Loans

Loans provide borrowed money that must be repaid with interest. There are many types of student loans, which may or may not be need-based:

• Subsidized Loans
• Unsubsidized Loans
• Parent PLUS Loans
• Graduate PLUS Loans

The Financial Aid office will determine your loan eligibility based on your Free Application for Federal Student Aid (FAFSA).

Loan Descriptions and Qualifications: 

Federal Direct Student Loan Program

Federal Parent PLUS Loan

Federal Graduate PLUS Loan for Graduate or Professional Students

Alternative Loans

Loan Repayment and Interest

When a student leaves college or drops below half-time status (6 credits), they are allowed a one-time six month grace period. At the end of the grace period, loans repayment begins. 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.

Other Loan Fees Loans?

A Loan Origination Fee is deducted from the gross amount of the loan you accept.

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.

Be advised:

• 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.
  
  

How much can I borrow?

Depending on your year of study, the federal government has limited the amount you can borrow.

Federal loan limits are determined by U.S. Congress and colleges have no authority to exceed these limits.

Your amount may vary depending on financial need and other types of aid awarded. Loan amounts cannot exceed the annual or aggregate maximums listed below.

Annual Maximum

The actual amount a student receives for an academic year may be less than the maximum annual amounts shown below.

Independent Student Subsidized and Unsubsidized Direct Loans

• Freshman year
• Up to $9,500
• Sophomore year
• Up to $10,500
• Remaining years of undergraduate study
• Up to $12,500 for remaining years of undergraduate study

Dependent Student Subsidized and Unsubsidized Direct Loans

• Freshman year
• Up to $5,500
• Sophomore year
• Up to $6,500
• Remaining years of undergraduate study
• Up to $7,500 for remaining years of undergraduate study

Graduate and Professional Student Unsubsidized Loans

• Graduate/professional students are only eligible for unsubsidized student loans after July 1, 2012.
• Up to $20,500

Direct Loan Limits include subsidized and unsubsidized amounts borrowed in the same school year.

Aggregate Maximum

• Undergraduate Dependent Students:
• $31,000 (no more than $23,000 of which can be subsidized)
• Undergraduate Independent Students:
• $57,500 (no more than $23,000 of which can be subsidized)
• Graduate and Professional Students:
• $138,500
  
  

Parent Plus Denied? Dependent Student Loan Options

Dependent students whose parents cannot obtain a PLUS Loan may also qualify for the following annual amounts through the Unsubsidized Direct Loan Program:

• Freshman year
• $9,500 if you are a first-year student enrolled in a program of study that is at least a full academic year (no more than $3,500 of this amount may be in subsidized loans)
• Sophomore year
• $10,500 if you have completed your first year of study and the remainder of your program is at least a full academic year (no more than $4,500 of this amount may be in subsidized loans)
• Remaining years of undergraduate study
• $12,500 if your have completed two years of study and the remainder of your program is at least a full academic year (no more than $5,500 or this amount may be in subsidized loans)
  
  

How far will these loans take you?

• Approximately 4.5 years if a "dependent" student borrows the full annual amount available each year.
• Approximately 5 years if an "independent" student borrows the full annual amount available each year.
  
  

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 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.

In-school Deferment

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:

1. Request your lender to send a deferment form directly to you.
2. Submit the completed form to:

Office of the Registrar
Museum Building Room 318
921 S. 8th Ave., Stop 8196
Pocatello, ID 83209

For 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.

Loans, Work-Study Employment, or Scholarships are other types of aid.