Types of Financial Aid
Most aid is based on need as determined by the Free Application For Federal Student Aid (FAFSA). The most common forms of student aid are:
Scholarships - do not need to be repaid
Monetary awards available from the university or through external sources
Determined by academic achievement and/or financial need
Applied directly to your college costs
May or may not be based on need
Tho following require a FAFSA unless noted.
Grants - do not need to be repaid
Tuition assistance awards available from the federal or state government
For state grants, you must file the FAFSA by the priority date of March 10.
Eligibility for federal grants is based on income, household size, and the number of dependents in college.
Receipt of federal and state grants is not guaranteed from one year to the next.
The amount of Federal Pell Grant you receive for each semester or summer session is based on your enrollment as determined by the Office of the Registrar on census date. Check the schedule of classes for the appropriate census date.
The Federal Pell Grant amount received is prorated by the number of the credit hours enrolled for each term or semester.
Most state awards, including those from the State Student Assistance Commission of Indiana, require full-time enrollment through the cenus date established by SSACI.
To be considered for a Federal Supplemental Educational Opportunity Grant (FSEOG), students must file the FAFSA by the priority date of March 10.
Work-Study
Part-time employment on campus or off campus at approved sites during academic year or summer
Funds are paid bi-weekly through the institution’s payroll system.
Students must file the FAFSA and the IU South Bend Application for Financial Aid (not required for 2009/10 and beyond) by the priority date of March 10.
Loans - must be repaid
Money borrowed from a financial institution, the Federal Goverment, or the university to pay for college expenses
To be considered, students must request loan funds via the FAFSA and the IU South Bend Application for Financial Aid (if requesting loans for the 2008-2009 academic year and summer 2009).
Students must complete a master promissory note for all loans before funds are credited to their account.
Two types of loans are available at IU South Bend—Federal Perkins Loans and those offered through the Direct Loan program.
To be considered for a Federal Perkins Loan, students must file the FAFSA by March 10 of each year.
There are two types of Direct Loans available to students—subsidized and unsubsidized.
Subsidized loans are federal loans which the government pays the interest on while the student maintains at least half-time enrollment.
If a student receives an unsubsidized loan, he or she is expected to pay the interest while enrolled in school or have it capitalized. Unsubsidized loans can replace expected family contribution.
If you accept a Federal Direct Loan, you will not be borrowing from a bank. Direct Loans are loans made with federal capital and owned by the federal government. Loan repayments are made to the government, and Direct Loans are never sold.
The Office of Financial Aid administers the loans; determines your loan eligibility; approves the loan; confirms the promissory note, when necessary; receives the funds from the federal government; and credits the loan amount directly to your University student account.
Please note: Because IU South Bend participates in the Direct Loan program; we do NOT process Subsidized, Unsubsidized Stafford Loans or PLUS Loans through private lenders.
Private Alternative Loans
Private student loans are offered by private lending institutions as an alternative aid option if additional funding is needed to supplement your state and federal aid. Before you consider borrowing a private student loan, we recommend you apply for federal student loans, which generally have better terms and lower interest rates.
You should consider a number of factors before applying for a private student loan. For your convenience we have listed several of those factors below:
Private student loans are usually higher interest rate loans with interest that accrues while the student is in school.
Students must have a good credit history to obtain private student loans. You may need a credit worthy co-borrower to receive a private student loan.
The lenders interest rate on your private student loan is variable and dependent upon your credit history, and if applicable, your co-borrower’s credit history.
Students should make an appointment with a Financial Aid Administrator before applying for an alternative loan.
Here is some additional information on each type of student aid:
Scholarships - FAFSA maybe required
IU South Bend awards scholarships that are funded by private donors, business and industry, and friends and alumni of Indiana University. Recipients are selected based on a variety of criteria, including academic performance and financial need. A complete list of IU South Bend scholarship opportunities is available from the Office of Student Scholarships.
FastWEB is the largest and most complete scholarship search on the Internet. It provides access to a searchable database of more than 600,000 private sector scholarships, fellowships and grants.
Need-Based Federal and State Grants - FAFSA required
Federal Pell Grants provide financial assistance to full- and part-time undergraduate students who attend postsecondary educational institutions. Students may apply for the Federal Pell Grant by submitting the FAFSA.
Federal Supplemental Educational Opportunity Grants assist students with high need who also qualify for Pell Grants.
Indiana Higher Education Awards for Indiana residents are determined by the State Student Assistance Commission of Indiana (SSACI) and are based on financial need. Students must submit the FAFSA by March 10.
An Academic Competitiveness Grant will provide up to $750 for the first year of undergraduate study and up to $1,300 for the second year of undergraduate study. Students must be at least half time, eligible for a Federal Pell Grant and successfully completed a rigorous high school program, as determined by the state or local education agency and recognized by the Secretary of Education. Second year students must maintain a cumulative grade point average (GPA) of at least 3.0.
The National Science and Mathematics Access to Retain Talent Grant, also known as the National Smart Grant is available during the third and fourth years of undergraduate study. Students must be full time, eligible for the Federal Pell Grant and major in physical, life, or computer sciences, mathematics, technology, engineering or in a foreign language determined critical to national security. The student must also be enrolled in the courses necessary to complete the degree program and to fulfill the requirements of the intended eligible major in addition to maintaining a cumulative grade point average (GPA) of at least 3.0 in coursework required for the major.
Fee Remission Grants
Child of Disabled/Veteran Award: The Indiana General Assembly has provided an education benefit for children of veterans who have suffered a service-connected disability or death, or who are Purple Heart recipients. The benefit reduces the amount of tuition that state-supported institutions charge eligible students. The reduction of tuition varies by institution and can be used for a maximum of 124 credit hours.
Child or Surviving Spouse of Deceased Indiana State Police or Other Law Enforcement Officer Awards and A Child or Surviving Spouse of a Firefighter: Applicants must have resided in Indiana for at least 12 months. Eligible students should contact their local law enforcement agency or fire department for information.
Work-Study
Contact the Office of Financial Aid for more information on work-study positions.
Loans
Students are eligible to apply for a number of loan programs to help finance their education. These include:
Federal Perkins: These limited loans are awarded through the university at an interest rate of 5 percent. Repayment begins nine months after graduation or when the student drops below half-time status.
Direct Loan Program: These loans are low interest loans available to students enrolled at least half time. The interest rate is fixed. Interest is paid by the government on federally subsidized (need-based) loans. Interest will be charged beginning when the loan is disbursed on unsubsidized (non-need-based) loans. Repayment begins six months after graduation or when the student drops below half-time status.
Federal Parent Loans for Undergraduate Student (PLUS): The PLUS program provides an opportunity for parents of dependent undergraduate students to borrow through the Direct Loan program. The maximum interest rate for a PLUS loan is 7.9 percent and repayment begins within 60 days of disbursement of the loan. Click here for a printable application for a Parent PLUS loan.
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