Attention Hoosiers: Between keeping up with schoolwork and making sure your team comes out on top in the IU-Purdue rivalry, you have enough things on your plate — unmanageable student loans shouldn’t be one of them.
If you know the best places to borrow student loans in Indiana (or to refinance ones you already have), you can manage your student loans strategically and without a side of stress. Read on to learn about Indiana student loans so you can enjoy college — and intense basketball games — in the Crossroads of America without breaking the bank.
|Indiana student debt: At a glance|
|Average debt upon graduation in IN||$29,562|
|% of students who graduate with debt||20|
|National ranking for average debt||59%|
|National average debt upon graduation (Class of 2017)||$39,400|
|Info current as of 2015-2016 school year
Source: The Institute for College Access & Success
How to get Indiana loans
If you’re looking for student loans in Indiana, you have two main options: federal loans from Federal Student Aid or private ones from a bank or another lender. Here’s what you need to know about both.
Federal student loans
If you have costs to cover after savings, scholarships and grants, you might consider borrowing student loans for college. Before looking to private lenders, you should exhaust your options for federal student loans first.
Federal student loans come with competitive interest rates and borrower protections, such as income-driven repayment plans and Public Service Loan Forgiveness. Plus, unlike with a private lender, you don’t need to pass a credit check to qualify. Any student attending an eligible institution can borrow.
The Office of Student Aid provides subsidized and unsubsidized Direct Loans to students, which you can access by submitting the Free Application for Federal Student Aid (FAFSA). Parents can also borrow a federal Parent PLUS Loan on behalf of their child.
Although federal student loans tend to be a better option than private ones, they often have borrowing limits and may not cover the full cost of attendance. If you still have a gap in funding, you might need look to private lenders for student loans in Indiana.
Private student loans
Private student loans can come from a variety of sources, including community banks, credit unions, national banks, and online lenders.
Private student loans don’t typically come with the same flexibility as federal ones, though. You might be able to choose a variable or fixed rate, as well as repayment terms between five and 20 years. But you won’t have access to income-driven plans, nor will your private student loans be eligible for such federal programs as Public Service Loan Forgiveness or Teacher Loan Forgiveness.
Private lenders also have underwriting requirements, so you might not be able to qualify on your own if you’re an undergraduate. Instead, you’ll likely have to apply with a cosigner who has strong credit and a stable income.
Before you borrow, make sure you understand the terms and conditions on your private student loans, and find out if your lender offers any protections in case you lose your job or run into financial hardship. Once you’ve done your research, look around for the best lender for your Indiana student loans. This list is a good place to start:
- Provides student loans for Indiana residents or non-residents attending Indiana schools
- Offers variable rates from 3.46% APR and fixed rates from 6.41% APR as of Sept. 10, 2018
- Allows student loan repayment terms of five, 10, or 15 years
- Gives you the option of deferred payments, interest-only payments, or immediate repayment while in school
- Offers a 2% reduction on your principal loan amount when you graduate
- Old National Bank
- Partners with Sallie Mae to offer the Smart Option Student Loan
- Finances loans up to the full cost of attendance of your school
- Offers variable rates from 4.12% APR and fixed rates from 5.74% APR as of Sept. 10, 2018
- Lake City Bank
- Partners with Sallie Mae to bring you the Smart Option Student Loan
- Indiana Members Credit Union
- Partners with Sallie Mae to provide the Smart Option Student
- Requires that you meet certain residence or work requirements to become a member
- Evansville Federal Credit Union
- Finances a student line of credit with terms up to 20 or 25 years, depending on how much you borrow
- Offers variable rates
- Requires that you live, worship, attend school, or conduct business in the following southwestern counties: Vanderburgh, Posey, Gibson and Warrick County, or meet other criteria
- Finances loans from $1,000 up to your school’s cost of attendance
- Offers terms of five, eight, 10, or 15 years
- Offers variable rates between 4.07% and 12.78% and fixed rates between 5.29% and 12.07%
- Provides student loans up to your school’s cost of attendance
- Awards a 1% cash reward when you earn a GPA of 3.0 or higher
- Offers variable rates between 4.84% and 13.49% and fixed rates between 6.34% and 13.99%
- Sallie Mae
- Finances student loans up to the cost of attendance for your school
- Offers variable rates between 4.62% and 11.47% and fixed rates between 5.74% and 11.85%
Because every lender sets its own rates and terms, it’s a good idea to shop around for the best private student loan. By comparing your options, you can find a loan with the best rates.
How to refinance Indiana student loans
After you’ve graduated college and started student loan repayment, you might be looking for strategies to save money on your loans. Refinancing student loans is one way to lower your interest rate and get a better handle on your debt.
If you have strong enough credit and income (or can apply with a cosigner who does), you could qualify for a lower interest rate than you have currently. When you refinance student loans, you can also combine multiple loans into one, which can simplify your debt.
