Terms, Conditions & FAQs

Purdue University has a strong tradition of helping students finance their education. The following definitions should help students and their families understand some of the terms used in financial aid programs.

Terms:

Calculating Aid Eligibility 

Expected Family Contribution (EFC): represents the amount you and your parents (if classified as a dependent student), or you (if classified as an independent student) and your spouse (if married) are expected to be able to provide to help meet your expenses for the enrollment period. You will not receive billing for the EFC. Your EFC was calculated using a federal formula based on the information you and your family provided on the Free Application for Federal Student Aid (FAFSA) and other documents submitted to our office. 

Parental Contribution (PC): represents the parent portion of the EFC for dependent students. 

Student Contribution (SC): represents the student portion of the EFC. 

Total Financial Aid Eligibility: is the sum of the assistance for which you are eligible. 

Total Financial Need: is calculated by subtracting the EFC, total financial aid eligibility, and estimated other aid from the estimated cost of attendance. 

Unmet Financial Need: is the difference between your need and total aid that is considered in meeting your financial need. 

Award Messages: provide information and/or conditions of a particular type of aid, assumptions we have made in determining your eligibility, actions you need to take, reasons for revisions, etc. Read these messages carefully and take any action that may be required. These messages are found on your myPurdue account under the Financial Aid tab, “Award Messages” link. Students also should check the “Important Messages” link regularly.

Frequently Asked Questions 

Biden-Harris Administration’s Student Debt Relief Plan

Federal Student Aid and the Biden-Harris Administration announced their Student Debt Relief Plan on August 24, 2022. Loan forgiveness plans of up to $20,000 for prior Pell-Grant recipients and up to $10,000 were outlined for all loan borrowers (undergraduate, graduate, parent) who had ED-held loans where the loan was fully disbursed by June 30, 2022. 

To be eligible, the borrower’s annual income must be below $125,000 (individuals) and $250,000 (married couples/heads of households).

What do I need to do to receive loan forgiveness? 

  • Eight million borrowers may be eligible to receive relief automatically because relevant income data is already available to the U.S. Department of Education. 
  • Borrowers can view their loan balances and check their Pell Grant status by logging into their Federal Student Aid account online at studentaid.gov
  • If the U.S. Department of Education does not have your income data, or if you do not know if the U.S. Department of Education has your income data, the Administration will launch a simple application in the coming weeks. 
  • The application will be available before the pause on federal student loan repayments ends on December 31, 2022. 
  • If you would like to be notified by the U.S. Department of Education when the application is open, please sign up on the Department of Education subscription page
  • Please visit studentaid.gov/debt-relief-announcement/ or contact your federal loan servicer for the most up-to-date information. 

Bursar

View all the Bursar FAQs on their website.

Residency

I am from out of state. Can I become an Indiana resident to reduce tuition? 

The Office of the Registrar at Purdue determines residency status for tuition purposes. See the Office of the Registrar’s website for residency questions.

Educational Loans

Federal Direct Student Loan

When do I need to accept my student loans? 

Students who want their loans to credit the fall invoice issued in July should accept their loans by early July and complete all Promissory Notes and Loan Entrance Counseling at that time. Accepting a loan after an issued invoice will create a new billing statement with the updated financial aid credits. Students may accept educational loans throughout the entire academic year. 

Why does it still show the Master Promissory Note (MPN) and loan entrance counseling requirements are outstanding when I have already completed those? 

These requirements take 3-5 business days to download into our system and show as completed. Please call our office so that a counselor can look into your account if this timeframe has passed since you completed your MPN or Loan Entrance Counseling. 

What is the Exit Counseling/Interview requirement listed on myPurdue? 

If Exit Counseling is required for a Federal Direct Educational Loan, this can be completed online at https://studentaid.gov/. It is recommended that you complete these requirements as soon as possible to release any holds on your account.  

If the Exit Interview is required for a Purdue or Perkins Loan, visit the ESCI website and then select Manage Your Student Loan Account. 

I am a graduating loan borrower. What do I need to know about repayment? 

Repayment starts with your lender or assigned loan servicer. You will be contacted when you are close to entering repayment with details regarding your monthly payment(s) and due date. You can view lender and servicer contact information and all Federal student loans that you have borrowed, including Federal Direct and Perkins Loans, at studentaid.gov/ under the In Repayment tab. Students can also update their personal contact information to ensure receipt of communications from lenders or servicers. See repaying student loans for general repayment information. 

If you are completing a degree as an undergraduate and will start pursuing a graduate degree at Purdue, you still need to complete all exit counseling or exit interview requirements.

Federal Parent PLUS Loan 

How does my parent apply for a Parent PLUS Loan? 

