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Billing and Disbursement Process


By accepting your financial aid awards, you agree to comply with the terms and conditions listed below and within the Financial Aid Eligibility Notice.

  1. 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.”

  2. 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.

  3. 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).

  4. 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.

  5. The University estimates your eligibility for aid from the Division of Student Financial Aid (SFA), formerly known as the State Student Assistance Commission of Indiana (SSACI), 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.

  6. 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.

  7. Student Loans accepted on the myPurdue portal will appear as “estimated aid” and credit the bill in anticipation of their arrival. Funds from Federal Stafford and PLUS Loan programs cannot be disbursed until the Bursar’s Office receives the funds from the
    Direct Loan Servicer.

  8. 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.

  9. 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.

  10. Academic year Federal Stafford 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 Stafford or Graduate 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.

  11. 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: http://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.

  12. Promissory notes for Purdue Loans, Health Professional Loans and the Federal Perkins Loan 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 Office for any University bills that were deferred against the loan. Reinstatement of loans is subject to fund availability.

  13. Federal Work-Study funds are not “credited” to a student account; these funds are earned and paid for hours worked on a biweekly basis.

  14. 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.

  15. 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.

  16. Federal and state aid disbursements are subject to federal and state refund policies; more information on refund policy is available at www.purdue.edu/bursar/payments/refunds.html

  17. Students/parents awarded Federal Direct Stafford, 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.