To apply for federal, state, and Purdue University student aid programs students must file the Free Application for Federal Student Aid (FAFSA) annually to be considered for each academic year. A student has the right to decline all or a portion of any aid offered. By accepting financial aid awards, the student agrees to comply with the terms and conditions listed in the Purdue University Division of Financial Aid Terms and Conditions information.
The terms and conditions information is subject to change as a result of action by federal and/or state governments, the trustees of Purdue University, and the Administration of Purdue University. Questions concerning the content of the terms and conditions information should be directed to the Purdue University Division of Financial Aid.
Purdue University has a strong tradition of helping students finance their undergraduate education. The following definitions should help students/families understand some of the terms used in financial aid programs.
Types of Aid
Scholarships and Grants: Sometimes referred to as "gift aid", scholarships and grants are financial aid that does not have to be repaid or earned through employment and is awarded on the basis of merit and/or need.
Educational Loans: Loans are a type of "self-help" aid that is borrowed money to help cover the costs of attending college and must be repaid. Student loan programs offer low interest rates and are not repaid until after students graduate (or drop below half-time status). Parent loan programs offer the parents the opportunity to borrow to assist with educational expenses.
Federal Work-Study (FWS): FWS is a federal funded aid program designed to help students offset some education costs through part-time employment opportunities. Student Employment is considered another "self-help" type of financial aid.
Cost of Attendance
Estimated Cost of Attendance: is used to determine your need for financial aid and to prepare an aid package budget. This includes estimates for fixed costs such as fees and tuition and allowances for variable costs such as books and supplies, housing and food, transportation, dependent care and personal expenses (including expenses that are not billed by the University).
Tuition/Fees: are estimated on the financial aid eligibility notice and are to be paid directly to the University.This Financial Aid Eligibility Notice is not a tuition/fees bill. You will receive a bill for the amount due from the Bursar's Office after you register for classes. Electronic bills for the fall term are emailed to students in July. The due date is always the first day of classes.
Books/Supplies: an expense allowance for the materials required for class.
Housing/Food: is an expense allowance for food and shelter while living on campus, off campus or commuting from home during the period of enrollment. Expenses for housing and food and how they are paid will vary depending on where you will live. Charges for University housing are assessed by the University according to the residence hall and meal plan selected and are billed by the Bursar.
Transportation: a personal expense allowance for travel back and forth from permanent place of residence and around campus.
Dependent Care: an expense allowance for students with dependents who may incur dependent care expenses to enable them to attend classes.
Personal Expenses: a personal allowance for miscellaneous expenses such as clothing, laundry, recreation, cell phones and personal hygiene.
Loan Fees: an expense allowance based on fees charged to the loan borrower.
Calculating Aid Eligibility
Expected Family Contribution (EFC): represents the amount you and your parents (if classified as a dependent student), or you (if classified as an independent student) and your spouse (if married) are expected to be able to provide to help meet your expenses for the enrollment period. You will not receive a bill for the EFC. Your EFC was calculated using a federal formula based on information you and your family provided on the Free Application for Federal Student Aid (FAFSA) and other documents submitted to our office.
Parental Contribution (PC): represents the parent portion of the EFC for dependent students.
Student Contribution (SC): represents the student portion of the EFC.
Total Financial Aid Eligibility: is the sum of the assistance for which you are eligible.
Total Financial Need: is calculated by subtracting the EFC, total financial aid eligibility, and estimated other aid from the estimated cost of attendance.
Unmet Financial Need: is the difference between your need and total aid that is considered in meeting your financial need.
Award Messages: provide information and/or conditions of a particular type of aid, assumptions we have made in determining your eligibility, actions you need to take, reasons for revisions, etc. Read these messages carefully and take any action that may be required. These messages are found on your myPurdue account under the Financial Aid tab, "Award Messages" link. Students also should check the "Important Messages" link regularly.
By accepting your financial aid awards, you agree to comply with the terms and conditions listed below and within the Financial Aid Eligibility Notice.
- I understand that my financial aid eligibility is determined in accordance with laws, regulations and appropriations (existing or anticipated) of the U.S. Congress, the Indiana State Legislature, Purdue University, and other donors.
- I understand that my financial aid eligibility is subject to adjustment or cancellation in the event changes occur in laws, regulations or appropriations during the period of my award.
- I agree to notify the Division of Financial Aid (DFA) of the sources and amount of my financial assistance that I may receive from other sources including scholarships, loans, counsellorships, assistantships, fellowships, educational benefits, etc., which do not appear on my Financial Aid Eligibility Notice. I further understand that if additional assistance reduces my eligibility, an adjustment in my awards may be necessary. This adjustment may include the return of loan funds to my lender or the necessity to repay other types of assistance already received.
- I understand that my aid eligibility is based on the financial information provided by me and/or my family, and that it is subject to adjustment or cancellation if changes occur or if errors are subsequently discovered.
