Types of Aid
Ithaca College participates in a wide variety of aid programs designed to meet the needs of most students. These include Federal, state (such as New York, Vermont, Delaware, and Rhode Island), and our own institutional aid programs. All applicants and continuing students are eligible to apply for aid programs that are available as scholarships, grants, loans, and work. Tax incentives may also apply for some families.
|Federal Direct Loans|
|Subsidized and unsubsidized student loans direct from the U.S. Department of Education. Loans are awarded by IC, but repaid to the federal government.|
There are two types of direct loans: subsidized and unsubsidized.
Direct subsidized loans are need-based, determined by information in your FAFSA. You are not charged interest while you are in school at least halftime and during and deferment periods.
Direct unsubsidized loans are NOT need-based. Interest accumulates from the date of the first loan disbursement. You have the option to pay the interest while you are in school, during grace periods, deferment or forbearance periods, or you can allow it to accrue and be added to the principal amount of your loan, which will increase the total amount you have to repay over time.
If your financial aid award indicates that you are eligible for Federal Direct Loans based on information in your FAFSA and you choose to accept the loans, you will need to do the following:
- Accept the offer of Direct Loan(s) via HomerConnect.
- Complete online loan entrance counseling session (required for all first time borrowers of a Direct Subsidized and/or Unsubsidized Loan).
- Complete and sign electronic Master Promissory Note (MPN). An MPN is valid for 10 years (only first time borrowers must complete this step). This is a legal document in which you promise to repay your loan(s) and any accrued interest and fees to the Department of Education. The borrower must have a federal Personal Identification Number (PIN) to electronically sign this MPN. To retrieve a federal PIN or to register for a pin visit: www.pin.ed.gov.
Direct Subsidized Loans Interest Rates
- If the first disbursement of your subsidized loan is between July 1, 2013 and June 30, 2014, the interest rate on your loan is fixed at 3.86%.
Graduate and Professional Degree Students:
- The interest rate is fixed at 5.41%.
Direct Unsubsidized Loans Interest Rates
All borrowers (undergraduate, graduate and professional degree students):
- The interest rate is fixed at 6.8%.
There is a loan fee on all Direct Subsidized and Unsubsidized Loans. The loan fee is a percentage of the amount of each loan you receive. For loans disbursed between July 1, 2012 and November 30, 2013, the loan fee is 1.051%. For loans disbursed between December 1, 2013 and June 30, 2014, the loan fee is 1.072%. Ithaca College will deduct the loan fee proportionately from each loan disbursement. The specific loan fee that you are charged will be reflected in a disclosure statement that Ithaca College will send to you.
Annual Loan Limits
The federal government set limits on the maximum amount you can borrow each year. A table of these loan limits can be found in the policies section of this site.