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Purdue Loan

A low-interest federal loan available primarily to undergraduate students who complete the FAFSA by March 1, demonstrate financial need, and enroll at least half-time in a degree-seeking program. This loan program has numerous borrower benefits that are described in the Repayment Information section. Choose a section below for additional information.

  • Eligibility
    • Must be undergraduate, graduate, or professional student enrolled at least half time (6 credit hours for an undergraduate student, 4 credit hours for a graduate student) as a degree-seeking student.

      Must be a U.S. citizen, U.S. national, or permanent resident of the United States.

      Must have a current Free Application for Federal Student Aid (FAFSA) filed.

  • Award Amounts
    • 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.

      Aggregate Maximums: Undergraduate - $30,000 | Graduate - $50,000

  • Interest Rates
    • Purdue loans have a fixed interest rate of 5%. The borrower pays no interest while enrolled in school at least half time or during the six-month grace period after leaving school.

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

      Timeframe from Acceptance to Crediting the Balance on Tuition or Housing or a Refund: Accepted Purdue Loans will credit any outstanding balance within 2 business days of accepting it on your myPurdue account. It will take approximately one week after accepting the Purdue Loan and signing the Promissory Note before any excess funds are refunded to the student. How long will it take to process my Purdue loan?

  • Steps to Apply for a Purdue Loan
    • 1. File the Free Application for Federal Student Aid (FAFSA) 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.

      4. The student will be required to sign a Promissory Note 1-2 business days after accepting the loan.

  • How to Accept/Decline Purdue Loan
    • 1. Log in to the myPurdue account.

      2. Choose the "Financial" tab.

      3. Under Quick Links, click "Award for Aid Year" in the left column.

      4. Choose the appropriate academic year.

      5. Click the 4th tab "Accept Award Offer".
      - 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. Continue to the Promissory Note section below for additional steps to complete.
      - To decline the loan offer, select "decline" 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.)

  • Promissory Note
    • You will be required to sign a promissory note 1-2 days after accepting your loan. ECSI, the third party loan servicer, will send you an email in this timeframe indicating when your promissory note is available. You must sign a new promissory note each time you accept a Purdue Loan or an increase to an existing Purdue Loan. Borrowers can complete this requirement at www.ecsi.net/prom3P. Please allow 3-4 business days for our office to download the completed requirement and update your myPurdue account. (Please note: This promissory note is separate from any Stafford Loan requirement)

  • Repayment Information
    • Grace Period: The six-month period from the date student ceases half-time enrollment status. No interest accrues during grace period. No payments due, but voluntary payments may be made to reduce interest after grace period.

      Repayment: $50 minimum monthly payment. Larger amount may be required, if necessary, to repay loan within time limit.

      Early Repayment Penalty: None.

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

      Notification of Change of Name and/or Address:
      Notify ECSI. ECSI's contact information is listed below.

      Educational Computer Systems, Inc.,
      181 Montour Run Road,
      Coraopolis, PA 15108;
      Phone 1-888-549-3274

Loan Comparison Chart

Interest Rate
4.66-6.21%
5.0%
5.0%
7.21%
7.21%

2.25-13.99%

Check with your lender.

Interest Rate
Type
Fixed
Fixed
Variable or fixed - Check with your lender.
Fees
1.073% of the accepted amount
None
None
4.292% of the accepted amount
4.292% of the accepted amount

0-5% of the accepted amount

Check with your lender.

Minimum enrollment
Undergrad: 6 cr, Grad: 4  cr
Undergrad: 6 cr, Grad: 4 cr 
12 cr. hours
6 cr hours
4 cr hours
Less than half-time for some - Check with your lender.
FAFSA
required
YES
YES
YES
YES
YES
NO
SAP required
YES
YES
YES
YES
YES
Check with your lender.
Standard repayment term
10 Years
10 Years
10 Years
10 - 25 Years
10 Years

Typically 5-15 years

Check with your lender.

When payment starts
6 months after graduation or falling below half-time enrollment
Perkins: 9 months (Purdue Loan: 6 months) after graduation or falling below half-time enrollment
12 months after graduation or falling below 12 cr. hours
Optional-based upon application
Immediately after falling below half-time enrollment
Check with your lender.
Who can apply
Student
Student
Student
Parent
or Step Parent
Student
Student
Responsible for repayment
Student
Student
Student
Parent
Student
Student
Student
Credit Check Required
NO
NO
NO
YES
YES
YES
Loan Limits
Based upon grade level and dependency status
$2,000
$2,000
Up to 100% of the cost of attendance, minus other financial aid received
Up to 100% of the cost of attendance, minus other financial aid received

Generally, up to 100% of the cost of attendance, minus other financial aid received.

Check with your lender.

Minimum required payment during student's enrollment
None; interest may accrue.
None
None
Payments can be deferred while the student is in school; interest continues to accrue and is added to the loan's principal after graduation.
None; interest may accrue.
Many private lenders allow payments to be deferred while the student is in school; interest accrues during this time. Many lenders offer options to make interest payments while the student is in school.
Repayment Plans
Graduated, extended, or income-based plans may be available to qualified borrowers.
None
None
Graduated and extended repayment options
Graduated, extended, or income-based plans may be available to qualified borrowers.
Discretionary programs available for troubled borrowers but are not part of the loan agreement.

Cosigner /
endorser option

N/A
N/A
N/A
YES
YES
Most private lenders require a cosigner for freshmen. A cosigner may result in a better interest rate. Check with your lender.
Cosigner /
endorser release
N/A
N/A
N/A
NO
NO
Some after 1 year - Check with your lender.
Tax deductible interest
YES
YES (subject to IRS guidelines)
YES (subject to IRS guidelines)
YES - parent can take tax deduction (subject to IRS guidelines)
YES
Generally, YES - the student can take the tax deduction (subject to IRS guidelines). Restrictions apply to loans for less than half-time enrollment.
Ability to consolidate
YES - Up to 25 years

Perkins: YES (but borrower must include at least one Direct Loan or Federal Family Education Loan (FFEL) Program loan in the Direct Consolidation Loan; note that benefits specific to Perkins Loans will be lost, though.)

Purdue Loan: NO

YES (but borrower must include at least one Direct Loan or Federal Family Education Loan (FFEL) Program loan in the Direct Consolidation Loan)
YES - Up to 25 years
YES - Up to 25 years
Check with your lender.
How to apply
Accept on myPurdue
Accept on myPurdue
Accept on myPurdue

Accept on myPurdue and www.student
loans.gov

Lender website