Loans

• Changes Starting in 2026-27

  The One Big Beautiful Bill Act (H.R.1) signed into federal law makes significant changes to some rules for the federal aid (Title IV) programs. These changes will go into effect with the 2026-27 FAFSA (Free Application for Federal Student Aid).

  Full-Time Definition (No change from the current rules): To be considered full-time for the semester, a student must be enrolled in at least 12 credit hours.

  Half-Time Definition (No change from the current rules): Students must be enrolled in at least 6 credit hours to use a Federal Direct Student Loan in a semester.

  *New* Less Than Full-Time Enrollment: Starting in the 2026-27 academic year, Federal Direct Student Loan amounts must be adjusted when a student is enrolled less than full-time for a semester. Financial aid is waiting for complete guidance from the U.S. Department of Education on how to adjust loan funds for all situations.

  Award Calculation:

  
  

  From here, multiply the less-than-full-time percentage (see below for this calculation) by half the full-time annual loan eligibility to determine the less-than-full-time loan amount. 

  Less than full-time formula for loan eligibility:

  

  This adjustment rule applies to all undergraduate student Direct Loan borrowers, utilizing Direct Subsidized Loans and/or Direct Unsubsidized Loans.

  Since this rule only impacts student borrowing, the Federal Direct Parent PLUS Loan is not subject to these adjustments for less-than-full-time study.

• Frequently Asked Questions

  The U.S. Department of Education has not published final rules for the One Big Beautiful Bill Act. As a result, answers to the FAQ’s are based on our current understanding of the law and outcomes of the Negotiated Rulemaking process. They may change when the final rules are released. A date has not been published for when final rules will be available.

  How many credit hours do I need to be enrolled in to be considered full-time for Direct Loan eligibility?

  A minimum of 12 financial aid-eligible credit hours each semester.

  Summer Enrollment – 12 financial aid-eligible credit hours are needed to be considered full-time. As of the writing of this question, Ivy Tech has yet to receive guidance from the U.S. Department of Education on how to adjust loans for summer enrollment below full-time.

  What happens if I change my schedule before the loan money is disbursed?

  If you are an undergraduate enrolled for 12 financial aid-eligible credit hours in the fall term and reduce your schedule to less than full-time before your fall loan is disbursed, Ivy Tech is required to reduce your fall loan based on the new rules.

  If you are enrolled for 12 financial aid-eligible credit hours in the fall term and reduce your schedule to less than full-time after your fall loan is disbursed, you may be able to keep the full fall loan disbursement, but your spring loan disbursement may be reduced if you are only taking 12 hours in the spring.

  Will a Parent PLUS Loan be reduced if a student enrolls for less than full-time?

  Students who are less than full-time often have a Cost of Attendance that is lower than full-time students. A smaller Cost of Attendance can lessen the maximum amount of Parent PLUS Loan eligibility.

  Under the new rules, Parent PLUS Loans are not reduced the same way as Direct Subsidized Loans and Direct Unsubsidized Loans for less than full-time enrollment.

Federal Direct Student Loans

• Direct Subsidized Loans

  Federal Direct Student Loan — Subsidized

  Key Highlights

  The U.S. Department of Education pays the interest while the student is enrolled at least half-time (6 credit hours), for six months after graduation, and a period of deferment. Eligibility is not based on credit rating/score and does not require a credit check. Direct Subsidized Loans eligibility is based on need.

  How to Request a Direct Subsidized Loan:

  1. Fill out the FAFSA (Free Application for Federal Student Aid) at fafsa.gov and list Ivy Tech Community College (school code: 009917).
     
     • If asked, turn in additional documents to the Financial Aid Office.
  2. Sign up for and attend at least 6 credit hours in a financial aid-eligible degree or certificate program each semester.
  3. Some students will get a loan offer automatically if they:
     • Had a loan last year at Ivy Tech Community College
     • Meet Satisfactory Academic Progress (SAP) rules
  4. If a loan is not offered, fill out the Federal Direct Student Loan Request form. The form is required if the student:
     
     • Is a new borrower
     • Is on Satisfactory Academic Progress (SAP) probation
     • Withdrew from all classes during any semester in the last two years,
     • Also wants an Unsubsidized loan,
     • Or wants a summer loan.
  5. The following may be needed too: 
     
     • Sign a Master Promissory Note (MPN) at  StudentAid.gov
     • Complete Loan Entrance Counseling at  StudentAid.gov 

  Start a New Loan Request

  How to Accept or Decline a Loan:

  1. Log into MyIvy
  2. Click My Financial Aid on the left side of the screen, under My Info.
  3. Click Offer.
  4. In the Take Action column of the Federal Direct Subsidized Loan row, under the Loans header, choose Accept, Decline or Modify from the option box on the right.
  5. If Modify is chosen, a smaller dollar amount can be accepted.