- I understand that in order to receive financial aid I must be making satisfactory academic progress toward my degree as described in the Satisfactory Academic Progress Policy.
- I understand Pell Grant eligibility is limited to the equivalent of 12 full-time (12 or more credit hours) semesters.
- Unless otherwise indicated in the message section of my Financial Aid Eligibility Notice, I understand that I must be enrolled full-time to receive all of my financial aid awards (12 credit hours each semester as an undergraduate; 8 credit hours each semester as a graduate or professional student).
- If I withdraw from the University, stop attending classes before the end of the term or do not initiate course participation in any classes, I understand that I may be expected to repay all or a portion of my aid funds. I agree to follow the Purdue University withdrawal procedures available from the Dean of Students.
- I understand that I must meet repayment obligations on any educational loan and repay any financial aid funds due as a result of withdrawal or an overaward situation, or I will not be eligible for future financial aid and I may have a hold placed on my University records.
- I understand that I may have to take additional action before my aid will be finalized (on my Financial Aid Eligibility Notice) if an award is listed as "anticipated" or "estimated." Furthermore, I understand that no funds will be disbursed from these aid types until all required actions are completed.
- I understand that if I am a transfer student my aid eligibility is subject to adjustment or cancellation based on information received regarding aid usage at my previous institution.
- If I am offered and accept Federal Work-Study (FWS), I understand it is my responsibility to secure a FWS position, turn in a Payroll Authorization Form to my employer and earn my award money in wages paid by my employer, as described on the Federal Work-Study page.
- If I accept a loan, I understand that I am required to sign a promissory note. I understand I am fully responsible for repaying the loan and meeting all other terms and conditions of the loan, including notifying the lender or loan servicer if I move or change my address or if I change my name.
- I understand that I must not be in default on any federal education loans or owe any refunds on federal funds that I have received at Purdue or any other post-secondary institution.
- I understand that if I want to borrow from the Federal Direct Sub/Unsub or PLUS Loan programs or borrow private loans; I must follow the instructions provided with the Financial Aid Eligibility Notice. I also understand that Federal PLUS and private loans require a credit check before any application will be processed and that I am responsible for any balance owed if a loan is denied.
- I understand that I must file the Free Application for Federal Student Aid (FAFSA) each year that I wish to be considered for financial aid. Purdue requires the FAFSA to be filed by March 1 for priority consideration.
- I understand that eligibility for federal and state of Indiana student aid will be based on the number of credit hours in which I am enrolled as of the end of the fourth week of classes of each semester.
- I understand that the DFA communicates updates and important reminders via email to a student's Purdue email account. It is important to read any email from email@example.com, as this is the listed sender for all DFA email contacts. It is also important to read any email from firstname.lastname@example.org for important financial aid disbursement information.
- As a student loan borrower I have the right to:
- Written information on my loan obligations and information on my rights and responsibilities as a borrower
- A payment grace period and explanation of what this term means
- A disclosure statement received before I begin to repay my loan that includes information about interest rates, fees, the balance I owe and the number of payments
- Deferment of repayment for certain defined periods, if I qualify and if I request it
- Forbearance if I qualify and if I request it
- Prepayment of my loan in whole or in part any time without an early-repayment penalty
- A copy of my promissory note either before or at the time my loan is disbursed
- Documentation that my loan is paid in full
By accepting your financial aid awards, you agree to comply with the terms and conditions listed below and within the Financial Aid Eligibility Notice.
- Estimated Aid is an estimate of available financial aid funds temporarily assigned to the student's account before disbursement occurs. This allows for a more accurate reflection of term balances due based upon the anticipated financial aid. Payments will not be released to the student prior to the receipt of anticipated funds and the "estimated award" becomes an "actual award."
- Disbursement is the process by which assigned aid is actually placed on the student’s account. Refunding is the process where the student receives payment of funds from his/her financial aid in excess of bills due the University.
- Students must be officially registered for the semester and meet enrollment criteria (i.e., full-time enrollment) before any financial aid funds will be disbursed. Financial aid funds will be credited to the student's account in the following sequence; a) fees and tuition; b) University housing (if applicable); c) authorized miscellaneous charges (if applicable).
- If aid funds remain after fees/tuition and University housing (if applicable) accounts, and any authorized miscellaneous charges are paid for the semester, the Bursar's Office will issue a refund to the student no earlier than the week prior to the beginning of each semester.
- The University estimates your eligibility for aid from the Indiana Commission for Higher Education (CHE), and the Federal Pell Grant. These estimated awards will be used to defer amounts due to the University. Adjustments will be made to the amount assigned to the student's account if the amount of the estimated award differs from the amount of the actual award when finalized. Additionally, if the estimated award is not finalized, the student will be billed by the University. IMPORTANT: Students seeking to drop classes below 12 semester hours for undergraduates or 8 semester hours for graduate students after financial aid awards have been disbursed, and before the end of the fourth week of classes, should speak to a financial aid counselor regarding their course load; the reduced hours will result in a loss or reduction of their award package.
