You apply for the Federal Direct Student Loan by filing the Free Application for Federal Student Aid (FAFSA) for each aid year. The IU Kokomo school code is 001814. To maximize your consideration for all types of financial aid, you need to file the FAFSA each year by the April 15th Priority Application Receipt deadline.
Federal Direct Loans
Details
- Two types of Federal Direct Student Loan:
- Subsidized: a need-based loan with the U.S. Department of Education paying the interest while you are enrolled at least
half-time. Effective for subsidized loans first disbursed between July 1, 2012, and July 1, 2014, you will be responsible for the interest during your grace period. - Unsubsidized: a non-need based loan with interest accruing on the loan after disbursement.
- Subsidized: a need-based loan with the U.S. Department of Education paying the interest while you are enrolled at least
- Repayment does not begin until six months after the student graduates or drops below half-time enrollment.
- Master promissory note (MPN) and Entrance Counseling:
- After receipt of your Financial Aid Notification and acceptance of the loan via One.iu.edu, a signed Master Promissory Note for Federal Direct Student Loan and Entrance Counseling must be completed for funds to be disbursed.
- The Master Promissory Note is valid for ten years so continuing students are only required to complete these step if they choose to change lenders or the ten-year limit expires.
- A student must be enrolled at least half-time (undergraduate students: 6 semester hours/graduate students: 4 semester hours) to be eligible.
- After receipt of your Financial Aid Notification and acceptance of the loan via One.iu.edu, a signed Master Promissory Note for Federal Direct Student Loan and Entrance Counseling must be completed for funds to be disbursed.
- Federal Direct Student Loan eligibility is limited by federal aggregates:
- Federal Direct Student Loans must be awarded before the final day of the semester. Students are responsible to complete the FAFSA and to resolve any issues to allow adequate time to determine financial aid eligibility and to award financial aid.
- Problems repaying Federal Direct Student Loans? Options available to you are deferment or forbearance.
| Class | Subsidized/Unsubsidized Amount Combination | Additional Unsubsidized Independent Student |
|---|---|---|
| Freshman | $3,500 | $ 2,000 |
| Sophomore | $4,500 | $2,000 |
| Junior | $5,500 | $2,000 |
| Senior | $5,500 | $2,000 |
| Teacher Certification | $5,500 | $0 |
| Class | Subsidized/Unsubsidized Amount Combination | Additional Unsubsidized Independent Student |
|---|---|---|
| Freshman | $3,500 | $6,000 |
| Sophomore | $4,500 | $6,000 |
| Junior | $5,500 | $7,000 |
| Senior | $5,500 | $7,000 |
| Teacher Certification | $5,500 | $0 |
| Graduate Students | $0 | $20,500 |
| Student Status | Amount |
|---|---|
| Dependent Undergraduate | $31,000 (maximum $23,000 subsidized) |
| Independent Undergraduate | $57,500 (maximum $23,000 subsidized) |
| Graduate/Profession | $138,500 (maximum $23,000 subsidized) |
Entrance Counseling and Master Promissory Note
New Federal Direct Lending borrowers must complete Entrance Counseling and sign a Master Promissory Note.
You need to complete these steps online.