Purdue Loans
General Information
Source of Funds: Purdue University Alumni Foundation, friends of the University, business, and industry.
Loan Deadline: Purdue Loans may be processed if accepted within 45 days of the start of the fall semester.
Steps to apply for a Purdue Loan
- File the Free Application for Federal Student Aid (FAFSA) at www.fafsa.ed.gov (this is a requirement) by March 1 for consideration and submit all documents requested by the Division of Financial Aid (DFA). Check for required documents via the online Financial Aid Self Service system at myPurdue. This award is based on level of financial need as determined by the FAFSA.
- DFA will send the student an Award Notice that the borrower can use to determine loan period, the type of eligibility, and the amount of eligibility.
- The borrower needs to determine how much they want to borrow and will have the option to accept the full amount offered or reduce the loan amount at myPurdue.
- The borrower must also complete a Promissory Note at www.ecsi.net/prom3P. There will be a waiting period of three business days before this signed note can be processed.
- Purdue loan funds are processed electronically through the Purdue Bursar. The student will be notified by the Bursar's Office that funds have been processed. Funds are applied first to fees, then to any housing costs (if the Bursar bills for housing). Any remaining Purdue loan funds are sent to the student via paper check or direct deposit.
Loan Amounts Annual Maximum: Depends on financial need as calculated by the Division of Financial Aid. Maximum award is generally $2,000.
Aggregate Maximums: Undergraduate -- $30,000 Graduate -- $50,000
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: $50 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: 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 six 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.
Cancellation Provisions: None.
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. See additional information on completing the Exit Interview obligation.
Notification of Change of Name and/or Address: Notify UCO, Purdue University, West Lafayette, IN 47907-1081