Covering Remaining Costs
By early April, admitted freshmen that filed the 2013-14 FAFSA application and completed verification requests (if applicable) should have received an award letter from the Division of Financial Aid at Purdue University. It outlines their financial aid eligibility for the coming year. Returning Purdue students will begin receiving award letters in mid-June. The award letter may indicate there are remaining costs for the family to cover.
The costs on the award letter reflect the estimated cost of attendance; actual costs will vary depending upon the academic program of enrollment and room and board options selected. Amounts shown for books and supplies, transportation, and miscellaneous expenses are not billed by the University but provide an estimate for planning purposes. Outlined below are common financing options that families use to pay for these remaining costs. Families often utilize a combination of financing options to make the investment in the student’s education.
Financing Option |
Details |
|---|---|
Payment from Educational Loans and Future Earnings |
Credit-worthy parents of dependent students may be able to borrow under the Federal Parent PLUS Loan program. Repayment can be deferred until the student graduates. |
| Private lenders offer alternative loans that are available to credit-worthy borrowers. Each lender determines the terms of the loan. | |
| Home equity loans may offer competitive interest rates with alternative loans. Compare loan fees and interest rates to get the best deal possible. Note: This option should be discussed with your mortgage lender. | |
| Some types of employment are eligible for loan forgiveness programs. A portion or all of a student's federal loans may be forgiven (reduced) as a benefit of committing to the organization. |
Payment from Current Earnings and Assets |
Families can break remaining semester costs into monthly payments through the Installment Plan offered by the Bursar's Office. |
| Existing assets may be utilized to reduce the amount of borrowed loans and interest. Examples include previously purchased college education savings bonds, savings accounts, stocks, mutual funds, etc. | |
| Students should consider saving money from full-time employment over the summer and part-time work during the school year. Students that work 10-15 hours weekly while enrolled can cover their miscellaneous expenses. They gain work experience valued by future employers, and studies show their GPA usually improves. |
Payment from Programs Offering Education Benefits |
Purdue University has three ROTC programs: Air Force, Navy, and Army. Tuition assistance, scholarships, and stipends may be available for participants. |
| Veterans or their family members may qualify for the GI Bill to cover tuition costs. Veterans who are Indiana residents may qualify for state assistance or benefits. |
Offsetting the Investment with Tax Advantages (occurs after the fact) |
A tax credit of up to $1,000 may be available for contributions made under Indiana's CollegeChoice 529 Savings Plan. Other states may offer tax advantages for contributions to those plans. |
| Tax deductions may be available to families that pay qualified tuition and fee expenses. The Bursar's Office issues 1098-T Forms in January of each year with qualified amounts. Consult your tax preparer for additional information. | |
| Interest paid on qualified educational loans may be tax deductible. |
Students whose parents have adverse credit may find it difficult to cover the Remaining Cost for Family. These families may need to seek direct financial support from extended family or friends, or find someone to co-sign with them on a loan. If this is not possible, families should carefully consider whether Purdue is a good financial fit.
Additional information is offered in the Top Ten Questions for Incoming Freshmen and Their Parents.
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