Rising college costs make borrowing money a fact of life for most college students. More than 65 percent of students attending four-year colleges take out loans.
ISU's preferred filing deadline is November 15th
Once you decide to borrow money for college, you must choose the type of loan you want: a federal student, a parent loan or an alternative loan.
Students are eligible to borrow loans from the government (co-signer free!) but there are some limitations. For example, a student must be enrolled as a part-time student and be considered "degree-seeking" in order to borrow. Be sure to review your potential eligibility, the interest rates, and borrowing limits as you plan for your educational future.
Before you receive funds from a federal loan, you must complete Entrance Loan Counseling and a Master Promissory Note.
When you graduate or stop attending Illinois State at least half time, you will need to determine your repayment options.
The Parent Loan for Undergraduate Students (PLUS) is a loan borrowed in a parent's name for the student's educational expenses. Before a parent applies, please consider the interest rates, origination fees, and eligibility requirements for borrowing and repaying the loan.
Already know you want the PLUS loan? Great- don't forget to complete the application and Master Promissory Note, which is typically available mid-April for the following academic year.
Once you see your account charges (or receive your refund), you might decide you do not need to borrow that much money. You can minimize your loan debt by reducing your loan or canceling it completely.
How to Reduce or Cancel Your Disbursed Federal Loan
You will get an email message about your right to cancel or reduce your loans after each term disbursement. (If your parent borrowed a Direct Parent PLUS Loan, he or she will get a message as well.)
An additional federal loan option for which a student may be considered is the Nursing Loan. To be considered, the student must complete the FAFSA by November 15 each year, enroll at least half-time, and demonstrate need (as determined by the FAFSA). Nursing loan recipients must be enrolled in the Nursing Program in order to borrow the loan. Additional paperwork accompanies this loan, so be sure to complete any and all paperwork to ensure the loan is officially borrowed.
Various banks offer alternative loans (also referred to as private loans) to credit-worthy applicants and co-signors. The interest rates vary and may be much higher than the rates of the federal loans, so investigate your federal loan options before choosing an alternative loan. If you choose to move forward with an alternative loan, we recommend following these easy steps: