Loans

Loans can offer you and your family a way to pay for college while spreading the cost out over an extended repayment period. However, borrowing should be used with care while keeping an eye on total debt and repayment. We recommend that you only borrow what you need, not necessarily the total amount offered.

There are a variety of both federal and private loan programs available to students and parents. You will be automatically considered for federal loans when you complete your FAFSA. To apply for private loans, you will need to contact banks or loan vendors. 

To estimate how much aid you could receive, check out our Financial Aid Estimator and Net Price Calculator.

There are many options for managing costs. Use this comparison chart to view options that may be a fit for your family.

Types of Loans

Explore and learn about the different types of loans that are available for you to utilize below.

Federal Direct Educations Loans

Federal Direct Educations Loans  

There are several types of Federal Direct Educational Loans available, find them listed below.

Subsidized Direct Educational Loans

This type of loan is for undergraduate students who demonstrate financial need on their FAFSA. The U.S. Department of Education will pay the interest that accrues on Subsidized Direct Loans during certain periods. To learn how to apply for this loan, check out how to apply

Unsubsidized Direct Educational Loans

This type of low-interest loan is available to degree-seeking undergraduate, graduate and professional students. There is no requirement to demonstrate financial need. The student is responsible for paying interest on the loan during all periods. To learn how to apply for this loan, check out how to apply.

Eligibility

Subsidized:

  • Must be an undergraduate degree-seeking student with financial need.  
  • Must be a U.S. citizen, U.S. national, or permanent resident of the United States.  
  • Cannot be in default on a federal education loan or owe a repayment of Federal Title IV aid. 
  • Enrolled at least half-time as a degree-seeking student.

Unsubsidized:

  • Must be an undergraduate, graduate, or professional student enrolled at least half-time as a degree-seeking student.  
  • Must be a U.S. citizen, U.S. national, or permanent resident of the United States. 
  • Cannot be in default on a federal education loan or owe a repayment of Federal Title IV aid.

Award Amounts and Disbursements  

Requirements: Subsidized and Unsubsidized 

  • Master Promissory Note (MPN): The Direct Loan Master Promissory Note is a multi-year feature of the Direct Loan program. It allows borrowers to receive future Direct Loan funds without having to complete additional promissory notes if the borrower remains eligible and completes the appropriate loan request processes. By signing only one promissory note, the delivery of Direct Loan funds will occur even faster because this process eliminates the time it takes for a promissory note to be mailed, completed, and returned to the loan service provider. Borrowers use their Federal Student Aid (FSA) ID to sign their promissory note at studentaid.gov. 
  • Loan Entrance Counseling: Entrance Counseling, which should not be confused with Financial Awareness Counseling, will walk you through the Direct Loan process and explain your rights and responsibilities as a borrower. If you have not previously received a subsidized or unsubsidized loan, the Federal Government requires you to complete loan counseling at studentaid.gov to ensure that you understand the responsibilities and obligations you are assuming.  
     
    You will need to log in using your Federal Student Aid (FSA) ID and will need about 30 minutes to complete the counseling session. 

Repayment: Subsidized and Unsubsidized 

  • Loans are in deferred status if the student remains enrolled at least half-time in a degree-seeking program. Borrowers can learn more about how interest rates, capitalization, and loan fees will affect payments on our loan FAQ webpage.

Direct PLUS Loans

Direct PLUS Loans  

There are two types of Direct PLUS Loans: Graduate PLUS and Parent PLUS.

Graduate PLUS Loans 

This type of loan is for graduate and professional students with good credit (or a co-signer with good credit). This loan is not based on financial need but instead is contingent on a credit check. The Graduate PLUS Loan amount is limited to the cost of attendance minus other estimated financial assistance. Interest will accrue after the full disbursement of the loan. To learn how to apply for this loan, check out how to apply.

Parent PLUS Loans  

A Federal Parent PLUS Loan is a credit-based Federal Direct Loan for biological parents that can be used to help pay for the college education of a dependent undergraduate child. This loan is not based on financial need but instead is contingent on a credit check. The loan amount is limited to the cost of attendance minus other estimated financial assistance. To learn how to apply for this loan, check out how to apply.

Eligibility

Graduate PLUS Loans 

  • Credit-worthy graduate and professional students are eligible to borrow in the PLUS program if they are enrolled at least half-time, are degree-seeking and do not have an adverse credit history. 
  • The applicant will be ineligible if the credit history indicates “he or she is 90 days or more delinquent on any debt or has been the subject of a default determination, bankruptcy discharge, foreclosure, repossession, tax lien, wage garnishment, or write-off of a Title IV debt during the five years preceding the date of the credit report”. The credit history will not be reviewed by the Federal Direct Loan processor until Purdue has processed the accepted PLUS award. 
  • The borrower must be a U.S. citizen, U.S. national, or permanent resident of the United States. 
  • The borrower cannot be in default on a federal education loan or owe a repayment of Federal Title IV aid. 
  • Financial need is not a requirement to obtain a PLUS Loan, but the borrower is responsible for the interest that accrues. 

Parent PLUS Loans 

  • The parent of a degree-seeking dependent student is eligible to borrow in the Direct PLUS program if the student is enrolled at least half-time, the student meets satisfactory academic progress requirements, and the parent does not have an adverse credit history. 
  • The parental applicant will be ineligible if the credit history indicates “he or she is 90 days or more delinquent on any debt or has been the subject of a default determination, bankruptcy discharge, foreclosure, repossession, tax lien, wage garnishment, or write-off of a Title IV debt during the five years preceding the date of the credit report.”   
  • The borrower must be a U.S. citizen, U.S. national, or permanent resident of the United States.  
  • Financial need is not a requirement to obtain a PLUS Loan.  
  • The PLUS borrower is responsible for interest that accrues on a PLUS Loan. 

NOTE: A parent is defined as a biological parent or custodial stepparent.

Award Amounts and Disbursements: Graduate and Parent PLUS 

  • PLUS Loan limits are determined by the estimated cost of attendance minus any other aid.  
  • Note: For the Grad PLUS program, it is assumed the student will borrow the maximum amount available in the Federal Direct Educational Loans first.  

Requirements: Graduate and Parent PLUS 

  • Master Promissory Note: The PLUS Loan Master Promissory Note is a multi-year or serial loan feature of the PLUS program. It allows borrowers to receive future Federal PLUS Loans without completing and signing additional promissory notes if the borrower remains eligible for Federal PLUS Loan and completes appropriate loan request processes. By signing only one promissory note, the delivery of PLUS loan funds will occur even faster because it eliminates the time it takes for a promissory note to be mailed, completed, and returned to the loan service provider. Borrowers will use their Federal Student Aid (FSA) ID to sign their promissory note at studentaid.gov. 
  • Entrance Counseling, which should not be confused with Financial Awareness Counseling, will walk you through the Direct Loan process and explain your rights and responsibilities as a borrower. If you have not previously received a Graduate or Parent PLUS Loan previously, the Federal Government requires you to complete loan counseling at studentaid.gov to ensure that you understand the responsibilities and obligations you are assuming.  You will need to log in using your Federal Student Aid (FSA) ID and will need about 30 minutes to complete the counseling session.  

Repayment: Graduate and Parent PLUS 

  • Loan repayment may be deferred in the PLUS program if the student remains enrolled at least half-time (but interest accrues). For information regarding in-school deferments and payment plans please contact the Direct Loan Servicer at studentaid.gov or 1-800-557-7394. 
  • Borrowers can learn more about how interest rates, capitalization, and loan fees will affect payments on the federal student aid site.

Options if the Graduate PLUS Loan is Denied 

If the Graduate PLUS Loan application was denied due to adverse credit as determined by the Federal Direct Loan Center, two borrowing alternatives are in place to help compensate for the denial. 

  • You can appeal against the credit decision with the Federal Direct Loan Center. This process will require you to complete PLUS Credit Counseling at the studentloans.gov website. If you appeal the credit decision with the Federal Direct Loan Center and are granted a credit override, please email facontact@purdue.edu and include the loan application number, any reference number given to your case by the Direct Loan servicer, and your Purdue ID (PUID) number. 
  • You can apply with an endorser. This process will require you to complete PLUS Credit Counseling at the studentloans.gov website. Currently, Purdue only receives notifications of approved endorsed loans if the endorser application was completed electronically. Endorsed loans require manual intervention, so if you have completed a paper endorser application you must email facontact@purdue.edu and include the loan application number, any reference number given to your case by the Direct Loan servicer, and your PUID. Providing us with the above information may speed up processing if you submit your endorser application electronically. Endorsed loans also require the parent borrower to sign a promissory note after the endorser has been approved. 

Options if the Parent PLUS Loan is Denied 

If the Parent PLUS Loan application was denied due to adverse credit as determined by the Federal Direct Loan Center, three borrowing alternatives are in place to help compensate for the denial. 

  • The student can receive an additional Unsubsidized Federal Direct Loan. Unless you indicated in your application that you are planning to pursue the endorser option, your student will automatically be reviewed for the additional Unsubsidized Federal Direct Loan. If eligible, an offer for the additional Unsubsidized Federal Direct Loan of $4,000-5,000 (depending upon grade level) will appear on their myPurdue account within 7-10 days. If your student wants this loan, they must accept it in their myPurdue portal. 
  • The parent can appeal the credit decision with the Federal Direct Loan Center. This process will require the parent borrower to complete Parent PLUS Credit Counseling at the studentloans.gov website. If you appeal the credit decision with the Federal Direct Loan Center and are granted a credit override, please email facontact@purdue.edu and include the loan application number, any reference number given to your case by the Direct Loan servicer, and your student’s Purdue ID (PUID) number. 
  • The parent can apply with an endorser. Currently, Purdue only receives notifications of approved endorsed loans if the endorser application was completed electronically. Endorsed loans require manual intervention, so if you have completed a paper endorser application you must email facontact@purdue.edu and include the loan application number, any reference number given to your case by the Direct Loan servicer, and your student’s PUID. Providing us with the above information may speed up processing if you submit your endorser application electronically.  

 

Health Professionals Student Loans

Health Professionals Student Loans  

This is a low-interest federal loan available to professional students in Doctor of Pharmacy or Veterinary Medicine who annually complete the FAFSA. This includes sharing parent income information, demonstrating financial need, and enrolling full-time in one of the eligible degrees. To learn how to apply for this loan, check out how to apply for aid.

Eligibility 

  • Professional student in Doctor of Pharmacy or Veterinary Medicine  
  • Must annually complete the FAFSA. 
  • Demonstrate financial need. 
  • Enrolling full-time in an eligible degree  

Award Amounts and Disbursements 

  • The award amount depends on financial need as calculated by the Division of Financial Aid from FAFSA results.  

Requirements 

  • Students must submit a FAFSA for consideration. All professional students will be considered independent according to the need analysis formula in Title VII of the Higher Education Act. Nonetheless, institutions still must take parents’ information into account to award HPSL funds. This requirement cannot be waived. In cases where the parents refuse to provide income information, an affidavit documenting such a refusal cannot be accepted instead of the required information. Unless the parents are deceased, a student who does not provide parental income information may not be considered for HSPL funds. 
  • The use of parental data on the FAFSA does not guarantee the student is awarded the HPSL as these funds are limited each year. 
  • Entrance/Exit Interviews are handled through Heartland ECSI (Educational Computer Systems, Inc). Report to Heartland ECSI before dropping below half-time status, withdrawing, graduating, transferring, or if there is a change of name and/or address: ECSI Federal Perkins Loan Servicer, PO Box 1079, Wexford, PA. 15090. Phone 1-888-549-3274. Learn more at http://www.heartlandecsi.com/

Repayment 

  • Grace Period: The six-month period from the date student ceases half-time enrollment status. No interest accrues during the grace period. No payments are due, but voluntary payments may be made to reduce interest after the grace period. 
  • Repayment: $50 minimum monthly payment. A larger amount may be required, if necessary, to repay a loan within the time limit. 
  • Early Repayment Penalty: None. 
  • Consequences of Delinquency (on Defaulted Loan made by Purdue): The account will be listed with a collection agency. The 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 students. Legal action will be taken on extended default.