  Annual Borrowing Limits

  Limits are based on grade level, dependency status, and loan type.

  	Dependent Status	Independent Students1
  Freshman	$5,500; No more than $3,500 may be in subsidized loans	$9,500; No more than $3,500 may be in subsidized loans
  Sophomore	$6,500; No more than $4,500 may be in subsidized loans	$10,500; No more than $4,500 may be in subsidized loans
  Maximum Lifetime	$31,000; No more than $23,000 may be in subsidized loans	$57,500; No more than $23,000 may be in subsidized loans

  ¹ and dependent undergraduate students whose parents are unable to obtain PLUS Loans.

  Interest Rates and Fees

  Click here for information on interest rates and fees associated with the Direct Loan program.

  Loan Payment and Refund Timing

  Loan money must first be sent to Ivy Tech Community College to pay tuition, fees, and other charges. If money is left over, a refund is sent to the student. Learn more about the financial aid payment and refund timing.

  Refund timing can vary based on things like when classes start, first-time borrower status, and when loan steps are completed. Not all students receive funds at the same time.

  IMPORTANT:

  • First-time, first-year borrowers must wait 30 days after classes start to receive loan funds.
  • Single-semester loans are disbursed into two payments. 

  Exit Counseling

  Exit counseling is required after graduating, leaving school, or dropping below 6 credit hours. This is required even when transferring or planning to return later. It explains loan repayment and how to manage student loans. To complete Exit Counseling, visit studentaid.gov and click on the “Complete Exit Counseling.”

  Repayment

  Loan money must be paid back with interest and possible fees.

  There are different repayment plans. The amount borrowed and plan chosen determines the payment amount and length of repayment. More details are available at studentaid.gov. 

  After repayment starts, a loan servicer will be assigned by the U.S. Department of Education. A notice will be sent to the student with this information. It is possible to have more than one servicer. Loan history and servicer details can be found by logging into the National Student Loan Data System (NSLDS) at nslds.ed.gov with an FSA ID.

  Loan Simulator

  The loan simulator on studentaid.gov helps estimate monthly payments and compare repayment plans. It can also help decide if loan consolidation is a good option.

  View Loan Simulator

  Video: What is a Federal Direct Student Loan?

  

  Video: Types of Federal Student Loans

  
• Direct Unsubsidized Loans

  Federal Direct Student Loan — Unsubsidized

  Key Highlights

  Interest will accrue once the loan is disbursed. Eligibility is not based on credit rating/score and does not require a credit check. Loan repayment begins after graduating, leaving school, or dropping below 6 credit hours.

  How to Request a Direct Unsubsidized Loan:

  1. Fill out the FAFSA (Free Application for Federal Student Aid) at fafsa.gov and list Ivy Tech Community College (school code: 009917).
     
     • If asked, turn in additional documents to the Financial Aid Office.
  2. Sign up for and attend at least 6 credit hours in a financial aid-eligible degree or certificate program each semester.
  3. Fill out the the Federal Direct Student Loan Request. The form is required if the student:
     • Is a new borrower
     • Is on Satisfactory Academic Progress (SAP) probation
     • Withdrawn from all classes during any semester in the last two years,
     • Wants an Unsubsidized loan for any semester,
     • Or wants a summer loan.s
  4. The following may be needed too: 
     
     • Sign a Master Promissory Note (MPN) at  StudentAid.gov
     • Complete Loan Entrance Counseling at  StudentAid.gov 

  Start a New Loan Request

  How to Accept or Decline a Loan:

  1. Log into MyIvy
  2. Click My Financial Aid on the left side of the screen, under My Info.
  3. Click Offer.
  4. In the Take Action column of the Federal Direct Unsubsidized Loan row, under the Loans header, select Accept, Decline or Modify from the option box on the right.
  5. If Modify is chosen, a smaller dollar amount can be accepted.

  Borrowing Limits

  Limits are based on grade level, dependency status and loan type.

  	Dependent Status	Independent Students1
  Freshman	$5,500; No more than $3,500 may be in subsidized loans	$9,500; No more than $3,500 may be in subsidized loans
  Sophomore	$6,500; No more than $4,500 may be in subsidized loans	$10,500; No more than $4,500 may be in subsidized loans
  Maximum Lifetime	$31,000; No more than $23,000 may be in subsidized loans	$57,500; No more than $23,000 may be in subsidized loans

  ¹ and dependent undergraduate students whose parents are unable to obtain PLUS loans.

