Financial Aid Conditions
To apply for federal, state and Purdue University student aid programs, students must submit the Free Application for Federal Student Aid (FAFSA) annually to be considered for each academic year. A student has the right to decline all, or a portion of, any aid offered. By accepting financial aid awards, the student agrees to comply with the terms and conditions listed in the Purdue University Division of Financial Aid Terms and Conditions information.
This information is subject to change as a result of action by federal and/or state governments, the trustees of Purdue University and the Administration of Purdue University. Questions concerning the content of the terms and conditions information should be directed to the Purdue University Division of Financial Aid. Contact us.
By accepting your financial aid awards, you agree to comply with the terms and conditions listed below and within the Financial Aid Eligibility Notice.
- I understand that my financial aid eligibility is determined in accordance with laws, regulations and appropriations (existing or anticipated) of the U.S. Congress, the Indiana State Legislature, Purdue University and other donors to the University.
- I understand that my financial aid eligibility is subject to adjustment or cancellation in the event changes occur in laws, regulations or appropriations during the period of my award.
- I agree to notify the Division of Financial Aid (DFA) of the sources and amount of my financial assistance that I may receive from other sources, including scholarships, loans, counsellorships, assistantships, fellowships, educational benefits, etc., which do not appear on my Financial Aid Eligibility Notice. I further understand that if additional assistance reduces my eligibility, an adjustment in my awards may be necessary. This adjustment may include the return of loan funds to my lender or the necessity to repay other types of assistance already received.
- I understand that my aid eligibility is based on the financial information provided by me and/or my family and that it is subject to adjustment or cancellation if changes occur or if errors are subsequently discovered.
- I understand that in order to receive financial aid, I must be making satisfactory academic progress toward my degree as described in the Satisfactory Academic Progress Policy.
- I understand Pell Grant eligibility is limited to the equivalent of 12 full-time (12 or more credit hours) semesters.
- Unless otherwise indicated in the message section of my Financial Aid Eligibility Notice, I understand that I must be enrolled full-time to receive all my financial aid awards (12 credit hours each semester as an undergraduate; 8 credit hours each semester as a graduate or professional student).
- If I do not initiate course participation in any classes, stop attending classes before the end of the term or withdraw from the University, I understand that I may be expected to repay all or a portion of my aid funds. I agree to follow the Purdue University withdrawal procedures available from the Office of the Dean of Students.
- I understand that I must meet repayment obligations on any educational loan and repay any financial aid funds due as a result of a withdrawal or an overaward situation, or I will not be eligible for future financial aid, and I may have a hold placed on my University records.
- I understand that I may have to take additional action before my aid will be finalized (on my Financial Aid Eligibility Notice) if an award is listed as “anticipated” or “estimated.” Furthermore, I understand that no funds will be disbursed from these aid types until all required actions are completed.
- I understand that if I am a transfer student my aid eligibility is subject to adjustment or cancellation based on information received regarding aid usage at my previous institution.
- If I am offered and accept Federal Work-Study (FWS), I understand it is my responsibility to secure an FWS position and earn my award money in wages paid by my employer, as described on the Federal Work-Study page.
- If I accept a loan, I understand that I am required to sign a promissory note. I understand I am fully responsible for repaying the loan and meeting all other terms and conditions of the loan, including notifying the lender or loan servicer if I move or change my address or if I change my name.
- I understand that I must not be in default on any federal education loans or owe any refunds on federal funds that I have received at Purdue or any other post-secondary institution.
- I understand that if I want to borrow from the Federal Direct Subsidized/Unsubsidized or Grad PLUS Loan programs, I must follow the instructions provided with the Financial Aid Eligibility Notice. I also understand that Federal Grad PLUS loans require a credit check before an application will be processed, and that process can take 5-7 weeks from the time your application is submitted.
- I understand that I must submit the Free Application for Federal Student Aid (FAFSA) each year that I wish to be considered for financial aid. Purdue requires the FAFSA to be filed by April 15 for priority consideration.