Purdue Loans

Purdue Loans 

A low-interest institutional loan is available during the upcoming academic year to undergraduate juniors and seniors, who complete the FAFSA by April 15, have demonstrated financial need, enroll at least half time in a degree-seeking program, and have borrowed through the Purdue Loan program in prior academic years.

Eligibility 

  • Must be a degree-seeking undergraduate senior student enrolled at least half-time (6 credit hours).
  • Must have borrowed a Purdue loan in a prior academic year. 
  • 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) submitted. 

Award Amounts and Disbursement 

  • Loan Amounts Annual Maximum: Depends on financial need as calculated by the Division of Financial Aid. The maximum award is generally $3,000 for resident students and $5,000 for non-resident students.
  • Aggregate Maximums: Undergraduate – $30,000 | Graduate – $50,000. 

Requirements 

  • Promissory Note: You will be required to sign a promissory note 1-2 days after accepting your loan. Heartland ECSI, the third-party loan servicer, will send you an email this timeframe indicating when your promissory note is available. You must sign a new promissory note each time you accept a Purdue Loan or increase an existing Purdue Loan. Borrowers can complete this requirement here. 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). 

Notify Heartland ECSI if there is a Change of Name and/or Address: 

ECSI Federal Perkins Loan Servicer,
PO Box 1079, Wexford, PA. 15090
Phone: 1-888-549-3274
http://www.heartlandecsi.com/

Repayment

  • Grace Period: The six-month period from the date student ceases half-time enrollment status. No interest accrues during the grace period. No payments are due, but voluntary payments may be made to reduce interest after the grace period. 
  • Repayment: $50 minimum monthly payment. A larger amount may be required, if necessary, to repay a loan within the time limit. 
  • Early Repayment Penalty: None. 
  • Consequences of Delinquency (on Defaulted Loan made by Purdue): The account will be listed with a collection agency. The 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 students. Legal action will be taken on extended default. 

Private Loans

Private Loans 

Purdue University students borrow from a variety of private lenders. The Division of Financial Aid Office does not recommend any particular lender; these tools are provided to assist you in looking for a private education loan that best fits your needs.

Listed below are application tools that will provide access to multiple lenders. Both tools have the lender’s application conditions and Truth In Lending disclosure information. Not all lenders participate in both tools: ELMSelect provides a range of rates and INvestEd Marketplace provides actual rates. Neither tool is an actual application for a loan.

Once borrowers have chosen a lender, an application will have to be completed on the lender’s website. As a borrower, you have the option to select any lender you choose. Please understand that we will process a loan with a lender that is not listed. If you have questions regarding the process, please contact our office. 

General Information about Private Educational Loans 

  • Private loans may have higher interest rates that accrue while the student is enrolled. 
  • Requires good credit history for student (or co-borrower) in order to be approved for the loan. 
  • Lenders require international borrowers to have a U.S. Citizen or permanent resident co-signer. 
  • Most lenders require that a student be enrolled at least half-time in a degree-seeking program. 
  • Must complete a Self-Certification Form to provide financial aid information to your lender. This can be accessed on the Accept Award Offer and Cost of Attendance tabs of the student’s myPurdue account. 
  • Due to the requirements of the private lenders, we recommend that you apply at least three weeks prior to the date you need the funds and comply quickly with information requests from your lender. 
  • Some lenders have products that parents and/or other willing people can borrow on behalf of the student. 

Compare your options at: INvested or ELMSelect