Office of Student Financial Assistance

Indiana University | Bloomington

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Money management: loan considerations

Thinking about taking out student loans to pay college costs

Student's should determine whether borrowing is the best choice if needing additional funds for college. Consider these nine points before applying for a loan:

  • Scholarships and grants may be available through the state student assistance agency in your home state.
  • A number of computerized scholarship search services and financial aid reference materials are available in the IU Main Library.
  • The IU Career Development Office offers comprehensive placement and counseling services for students interested in working part time, either on or off campus.
  • If students or their parent(s) receive a college loan, it may reduce their eligibility for other types of financial assistance.
  • If students receive other types of financial assistance, it may reduce their eligibility (or their parent or parents' eligibility) for loans.
  • Loans must be repaid - some shortly after graduation or withdrawal from school, and some while the student is still enrolled in college.
  • Loans must be repaid even if student's do not complete their program of study or they cannot find a job immediately. Even if students are dissatisfied with the education they have received, they must still repay the money they borrowed.
  • Students who establish poor records of educational loan repayment may damage their credit rating for other types of loans.
  • Be careful about the federal maximum loan amounts we have listed. They are standard limits for everyone who is eligible to borrow; the amounts are not related to your personal earning potential. The maximum amount that students are eligible to borrow on one or more student loan programs may be more than they will be able to repay after they leave school.