  Interest Rates and Fees

  Click here for information on interest rates and fees associated with the Direct Loan program.

  Loan Payment and Refund Timing

  Loan money must first be sent to Ivy Tech Community College to pay tuition, fees, and other charges. If money is left over, a refund is sent to the student. Learn more about the financial aid payment and refund timing.

  Refund timing can vary based on things like when classes start, first-time borrower status, and when loan steps are completed. Not all students receive funds at the same time.

  IMPORTANT:

  • First-time, first-year borrowers must wait 30 days after classes start to receive loan funds.
  • Single-semester loans are disbursed into two payments. 

  Exit Counseling

  Exit counseling is required after graduating, leaving school, or dropping below 6 credit hours. This is required even when transferring or planning to return later. It explains loan repayment and how to manage student loans. To complete Exit Counseling, visit studentaid.gov and click on the “Complete Exit Counseling.”

  Repayment

  Loan money must be paid back with interest and possible fees.

  There are different repayment plans. The amount borrowed and plan chosen determines the payment amount and length of repayment. More details are available at studentaid.gov. 

  After repayment starts, a loan servicer will be assigned by the U.S. Department of Education. A notice will be sent to the student with this information. It is possible to have more than one servicer. Loan history and servicer details can be found by logging into the National Student Loan Data System (NSLDS) at nslds.ed.gov with an FSA ID.

  Loan Simulator

  The loan simulator on studentaid.gov helps estimate monthly payments and compare repayment plans. It can also help decide if loan consolidation is a good option.

  View Loan Simulator

  Video: What is a Federal Direct Student Loan?

  

  Video: Types of Federal Student Loans

  
• Direct Parent PLUS Loans

  Federal Direct Parent PLUS Loan (Direct PLUS Loan)

  Key Highlights

  The U.S. Department of Education provides this loan. It is for parents of dependent undergraduate students who qualify for financial aid. No minimum credit score is required, but a credit check is done. Parents with a negative credit history may not qualify.

  How to Apply:

  1. The student fills out the FAFSA (Free Application for Federal Student Aid) at fafsa.gov and lists Ivy Tech Community College (school code: 009917).
     
     • If asked, turn in additional documents to the Financial Aid Office.
  2. The parent will go to StudentAid.gov and login with their FSA ID.
     
     • Click “Apply for Aid,” then choose “Apply for a Parent PLUS Loan,” and follow the steps which includes a credit check.
  3. If approved:
     • The parent completes a Master Promissory Note (MPN) for the Parent PLUS Loan.
     • The Financial Aid office will calculate the maximum amount that can be borrowed and process the loan for the amount requested or the amount available.
     • If borrowing for the full year, the loan is split between fall and spring.
  4. If not approved:
     • The parent can identify an endorser who will take on legal responsibility for loan repayment if the parent defaults. The endorser cannot be the student and must pass a credit check. Learn more at StudentAid.gov
     • The parent can waive an endorser so the student may be able to get more Direct Unsubsidized Loan money. The student should contact their campus Financial Aid office for more information.

  Borrowing Limits

   The amount a parent can borrow is based on the student’s enrollment, grade level and other financial aid. These factors tell the Financial Aid office the maximum amount available for the loan.

  Beginning July 1, 2026, the maximum amount of Parent PLUS Loans that can be borrowed a year on behalf of a student is $20,000. The aggregate loan limit will be $65,000 per dependent student, not per parent borrower. Find more details at studentaid.gov.

  Interest Rates and Fees

  Visit studentaid.gov for current interest rates and fees.

  Loan Payment and Refund Timing

  Loan money must first be sent to Ivy Tech Community College to pay the student’s tuition, fees, or other charges. If money is left over, a refund is sent to the person chosen by the parent. Learn more about the financial aid payment and refunding timing

  Repayment

  A Parent PLUS Loan is borrowed by the parent, not the student, so the parent is responsible for repayment. The Parent PLUS Loan cannot be transferred to the student.

  Repayment begins within 60 days of the final disbursement, unless the parent chooses to delay repayment while the student is in school at least half-time. If the parent cannot make their scheduled parent, they should contact their loan servicer for more information about deferment and forbearance options.

  Repayment plan options have changed, please visit studentaid.gov for more information on the available plans.

  Loan Simulator

  StudentAid.gov's Loan Simulator helps you calculate student loan payments and choose a loan repayment option that best meets your needs and goals. You can also use to decide whether to consolidate your student loans.

  View Loan Simulator

  Video: What is a PLUS Loan?