FEDERAL LOANS
The IIT Downtown Campus (DTC) Office of Financial Aid participates
in a number of major loan programs sponsored by the federal government. Federal Stafford Loans (Subsidized
and Unsubsidized)
The federal government offers these loans to eligible students
through participating banks, credit unions, and savings and loan
institutions. Graduate students may apply for up to $20,500
per academic year, of which $8,500 may be subsidized (the
federal government pays the interest while the student is in school
and during grace periods and eligible deferment periods) if the
student qualifies on the basis of need.
The student will be responsible for in-school interest on any
unsubsidized portion borrowed. Students may borrow up to a combined
aggregate maximum of $138,500 for both undergraduate and graduate
loans through this program.
The interest rate for these loans is fixed at 6.8%. Interest
on a subsidized loan does not begin to accrue until six months
after the student ceases at least half-time enrollment, at which
time repayment of principal and interest begins.
For the 2008-2009 academic year, Federal Stafford loans will
be processed with the lender that was selected for the current
(2007-08) year and will be for the amounts that are accepted throuh the myIIT portal. If you wish to select a different lender, complete a new Master Promissory Note with the lender of your choice and immediately
notify the Financial Aid Office via e-mail.
First time IIT(DTC) borrowers should review the Federal
Stafford Loan Comparison Chart, select one of the lenders,
and complete their on-line application.
Federal Perkins Loan
The Federal Perkins loan is awarded to students who demonstrate exceptional financial need. IIT strongly encourages all students who wish to be considered for the Federal Perkins to submit the FAFSA to the U.S. Department of Education by the March 15 deadline.
The Financial Aid Office will award up to $3,000 per academic
year to all eligible law, business and MPA students. These funds are limited and awarded on a first come, first serve basis.
The following students are not eligible to receive the Perkins
loan:
• Students who are visiting another law school not paying
IIT tuition
• Honors Scholars
• Students receiving full tuition scholarships
• IIT Staff who receive tuition remission.
The interest rate of the Federal Perkins Loan is 5 percent. Repayment begins and interest begins to accrue nine months after the borrower ceases to be enrolled at halftime. The minimum repayment rate on these loans is $40 per month,
but may be more in order to meet the 10-year maximum repayment
requirement. Students are eligible for a variety of deferment benefits associated with the Perkins loan.
For borrowers of Federal Perkins, the Student Loan Office generates Institutional Promissory Notes, which are different from Master Promissory Notes. At the beginning of each academic year, borrowers must sign Institutional Promissory Notes before loan money can be credited to the student's account. The promissory note is distributed by the Bursar Office on Downtown Campus room 270.
Federal Graduate Plus Loan
The Graduate PLUS Loan is be beneficial for students who need
additional aid beyond the Federal Stafford and/or Perkins Loan.
Previously, the only option available to these students was a
private loan. The interest rate is fixed at 8.5%. The standard
repayment period is 10 years. Borrowers may be able to extend
the repayment period to as long as 25 depending total student loan debt amounts. Students must meet federal credit criteria
to qualify.
Unlike undergraduate PLUS loans, where the borrower is the student’s
parent, Graduate PLUS loans allow only the student to be the borrower.
The primary reason why this loan is more beneficial than private
loans is the fixed interest rate.
First time IIT(DTC) borrowers should review the Federal
Graduate Plus Loan Comparison Chart, select one of the lenders,
and complete their on-line application.
If you decide to apply for the private loan instead of the Graduate
PLUS Loan, You must do the following:
Notify the Office of Financial Aid via email at finaid@kentlaw.edu
or finaid@stuart.iit.edu. Apply with your lender. Once your private
loan is approved and completed with your lender, the Office of
Financial Aid will be notified electronically to complete the
school certification request. If you choose to use a private loan
instead of the Graduate Plus Loan and do not notify our office
of your decision, we will not certify the private loan.
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