- INvestEd Overview: INvestEd is an Indiana-based nonprofit organization with over 45 years of experience, focusing on student loans and financial literacy, primarily serving Indiana students and families.
- Pros and Cons of INvestEd Student Loans: INvestEd offers low rates, both fixed and variable, generous protections like forbearance and deferment, and no fees, but only serves Indiana residents and attending Indiana schools.
- INvestEd Rates and Fees: The organization provides competitive fixed and variable APRs with no origination or application fees, and a 0.25% autopay discount, all with a low rate ceiling.
- Loan Terms and Repayment Options: Loans range from $1,001 to the cost of attendance, with flexible repayment terms of 5, 10, or 15 years, including options for deferment, interest-only, or full payments during school.
- Eligibility and Application Process**: Applicants must be Indiana residents or attending eligible Indiana schools, with a minimum credit score of 670, and can apply online in minutes, though school certification may take 4-6 weeks.
INvestEd Overview
INvestEd (Indiana Secondary Market for Education Loans, Inc.) is an Indiana-based nonprofit corporation authorized under the Higher Education Act of 1965. The organization has been serving Indiana students and families for over 45 years, offering private student loans, parent loans, and student loan refinancing. INvestEd’s philosophy is distinctive: the organization believes the best student loan is no loan at all, and invests heavily in financial literacy, college cost planning, and community education. INvestEd hosts over 1,000 events per year across Indiana, providing guidance on college funding and responsible borrowing.
INvestEd’s private student loans are available exclusively to Indiana residents or non-residents attending Indiana schools. This geographic restriction is the lender’s most significant limitation. Within that footprint, however, INvestEd offers competitive rates with a low ceiling, both fixed and variable options, three repayment terms, generous forbearance (24 months), academic deferment (up to 36 months for graduate enrollment), co-signer release (reported as early as 12 on-time payments by some sources), and death/disability discharge. The nonprofit’s refinancing product, by contrast, is available nationwide.
Borrowers should, as always, exhaust federal loan options before considering any private student loan. INvestEd prominently echoes this guidance on its own website.
Pros and Cons of INvestEd Student Loans
Pros
- Low rate ceiling (~10.49% fixed, ~10.99% variable). Protects less-qualified Indiana borrowers from the extreme pricing found at national lenders.
- Both fixed and variable rates are available. Unlike ISL and EdvestinU (fixed only for in-school), INvestEd offers both rate types, giving borrowers more choice.
- Fast co-signer release (reported as 12 payments by Credible). If accurate, this ties with Sallie Mae and Abe for the fastest in the industry. Other sources report 48 months; borrowers should verify directly with INvestEd.
- Generous forbearance (24 months). Available in 3-month increments, up to 2 per year. Among the longest forbearance periods in the market.
- Academic deferment (up to 36 months). Borrowers who return to school at least half-time can defer payments for up to 3 years. This is a rare and valuable feature.
- Zero fees. No origination fee, no application fee, no prepayment penalty.
- Death and disability discharge. Loans are forgiven if the borrower dies or becomes permanently disabled.
- Nonprofit mission with community investment. Over 1,000 annual events, financial literacy resources, college cost planning tools, and scholarship guidance for Indiana families.
- Low minimum borrowing ($1,001). Accessible for small gap-fill loans.
Cons
- Indiana only. Private student loans are available only to Indiana residents or students attending Indiana schools. Out-of-state borrowers cannot apply. (Refinancing is available nationwide.)
- Some out-of-state exclusions for IN residents. Indiana residents attending schools in Colorado, Oklahoma, South Carolina, and Wisconsin are ineligible.
- Limited online presence and reviews. No meaningful Trustpilot or BBB profile. Facebook reviews are sparse and include spam. Makes it hard to assess borrower experience at scale.
- School certification is reported at 4-6 weeks. Slower than many national competitors.
INvestEd
INvestEd earns a 3.5 out of 5.0 and is the strongest option for Indiana residents. The rate ceiling of 10.49% fixed and 10.99% variable keeps worst-case pricing competitive with national nonprofit lenders, and INvestEd is the only nonprofit in this review that offers both fixed and variable rate options. A 36-month academic deferment for graduate enrollment and 24-month forbearance provide generous hardship protections that exceed most competitors.
INvestEd is an Indiana nonprofit corporation authorized under the Higher Education Act of 1965, with over 45 years of service. The organization hosts more than 1,000 community events annually focused on financial literacy and college cost planning, reflecting a philosophy that "the best student loan is no loan at all." Death and disability discharge, military deferment, and zero origination fees round out the borrower-friendly product.
