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OD Program: Financial Assistance Loans Indiana University School of Optometry |
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Types of Loans Direct Loan Program IU participates in the Direct Loan Program. You therefore do not need to complete a separate loan application. All IU needs is your FAFSA data. There are two types of loans in the Direct Loan Program: Stafford and Graduate PLUS.
Federal Perkins Loan Program This loan program is for those students who show exceptional financial need. They need to file the FAFSA by the priority date of March 1. There are other criteria which are set by the IU Office of Student Financial Assistance and may vary each year. The funds are restricted in this way because they are limited. The amount per year is currently $1,500 and the interest rate is fixed for the life of the loan at 5%. The interest is paid by the federal government while you are at least a half-time student and during a nine-month grace period. The aggregate allowed is $40,000 for all undergraduate and graduate borrowing. Federal Health Professions Loan Program This loan program is also for those optometry students who show exceptional financial need. Even though you are technically considered an independent student for general financial aid purposes, parent data is required on the FAFSA for this loan program. This is required because the funds are limited; it does not mean that your parents actually support you. If your parents are deceased, please let us know by e-mailing iuoptfa@indiana.edu. Priority is given to students who file the FAFSA by March 1 each year. You may provide income estimates initially if need be to meet the March 1 date and update to actual figures after taxes are filed. The amounts vary from year to year contingent upon available funding. The interest rate is fixed at 5% and the grace period after you graduate or leave school is 12 months. Renewal applicants are awarded first. The loan amounts generally ranges from $1,000-$3,500. How to Apply Student loan programs based on financial need are sponsored by the federal government and require an official financial need assessment. Here is a helpful summary of the financial aid application process, eligibility criteria and the types of federal loans available. These programs are designed for U.S. citizens or eligible noncitizens as described on the Free Application for Federal Student Aid (FAFSA). International students may borrow private student loans (some of which require a U.S. co-signer), and may obtain more information at: www.indiana.edu/~intlserv/. Application for Federal Financial Assistance In order to begin the application process for federal student aid, you must first meet these basic eligibility criteria:
Student Budget/Cost of Attendance IU estimates how much it costs the average optometry student to attend during the academic year, which is approximately nine months. For most students, these costs enable them to borrow as much loan money as they need to pay their tuition, buy books and equipment and pay for rent, utilities, food, etc. Here is an example of a first-year optometry student budget for the 2008-2009 academic year:
In addition to direct costs above, your financial aid budget also includes a living allowance for the 36 weeks during the academic year. This allowance takes into consideration the amount of money that you may need for rent, utilities, food, entertainment, clothing, and transportation costs. This budget is designed to take into account all the various circumstances that students from different backgrounds--and with different responsibilities--bring with them to optometry school. You may, therefore, find that the "allowable" budget is much higher than what is necessary to meet your actual needs. DO NOT BORROW ANY MORE MONEY THAN NECESSARY TO MEET YOUR NEEDS. In order to accommodate those students who have higher living expenses resulting from the responsibility of supporting a family or other unusual circumstances, we allow up to $488 per week for indirect costs. That would mean that you could, theoretically, increase your direct costs by up to $17,568 ($488 x 36 weeks) when determining your total costs for the first year of optometry school. The school, therefore, will use a budget that allows the maximum living allowance minus other resources when determining your eligibility for federal financial aid programs--but YOUR actual budget may be substantially less! Most students find they can live comfortably on $1,000-$1,200 per month ($10,000-$12,000 per academic year). Given the additional expense involved with external rotations, budgets for fourth-year students include a living allowance of $532 per week for indirect costs. It is possible to have adjustments to your budget if necessary for nondiscretionary expenses such as a computer or uninsured medical or dependent-care costs. If you have unusual expenses or you are the sole provider for your family, please contact our financial aid administrator at iuoptfa@indiana.edu or 812-855-1917. Borrowing Student Loans It is always important to understand the implications of borrowing to finance your education. Loans will become a debt that you will be obligated to repay monthly with interest after you graduate or leave school. As with any type of borrowing, it is wise to be cautious and conservative in the amount you choose to borrow. Student loans can only cover educational expenses that are considered nondiscretionary. For example, while modest living expenses are covered, student loans technically cannot pay for the purchase of a car, car payments, previously incurred credit card debt or a spring break trip. You can access your federal student loan history at www.nslds.ed.gov with your federal PIN. (You may apply for a PIN at www.pin.ed.gov.) Repaying Your Student Loans You have many options to choose from in repaying your Stafford loans. There are four different repayment plans ranging from 10 years to 30 years. The shorter the repayment plan, the less interest you pay on your loans. There are also deferment and forbearance options if you are unable to pay on your student loans for a period of time. You can access calculators on the web to see how much you would be paying monthly after your grace period once you graduate or cease being at least a half-time student. For more information on all your options, please go to www.ed.gov/offices/OSFAP/DirectLoan/index.html. Notification of Award Status Generally, if you file by March 1, you will be sent a Financial Aid Notification outlining your financial aid (including loans from the central IU Office of Student Financial Assistance) by late June. If you are awarded student loans, you will also receive promissory notes to complete and return or e-mail instructions on how to sign them electronically. You should not hesitate to contact the School of Optmetry's Associate Director of Financial Aid to verify anticipated loans prior to receiving the Financial Aid Award Notification. How Do You Receive Your Money? All student financial assistance is credited to your student account through the IU Office of the Bursar. All charges incurred through the university are covered first and then a refund check for any remaining funds is sent to you for each semester or session to pay for your books/equipment and living expenses. Once you have set up your Bloomington bank account you may wish to consider the Direct Deposit option offered by the IU Office of the Bursar at onestart.iu.edu. This way the money is deposited directly into your bank account.
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