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Loans for Students

Direct Loans: Direct Loans are either subsidized or unsubsidized.

  • A subsidized loan is awarded on the basis of financial need. You will not be charged any interest during periods of enrollment. The federal government "subsidizes" the interest during these periods.
  • An unsubsidized loan is not awarded on the basis of need. You'll be charged interest from the time the loan is disbursed until it is paid in full. If you allow the interest to accumulate, it will be capitalized - that is, the interest will be added to the principal amount of your loan and additional interest will be based upon the higher amount. This will increase the amount you have to repay. If you choose to pay the interest as it accumulates, you'll repay less in the long run.

You can receive a subsidized loan and an unsubsidized loan for the same enrollment period. If you're a dependent undergraduate student at IVCC, you can borrow up to $5,500 if you're a first-year student enrolled in a program of study that is at least a full academic year ($3,500 of this amount may be in a subsidized loan; the remainder will be unsubsidized); $6,500 if you've completed your first year of study and the remainder of your program is at least a full academic year ($4,500 of this amount may be in a subsidized loan; the remainder will be unsubsidized).

If you're an independent undergraduate student or a dependent student whose parents are unable to get a PLUS Loan (see the following), you can borrow up to $9,500 if you're a first-year student enrolled in a program of study that is at least a full academic year ($3,500 of this amount may be in a subsidized loan; the remainder will be unsubsidized); $10,500 if you've completed your first year of study and the remainder of your program is at least a full academic year ($4,500 of this amount may be in subsidized loans; the remainder will be unsubsidized).

These are the maximum amounts that you can borrow for a full academic year. For periods of study that are shorter than an academic year, the maximum amounts you can borrow may be less. The Financial Aid Office will determine the specific amount that you are eligible to borrow.

The Financial Aid Office has the right to refuse certification of a student loan or may reduce the amount requested. Students will be sent written notification of the denial or reduction and the reason why this action was taken.

  • As a result of legislation enacted in July 2012, eligibility for the Direct Loan interest subsidy is limited for new borrowers on or after July 1, 2013. The law restricts the period of time for which a borrower may receive subsidized loans, in the aggregate, to 150 percent of the published length of the student’s current educational program. Once students reach that limit, they may borrow only unsubsidized loans, and interest begins to accrue on the students’ balances. For more information, go to: https://studentaid.gov/understand-aid/types/loans/subsidized-unsubsidized.
  • Beginning on July 1, 2026, the One Big Beautiful Bill Act (OB3) law includes significant changes to federal student loans, borrowing limits, and repayment options. Annual loan limits will be prorated based on enrollment intensity for students attending less than full-time. Future loan disbursements, within an academic year, may be reduced if a student withdraws from a course(s) after loan disbursement(s) from a prior semester.