The decisive limitation is geographic: INvestEd private student loans are available only to Indiana residents or students attending Indiana schools. Indiana residents attending schools in Colorado, Oklahoma, South Carolina, and Wisconsin are also excluded. The refinancing product, by contrast, is available nationwide. For Indiana borrowers, INvestEd competes favorably with any national lender on rates and terms. For everyone else, ISL Education Lending or EdvestinU are the closest nonprofit alternatives.
- Fixed APR: 4.50% – 10.49% | Variable APR: 5.24% – 10.99%
- Both fixed and variable rates, the only nonprofit in this series offering both
- 36-month academic deferment for borrowers who return to graduate school
- 24-month forbearance and death/disability discharge
- Zero origination fee and no prepayment penalty
INvestEd Rates and Fees
INvestEd offers both fixed and variable rate private student loans. Based on the outline data, fixed APRs range from approximately 4.50% to 10.49% and variable APRs from approximately 5.24% to 10.99%. These rates are competitive, particularly the ceiling, which is lower than most national lenders. A 0.25% autopay discount is available. No origination fee, no application fee, and no prepayment penalty. Late fee details are not prominently disclosed.
INvestEd In-School Repayment and Loan Terms
Loan amounts range from $1,001 (Indiana schools) or $2,001 (Indiana residents at out-of-state schools) up to the cost of attendance minus other aid. Terms are 5, 10, or 15 years. Three in-school repayment options: deferred, interest-only, or immediate full payments. Grace period is 6 months. Forbearance is available up to 24 months in 3-month increments. Academic deferment up to 36 months for borrowers returning to school at least half-time for a graduate degree. Military deferment is also available. Loans are discharged upon the death or permanent disability of the borrower.
INvestEd Eligibility and Application Process
Applicants must be Indiana residents or students attending an eligible Title IV four-year institution in Indiana. U.S. citizens and permanent residents only. Minimum credit score of 670. Co-signer recommended but not required if borrower meets credit criteria. The application is fully digital and takes minutes. INvestEd reports instant eligibility decisions, but school certification may take 4-6 weeks. Indiana residents attending schools in Colorado, Oklahoma, South Carolina, and Wisconsin are currently excluded.
How INvestEd Compares
Feature | INvestEd | ISL Education Lending |
Fixed APR | ~4.50% – 10.49% | ~2.70% – 8.70% |
Variable APR | ~5.24% – 10.99% | Fixed only |
Rate Ceiling (Fixed) | ~10.49% | ~8.70% |
Fees | None | None (incl. late) |
Terms | 5, 10, or 15 years | 10 or 15 years |
Co-signer Release | 12 or 48 mo. (verify) | 24 months |
Forbearance | 24 months | Limited |
Academic Deferment | 36 months (grad) | 84 months (in-school refi) |
Geographic Restriction | Indiana only | 48 states (not ME/OR) |
Variable Rates | Yes | No |
Refinancing | Yes (nationwide) | Yes (nationwide) |
Nonprofit | Yes | Yes |
Final Verdict on INvestEd Student Loans
INvestEd earns a 3.5 out of 5.0 in our scoring framework. For Indiana borrowers, it is an outstanding option: competitive rates with a low ceiling, both fixed and variable options, three repayment terms, generous forbearance (24 months), academic deferment (36 months), death/disability discharge, and a nonprofit mission backed by over 45 years of community service. INvestEd’s philosophy of minimizing debt first, providing responsible lending second, reflects a genuinely student-centered approach.
The geographic limitation is the decisive factor. If you are not an Indiana resident or student, INvestEd’s private student loans are not available to you (though the nationwide refinancing product remains an option). Within Indiana, INvestEd competes favorably with any national lender on rates, terms, and borrower protections.
Before applying for any private student loan, including INvestEd, borrowers should exhaust all federal student loan options. INvestEd encourages this on its own website.
Frequently asked questions
Answers to your questions about INvestED student loans.
Only if you attend an eligible school in Indiana. The private student loan is restricted to Indiana residents and students at Indiana institutions. However, INvestEd’s refinancing product is available nationwide.
Yes. Borrowers who return to school at least half-time in a graduate program can defer payments for up to 36 months. Military deferment is also available.
No. INvestEd (Indiana Secondary Market for Education Loans, Inc.) is a nonprofit corporation authorized under the Higher Education Act of 1965. It is not affiliated with any bank.