Refinancing, by the way, is different than consolidating your debt with a Direct Consolidation Loan. Both private and federal student loans are eligible for refinancing, whereas only federal ones can get rolled into a Direct Consolidation Loan.
If you decide to refinance federal student loans, you turn them into a private one with a private lender. As a result, you lose access to federal programs, such as income-driven repayment plans and forgiveness programs.
If you’re worried about your ability to keep up with payments, it might not be a good move to sacrifice the flexibility that comes with federal loans. But if you’re clear on the pros and cons of refinancing and decide it’s the right choice for you, check out these lenders for refinancing Indiana student loans:
- INvestED Student Loan
- Refinances student loans of $5,000 to $250,000 for Indiana residents
- Has variable rates between 2.94% and 6.44% and fixed rates range between 3.96% and 9.41% as of Sept. 10, 2018
- Offers repayment terms of five, 10, 15, or 20 years
- Elements Financial Federal Credit Union
- Refinances student loans up to $125,000
- Offers a 15-year repayment term and variable rates from 7.00% APR to 9.50% APR as of Sept. 10, 2018
- 3Rivers Credit Union
- Refinances loans up to $100,000
- Offers variable rates starting at 3.99% as of Sept. 10, 2018
- Provides terms of five, 10, or 15 years
- Requires an association with the Indiana counties of Adams, Allen, DeKalb, Huntington, Noble, Wells, or Whitley for membership
- Refinances student loans from $5,000 to $500,000
- Has variable rates between 2.57% and 6.97% and fixed rates range between 3.63% and 7.89%
- Laurel Road
- Offers repayment terms of five, 7, 10, 15, or 20 years
- Has variable rates between 3.24% and 6.66% and fixed rates range between 3.50% and 7.02%
- Refinances student loans of $5,000 or greater
- Has variable rates between 2.47% and 6.99% and fixed rates range between 3.90% and 7.98%
While community banks and credit unions typically only work with residents, online lenders such as Earnest and SoFi provide refinancing for graduates across the country. They also offer instant rate quotes online, so you can see preliminary offers.
Make sure to shop around compare offers from a variety of lenders so you can find the best rates for your refinanced student loan. Besides snagging a low interest rate, find out if your lender offers any additional benefits, such as 24/7 customer service or temporary forbearance if you lose your job.
Explore your options for student loans in Indiana
Whether you grew up in the Hoosier State, or you’re relocating there for college, you have lots of options for borrowing student loans in Indiana. But before you sign on the dotted line, take time to shop around for the best options to borrow or refinance student loans.
Make sure you understand the terms and conditions of any offer, and estimate your monthly payments so you don’t find yourself in over your head. By doing research now (and applying to as many scholarships as possible), you can avoid taking on more debt than you can afford.
Plus, depending on your career plans after college, you could even qualify for these student loan forgiveness programs in Indiana.
Interested in refinancing student loans?Here are the top 6 lenders of 2019!
|Lender||Variable APR||Eligible Degrees|
|Check out the testimonials and our in-depth reviews!
1 Important Disclosures for Earnest.
To qualify, you must be a U.S. citizen or possess a 10-year (non-conditional) Permanent Resident Card, reside in a state Earnest lends in, and satisfy our minimum eligibility criteria. You may find more information on loan eligibility here: https://www.earnest.com/eligibility. Not all applicants will be approved for a loan, and not all applicants will qualify for the lowest rate. Approval and interest rate depend on the review of a complete application.
Earnest fixed rate loan rates range from 3.89% APR (with Auto Pay) to 7.89% APR (with Auto Pay). Variable rate loan rates range from 2.47% APR (with Auto Pay) to 6.97% APR (with Auto Pay). For variable rate loans, although the interest rate will vary after you are approved, the interest rate will never exceed 8.95% for loan terms 10 years or less. For loan terms of 10 years to 15 years, the interest rate will never exceed 9.95%. For loan terms over 15 years, the interest rate will never exceed 11.95% (the maximum rates for these loans). Earnest variable interest rate loans are based on a publicly available index, the one month London Interbank Offered Rate (LIBOR). Your rate will be calculated each month by adding a margin between 1.82% and 5.50% to the one month LIBOR. The rate will not increase more than once per month. Earnest rate ranges are current as of Month/Day/Year, and are subject to change based on market conditions and borrower eligibility.
Auto Pay discount: If you make monthly principal and interest payments by an automatic, monthly deduction from a savings or checking account, your rate will be reduced by one quarter of one percent (0.25%) for so long as you continue to make automatic, electronic monthly payments. This benefit is suspended during periods of deferment and forbearance.
