Stafford Student Loan Program
Students should always apply for federal, state and University gift assistance before applying for loans. Students may qualify for federal, state, and university grants which do not have to be repaid.
The Stafford Student Loan is a low-interest, federally guaranteed and controlled loan made available to students lacking adequate financial resources to meet the cost of college. Banks, credit unions and savings and loan associations make loans to students without an established credit rating. If the student demonstrates financial need as defined by the federal government, the loan is subsidized (interest paid on student's behalf while in school). If need is not demonstrated, the student may still borrow up to the maximum loan limit; however, interest accrues during the in-school period and must be paid by the student. No payments are required for either type of loan while the student is enrolled at least half-time.
How to Apply
To apply for the Stafford Loan the student must first file the Free Application for Federal Student Aid and the University of Indianapolis Financial Aid Application. Once a financial aid package has been generated, an award letter is mailed to the student.
When you receive your award letter from the Financial Aid Office, we will have already approved your Federal Stafford loan. Unless we hear from you, we will assume that you want the loan amount that has been approved. If you do not want the loan, or you want a different amount, then you will need to contact the Financial Aid Office immediately. Also, we will process the loan using USA Funds as the guaranty agency. If you prefer to use a different guaranty agency (i.e. Great Lakes, TG), then you would need to let us know that as well. If you do not indicate that you are declining the Stafford loan, then we will submit it for guarantee.
If you have borrowed before, then you will not need to do anything else for your loan to guarantee. Once your loan has guaranteed, you will receive an e-mail from the Financial Aid Office confirming the amount, lender, and loan period. You will then have an opportunity to cancel the loan if you want to do so.
If you are a new borrower, you will then be notified by e-mail to complete a Master Promissory Note with the lender of your choice. You can complete the Master Promissory Note online. You may choose one of our preferred lenders or you may choose another lender if you do not want to use one of our preferred lenders. Once your Master Promissory Note is completed, your loan will guarantee and a confirmation will be emailed to you.
Loan Limits
The federal government sets limitations on annual borrowing through the Stafford Loan Program, thus impacting the total dollars that may be awarded to you every two consecutive semesters. Students who are enrolled at least half-time (6 credit hours per semester for undergraduate students, 4.5 credit hours for most graduate programs) may borrow based upon the following factors:
Dependency -- Are you a dependent (file FAFSA with parental data) or an independent (file FAFSA using only your data and spouse) student?
Class level -- Are you considered a freshman, sophomore, junior, senior, or graduate student?
Financial need -- Did you demonstrate financial need when you filed your academic year FAFSA (what was your EFC (estimated family contribution))?
Type of degree -- Are you enrolled in your first undergraduate degree program (Associates or Bachelors), seeking a second Bachelors degree, or working towards a graduate-level degree program (Masters or Doctoral)?
Typically students will be eligible for a base award (subsidized or interest-free while in-school at least half-time) as long as financial unmet need exists as identified through the FAFSA. Students may also borrow up to an additional unsubsidized loan amount. For those students who do not demonstrate financial need, the base award plus the unsubsidized portion of the loan may be awarded entirely as unsubsidized funds. As detailed above, dependency status, class level, and specific degree program also impact the base award plus allowed unsubsidized amounts awarded. Please refer to the guide below to estimate your current eligibility.
|
Class Level |
Base Award (subsidized-with need, or unsubsidized –no need ) |
Dependent Unsubsidized |
Independent Unsubsidized |
|
Freshman |
$ 3,500 |
$ 2,000 |
$ 6,000 |
|
Sophomore |
$ 4,500 |
$ 2,000 |
$ 6,000 |
|
Junior or Senior |
$ 5,500 |
$ 2,000 |
$ 7,000 |
|
Graduate - standard |
$ 8,500 |
$12,000 |
|
|
Graduate – PSYD |
$ 8,500 |
$24,500 |
|
|
Graduate Pre-Requisite |
$ 5,500 |
$ 7,000 |
|
|
Teacher Certification |
$ 5,500 |
$ 7,000 |
*Note – graduate students are considered independent.
Junior / Senior levels – student must be pursuing a Bachelors Degree.
The Stafford Loan Program also sets aggregate (or lifetime) loan limits for students. As with the annual limit guide above, a student’s dependency status, class level, and degree program all impact your prescribed allowed lifetime amounts, as outlined below.
|
Class Level |
Base Award (subsidized with need) |
Dependent Totals (Base + Unsub) |
Independent Totals (Base + Unsub) |
|
Undergraduate |
$ 23,000 |
$ 31,000 |
$ 57,500 |
|
Graduate – standard |
$ 65,500 |
$ 138,500 |
|
|
Graduate – PSYD |
$ 65,500 |
$ 224,000 |
*Note – Graduate students’ lifetime amounts include all loans borrowed during undergraduate study.
Choosing a Lender
You may borrow from any lender who participates in the Stafford Loan Program. Many lenders sell their loans on the secondary market to one of more than 65 secondary loan entities. University of Indianapolis processes loans from any lender the student chooses. Loans are processed as they are received without regard to the lender of choice.
Lender Selection Process
When choosing a lender, the U.S. Department of Education recommends that students compare the following lender services:
University of Indianapolis Policy and Procedures for Creating a Preferred Lender List
The University has established policy and procedures to select lenders for a preferred lender list. These are lenders that meet or exceed objective criteria that are valuable to the student and the University. Choosing a lender can be a challenge for students, so selecting a lender from the preferred lender list may be helpful. Students are free however to choose any lender.
Preferred lenders are chosen by the Financial Aid Policy Committee via a rating system that includes:
Based on these criteria and previous experience up to ten lenders provide information to the Financial Aid Policy Committee who objectively evaluate each lender on over 40 criteria and selects three to five lenders for the preferred lender list.
The evaluation process is conducted annually. While the preferred lender list may change, it is important that, once chosen, the student should borrow from the same lender to avoid multiple payments upon graduation.
Stafford Loan Borrower Benefits
While students may borrow from any lender that they choose, the UIndy believes that our preferred lender arrangements provide our student loan borrowers with comprehensive financing solutions and benefits tailored to their needs. Charter One, SALLIE MAE and Wells Fargo are our preferred lenders.
Private Alternative Loan Lender
Additional funding is often needed to supplement the aid awarded to the student. Students should always apply for gift assistance first and the Stafford Loan before applying for a private loan. Private alternative loans are not subject to federal oversight and a wide array of private loan products are now in the marketplace. Lenders offering private student loans are rated and evaluated with the same criteria as the federal Stafford Loan. Chase, PNC, SALLIE MAE, and Wells Fargo are our preferred private loan lenders. However, UIndy processes loans from any lender the student chooses.
Benefits made available through the preferred lenders include:
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