Loans provide borrowed money that must be repaid with interest. There are several types of student loans, which may or may not be need-based:
- Subsidized Loans- the government pays the interest while you are in school, enrolled at least half-time (6 credits).
- Unsubsidized Loans- interest will accrue while you are in school (must be enrolled in at least 6 credits, 5 credits for graduate students).
- Parent PLUS Loans- Parents of dependent undergraduates enrolled at least half-time (6 credits) may receive a Parent PLUS Loan for undergraduate students. Eligibility is not based on financial need, but approval is dependent on the parent's credit history. The loans are made regardless of income level and are offered through the Direct Loan program. PLUS Loans through the Direct Loan program have a fixed interest rate set by the U.S. Government.
- Graduate PLUS Loans- Graduate or professional students are now eligible to borrow under the PLUS Loan Program up to their cost of attendance, minus other estimated financial assistance. You must have applied for your annual loan maximum eligibility under the Federal Unsubsidized Stafford Loan Program before applying for a Graduate PLUS Loan.
The Financial Aid office will determine your loan eligibility based on your Free Application for Federal Student Aid (FAFSA).
If you qualify for and accept loans, loan proceeds are transmitted to the ISU Financial Services Office and paid directly to the student's school account.
A Loan Origination Fee is deducted from the gross amount of the loan you accept. Any balance remaining will be disbursed to the student from Student Financial Services at (208) 282-3000.
U.S. Department of Education published the final rule in Federal Register (79 FR 3108) implementing the Moving Ahead for Progress in the 21st Century Act (MAP-21) Public Law 112-141: 150% Subsidized Loan Limit Regulatory Requirement that added a new provision to the Direct Loan statutory requirements that limits a first time borrower’s eligibility for Direct Subsidized Loans to a period not to exceed 150 percent of the published length of the borrower’s educational program (“the 150% limit”).
For all forms of federal financial aid, the terms of Repeat Coursework apply to credit requirements.
Two loan disbursements are required for all federal loans. A 30-Day Delay is required on first disbursements for first-time, first-year borrowers.
Federal regulations require that all Direct Loans (subsidized, unsubsidized and PLUS) must be disbursed in two disbursements based on your enrollment period. The first disbursement for first-time, first-year borrowers will be 30 days after the beginning of the first semester in which you are enrolled at least half-time.
As a first time Federal Direct Loan borrower or a new student at Idaho State University receiving Federal Direct Loans, you must complete 2 online forms to receive loans:
- This requirement applies only to first-time loan borrowers at ISU. If you have previously borrowed a loan at ISU, you do not need to complete Entrance Counseling for 10 years. To ensure that you understand this responsibility and the obligation you are assuming when borrowing student loans, the federal government requires you to participate in Loan Entrance Counseling before your loan funds can be disbursed. During entrance counseling, you will receive facts about loans, managing your educational expenses, and your rights and responsibilities as a borrower.
- The MPN is a legal document you must sign with your FSA ID agreeing to pay back your loans. Plain Language Loan Disclosure Information is available. The MPN will apply to your student loans for 10 years, except in the case of Graduate PLUS loans which require a MPN every year.
It will take approximately 30 minutes to complete and sign your entrance counseling form and electronic MPN. You will need the following information:
- Your FSA ID
- If you do not already have an FSA ID, you will need to apply for an FSA ID (may require Social Security verification- 3 days before available for use).
- Your permanent address
- Your mailing address (if different from permanent address)
- Your telephone number
- Email address
- Employer name
- Employer address
- School name
- Reference information for two people you have known for at least 3 years (first reference should be a parent or legal guardian).
- Reference names
- Reference addresses
- Reference telephone numbers
- References’ relationship to you
Proof of completion will be sent to ISU Financial Aid in mid-July. If you have completed the proper entrance counseling and promissory note forms, Bengal Web may still show a red flag indicating “action needed” next to the requirement. These will change to green checks (requirement fulfilled status) in mid-July when proof of completion is received.
If you have any questions, please contact the Financial Aid Office at (208) 282-2756.
If a student drops below 6 credits (5 credits for graduate students), exit counseling for loans is required.
Loan repayment begins after the one-time six month grace period. Interest begins accruing at the beginning of the grace period.
Under some conditions, repayment may be deferred. Call your Loan Servicer for information.
To determine who your loan servicer is, see "Financial Aid Review" on the National Student Loan Data System.
Terms of Repeat Coursework apply for credit requirements.
Pro-rated Loans for Fall Semester Graduating Seniors
Federal regulations require student loans for undergraduates who will graduate at the end of fall semester be "pro-rated" for the fall term based on the number of credits in which the student is enrolled.
Subsidized and unsubsidized loans are initially awarded based on full-time enrollment (12 or more credits).
