Additional Financing Options
By early April, admitted freshmen that completed the 2014-15 Free Application for Federal Student Aid (FAFSA) and completed verification requests (if applicable) should have received an award letter from the Division of Financial Aid at Purdue University. The award letter outlines financial aid eligibility for the coming year and may indicate there are remaining costs for the family to cover. Returning Purdue students will begin receiving award letters in mid-June.
The costs on the award letter reflect the estimated Cost of Attendance; actual costs will vary depending upon the academic program of enrollment and housing and food options selected. Amounts shown for books and supplies, transportation, and miscellaneous expenses are not billed by the University but provide an estimate for planning purposes. Outlined below are common financing options that families use to pay for these remaining costs. Families often utilize a combination of financing options to make the investment in the student’s education.
- Payment from Educational Loans and Future Earnings
- Credit-worthy parents of dependent students may be able to borrow under Federal Parent PLUS Loan program. Repayment can be deferred until the student graduates.
- Private lenders offer alternative loans that are available to credit-worthy borrowers. Each lender determines the terms of the loan.
- Home equity loans may offer competitive interest rates with alternative loans. Compare loan fees and interest rates to get the best deal possible. Note: This option should be discussed with your mortgage lender.
- Some types of employment are eligible for loan forgiveness programs. A portion or all of a student's federal loans may be forgiven (reduced) as a benefit of committing to the organization.
- Payment from Current Earnings and Assets
- Families can break remaining semester costs into monthly payments through the Installment Plan offered by the Bursar's Office.
- Existing assets may be utilized to reduce the amount of borrowed loans and interest. Examples include previously purchased college education savings bonds, savings accounts, stocks, mutual funds, etc.
- Students should consider saving money from full-time employment over the summer and part-time work during the school year. Students that work 10-15 hours weekly while enrolled can cover their miscellaneous expenses. They gain work experience valued by future employers, and studies show their GPA usually improves.
- Payment from Programs Offering Education Benefits
- Purdue University has three ROTC programs: Air Force, Navy, and Army. Tuition assistance, scholarships, and stipends may be available for participants.
- Veterans or their family members may qualify for the GI Bill to cover tuition costs. Veterans who are Indiana residents may qualify for state assistance or benefits.
- Offsetting the Investment with Tax Advantages
- A tax credit of up to $1,000 may be available for contributions made under Indiana's College Choice 529 Savings Plan. Other states may offer tax advantages for contributions to those plans.
- Tax deductions may be available to families that pay qualified tuition and fee expenses. The Bursar's Office issues 1098-T Forms in January of each year with qualified amounts. Consult your tax preparer for additional information.
- Interest paid on qualified educational loans may be tax deductible.
Students whose parents have adverse credit may find it difficult to cover the Remaining Cost for Family. These families may need to seek direct financial support from extended family or friends, or find someone to co-sign with them on a loan. If this is not possible, families should carefully consider whether Purdue is a good financial fit.