Purdue Loan

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• Steps to apply for a Purdue Loan

  1. File the Free Application for Federal Student Aid (FAFSA) at www.fafsa.gov  by March 1 for consideration and submit all required documents (as noted on the student’s myPurdue account) to the Division of Financial Aid (DFA). Eligibility for this loan is based on demonstrating a high level of financial need (as determined by the FAFSA) and available funding.
  2. 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.
  3. 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.

   

  How to Accept or Decline Offered Purdue Loans (as indicated on the myPurdue account)

  1. The student logs into their myPurdue account.
  2. Choose the “Financial” tab.
  3. Click “Award for Aid Year” in the left column.
  4. Choose the 2012-13 academic year.
  5. Click the 4th tab “Accept Award Offer”.

     a. Select “decline” to decline the loan offer and you’re done.

  • Please Note: Funding is limited.  Declined amounts will be re-awarded to students waiting for additional need-based funding.  It is unlikely that declined amounts can be reinstated as a result. 
  • To accept, enter a value up to the maximum amount offered.  Note that if you are attending both semesters, this amount will be divided between the two terms evenly.

  b. If you accepted the loan in step 5, you must continue to step 6.

One to two business days after accepting the loan, you will receive an email to your purdue.edu email account from the 3rd-party loan servicer, ECSI.  The email will contain directions on how to complete the promissory note.  This promissory note is not available for you to complete until after you receive this email.  You must sign a new promissory note each time you accept a Purdue Loan or an increase to an existing Purdue Loan.  Brief instructions are provided here for your convenience.   Please note:  This is a separate promissory note with different instructions than those necessary for Stafford Loan borrowers. 

• Before signing into the ECSI website, you’ll need to have your Social Security Number, FAFSA PIN and the name and full address of 2 separate references, typically 2 relatives that live at separate addresses.  References should not be confused with endorsers/co-borrowers.  The student is the sole borrower and only the student signs the promissory note.
• Sign into the ECSI website at www.ecsi.net/prom3P. Complete the 7 steps as outlined on their site.
• Please allow 3 - 4 business days following the completion of your promissory note before the status of the accompanying requirements flag on myPurdue is updated.

Timeframe from Acceptance to Crediting the Balance of Tuition and/or Housing or Receiving a Refund
Accepted Purdue Loans will credit any outstanding balance within 2 business days of accepting it on your myPurdue account.  All private loans require at least 3 weeks after completion of the application before any excess funds are available to refund to the student, based on Federal Regulation Z.
How long will it take to process my Purdue loan?

 

General Information

Source of Funds: Purdue University Alumni Foundation, friends of the University, business, and industry.

Loan Amounts Annual Maximum: Depends on financial need as calculated by the Division of Financial Aid. Maximum award is generally $2,000. Up to $8,000 may be awarded on an exception basis.

Loan Deadline: Purdue Loans may be processed if accepted within 45 days of the start of the fall semester.

Aggregate Maximums: Undergraduate --    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 obtained and deferments granted through Educational Computer Systems, Inc. (ECSI). Borrowers should seek detailed information at www.ecsi.net.

Cancellation Provisions:  The loan may be cancelled in the case of borrower death or permanent/total disability.

Borrower's Responsibilities

Entrance/Exit Interview: Handled through Educational Computer Systems, Inc. (ECSI).  Report to ECSI prior to dropping below half-time status, withdrawing, completing the Exit Interview obligation.

Notification of Change of Name and/or Address: Notify Educational Computer Systems, Inc., 181 Montour Run Road, Coraopolis, PA 15108; Phone 1-888-549-3274

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