Prior to considering private student loans, students are strongly encouraged to complete the Free Application for Federal Student Aid (FAFSA) annually by the April 15 Priority Application Receipt Deadline to receive maximum consideration for financial aid. Private Student Loans should be considered after all other sources of financial aid (grants, scholarships, federal work-study, and federal student loans) have been exhausted.
The IU Kokomo Office of Financial Aid and Scholarships will review and certify Private/Alternative Loans for eligible students with your preferred lender.
Truth in Lending Requirements
Based on provisions in the Truth in Lending Act, lenders must comply with the following requirements:
- Lenders must provide 3 separate loan disclosures to borrowers
- one at the point of application
- one when the loan is approved
- one before the loan is disbursed
- A waiting period of 3 business days is required between the time the borrower receives the final loan disclosure and the time the loan is disbursed.
- Students must sign an Applicant Self-Certification Form and submit it to the lender before the loan can be disbursed.
Private Student Loan Self-Certification
As part of the private loan application process the lender will provide you with an Applicant Self-Certification form. You will need the following items, which can be found on the student portal to complete Section 2 of the form.
- The student's Cost of Attendance (COA) for the period of enrollment covered by the loan;
- Any estimated Financial Assistance (EFA) for the period of the enrollment covered by the loan; and
- The difference between the COA and EFA.
Private Student Loan Options
Though we encourage students to utilize employment opportunities and summer earnings to finance their education, we realize there are some situations where students need to borrow beyond this. It is our goal to help each student understand the financial obligations they commit themselves to when borrowing. When selecting a private loan lender, carefully examine the rates and terms associated with the loan. The borrower's and/ or co-borrower's credit will be examined to determine approval of the loan. Eligibility of the loan amount applied for will be determined by the cost of education minus the total of financial aid received.
Please note:
- You may qualify for federal education loans or other assistance. Please check your financial aid award and the various federal loan links available on our Student Loan Information page.
- The IU Kokomo Office of Financial Aid and Scholarships does not endorse any lender and we will process a loan from any lender you choose.
Applying for a Private Loan
Listed below is a loan comparison tool called the INvestEd Marketplace. This tool allows you to compare actual rates from multiple lenders. Once you have chosen a lender, an application will have to be completed on the lender's website. As a borrower, you have the option to select any lender you choose. Please understand that we will process a loan with a lender that is not listed. If you have any questions regarding the process, please contact INvestEd.
