Indiana Student Loan Programs
Many Loan Services Offered
Indiana students, you have a few very comprehensive sources when planning for your college financial strategy. They include:
- Indiana Secondary Market for Education
- State Student Assistance Commission of Indiana
- Sallie Mae College Answer
About ISM
The Indiana Secondary Market for Education (ISM) is the state guaranty agency sanctioned by the Indiana state government. ISM’s main job is to lead the state’s college bound students to the most affordable and accessible college funding available. Students and parents may use ISM as a clearinghouse for college planning resources as well direction to the best sources for student loans, including federal loans and private loans.
ISM was established in 1980 and has been working on its visibility factor ever since.
Federal Loans for Hoosier Students
Federal Loans are your absolute first stop for college loans. Forget about private loans until you see exactly how much you’ll qualify for through the federal government. File the FAFSA. Once you’ve received an award letter from your college of choice then decide how you’ll assemble your financial plan, including federal loans, grants, scholarships and finally private student loans.
You have the freedom to choose any federal lender you’d like unless your school participates in the Direct Loan program. In that case the Department of Education is the lender and loans are some of the most affordable available.
Private, Alternative Loans in Indiana
When your federal loans come up short and additional grant and scholarship aid still fail to meet the actual cost for your education, then you might consider a private education loan. No one will tell you which lender to choose. This decision is absolutely up to you, the student or parent borrower.
Compare lenders’ loan programs: ask for details on current borrower incentives, minimum and maximum loan amounts, interest rates, and repayment plans.
Repaying Indiana Loans
When it comes to repaying your loans lenders typically offer these standard repayment options, designed to offer a reasonable strategy for everyone:
- Graduated payment plans start small, after the initial grace period, and gradually grow throughout the repayment period.
- Extended payments let borrowers stretch out the repayment term making for smaller monthly payments. In many cases you can choose from extended graduated or extended fixed payments.
- Income Sensitive takes borrower’s income into regard, especially in the case of those whose payments may be too much to handle.
- Standard payments are all the same across the board.
Consolidation
When your multiple federal loans become a bit too much to repay as financed, it may be time to consider the Federal Consolidation Loan available directly through your lender. If you’ve borrowed private loans they may also be consolidated with lenders that offer such products. Lenders will always advise borrowers to ask for help immediately when repayment schedules get out of hand. Consolidation loans are as commonplace as regular student loans and may cut monthly payments by half and extend repayment periods for loans.