Parents cannot accept the Parent PLUS loan on the student myPurdue account. To utilize this loan, the parent must visit https://studentaid.gov/ under the Parent Tab to start the process. The parent should also complete the Master Promissory Note (MPN) on the same website.  

I am a parent and have submitted my PLUS application.  When will I see my funding? 

After completion of the Parent PLUS Loan application at https://studentaid.gov/, Direct Lending will check the borrower’s credit and either approve or deny the request. Notification of the credit decision arrives within about 2-3 business days and our office will process the loan accordingly. Approximate time for the loan to credit the bill after the application is complete and credit approved is 5-7 business days. See our loans page for more information.

Private Loans

Can I use my bank to get an educational loan? 

Private loans require a separate application to be completed and credit approved through a bank, credit union or other lenders, which may include your bank. Private loans take approximately 4-6 weeks to process from the time of application to receipt of the funds. See our loans page for additional private loan information.

Federal Work-Study

What is Federal Work-Study? Am I eligible to participate in the program? 

Federal Work-Study (FWS) is a program for students who have demonstrated financial need as determined by the Free Application for Federal Student Aid (FAFSA). FWS is included on the award offer if the student qualifies and can help a student meet some educational expenses through a part-time job. See our Federal Work Study page for additional information.  

Financial Aid Credits/Refunds

Why isn’t my aid crediting my invoice? 

Financial aid will not credit the student’s bill for a variety of reasons. Some of the more common ones are that the student’s financial aid award does not match the number of credit hours he/she is actually enrolled in, there are requirements such as the Promissory Note or Loan Entrance Counseling that were not completed, or there has been a hold placed on the student’s account. If you do not feel that any of the prior reasons apply, please contact our office at facontact@purdue.edu, (765) 494-5050, or visit us in Schleman Hall Room 305 to find out the specific reason. 

I paid my invoice. What happens to any excess funds?  

Purdue awards financial aid to cover the Estimated Cost of Attendance (also known as a budget). The budget estimates educationally related expenses, including tuition and fees, housing and food, transportation, books, and miscellaneous expenses. If all requirements are satisfied and your total accepted financial aid is greater than your bill for tuition and fees each semester, the Office of the Bursar will issue you a refund for the difference. The Bursar will issue a refund no sooner than 10 business days before the start of each term. Students typically receive the funds 3-5 business days prior to the start of the term if direct deposit has been set up. See our page on refunds for possible reasons a refund does not arrive in the expected timeframe.  

Your Estimated Cost of Attendance, or budget, includes a housing allowance whether you live on or off-campus. Direct housing expenses are paid to the University if the student is living in campus-contracted housing.  A student may use any refund to pay for off-campus housing. Plan accordingly and be prepared to pay the deposit and first month’s rent out of pocket.

Financial Aid Eligibility 

When is financial aid eligibility determined?  

Our office plans to begin emailing financial aid eligibility notifications to incoming freshmen in early March. Check myPurdue to ensure that there are no outstanding requirements that could prevent the creation of a financial aid award. Red flags under the Financial Tab indicate requested documents.  

Do incoming students have to accept their offer of admission beforehand? 

An admitted student is not required to accept their offer of admission to receive a financial aid eligibility notice. Admitted students must set up a career account to gain access to their purdue.edu email and view the aid notification. Students will also need a career account to view the award offer under the “Financial” tab in their myPurdue portal

How can I get additional funding for next year? 

Complete the FAFSA annually by April 15. For maximum financial aid consideration, submit a FAFSA as early as you can after October 1. Watch for applications to become available in early November and then apply for Purdue scholarships in ScholarshipUniverse.  Contact your college/school to see if it has a scholarship application process for additional funding. Working part-time during the year and full-time during the summer is another possibility. Many on- and off-campus jobs are available through the Purdue Careers – Student Employment, Purdue Student Life – Student Employment and the Center for Career Opportunities websites.

Are there opportunities to lower tuition? 

All students should plan to pay the assessed rate of tuition while enrolled at Purdue. Purdue does not negotiate aid eligibility and is unable to match financial aid offers from other schools. However, contact our office to discuss the situation if your economic circumstances change after you submit the FAFSA. 

What happens to my aid eligibility while I am on co-op? 

Students do not typically receive financial aid while on co-op, unless eligible for the Pell Grant. Your financial aid eligibility will resume when you return to campus for a regular semester. If you receive a Trustee or Presidential scholarship, refer to our page on renewing aid  for more information about what happens while on co-op. 

What happens to my financial aid if I plan to study abroad? 

That depends on the type of study abroad program pursued. Students must have a current FAFSA on file with our office and complete the Summer Aid Application found on myPurdue. Financial aid refunds become available to students approximately one week before a class or program begins, so it is important for families to plan early for out-of-pocket expenses such as a deposit or plane ticket. Loans are a common option to finance the cost of a study abroad program.

