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Undergraduate Loans

Loans are awarded after to a student after they are packaged for grants, scholarships, and Federal Work-Study. A financial aid package may include loans that are need-based and/or non need-based.

Federal Direct Subsidized/Unsubsidized Loans

Description

Direct Stafford Subsidized Loans are offered to undergraduate students with demonstrated financial need as determined by the FAFSA. The federal government pays the interest on subsidized loans while the student is enrolled in at least 6 credit hours (i.e. “half-time”) in undergraduate coursework. Direct Stafford Unsubsidized Loans are offered to any student who has completed the FAFSA. Direct unsubsidized loans are not need-based. A student will qualify for a direct unsubsidized loan regardless of their Expected Family Contribution (EFC). Interest on a direct unsubsidized loan accumulates while a student is enrolled in undergraduate courses. Interest that is not paid while the borrower is enrolled will be capitalized and added to the principal at the time of repayment. All direct loans need to be repaid after a student has graduated or drops below half-time enrollment.

Eligibility

Annual and aggregate loan limits apply. For information on annual/aggregate Stafford Loan limits please visit the Department of Education’s page on Direct Subsidized and Unsubsidized Loans and the Office of the Registrar's page on earned credit hours.

Disbursement Information

In order for Federal Loans to disburse to a student's account, the student must accept their loan(s) on the myIIT portal. Once the loans are accepted, the student must complete Entrance Counseling and sign a Master Promissory Note (MPN) with the Department of Education (if it hasn’t been done so in a prior year). After the Entrance Counseling and MPN are complete, the Department of Education will send the Office of Financial Aid a report with the completed requirements for the Stafford Loan. This information will also reflect as “Satisfied” on the student's myIIT portal. When these steps are finalized, the accepted loan(s) will memo or disburse to the student's account.

*The disbursement process can take up to one week to be finalized. 

Federal Perkins Loan

Description

The Federal Perkins Loan is awarded by Illinois Tech to students who demonstrate exceptional financial need as determined by the FAFSA. The federal government pays the interest on a Federal Perkins Loan while the student is enrolled in at least 6 credit hours (i.e. “half-time”).  Federal Perkins Loans need to be repaid after a student graduates or drops below half-time enrollment.

Eligibility

Aggregate loan limits apply. For information on annual and aggregate Stafford Loan limits please visit the Department of Education’s page on Federal Perkins Loans.

Disbursement Information

In order for a Perkins Loan to disburse to a student's account, the student must accept the award on their myIIT portal. Once the loan is accepted, ECSI (the lender who manages Ilinois Tech Perkins Loans) will contact the student via their Hawk email, requesting that they complete an online MPN for their records. After the MPN is complete, ECSI will send the Office of Student Accounting a report indicating that the necessary requirements for the Perkins Loan have been completed. This information will also reflect as “Satisfied” on the myIIT portal*. When these steps are finalized, the Perkins Loan will memo or disburse to the student's account.

*The disbursement process can take up to one week to be finalized. 

Federal Direct Parent PLUS Loan

Description

The Federal Direct PLUS Loan is a loan offered to parents of dependent undergraduate children who are enrolled in at least 6 credit hours (i.e. “half-time”). The parent is responsible for the interest that accrues immediately upon the PLUS Loan disbursement. Interest may be paid quarterly while the dependent is enrolled at least half-time. The parent borrower may also elect to defer all interest payments until completion of the student's degree program. If this option is chosen, interest will be capitalized and added to the principal at the time of repayment.

Eligibility

Applicants must be a U.S. citizen or an eligible non-citizen who is not in default on a student loan. Applicants are subject to a credit check. Denied applicants may seek an endorser. Students whose parents are denied the PLUS Loan will be offered additional Direct Unsubsidized Loan funding, presuming they have not met their annual/aggregate loan limit.

Disbursement Information

In order for a Parent PLUS Loan to disburse to a student's account, the student must accept the award on their myIIT portal. Once the loan is accepted, a parent must complete a Federal Direct PLUS Loan Application* and sign a Master Promissory Note (MPN) with the  Department of Education. After the parent’s PLUS Loan Application and MPN are completed, the Department of Education will send the Office of Financial Aid a report indicating the completed requirements for the student's PLUS Loan. This information will also reflect as “Satisfied” on the myIIT portal**. When these steps are finalized, the Parent PLUS Loan will memo or disburse to the student's account.

*Not all parents are approved for the Parent PLUS Loan. If a parent is denied the loan, the Office of Financial Aid will reach out to the student with further options.
**The disbursement process can take up to one week to be finalized. 

Private Loans

When selecting a private loan, consider using FASTChoice, a compilation of lenders who are selected by our staff because of their friendly lending practices. After a lender is selected, a student needs to apply for the loan itself. If the student is approved for a loan, the lender will contact Illinois Tech requesting we certify the loan. After a private loan is certified, the student will receive an email within 24 hours. The loan will disburse to your account within three weeks of certification (presuming class is in session) assuming no additional information is required by the lender or the Office of Financial Aid.