You can be very confident that Indylaw places well in the region. The only issue is of course the relative size of the Indianapolis/central Indiana market. Indy puts out a LOT of graduates. If this were one of the top five or ten metro areas in the country, it wouldn't matter. But here it does. Depending on the economy, there may just not be very many positions at all.
I wouldn't be too worried about being 26. I was 31 when I started full time and I fit right in. Sort of...
But honestly, most FT students here are starting 1L somewhere around 22-25, so I would expect that going in. PT program is obviously completely different. Just from what I gathered during orientation last year, the median age for PT students is somewhere in the 35-40 ballpark.
I was a Ball State graduate many years ago and really didn't know anyone who did IUPUI undergrad. So I can't tell you much. The biggest perk of attending Indylaw is the location - BY FAR. Immediately, upon starting 1L, you are plugged right into the legal community here in Indy. IBA, alumni networking events, alumni lunches, and on and on. Not to mention the biggest factor - State Government. You may not want to be a government attorney or do regulatory work, but having this mass employer right next door is invaluable. One summer working with, for example, professional licensing or Dept. of Insurance or SOS, and you've already gotten a head above most who are heading into the private market after graduation. There is so much regulatory and lobbying work for private attorneys here in Indianapolis that people with state government backgrounds are generally considered to be valuable recruits.
Where do you go to UG now?