- Students living or going to college in Indiana
- Students who are confident they’ll earn their degree
- Families with large college funding gaps
INvestEd is an Indiana nonprofit corporation that offers private student loans to students living or attending college in Indiana. Eligible students can fund up to their total cost of attendance, minus other aid received, making INvestED an option worth considering. Here’s everything you should also consider before borrowing from INvestED.
In this post:
- INvestED interest rates and loan details
- INvestED private student loan review
- How INvestED compares to other lenders
- How to take out student loans with INvestED
- How INvestED can improve
INvestED interest rates and loan details
As with most private student lenders, the interest rates offered by INvestED depend on the student or cosigner’s creditworthiness. To qualify with INvestED, you or your cosigner must have a credit score of at least 670, and enough income to comfortably handle the monthly payments for the loan you’re seeking.
|Loan amounts||$1,001 up to 100% of the cost of attendance
(minus other aid)
|Loan terms||5, 10, or 15 years
|Min. credit score||670|
|Min. income||$3,333 monthly income or debt-to-income ratio not exceeding 30%|
|Interest rates||Fixed or variable|
|Enrollment||Must be enrolled at least half time in a degree-granting program at an eligible institution|
|Repayment plans||Defer payments until 6 months after leaving school, or:
|Cosigner release||Applications accepted after 48 consecutive on‑time payments. Borrowers must meet conditions that include:
|Loan servicer||American Education Services (AES)|
INvestED private student loan review
INvestEd is partnered with a lender (First Merchants Bank), loan processor (Campus Door), and loan servicer (American Education Services) to provide competitive private student loans and customer service.
INvestED offers a good selection of repayment terms — 5, 10, or 15 years — but it’s not as broad as some other lenders. A 20-year option would be helpful for students who need to borrow a lot.
INvestED offers a choice of a fixed or variable interest rate. Like many other private student loans, variable rates are tied to the 3-month London Interbank Offer Rate (LIBOR). That means your interest rate and monthly payments can go up or down over time. Your interest rate on an INvestED variable-rate loan can go as high as 21%.
In addition to a 0.25% interest rate discount for autopay, INvestED will deduct 2% from your original loan principal if you graduate within 6 years. So if you’ve borrowed $30,000, you’ll have $600 knocked off your loan balance at graduation.
How to qualify
Most undergraduates taking out private student loans will need a cosigner to be approved because they won’t have the kind of credit history and earnings that lenders are looking for.
INvestED expects you or your cosigner will have a credit score of at least 670, and all of your monthly bills shouldn’t take up more than 30% of your income.
You or your cosigner will also need:
- To have been employed continuously for the last two years (may be waived if retired or disabled)
- No delinquencies of 60 days or more for at least two years.
- No repossessions, judgments, foreclosures, garnishments or tax liens
- No charge-offs of unpaid bills or collections accounts exceeding $100
- No bankruptcies within the past 5 years
INvestED offers a choice of three repayment plans when you’re approved for a loan:
- Start making full monthly payments right away
- Just pay the interest you owe while in school
- Defer payments altogether until 6 months after leaving school
Deferring payments altogether is the costliest option, since interest charges will pile up. If you can at least pay the interest you owe each month, your loan balance won’t grow while you’re in school.
Also, keep in mind that the longest you can put off making full payments is 54 months. Your in-school period cannot exceed 48 months, at which point your 6-month grace period begins.
How INvestED compares to other lenders
|Rates from (APR)||Fixed:|
|Loan terms (Years)||5, 10, 15||5, 8, 10, 15, 20||7, 10, 12, 15, 20|
|Loan amount||$1,001 up to 100% of school's cost of attendance|
(minus other aid)
|$1,000 up to 100% of cost of attendance||$1,000 up to 100% of certified cost of attendance
($200,000 aggregate loan limit)
|Cosigner release?||Applications accepted after 48 consecutive on‑time payments||Yes, applications accepted after more than half of the scheduled repayment period has elapsed||Yes, applications accepted after 24 consecutive on-time payments|
|Loan servicer||American Education Services (AES)||University Account Service (UAS)||Granite State Management & Resources (GSM&R)|
|Best for||Indiana students with large funding gaps||Students and parents seeking flexible loan terms||Those who don’t need to borrow more than $200,000|
Lowest APRs reflect autopay, loyalty, and interest-only repayment discounts where available | 1Citizens Bank Disclosures | 2,3College Ave Disclosures | 6Discover Disclosures | 7SunTrust Bank Disclosures | 9Sallie Mae Disclosures
Citizens Bank Student Loan Rate Disclosure
Variable rate, based on the one-month London Interbank Offered Rate ("LIBOR") published in The Wall Street Journal on the twenty-fifth day, or the next business day, of the preceding calendar month. As of December 1, 2019, the one-month LIBOR rate is 1.70%. Variable interest rates range from 2.73%-11.06% (2.73%-10.91% APR) and will fluctuate over the term of the loan with changes in the LIBOR rate, and will vary based on applicable terms, level of degree earned and presence of a co-signer. Fixed interest rates range from 4.40%-12.19% (4.40% - 12.04% APR) based on applicable terms, level of degree earned and presence of a co-signer. Lowest rates shown requires application with a co- signer, are for eligible applicants, require a 5-year repayment term, borrower making scheduled payments while in school and include our Loyalty and Automatic Payment discounts of 0.25 percentage points each, as outlined in the Loyalty Discount and Automatic Payment Discount disclosures. Subject to additional terms and conditions, and rates are subject to change at any time without notice. Such changes will only apply to applications taken after the effective date of change. Please note: Due to federal regulations, Citizens Bank is required to provide every potential borrower with disclosure information before they apply for a private student loan. The borrower will be presented with an Application Disclosure and an Approval Disclosure within the application process before they accept the terms and conditions of the loan.
How to take out student loans with INvestED
INvestED may be a good choice if you live or go to college in Indiana and still need money for school. But it’s always smart to see what rates other lenders will offer before making up your mind.
Credible makes it easy to compare some of the best private student loans. By filling out a single form, you can request prequalified rates from INvestED and other student loan lenders without affecting your credit. If you see an option you like, you’ll be asked to authorize a hard credit pull to move forward with your loan application.
How INvestED can improve
Depending on the rates you’re offered, INvestED can be a good choice for filling college funding gaps. INvestED could be a good choice for more students if it:
- Served states other than Indiana
- Offered a wider range of repayment terms
- Set a lower limit on variable-rate loans
The company above is one of Credible’s approved partner lenders. Because they compete for your business through Credible, you can request rates from them by filling out a single form. Then, you can compare your available options side-by-side. Requesting rates is free, doesn’t affect your credit score, and your personal information is not shared with our partner lenders unless you see an option you like. Credible receives compensation if you close a loan with one of our partner lenders. The rates you receive and the fees you pay (if any) are not impacted by this compensation.