You should be an informed borrower whether considering a student loan, a car loan, or a mortgage. An informed borrower knows his or her rights and responsibilities. The money borrowed to finance an education can affect your lifestyle after leaving school, and the money will still have to be repaid even if you don't complete a degree, aren’t satisfied with your education, or are unable to find a job.
IUPUI provides online entrance counseling (information you should know prior to borrowing a student loan). All first-time federal Direct and federal Direct Graduate PLUS borrowers must complete entrance counseling before funds can be released to the school. Please read the information provided on this page then complete the full entrance counseling by clicking the link at the bottom of this page. It takes approximately 20-30 minutes to complete the entrance counseling session.
You should follow these suggestions when considering whether or not to borrow funds or how much to borrow:
Be Realistic Before Borrowing
You should borrow only what is needed to cover your educational costs. You should consider the future and assess how much salary is needed to repay student loan debt.
You should assess real needs and borrow the minimum amount to pay for these costs.
Be Aware of Excessive Borrowing
You may be awarded the maximum loan amount for your grade level, but you don't have to borrow the entire amount. Excessive borrowing now will limit future purchasing power.
Set a Limit
You should set limits to the amount of debt you can afford. Uninformed borrowing can mean trouble in the future.
Be Aware of Cumulative Loan Debt
If you are not required to repay your loans while in school, it is easy for you to lose track of how much you have borrowed each year. You can regularly access your loan records in the National Student Loan Data System to help assess your total indebtedness.
Be a Good Record Keeper
You should keep copies of all promissory notes and correspondence related to student loans.
The table below shows estimated monthly student loan repayments to assure repayment is manageable. Knowing the monthly payments for the amount you borrow is a great start. As you plan your financial future, use this chart to determine your loan repayment obligations.