Loan amounts must be adjusted to reflect actual enrollment if enrolled less than full-time. Ideally, students should contact the ISU Financial
Aid Office prior to disbursement to request a revision to their award if attending less than full-time.
If adjustments need to be made after disbursement, the student may incur a bill for the over-award.
- You should enroll only in the classes you need to graduate.
- Loan eligibility will be based upon the number of credits in which you enroll.
- You must have a minimum 6 credits to be eligible for subsidized and unsubsidized loans.
- The ISU Repeat Coursework policy applies.
Obtaining Loan Deferments
A deferment is a temporary suspension of a borrower's monthly loan payment. There are many different types of deferments available.
During deferment of subsidized loans, principal payments are postponed and interest is not accrued.
- Interest subsidy on Direct Subsidized Loans during the six-month grace period provided to students while they are no longer enrolled on at least a half-time basis has been eliminated. Interest on Subsidized Loan will begin accruing as soon as the student enters their grace period.
During deferment of unsubsidized loans, principal payments are postponed but interest continues to accrue. Accrued unpaid interest will be added to the principal balance (capitalized) of the loan(s) at the end of the deferment period. This will increase the amount borrowers owe.
If you are attending an eligible school on at least a half-time (6 credits or more) status you may qualify for in-School deferment. This is usually reported automatically by the Registrar's Office.
A student is eligible for loan deferment if they are seeking a degree and are registered in 6 credits as an undergraduate or 5 credits as a graduate student. Terms of Repeat Coursework apply.
If your lender contacts you about repayment of your loans:
- Request your lender to send a deferment form directly to you.
- Submit the completed form to:
Office of the Registrar
Museum Building Room 318
921 S. 8th Ave., Stop 8196
Pocatello, ID 83209
All Other Deferments (military, hardship, etc.) and to avoid delinquency:
Call your individual loan servicer. To determine your servicer, log into "Financial Aid Review" on the National Student Loan Data System.
Avoid Delinquency or Default of your student loans
Delinquent loan payments can fall into default status- act now!
Any student who has borrowed a federal student loan to attend ISU who is also in delinquent status with their loan repayment, will be (or has already been) receiving regular email, phone and text messages from "Borrow Wisely" containing information on how to resolve the delinquency and get their student loan account back into good standing.
If your loan account(s) is delinquent past 270 days, it may fall into default status (loans default at 270 days, however the agency which holds your loan, your servicer, has 90 days to transfer ownership to collections and you will be contacted to resolve your delinquency until your loan status changes to default).
The financial consequences of default are absolutely terrible and we don't want any of our current or former students to ever have to experience them!
What to do if your loan is in delinquency or default status:
Contact your servicer immediately! Ask about your options to resolve any Delinquency (or Default). Your financial future is worth the time this will take.
As you open each loan you will see the status of your loan and who the servicer is.
Don't get discouraged.
If you are in default on your federal student loan. There are options for getting your loan out of default. Learn about options >
When placed in default, any William D. Ford Federal Direct Loan (Direct Loan) Program loan or Federal Family Education Loan (FFEL) Program loan that is owned by the U.S. Department of Education (ED) is assigned to ED's for collection. You can contact the Default Resolution Group.
There are also some steps you can take to resolve your loan dispute. You should first identify your loan problem, and then contact your loan servicer.
Consider Consolidating School Loans
You may have received loan consolidation promotions from a number of private lenders. Be careful about responding to telephone solicitations.
- U.S. Department of Education Federal Student Aid is a safe option, as is your loan servicer.
- You can complete the application and sign the promissory note online using your FSA ID from the U.S. Department of Education.
- If you set up automatic electronic payments, you may be able to reduce the interest rate of your loan.
Borrower Based Academic Year (BBAY) Loan
Students in the Physician Assistant program, Pharmacy students in the required summer session for P-3 (rotations), and Occupational/Physical Therapy students are automatically awarded and not required to file the Summer Supplement form for Borrower Based Academic Year (BBAY) loan eligibility.
In addition, on a case by case basis, other students with unusual circumstances can ask for BBAY award consideration. It will be up to the financial aid administrator's professional judgment to grant this eligibility.
BBAY is available for students who are enrolled in higher cost programs that require year-round enrollment of at least half-time each semester.
Note: We cannot consider BBAY for a student who only has one semester remaining until graduation.
Additional Loan Information
- Loan Programs Fact Sheet- Types of Federal Student Loans
- List of all Loan Servicers - (Websites, phone numbers)
- Public Service Loan Forgiveness
- Teacher Loan Forgiveness
- Your Federal Student Loans: Learn the Basics and Manage your Debt
- Loan FAQs
News and Updates