Private Loans

A private loan option

If you aren’t eligible for federal aid or weren’t awarded as much federal aid as you actually need, you or your parents might consider taking out a private student loan through a bank, credit union, or other lender.

You should always consider federal student loans before private loans:

  • Federal loans are usually much more affordable.
  • Federal loans allow you to put off repaying them until after you graduate.
  • You must have a good credit history or a co-signer with a good credit history to receive a private student loan.
  • The interest rate on a private student loan is variable and depends on your (or your co-signer’s) credit history.

Before you apply for a private loan, complete your FAFSA to see if you qualify for a federal loan.

Learn about federal versus private loans

Find a private lender

Borrow only what you absolutely need. What you borrow today, you’ll have to pay back later (with interest).

If you choose to apply for a private loan

You have the right to select any lender you wish for a private loan. Once you have been approved by your lender, they will notify the Office of Student Financial Services that your loan is ready to be certified. We’ll process your private student loan if you meet the eligibility requirements and will notify the lender of our certification of your loan.

Once IU Fort Wayne has certified your loan, it will take an additional 10–15 business days before your funds arrive. (This process may take slightly longer during peak times.) You can view your financial aid in One.IU to see when your loan has been processed. You must continue to meet eligibility requirements once the funds arrive in order for them to be used to pay your bursar account.

If we’re unable to process your private loan, we’ll contact you through your university email address.

Loan certification dates

We cannot certify loans that are submitted too early. The earliest acceptable application dates for each term are:

  • June 15 for a fall and spring loan
  • November 15 for a spring only loan
  • March 15 for a summer loan

Know your rights

Lenders who provide private loans must comply with these Truth in Lending Act requirements:

  • Your lender must provide three separate loan disclosures to you:
    — One when you apply
    — One when your loan is approved
    — One before your funds are made available
  • Three business days must pass between the time you receive the final disclosure and the time your funds are made available.
  • You must submit a signed self-certification form to the lender before your funds can be made available.

Your lender should provide you with a self-certification form that includes your application ID. You’ll need to know your cost of attendance and estimated financial assistance. If you receive financial aid, this information is available through View/Manage My Financial Aid Information in One.IU.

What your loan pays for

Remember, you can borrow only up to your estimated cost of attendance, minus any other financial aid you receive. You can use private student loans to pay for your tuition, fees, room and board, books, and other education-related expenses. Any funds that remain after these items are paid will be refunded to you.

Learn strategies to borrow less

Repaying your loan

Depending on the terms of your loan, you may be required to start repaying the loan before you finish your education.

Learn more about repaying loans

Looking for a loan?

Discover more loan types