Frequently Asked Questions

General Repayment Questions 

Q: Who do I repay? 

A: Your lender or a loan servicer is responsible for billing and receipt of payments. Many times, a lender will hire a company to perform the billing functions for its loans, and this company is referred to as a loan servicer. You can contact your lender or loan servicer for information. 

Q: When do I start repayment? 

A: You may be entitled to one 6-month grace period after you stop attending a school at least half time; however, there are variable grace periods depending on your individual situation – check with your servicer for more information. During this grace period, the lender or loan servicer will contact you and tell you how much your payments will be and how to make them. If you go back to school, you can obtain a deferment so you can temporarily postpone payments. 

Q: Can Purdue answer my loan questions after I graduate? 

A: We can help you with general questions, but the best source for you to contact is your loan servicer. 

Q: Where and when will I receive information about payments due? 

A: Your loan servicer or lender must provide you with a loan repayment schedule that states when your first payment is due, the number and frequency of payments, and the amount of each payment. Keep in mind that your loan may have a grace period. You will receive this information sometime after you graduate. If you have graduated and have not received information from your servicer within a few months, you should contact your servicer to make sure they have your current information such as email and mailing address. 

Q: What type of assistance is available once I start repayment? 

A: Your lender or loan services can answer almost all loan repayment questions. 

Loan Servicer Information 

Q: What is the difference between a lender and a servicer? 

A: The lender provides the money for the loan. A loan servicer is a company that handles the billing and other services on your Federal student loan. The loan servicer will work with you on repayment plans and loan consolidation and will assist you with other tasks related to your federal student loan. It is important to maintain contact with your loan servicer. If your circumstances change at any time during your repayment period, your loan servicer will be able to help. 

Q: How do I know who my servicer is? 

A: Your loan is assigned to a loan servicer by the U.S. Department of Education after the entire loan amount is disbursed. The loan has been disbursed when your school transfers your loan money to your school account, gives money to you directly, or a combination of both. Your loan is usually disbursed in at least two payments provided it is an academic year loan. It would be in one payment if you are borrowing for one semester. The servicer(s) assigned to any Federal loans you borrowed will be listed on the Federal Student Aid website. 

Borrowing history 

Q: What if I disagree with the total amount that I owe or loans that I’ve borrowed? 

A: You should first identify your loan problem, and then contact your loan servicer. If you are unable to agree on the amounts after contacting your servicer you have additional options. For more detailed information contact the Federal Ombudsman Group

Q: Where can I obtain a copy of all the loans I borrowed? 

A: Federal loans you may have borrowed while in school will be listed at Federal Student Aid. Any Graduate or Parent PLUS Loans and Perkins loans will also be listed. Purdue loans and private loans will not be listed on this website. 

Q: How do I know how much I’ve borrowed and must repay? 

A: Visit the Federal Student Aid website to view information about all of the Federal student loans you have received and to find contact information for the loan servicer or lender for your loans. You will need your Federal Student Aid Account Username/Password (formerly FSA-ID) to access your information. 

Exit Counseling 

Q: Do I have to complete exit counseling if I am starting another program/degree at Purdue in the semester following graduation? 

A: Yes. You will need to complete Exit Counseling at this time and then, if needed, process an in-school deferment (if you want to postpone repayment of your loans) once you are registered as a graduate student or have been enrolled for another program. 

Q: Which loan requires exit counseling? 

A: If you had a Subsidized, Unsubsidized or Graduate PLUS loan, you have 30 days after graduation to complete this federal requirement. You are also required to complete exit counseling for any Perkins or Purdue loans. These two loans are serviced by ECSI, a third-party servicer specifically for loans awarded to Purdue students.

Options if your Parent PLUS loan is denied

Q: What if the Parent PLUS loan is denied?

A: The student can receive an additional Unsubsidized Federal Direct Loan. Unless you indicated on 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 (dependent upon grade level) will appear on their myPurdue account within 7-10 days. If your student wants this loan, they must accept it online. 

A: 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 website. If you appeal the credit decision with the Federal Direct Loan Center and are granted a credit override, please email 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. 

A: 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 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 the above information may speed up processing if you submitted your endorser application electronically.