Loans

You have a choice about how you pay for your education.

Understand Your Options

Understanding your loan options can help you make the best financial choice to accomplish your goals.

Federal Student Loans

When you apply for financial aid, you might be offered loans as part of your financial aid offer. A loan is money you borrow and must pay back with interest. Visit Federal Student Loan to apply or learn more.

You can accept or decline your federal loan(s) after you have enrolled for classes for the semester you want to use loan funds. Loans will be certified after your financial aid offer is determined.

You must be enrolled in an eligible program leading to a certificate or degree and have at least six eligible credit hours to borrow a Federal Direct Loan for any semester of attendance. Students who default on student loans do not qualify for student loans or any financial aid in the future.

Federal Direct Student Loan Annual Limits

Dependent StudentsSubsidized AmountAdditional Unsubsidized Loan Amount
Freshman$3,500$2,000
Sophomore$4,500$2,000
Independent StudentsSubsidized AmountAdditional Unsubsidized Loan Amount
Freshman$3,500$6,000
Sophomore$4,500$6,000
These amounts are the annual maximums set by Federal regulations. You may not qualify for the total amount if you are receiving grants, scholarships, Federal Work-Study, waivers, or other educational assistance.

Federal Direct PLUS Loan for Parents

Parents of dependent undergraduate students may apply for a PLUS loan on their student’s behalf. Watch What is a PLUS loan?

  • Students must be enrolled at least half-time (6 hours).
  • Financial need is not required, but the loan is limited to the school’s cost of attendance, which varies depending on the number of credit hours enrolled, minus other aid the student receives.
  • FAFSA filing is required, and parents must not have an adverse credit history.

Payments

Direct PLUS loan repayment begins when the loan is fully disbursed, with no grace period. Payments may be deferred while the dependent student is enrolled at least half-time. A parent borrower who is also a student may defer repayment while he or she is enrolled at least half-time. Deferments must be requested by contacting the agency that services your loan.

Estimating Your Monthly Payments

The minimum monthly payment is $50 and the standard repayment period is 10 years.

The Loan Simulator helps you calculate student loan payments and choose a loan repayment option that best meets your needs and goals. You can also use it to decide whether to consolidate your student loans.

Use the Loan Simulator

Students in Certificate or Applied Science Programs

Our Special Academic Services department provides assistance and support to students enrolled in applied science and certificate programs. Funded by the Carl D. Perkins Career and Technical Education Improvement Act of 2006, these services include both academic and financial support.

View Special Academic Services

What if I Drop a Class or Withdraw?

Return of Title IV Aid

If a Federal financial aid recipient withdraws during a payment period (or a period of enrollment), the school must calculate the amount of aid the student earned through the date of last attendance. Unearned aid, including loans, must be returned to the Federal financial aid programs. Watch a video on dropping a course or withdrawing.

Loan Exit Counseling and Repayment

Student loan borrowers must complete Student Loan Exit Counseling after ceasing at least half-time enrollment at Illinois Central College. This includes graduating, withdrawing, dropping courses, and leaving or transferring from ICC.

Student loans enter repayment six months after ceasing enrollment in at least six credit hours. This is a one-time grace period. If the student has used the six-month grace period in the past, repayment will begin immediately after falling below an enrollment level of at least six credit hours.

You will receive a notification regarding loan repayment from your loan servicer during your grace period. To look up your loan servicer’s name, contact information, and details on your student loans, go to StudentAid.gov.

What if I Can’t Pay Back My Loan?

Student loan default, or failing to repay your student loan debt, carries serious consequences. When taking out a student loan, you want to exhaust all other possible funding methods and borrow conservatively. Students who are in default on their student loans are not eligible for any financial aid until the default is resolved. Defaulted loans prevent students from renewing professional licenses.

The Federal Government can collect on defaulted loans by confiscating federal tax refunds and wage garnishment. It is the student’s responsibility to stay in contact with the loan servicing center to keep their address and enrollment information up to date, which helps avoid default.

If you and your loan servicer disagree about the balance or status of your student loan, and you have done everything you can to resolve the issue, you can contact the Federal Student Aid Ombudsman Group. They can help you find some resolution to the matter.

Please use the following information to contact the FSA Student Loan Ombudsman Group:

US Department of Education
FSA Ombudsman Group

830 First Street, N.E., Mail Stop 5144
Washington, DC 20202-5144

(877) 557-2575
(202) 275-0549 — Fax
StudentAid.gov

Cohort Default Rate

A cohort default rate is the percentage of a school’s borrowers who enter repayment on certain Federal Family Education Loan (FFEL) Program or William D. Ford Federal Direct Loan (Direct Loan) Program loans during a particular federal fiscal year (FY), October 1 to September 30, and default or meet other specified conditions prior to the end of the second following fiscal year.

Private Loans

Student loans can come from the federal government, from private sources such as a bank or financial institution, or from other organizations. Federal student loans usually have more benefits than private loans.

Private loans, also known as alternative loans, provide another borrowing option. Although the FAFSA is not required, private loans may have varying interest rates and limited repayment options. You should consider alternative loans as a “last resort” lending option. Watch What is a Private Loan?

Illinois Central College will certify private education loan requests for any lender you choose. The lender you choose will provide current interest rates, processing fees, and co-signer requirements. The lender determines interest rates for loans based on the student’s and co-signer’s credit. The Office of Financial Assistance does not endorse, recommend, or promote any lender for private loans.

Financial Aid

Mon-Thur: 8 am – 4:30 pm
Fri: 8 am – 2 pm
Virtual Hours
Mon-Tue: 8 am – 6 pm
Edwards Library / Administration Building » L211
East Peoria Campus
Arbor Hall » A002
Peoria Campus