Loans can be a valuable resource in helping meet the costs of schooling when used wisely. Student loans typically have unique benefits not available through personal or other types of loans.
These benefits can include:
- Lower interest rates
- More lenient repayment terms
- No credit requirement (federal)
- Ability to consolidate (federal)
- Multiple repayment plans (federal)
However, overborrowing can be one of the biggest mistakes a college student can make. Creating a budget, contacting our office for help in determining how much loan funding you actually need to meet your educational costs at ICC and borrowing responsibly can help you avoid regrettable financial mistakes that can impact students for years.
Listed below are the loan programs available to ICC students. Not all students will qualify for the types of loans listed below. Students should check their award letter or visit with Financial Aid Office staff to determine eligibility.
Federal Direct Loan
Subsidized & Unsubsidized
This guaranteed student loan requires the student to be enrolled at least half-time (6 or more credits per semester) in coursework that applies to the student's declared program of study. For example, a student seeking a Psychology/Human Services degree can only receive loan funding for coursework that applies to this degree. Applicable courses are listed on the program planner for the year the student started the program. The amount of eligibility is listed on the student's Official Award Letter from the school.
- Students who are first-time, first-year borrowers must wait 30 days from the start of the semester to receive Direct Loan funding. Additionally, loans taken out for one semester at a time are subject to multiple disbursements. This means that for a single term loan, a student would receive half of the loan at the beginning of the semester and the other half at the midpoint of the semester.
Interest Rates (fixed):
Subsidized Federal Direct Loan - 3.73% for subsidized loans first disbursed on or after July 1, 2021, and before July 1, 2022
Subsidized loans are fixed-rate, guaranteed loans that are available to students with demonstrated financial need.
Interest does not accrue until repayment begins. The total aggregate borrowing limit for subsidized loans is $23,000.
Unsubsidized Federal Direct Loan - 3.73% for undergraduate, unsubsidized loans first disbursed on or after July 1, 2021
Unsubsidized loans are fixed-rate, guaranteed loans that are available to all eligible students regardless of financial
need. Interest begins to accrue at the time of loan disbursement. The total aggregate undergraduate borrowing
limit between both subsidized and unsubsidized loans is $57,500.
Subsidized and Unsubsidized Federal Direct Loans - 1.057% for loans first disbursed on or after October 1, 2020, and before Oct. 1, 2022
How to apply:
Every student must complete the loan application process through eServices. After logging in to eServices, click on Financial Aid, then click Loans. First time Direct Loan borrowers will need to complete Loan Entrance Counseling and a Master Promissory Note via studentaid.gov. Step-by-step instructions are available here.
Loan repayment begins six months after student graduates or drops below half-time enrollment. Students are automatically enrolled in the standard 10-year repayment plan. The minimum monthly payment is $50. Borrowers are responsible for the interest on unsubsidized loans while they are in school. Interest payments can be made while in school or can be capitalized and paid throughout repayment.
When disputes regarding the repayment of your federal student loans arise, it is always best practice to first work directly with your loan servicer to attempt to reach a resolution. You can view all of the details of your loan including your servicer by visiting the Federal Student Loan site at studentaid.gov and logging in with your FSA AD and password. If a resolution cannot be reached, you have the option of contacting the Federal Student Aid Ombudsman Group. Please read additional information on FSA Ombudsman Group here or by contacting them via the following information:
FSA Ombudsman Group
P.O. Box 1843
Monticello, KY 42633
A PLUS loan is a federal loan taken out in the parent's name with the parent assuming repayment liability and is used for the student's educational expenses. The parent must have an acceptable credit history and will need to complete a Master Promissory Note (MPN). A parent can borrow up to their student's cost of attendance less other financial aid with this loan.
- Parents of students who are first time, first year borrowers must wait 30 days from the start of the semester to receive Parent PLUS Loan funding. Additionally, loans taken out for one semester at a time are subject to multiple disbursements. This means that for a single term loan, half will be disbursed at the beginning of the semester and the other half at the midpoint of the semester.
Interest Rate (fixed):
Federal Direct Parent PLUS Loan - 6.28% for loans first disbursed on or after July 1, 2021, and before July 1, 2022
Federal Direct Parent PLUS Loan - 4.228% for loans first disbursed on or after October 1, 2020 and before Oct. 1, 2022
Repayment: Begins 30-60 days after loan is fully disbursed. Parent has up to 10 years to repay. Loan deferment options may be available and can be requested during the online application process.
How to apply: Step-by-step instructions on completing a Parent PLUS loan application are available here.
*If your parents' credit is denied, you may be eligible for an additional unsubsidized Federal Direct loan. Check with the Student Services Office for more information.
This type of loan should be considered ONLY after the other loan options listed on this page have been exhausted. Be sure to contact the lender for all eligibility requirements. Alternative loans require school certification. Alternative Loan can be used for student who are not meeting the school's Satisfactory Academic Progress Policy. Students can borrow up to their cost of attendance less other aid.
Interest Rate (variable): based on credit history/choice of lender
Fees: variable depending on credit history and lender chosen
Repayment: Variable depending on choice of lender. Deferment options while in school may be possible depending on lender chosen.
How to apply: Itasca Community College maintains a historical list of all private lenders who continue to participate in the Alternative Student Loan program and who have provided funds to ICC students since the fall semester of 2010. These alternative loans are governed by certain federal regulations but are funded through a private lending institution.