Is a Loan Right for You?

You (or your parents) can build up considerable debt paying for your IU education with loans. Before you apply for a loan to help pay for college, it's a good idea to explore all the grant and scholarship opportunities available to you. The less you have to repay, the easier it will be to transition into life after college!

  • Scholarships and grants may be available through the state student assistance agency in your home state.
  • A number of computerized scholarship search services and financial aid reference materials are available in the Herman B Wells Library on the Bloomington campus.
  • The IU Career Development Center offers comprehensive placement and counseling services for students interested in working part time, either on or off campus.
  • If students receive other types of financial assistance, it may reduce their eligibility (or their parents' eligibility) for loans.
Who Can Apply for a Loan?

Undergraduate dependent students or their parents can apply for a federal or private loan.

When Do Loans Get Repaid?

Depending on the type of loan you choose, your payments may begin while you are still in school, or after you graduate.

  • Loans must be repaid. Some loans enter repayment shortly after the student drops below half-time student status, graduates, or withdraws from school. Others enter repayment while the student is still enrolled in college.
  • Loans must be repaid even if students do not complete their program of study or cannot find jobs immediately.
  • Students who establish a poor history of educational loan repayment may damage their credit rating for other types of consumer loans.
  • Remember, the federal maximum loan amounts are maximum limits for everyone who is eligible to borrow; the amounts are not related to your own personal earning potential. The maximum amount that students are eligible to borrow through one or more student loan programs may be more than they will be able to repay after leaving school.