- Award amounts from the Federal Stafford Loan Program will also be estimated in order to temporarily defer amounts due to the University when a loan application has been processed by the DFA. If a student does not complete the loan process, he/she will be billed for the estimated award assigned toward amounts due to the University.
- Student Loans accepted on the myPurdue portal will appear as "estimated aid" and credit the bill in anticipation of their arrival. Funds from Federal Direct and PLUS Loan programs cannot be disbursed until the Bursar's Office receives the funds from the Federal Government.
- PLUS loan funds will be reflected on the student's account as a credit toward tuition/fees and University housing (if applicable), and any authorized miscellaneous charges.
- Special handling is required to process private loan checks received in the form of a paper check made payable to the borrower and the University. In these instances, the paper check will be sent to the borrower, and the student will be responsible for payment of outstanding amounts due to the University.
- Academic year Federal Direct and PLUS funds will be disbursed in two equal installments; however, a student may make a request to the Division of Financial Aid to change an academic year Direct loan to a one-semester loan. If the loan period on the student's Federal Stafford or Federal PLUS application is for the academic year, the loan funds will be released at the beginning of each semester.
- Purdue University offers electronic funds transfer (EFT) of excess aid (portion not applied to fees, University housing or authorized miscellaneous charges) directly to the student's U.S. checking or savings account. This is the safest and quickest way to have excess funds deposited, and students are notified via email when their deposit has been made. Students can sign up for EFT by logging in to their myPurdue account. For a download of detailed instructions, visit the Bursar website:www.purdue.edu/bursar/pdf/tutorials/authorize-eRefund.pdf. Students not choosing EFT will receive a University check mailed to their local address, which could take 7-10 business days. Because of the delivery method, it is important to keep local and home address information current at all times in the University registration system.
- Promissory notes for Purdue Loans and Health Professional Loans will need to be signed and completed electronically via the ECSI loan servicer at www.ecsi.net/prom3P.The loans will be disbursed only if the online entrance interview has been completed and promissory notes have been signed. The student must accept or decline these loans on their myPurdue portal prior to completing the promissory note. The Bursar's Office will reduce University bills as appropriate against the accepted amount until the promissory note has been completed and funds arrive. IMPORTANT: Failure to sign a promissory note for accepted loans will result in cancellation of the loan and a billing from the Bursar's Officefor any University bills that were deferred against the loan. Reinstatement of loans is subject to fund availability.
- Federal Work-Study funds are not "credited" to a student account; these funds are earned and paid for hours worked on a biweekly basis.
- If a student's aid is increased for any reason after the initial disbursement, subsequent payments are refunded by the Bursar's Office. If aid is decreased, a bill may be created listing the current amount due. Failure to pay the amount due will result in a hold placed upon the student account, which can affect future aid eligibility.
- Actual scholarship funds from a donor outside the University will be credited to a student account in the same manner as noted in item 3. Funds from scholarship donors outside the University will not apply to University charges prior to the receipt of funds. Please allow 3-5 business days from the time Purdue receives a check from a donor for funds to appear on a student's account.
- Federal and state aid disbursements are subject to federal and state refund policies; more information on refund policy is available at http://www.purdue.edu/dfa/students/mypurdue.html.
- Students/parents awarded Federal Direct Sub/Unsub, Direct PLUS or Perkins loans have the right to cancel or reduce the loan awarded. Students can contact the Division of Financial Aid to cancel a loan prior to the loans disbursement. Follow the instructions provided by the Bursar's Office to request a cancellation after loan disbursement.
DFA recommends students complete a worksheet to estimate how much they will be billed by Purdue and to estimate a balance due or refund amount after aid assignment and disbursement.
Step 1: Estimate your expected bills for tuition and fees and campus housing:
|Campus Housing/Food Estimate||+$________________|
|Total Estimated Billing (A)||=$________________(A)|
Step 2: List total expected financial aid awards you plan to receive as listed on your Financial Aid Eligibility Notice:
Grants and Scholarships Total (outside/private scholarships cannot be counted until actual funds are recieved)
|Student Loan Total (if you plan to apply for student loans)||+$_________________|
|Parent Loan Total (if you plan to apply for parent loans)||+$_________________|
|Total Estimated Financial Aid (B)||=$_________________(B)|
Step 3: Subtract Total Estimated Financial Aid (B) from Total Estimated Billing (A) to determine estimated balance due or refund amount from Bursar:
|Total Estimated Billing (A)||$_________________(A)|
|Total Estimated Financial Aid (B)||+$_________________(B)|
|Estimated Balance Due or Excess Funds (Refund) Amount)||=$_________________*|
*If academic year figures are used, you will need to divide by two (2) to determine balance due or excess funds per semester. A positive amount reflects the estimated balance due, and a negative number reflects the estimated excess funds (refund) amount.