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GENERAL INFORMATION
Source of Funds: Federal Government and
Purdue University
Loan Amounts Annual Maximum: Depends
on financial need as calculated by the Division of Financial
Aid. Maximum award is usually $1,700.
Application Procedure: File FAFSA by
March 1 for consideration; award based on level of financial
need.
Aggregate Maximums: Undergraduate --
$15,000 Graduate -- $30,000
Minimum Credit Hours Per Semester: Undergraduate
-- 6 Graduate -- 5
Cosigner Required?: No.
Rate of Interest: 5% Annually on declining
balance
Origination/Insurance Fees: None.
Repayment: $40 minimum monthly payment.
Larger amount may be required, if necessary, to repay loan
within time limit.
Early Repayment Penalty: None.
Maximum Repayment Period: 10 years.
Consequences of Delinquency (on Defaulted Loan made by Purdue): Account
will be listed with a collection agency. Report will
be made to a credit bureau. Readmission to Purdue University
will be denied and official transcripts withheld. All
further aid at Purdue University will be denied to student.
Legal action will be taken on extended default.
BORROWER'S BENEFITS
Interest Benefits: Borrower pays no interest
while enrolled in school at least half time or during the
grace period after leaving school.
Grace Period: The nine month period
from the date the student ceases half-time enrollment status.
No interest accrues during grace period. No payment
due, but voluntary payment may be made to reduce interest
after grace period.
Deferred Payment Provisions: Applications
are obtained and deferments granted through lender of the
funds. Borrowers should seek detailed information from
the lender. For Purdue borrowers, contact UCO.
Cancellation Provisions: Loans
may be cancelled under the following conditions: 1) Death
of the borrower; 2) Total disability of the borrower;
3) Certain types of military service; or 4) Certain professions. Refer to exit materials for more details or contact UCO.
BORROWER'S RESPONSIBILITIES
Entrance/Exit Interview: Handled through
Purdue University Collections Office (UCO). Report to
UCO prior to dropping below half-time status, withdrawing,
graduating, or transferring.
Notification of Change of Name and/or Address:
Notify UCO, Purdue University, West Lafayette, IN 47907-1081.
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