up to $20,500 during an academic year, with an aggregate borrowing limit of $138,500.

Terms: Subsidized loan requires no payment of principal or interest until six months after the student ceases half-time attendance, as defined below. (For loans first disbursed between July 1, 2012, and June 30, 2014, the student is responsible for the interest during the six-month grace period.) Unsubsidized loan: Interest accrues while the student is enrolled and during the six-month grace period before repayment begins.

To apply:

  • Students are automatically considered for the Direct Loan when they file the FAFSA.
  • An electronic Master Promissory Note (eMPN) must be completed before any loan funds are disbursed. The Financial Aid Office will notify students via their IUP e-mail account or by letter to complete the eMPN.
  • First-time Direct Loan borrowers must complete Direct Loan Entrance Counseling before any loan funds are disbursed.

Federal Direct PLUS Loans: Parent and Graduate Student

Eligibility: Parents of dependent undergraduate students and graduate students.

Amount: Amounts up to the cost of education minus other financial aid may be borrowed if the student is enrolled on at least a half-time basis (6 credits of undergraduate level coursework per term for undergraduates; 4.5 credits of graduate level coursework per term for graduate students).

Terms: Interest rate is fixed at 6.41 percent. Repayment of principal and interest begins 60 days after the funds are fully disbursed for the loan period. Some limited deferment provisions are available. For graduate students, repayment can be deferred until after they graduate or drop below half-time enrollment (4.5 credits).

To apply:

  • A FAFSA must be on file, and the parent or graduate student must complete the PLUS electronic application. To log in, you’ll need your Federal Student Aid PIN (the same PIN you used to sign the FAFSA electronically).
  • You will be notified of the credit decision immediately. The Financial Aid Office receives electronic notification and will process the application within five to seven business days.
  • A credit check is valid for 90 days, so you should not apply any earlier than 90 days before the start of a semester.
  • If your credit is approved, you'll be required to complete the electronic Master Promissory Note (eMPN) for the PLUS Loan.
  • Graduate student borrowers (who have not previously had a PLUS Loan) must also complete Entrance Counseling.
  • If credit is denied for parents of a dependent undergraduate student, the student may be eligible for additional funding in unsubsidized Direct Loan. The Financial Aid Office will automatically review a student's record for eligibility. If credit is denied for a graduate student, he or she may appeal the credit decision or apply with an endorser/cosigner.

Alternative/Private Loans

We strongly recommend that all students apply for federal funding each year by filing the FAFSA and consider borrowing from federal loan sources before they borrow from private student loans. The terms of the federal student loans are generally better.

See more information on alternative private loans.

Federal Perkins Loan

Funded by the federal government and administered by IUP.

Eligibility: Based on financial need.

Amount/terms: Approximately $200–$3,000 per year. For new borrowers, repayment follows a nine-month grace period after ceasing half-time enrollment (six credits of undergraduate level coursework per semester). The minimum repayment rate is $40 per month at a simple interest rate of 5 percent per year on the unpaid balance. Deferment and cancellation privileges are available.

To apply:

  • File the FAFSA by April 15.
  • No IUP application necessary. Students will automatically be reviewed for eligibility. If eligible, it will be a part of the student's financial aid award.
  • Financial Aid Office
  • 200 Clark Hall
    1090 South Drive
    Indiana, PA 15705
  • Phone: 724-357-2218
  • Fax: 724-357-2094
  • Financial Aid Service Counter Hours
  • Monday through Friday
  • 8:00 a.m.–4:30 p.m.