- I understand that eligibility for federal student aid will be based on the number of credit hours in which I am enrolled as of the end of the sixth week of classes of each semester.
- I understand that eligibility for State of Indiana student aid will be based on the number of credit hours in which I am enrolled as of the end of the fourth week of classes of each semester.
- I understand that the DFA communicates updates and important reminders via email to a student’s Purdue email account. It is important to read any email from facontact@purdue.edu, as this is the listed sender for all DFA email contacts. It is also important to read any email from askbursar@purdue.edu for important financial aid disbursement information.
- If I borrow through the Federal Direct Student Loan Program, I have the right to:
- Written information on my loan obligations and information on my rights and responsibilities as a borrower
- A payment grace period and explanation of what this term means
- A disclosure statement received before I begin to repay my loan that includes information about interest rates, fees, the balance I owe and the number of payments
- Deferment of repayment for certain defined periods, if I qualify and if I request it
- Forbearance if I qualify and if I request it
- Prepayment of my loan in whole or in part at any time without an early-repayment penalty
- A copy of my promissory note, either before or at the time my loan is disbursed
- Documentation that my loan is paid in full
By accepting your financial aid awards, you agree to comply with the terms and conditions listed below and within the Financial Aid Eligibility Notice.
- 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 based on 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.”
- Disbursement is the process by which assigned aid is 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 and fees due to the University.
- 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) tuition and fees; b) University housing (if applicable); c) authorized miscellaneous charges (if applicable).
- If aid funds remain after tuition/fees and University housing (if applicable) accounts, and any authorized miscellaneous charges are paid for the semester, the Office of the Bursar will issue a refund to the student no earlier than the week prior to the beginning of each semester.
- The University estimates your eligibility for aid from the Indiana Commission for Higher Education (CHE) 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 sixth week of classes for federal and institutional types of aid (reporting for Indiana state-based aid is made by the end of the fourth week of classes), should speak to a financial aid counselor regarding their course load; the reduced hours could result in a loss or reduction of their award package.
- Award amounts from the Federal Direct Educational 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.
- Student Loans accepted on the myPurdue portal will appear as “estimated aid” and credit the bill in anticipation of their arrival. Funds from Federal Direct and PLUS Loan programs cannot be disbursed until the Office of the Bursar receives the funds from the federal government.
- 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.
- 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.
- Academic year Federal Direct Educational 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 Direct loan to a one-semester loan. If the loan period on the student’s Federal Direct or Federal PLUS application is for the academic year, the loan funds will be released at the beginning of each semester.
- Purdue University offers direct deposit for financial aid refunds. Direct Deposit places excess aid funding directly to the student’s U.S. checking or savings account. This is the safest and quickest way to process financial aid refunds. Students are notified via email when their deposit has been made. Students can sign up for direct deposit by logging in to their myPurdue account. For a download of detailed instructions, visit the Office of the Bursar Tutorials website. Students who do not choose direct deposit 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 always keep local and home address information current in the University registration system.
- Promissory notes for Purdue Loans and Health Professional Loans will need to be signed and completed electronically via the ECSI loan servicer’s website. The loans will be disbursed only if the entrance and disclosure documents have 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 the cancellation of the loan and a billing statement from the Bursar’s Office for any University bills that were deferred against the loan. Reinstatement of loans is subject to fund availability.
- Federal Work-Study funds are not “credited” to a student account; these funds are earned and paid for hours worked on a biweekly basis through Purdue’s Payroll Department.
- If a student’s aid is increased for any reason after the initial disbursement, subsequent payments are refunded by the Office of the Bursar. 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 and registration.
- 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.
- Federal and state aid disbursements are subject to federal and state refund policies; more information on refund policy is available at the Office of the Bursar’s website.
- Students/parents awarded Federal Direct Subsidized/Unsubsidized or Direct PLUS 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 loan’s disbursement. Follow the instructions provided by the Office of the Bursar to request a cancellation after loan disbursement.