Learn MoreIUP Code: 003277
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.
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
US 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 and interest is fixed at 5.05 percent for the 2018–19 academic year. Unsubsidized loan: Interest accrues while the student is enrolled and during the six-month grace period before repayment
begins. Interest is fixed at 5.05 percent for undergraduates and fixed at 6.60 percent for graduate students for the 2018–19 academic year.
Eligibility: Graduate students and parents of dependent, undergraduate 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 (six credits of undergraduate level coursework per term for undergraduates; 4.5 credits of
graduate level coursework per term for graduate students).
Terms: If loan is first
disbursed between July 1, 2018, and June 30, 2019, the interest rate is fixed at
7.60 percent. If the loan is first disbursed between July 1, 2019, and June 30,
2020, the interest rate is fixed at 7.08 percent.
For loans first disbursed by September 30, 2019, the origination fee is 4.248 percent. For loans first disbursed on October 1, 2019, or later, the origination fee is 4.236 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).
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.
information on alternative private loans.