Loan Details

Eligibility and Application

Eligibility is determined by FAFSA, students can only get a maximum award for the amount that they are eligible for from FAFSA’s Student Loan Determination. All students are also eligible for sponsored loans.

Students can apply for the semester that they are currently enrolled in to receive loans, whether they accepted those loans or not. Students can no longer apply and receive loans after their graduation date. As long as there are funds, eligible students will not be turned down for any other reason. If there are more applications than funds for any given semester, students will be put on a wait list.

An application is only valid for one academic year, a new application must be submitted if a student is eligible for another award the following year.

Students can receive multiple awards throughout their degree program.

Sponsored Student Applicants

Regardless of FAFSA eligibility, students can get a guaranteed loan award if they are sponsored by family, friends, work, or because they belong to a particular group that is sponsoring students. In this case, the sponsor can make a tax deductible donation to IFEducation with a sponsorship application. IFEducation administers the loan to the sponsored student for the amount of the donation. Repayment of theses loan are made to IFEducation in accordance with the MPN contract. Benefits of a sponsored application: Tax benefit for the sponsor – deductible donation. Tax benefit for the student – Tuition Expense. Benefit for the community – More funds for future students now available.

Repayment Schedule

Repayment of the loans are made to IFEducation in accordance with the MPN contract.

The repayment schedule starts six months after the student’s graduation date of their current degree. The loan is to be paid off in a maximum of five years in monthly payments, but can be paid off completely by the student at any time.

A minimum monthly payment of $20 is required, it is possible that the loan term is less than five years if the loan amount is less than $1,200.

The student will have to sign an MPN repayment contract to get the award and pay off the loans with these terms and conditions.

Applicable Fees

Repayment is possible with no fees.

Students are responsible for the fees incurred during repayment of the loan due to the following:

Processing fees if costs are incurred in repayment of the loan such as with online payments and other payment options.

Insufficient fund fees such as when checks are not cleared.

Collection fees if payments are not made on the loan and collection becomes necessary.

Truly No Interest?

If a student uses the IFEducation loan to replace an interest bearing loan, there is no interest on the amount awarded by IFEducation.

If the student does not get an award large enough to cover the entire interest bearing loan, they will pay the remaining loan and its associated interest to the lender of the original loan.

It is important to be aware of any remaining balances and compounding interest while pursuing an education.

Default on Repayment

Like all bank loans, the MPN contract allows IFEducation to collect the loan through legal means if students decide not to repay the loan.

IFEducation is an organization that does not make a profit helping our communities succeed. We are not a charity organization that gives away scholarships and grants