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Understanding Institutional Loans at Indiana Wesleyan University

This document outlines the Institutional Loans process at Indiana Wesleyan University, providing essential information for students. It addresses eligibility criteria, including the Perkins Loan ineligibility for certain students and Pell eligibility when Perkins funds are depleted. It also details the annual Entrance Counseling requirement and summarizes the rights and responsibilities of borrowers, including repayment terms, interest rates, and legal obligations. Students must complete a Promissory Note each year and are informed about the consequences of non-repayment.

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Understanding Institutional Loans at Indiana Wesleyan University

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  1. INSTITUTIONAL LOANS Indiana Wesleyan University Gaytha Holloway Director of Financial AidCollege of Arts & Sciences

  2. INSTITUTIONAL LOANS • Packaged: • Students not eligible for Perkins Loans • Pell eligible students when Perkins funds are depleted

  3. INSTITUTIONAL LOANS • Entrance Counseling • Student must complete Entrance Counseling each year they borrow an IWU loan.

  4. INSTITUTIONAL LOANS Entrance Counseling INDIANA WESLEYAN UNIVERSITY LOAN - STATEMENT OF RIGHTS AND RESPONSIBILITIES • A loan is a serious legal obligation; it is important that you understand your rights and responsibilities under this program. Your signature on this statement certifies that you understand your responsibilities and you agree to honor them. • I understand that these funds constitute a loan, which must be repaid. • I understand that the proceeds of this loan may only be used towards expenses related to my attendance to Indiana Wesleyan University. • I understand that the amount I may borrow is dependent upon financial need, the availability of funds, and the amount of other financial assistance I am receiving. • I understand that my first monthly payment will be due 6 months from the time I graduate or am no longer enrolled at least half time at an eligible institution.

  5. INSTITUTIONAL LOANS Entrance Counseling-continued: • I understand that my minimum monthly payment will be at least $30. It may be more if the amount borrowed requires larger payments. • I understand the interest rate for this loan is 8.75% per year. • I understand that I may be allowed up to 10 years to repay the loan, depending upon the total amount I have borrowed. I further understand that I may prepay the loan at any time without penalty. • I understand that if I fail to repay my loan as agreed, the total loan may become due and payable immediately and legal action could be taken against me. • I understand that I may cancel, defer, or refinance my loan only as stated in the body of the Master Promissory Note. • I ATTEST THAT I HAVE READ AND UNDERSTAND THE RESPONSIBILITIES AND OPTIONS AVAILABLE TO ME, AND THAT I WILL ADHERE TO THEM. • __________________ ___________________________________________ • Date Borrower Signature

  6. INSTITUTIONAL LOANS • PromissoryNote • Student must complete new Promissory Note each year they borrow an institutional loan

  7. INSTITUTIONAL LOANS • Information by year: 2006 – 2007 $1,211,203 536 2007 – 2008 $1,136,644 511 2008 – 2009 $1,494,934 587

  8. INSTITUTIONAL LOANS • Servicing: • University Accounting Services (UAS) • Exit Counseling • Statement • Billing • Collect Payments After six months of no payments the account is sent to collections.

  9. INSTITUTIONAL LOANS • The rest of the story: • Default Rate • 10.84%

  10. INSTITUTIONAL LOANS QUESTIONS?? Gaytha Holloway Indiana Wesleyan Universitygaytha.holloway@indwes.edu

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