Financial Aid Policies for Parents/Guardians
Indiana Residency Requirements for Parents of 21st Century Scholars
The 21st Century Scholars Eligibility Guidelines state that a student must be a resident of Indiana when the student applies for the program and receives the scholarship. Of importance is the additional statement that the student’s residency is “determined by the residency of your parent or legal guardian.”
This means that any parent required to complete the FAFSA with a student must remain an Indiana resident until the student has exhausted his/her 21st Century Scholars eligibility. Moving out of state would jeopardize both the student’s 21st Century Scholars and Purdue Promise eligibility.
BEFORE YOU MOVE please contact the student’s Purdue Promise Coach.
Information on State aid appeals for not meeting the residency requirement can be found here.
Dependency and the FAFSA
The regulations that govern the awarding of financial aid assume that the student and the parents have primary responsibility for the costs associated with a student’s college education. Therefore, for financial aid purposes, a student is considered dependent of the parent(s) required to be listed on the FAFSA unless the student can answer “yes” to at least one question in step three of the FAFSA. You can review the questions listed in step three here.
Note that dependency for financial aid is based on the inability to answer “yes” to these questions and consideration of the parent(s) required to be listed on the FAFSA (see link below).
If FAFSA policy deems you a parent who must be listed on the FAFSA, your income is taken into consideration for the calculation of the student’s Expected Family Contribution (EFC). Note that the EFC measures your ability to pay, not your willingness to pay.
Click here for the federal guide on “Who’s My Parent When I Fill Out My FAFSA?”
Also review how the following may affect FAFSA reporting and the student’s eligibility for aid:
- Divorced or separated parents
- Parents in same-sex marriages
- Students living with someone other than parents
- Parents unwilling to provide information for the FAFSA
- Parents concerned about citizenship status
FAFSA Deadlines and Important Information
- March 1 - Purdue’s priority deadline for FAFSA
- March 10 - Indiana’s deadline for FAFSA
- April 15 - deadline to file taxes
- May 15 - FAFSA corrections deadline
Transition from PIN to Username/Password
Currently both students and parents must have a Federal Student Aid PIN to electronically sign the FAFSA. Information on PINs can be found here.
Beginning April 2015, Federal Student Aid will implement a new login process that requires a new FSA ID (a combination of username and password) instead of the PIN to access and sign the FAFSA. Students and parents with existing PINs will be able to link their PIN to their new FSA ID. More information will be coming in advance of the May 15 FAFSA corrections deadline. Information on the new FSA ID provided through training for financial aid staff can be found here.
Assistance with the FAFSA
- College Goal Sunday
- Federal Student Aid - Financial Aid Toolkit
- Federal Student Aid - Resources
- FAFSA Help and Contact Information
- Indiana eStudent
Expected Family Contribution (EFC)
The FAFSA determines a student’s Expected Family Contribution (EFC) which measures the family’s ability to pay toward college expenses. Purdue Promise commits to covering a student’s financial need. As you can see here, the student’s EFC is subtracted from the cost of attendance to determine financial need. This means the Purdue Promise scholarship will not cover a student’s EFC, as the family is expected to pay those funds toward the student’s education.
When the student submits his/her FAFSA, the confirmation page and e-mail will show an estimated EFC. If this is 0, then the student will receive a financial aid package, including Purdue Promise, which covers full cost of attendance. If it is any amount other than 0, the student has three options:
- If that amount is in hand, save it toward the academic year’s expenses;
- See if a private scholarship can be applied toward the EFC, and if so, apply for them;
- Accept loan(s) offered as part of the financial aid package if the funds are needed.
It is important to know what can affect an EFC. The 2015-16 EFC Formula Guide can be found here.
Special Circumstance Appeals
A Special Circumstance for Parents (SCP) or Special Circumstance for Students (SCS) may be used if you feel your family’s financial status is not accurately reflected on the FAFSA. Purdue’s Division of Financial Aid (DFA) will review your appeal, and evaluate your circumstance to determine if it could have an impact on the type or amount of financial aid the student could receive. Documentation is required for these appeals, which are described in detail (including deadlines and requirements) here.
Annually DFA is required to conduct verification for a percentage of Purdue students to comply with federal regulations. This requires DFA to verify the information provided on the FAFSA with tax documents to ensure students are awarded properly. Students will be notified of their selection for verification via e-mail and a red flag on their Financial tab in myPurdue. More information can be found here.
In most cases Purdue Promise students will get a refund each semester. This is a lump sum of financial aid monies that are left over after a student’s bill has been paid. Remember these are the student’s funds meant to go toward college-related expenses for the semester. See below for what this looks like depending on whether a student is living on or off campus. We highly recommend they sign up for direct deposit to receive them, as doing so ensures the fastest and most secure delivery of funds.
Students Living On Campus
Students living on campus will be billed directly from Purdue for their tuition/fees and room/board (housing and meal plan). The refund, if a student gets one, is meant to cover other educational expenses, including books, supplies, transportation, and other personal/miscellaneous items.
Students Living Off Campus
Students living off campus will be billed directly from Purdue for only their tuition/fees. The refund is then meant to go toward rent and other living expenses (including utilities and meals), as well as other educational expenses, including books, supplies, transportation, and other personal/miscellaneous items.
Purdue Promise students may be offered loans as part of their financial aid packages, most often in the following circumstances:
- They have an Expected Family Contribution (EFC)
- They are enrolling in summer courses
- They are participating in a study abroad program that does not qualify to be paid for by 21st Century Scholars and/or Purdue Promise
- They have not met Satisfactory Academic Progress and their appeal was not approved
- They have not met renewal requirements for 21st Century Scholars and/or Purdue Promise
Most loans are offered to the student and are put in the student’s name. However, occasionally students will be offered the Parent PLUS Loan. For the student to have access to these funds, you would have to fill out a separate application and be deemed eligible for the award. The loan would also be put in your name. If this loan is offered to your student you can review additional information here.