Indiana State Aid 

What is required of me to retain my 21st Century Scholarship?  

To maintain your 21st Century Scholarship, you must do all of the following: 

  • Earn at least 30 credits each student-centric award year. 
  • Submit a Free Application for Federal Student Aid (FAFSA) by Indiana’s April 15 deadline 
    every year. 
  • Continue to demonstrate financial need. 
  • Complete the College Scholar Success Program each year of college to maintain your Scholarship. (Only for the high school class of 2019 and beyond.) 
  • Maintain Satisfactory Academic Progress (SAP) as determined by your college. 

What is required of me to retain my Frank O’Bannon Grant?  

To maintain your Frank O’Bannon Grant, you must do all of the following: 

  • Earn at least 24 credits each student-centric award year. 
  • Submit a Free Application for Federal Student Aid (FAFSA) by Indiana’s April 15 deadline 
    every year. 
  • Continue to demonstrate financial need. 
  • Maintain Satisfactory Academic Progress (SAP) as determined by your college. 

What fees can my state grant cover (21st Century Scholarship, Frank O’Bannon Grant, Child of Disabled Veteran Fee Remission, or National Guard Supplemental Grant)?  

General Service at PWL and SWT Sites Yes 
Statewide Tech General  Service  Yes 
Study Abroad Course **exchange programs only Yes, on a case-by-case basis.  Upon approval by CHE first, and only for general service and tech fees. 
Technology Fees at PWL and SWT Sites Yes 
Student Activity Fee Yes 
Health and Wellness Fee Yes 

Who do I contact about my military benefits?   

Scholarships

What are the Trustees and Presidential Scholarships? 

Trustees and Presidential Scholarships are freshman merit scholarships awarded based on a holistic review of all information provided via the admission application. See additional merit scholarship information on the Admissions website. Students who submit a complete admission application by November 1 are automatically in consideration for the merit scholarships. 

What do I do if I receive a private scholarship? 

View our steps on reporting private scholarship awards. A student must remain within their total Cost of Attendance (COA), so upon notice of a private scholarship, our office reviews the student financial aid award to determine if any changes are required.  

Verification/Appeals

What are the options if our family’s financial situation is not accurately reflected on the FAFSA?  

We encourage you to speak with a financial aid counselor about your circumstances if your family has experienced a significant change in income. If the counselor finds that the revision could change the Expected Family Contribution (EFC) and result in additional financial aid eligibility, the counselor will provide the family with a Special Circumstance Appeal Form. The family will complete and return the form with the required documentation. Families should allow a minimum of 2-3 weeks (longer in April and May) for processing. 

Note: All families requesting a Special Circumstance Appeal will be required to provide verification of FAFSA information before our office can process an appeal.  

I have been selected for verification. What are my next steps? 

If you receive an email message to verify information, click on the link to the verification portal and follow the instructions listed. The red flag for VERE will turn green once all verification items are complete and reviewed. 

How do I become independent? 

Determination of dependency status comes from the answers to the dependency questions on the FAFSA. You are dependent for financial aid reasons if you cannot answer “yes” to at least one of the questions. Dependency status for financial aid is separate from tax filing status or if your parent(s) claim you as a dependent on their taxes. Contact our office if you have extenuating circumstances for consideration. A DFA counselor will provide instructions if it is determined that you may qualify for an appeal. See the dependency appeals sections for additional information.

What do I do when denied financial aid for SAP requirements?  

Students should check their Satisfactory Academic Progress (SAP) status to ensure financial aid eligibility. Select Financial Status under the Quick Links on the Financial Tab of myPurdue to view SAP status. If denied, complete the appeal with your academic advisor and return to our office as soon as possible for processing. You may need to pay your invoice out of pocket or use the Office of the Bursar Installment Plan if your appeal is denied, or unprocessed by the billing due date. If you receive your appeal approval after payment, you can use your processed finances for reimbursement. See our page on satisfactory academic progress for additional information. 

Withdrawal/Dropping Classes

Will dropping a class affect my financial aid? 

Changes in financial aid will be determined based on the timeframe of when you drop a class and how many credit hours you remain enrolled. Any time enrollment changes, our office must reevaluate your financial aid, which could result in billing. We recommend that students speak to a financial aid counselor before deciding to drop a class to determine if any aid adjustments are necessary. For a more detailed explanation, visit our page on withdrawals.

Other

What are the red flag requirements on myPurdue? 

Red flags on myPurdue indicate that an action is required. Red flags will delay a student’s financial aid award. Many of the listed requirements are hyperlinked to a PDF document that should be printed, completed, signed, and returned to the Financial Aid Office as soon as possible. Other red flags may appear that do not link to a document, but indicate that information is required, i.e., tax return transcripts. Red flags may also exist for missing promissory notes or entrance counseling requirements for student loans.