The information provided on this page is updated as of 08/21/18. Earnest reserves the right to change, pause, or terminate product offerings at any time without notice. Earnest loans are originated by Earnest Operations LLC. California Finance Lender License 6054788. NMLS # 1204917. Earnest Operations LLC is located at 302 2nd Street, Suite 401N, San Francisco, CA 94107. Terms and Conditions apply. Visit https://www.earnest.com/terms-of-service, email us at email@example.com, or call 888-601-2801 for more information on ourstudent loan refinance product.
© 2018 Earnest LLC. All rights reserved. Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by or agencies of the United States of America.
2 Important Disclosures for Laurel Road.
Laurel Road Disclosures
APR stands for “Annual Percentage Rate.” Rates listed include a 0.25% EFT discount, for automatic payments made from a checking or savings account. Interest rates as of 11/8/2018. Rates subject to change.
Variable rate options consist of a range from 3.27% per year to 6.09% per year for a 5-year term, 4.64% per year to 6.14% per year for a 7-year term, 4.69% per year to 6.19% per year for a 10-year term, 4.94% per year to 6.44% per year for a 15-year term, or 5.19% per year to 6.69% per year for a 20-year term, with no origination fees. APR is subject to increase after consummation. The variable interest rate will change on the first day of every month (“Change Date”) if the Current Index changes. The variable interest rates are based on a Current Index, which is the 1-month London Interbank Offered Rate (LIBOR) (currency in US dollars), as published on The Wall Street Journal’s website. The variable interest rates and Annual Percentage Rate (APR) will increase or decrease when the 1-month LIBOR index changes. The variable interest rates are calculated by adding a margin ranging from 0.98% to 3.80% for the 5-year term loan, 2.35% to 3.85% for the 7-year term loan, 2.40% to 3.90% for the 10-year term loan, 2.65% to 4.15% for the 15-year term loan, and 2.90% to 4.40% for the 20-year term loan, respectively, to the 1-month LIBOR index published on the 25th day of each month immediately preceding each “Change Date,” as defined above, rounded to two decimal places, with no origination fees. If the 25th day of the month is not a business day or is a US federal holiday, the reference date will be the most recent date preceding the 25th day of the month that is a business day. The monthly payment for a sample $10,000 loan at a range of 3.27% per year to 6.09% per year for a 5-year term would be from $180.89 to $193.75. The monthly payment for a sample $10,000 loan at a range of 4.64% per year to 6.14% per year for a 7-year term would be from $139.65 to $146.76. The monthly payment for a sample $10,000 loan at a range of 4.69% per year to 6.19% per year for a 10-year term would be from $104.56 to $111.98. The monthly payment for a sample $10,000 loan at a range of 4.94% per year to 6.44% per year for a 15-year term would be from $78.77 to $86.78. The monthly payment for a sample $10,000 loan at a range of 5.19% per year to 6.69% per year for a 20-year term would be from $67.05 to $75.68.
However, if the borrower chooses to make monthly payments automatically by electronic funds transfer (EFT) from a bank account, the variable rate will decrease by 0.25%, and will increase back up to the regular variable interest rate described in the preceding paragraph if the borrower stops making (or we stop accepting) monthly payments automatically by EFT from the designated borrower’s bank account.
3 Important Disclosures for SoFi.
4 Important Disclosures for LendKey.
Refinancing via LendKey.com is only available for applicants with qualified private education loans from an eligible institution. Loans that were used for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not eligible for refinancing with a lender via LendKey.com. If you currently have any of these exam preparation loans, you should not include them in an application to refinance your student loans on this website. Applicants must be either U.S. citizens or Permanent Residents in an eligible state to qualify for a loan. Certain membership requirements (including the opening of a share account and any applicable association fees in connection with membership) may apply in the event that an applicant wishes to accept a loan offer from a credit union lender. Lenders participating on LendKey.com reserve the right to modify or discontinue the products, terms, and benefits offered on this website at any time without notice. LendKey Technologies, Inc. is not affiliated with, nor does it endorse, any educational institution.
5 Important Disclosures for CommonBond.
Offered terms are subject to change. Loans are offered by CommonBond Lending, LLC (NMLS # 1175900). If you are approved for a loan, the interest rate offered will depend on your credit profile, your application, the loan term selected and will be within the ranges of rates shown.
All Annual Percentage Rates (APRs) displayed assume borrowers enroll in auto pay and account for the 0.25% reduction in interest rate. All variable rates are based on a 1-month LIBOR assumption of 2.28% effective October 10, 2018.
6 Important Disclosures for Citizens Bank.
Citizens Bank Disclosures
|2.57% – 6.97%1||Undergrad & Graduate|
|2.47% – 6.99%3||Undergrad & Graduate|
|2.68% – 8.77%4||Undergrad & Graduate|
|3.24% – 6.66%2||Undergrad & Graduate|
|2.61% – 7.35%5||Undergrad & Graduate|
|3.01% – 9.75%6||Undergrad & Graduate|