The student will receive notification directly from the U.S Department of Education on approval/denial.
A student may borrow the cost of attendance minus any financial aid offered for the school year.
Interest Rates and Fees
The interest rate is fixed at 7.21%. For loans in which the first disbursement is
on or after October 1, 2014, the origination fee is 4.292%. After October 1,
2015, the origination fee is 4.272%.
Payment may be deferred if the student is enrolled half-time. Contact Direct Loans to request deferment.
Disbursement of Funds
Loan funds are applied to student accounts approximately ten days before the
start of the semester.
If the borrower applies for a full academic year loan, half of the amount applied for
is disbursed at the start of the fall semester and the other half at the start of the spring semester.
Funds will first cover direct educational expenses on the student's account.
Any excess funds are refunded to the student via ACH direct deposit or sent
to the student's permanent address.
Loan amounts will be prorated for undergraduate students graduating in
Borrowers have the right to cancel all or a portion of the loan with no penalty by submitting a loan
cancelation form within 30 days of disbursement. Visit
http://indstate.edu/finaid/lar-form.htm for the form.