ISM Student Loan
The ISM Student Loan is designed specifically to assist Hoosier families, and families at Indiana colleges and universities cover the costs of education. Choose the loan built for students in Indiana, by an Indiana lender.
Money Saving Benefits
- No application, origination or disbursement fees
- Earn a 2.00% principal reduction reward after graduation7
- Competitive variable interest rates — 3.89% APR to 10.89% APR1,2 (Competitive fixed interest rates also available)
- Get a 0.25 percentage point interest rate reduction while enrolled to make scheduled monthly payments by automatic debit8
- Fixed or variable interest rate options for eligible applicants
- Flexible repayment options
- A co-signer release option is available after the initial 48 consecutive on-time monthly payments and is subject to credit approval9
Minimum Eligibility Requirements
- At least half-time enrollment at an eligible school
- Not defaulted on any private or government student loan
- No previous bankruptcies within the past 5 years
See https://www.ismloans.org/indiana-student-loan/terms/ for important information and additional details.
1Interest rate based on credit score.
2The rate is subject to increase after consummation. The three-month Libor index is defined as the daily average of the three-month London Interbank Offered Rate (Libor) (currency in U.S. dollars) that was published on the Wall Street Journal's website (or any generally recognized successor method or means of publication) on each business day during the 91-day period ending on the 20th day of March, June, September and December. The three-month Libor index for the quarter July 1–September 30, 2016, is 0.64%.
3The rate will not exceed 21.00%.
4Borrowers with delinquencies during the principal and interest repayment period or interest-only repayment period may have future disbursements and/or loans suspended or canceled.
5The in-school period cannot exceed 48 months.
6Annual percentage rate (APR), finance charges and monthly payments are based on borrowing $10,000 in a single disbursement. Immediate Payment — Fixed is based on a fixed interest rate of 5.81% to 10.30% during the 144-month principal and interest repayment period. Deferred Payment — Fixed is based on deferring interest and principal and a fixed interest rate of 6.11% to 10.60% during the 48-month in-school and separation and the 144-month principal and interest repayment periods. Immediate Payment — Variable is based on maintaining a constant interest rate on a variable rate loan of 3.89% to 10.59% during the 144-month principal and interest repayment period. Interest-Only Payment — Variable is based on deferring principal and maintaining a constant interest rate on a variable rate loan of 4.09% to 10.74% during the 48-month interest-only and the 144-month principal and interest repayment periods. Deferred Payment — Variable is based on deferring interest and principal and maintaining a constant interest rate on a variable rate loan of 4.24% to 10.89% during the 48-month in-school and separation and the 144-month principal and interest repayment periods. APR examples are based on the quarterly interest rates July 1–September 30, 2016.
7Earn a 2.00% principal reduction reward after graduation if you graduate from the degree program that the loan was used to fund and your graduation date is more than 90 days and less than six years after the date of the loan's first disbursement.
To receive the graduation benefit, you must:
- Request the 2% reward.
- Provide adequate documentation to verify proof of your graduation.
- Be current on any ISM Student Loan you have borrowed. To be current, your loans may not be more than 30 days delinquent or in a default status as of your graduation date and until any graduation reward principal reduction is applied.
8Earn a 0.25% interest rate reduction by making auto-debit payments when you begin principal and interest repayment.
9You may apply to have your cosigner(s) released from their obligation after the first 48 consecutive monthly principal and interest payments are received on time as long as you meet the underwriting and credit criteria at the time the cosigner release is requested.