{"id":685,"date":"2021-08-13T15:11:05","date_gmt":"2021-08-13T15:11:05","guid":{"rendered":"https:\/\/www.purdue.edu\/dfa\/?page_id=685"},"modified":"2026-03-23T04:28:55","modified_gmt":"2026-03-23T04:28:55","slug":"glossary","status":"publish","type":"page","link":"https:\/\/www.purdue.edu\/dfa\/aid\/loans\/glossary\/","title":{"rendered":"Loan Glossary"},"content":{"rendered":"<div  class=\"purdue-home-cta-banner purdue-home-teritary-hero \">\n        <div class=\"section has-none-background has-padding-top-large has-padding-bottom-large \">\n        <div class=\"container\">\n            <h1 class=\"second-level-page-heading purdue-home-teritary-hero__header\">Loan Glossary<\/h1>\n            <div class=\"purdue-home-teritary-hero__content\">\n                \n\n<p><\/p>\n\n            <\/div>\n                    <\/div>\n    <\/div>\n<\/div>\n\n\n<div  class=\"section has-padding-top-none has-padding-bottom-none  page-layout-wide\">\n    <div class=\"container\">\n                \n\n<div class=\"wp-block-columns page-layout-columns columns is-multiline is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column column is-full-tablet page-layout-main is-layout-flow wp-block-column-is-layout-flow\">\n<h2 class=\"wp-block-heading\">Overview<\/h2>\n\n\n\n<p>Educational loans provide an opportunity for families to spread out college costs over an extended repayment period. Most student loans provide an opportunity for deferment of principal payment until after graduation, or until the student ceases to be enrolled at least half-time status in a degree-seeking program. Most parent loans require payment while the student is still in college. Students and families should become familiar with the following details if educational loans will be part of your strategy for paying for college.<\/p>\n<\/div>\n<\/div>\n\n    <\/div>\n<\/div>\n\n\n<div class=\"purdue-accordion-wrap  purdue-accordion-wrap--small\">\n    <div class=\"section has-none-background has-padding-top-small has-padding-bottom-none\">\n        <div class=\"container\">\n            <div class=\"purdue-accordion has-no-bottomborder\">\n                <h3 class=\"accordion__heading purdue-accordion__title  purdue-accordion__title--small\" id=\"title-da1f711e-d5be-46d5-aa0b-39fff2acfaba\">\n                    <button aria-controls=\"content-da1f711e-d5be-46d5-aa0b-39fff2acfaba\" aria-expanded=\"false\"><strong>Average Loan Indebtedness<\/strong><\/button>\n                <\/h3>\n                <div class=\"accordion__content purdue-accordion__content\" id=\"content-da1f711e-d5be-46d5-aa0b-39fff2acfaba\">\n                    \n\n<p>Purdue continues to have a decreasing percentage of undergraduate students graduating with debt. Currently, less than 40% of undergraduate students graduate with any student loans.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"431\" src=\"https:\/\/www.purdue.edu\/dfa\/wp-content\/uploads\/2025\/07\/IDAA-Debt-at-Graduation-UG-6.3.25-1024x431.jpg\" alt=\"Debt Graduation by Graduating Year (Undergraduate)\" class=\"wp-image-5018\" srcset=\"https:\/\/www.purdue.edu\/dfa\/wp-content\/uploads\/2025\/07\/IDAA-Debt-at-Graduation-UG-6.3.25-1024x431.jpg 1024w, https:\/\/www.purdue.edu\/dfa\/wp-content\/uploads\/2025\/07\/IDAA-Debt-at-Graduation-UG-6.3.25-300x126.jpg 300w, https:\/\/www.purdue.edu\/dfa\/wp-content\/uploads\/2025\/07\/IDAA-Debt-at-Graduation-UG-6.3.25-768x323.jpg 768w, https:\/\/www.purdue.edu\/dfa\/wp-content\/uploads\/2025\/07\/IDAA-Debt-at-Graduation-UG-6.3.25.jpg 1279w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n                <\/div>\n            <\/div>\n        <\/div>\n    <\/div>\n<\/div>\n\n\n\n<div class=\"purdue-accordion-wrap  purdue-accordion-wrap--small\">\n    <div class=\"section has-none-background has-padding-top-none has-padding-bottom-none\">\n        <div class=\"container\">\n            <div class=\"purdue-accordion has-no-bottomborder\">\n                <h3 class=\"accordion__heading purdue-accordion__title  purdue-accordion__title--small\" id=\"title-7c336d50-4102-4ca3-9c76-35a12429b9bb\">\n                    <button aria-controls=\"content-7c336d50-4102-4ca3-9c76-35a12429b9bb\" aria-expanded=\"false\"><strong>Before Accepting Loans\u00a0<\/strong><\/button>\n                <\/h3>\n                <div class=\"accordion__content purdue-accordion__content\" id=\"content-7c336d50-4102-4ca3-9c76-35a12429b9bb\">\n                    \n\n<ul class=\"wp-block-list\">\n<li>When reviewing your financial aid offer, you need to get a full understanding of your&nbsp;<strong><a href=\"https:\/\/www.purdue.edu\/dfa\/cost\/\" target=\"_blank\" rel=\"noreferrer noopener\">cost of attendance<\/a><\/strong>&nbsp;and financial responsibilities.&nbsp;<\/li>\n\n\n\n<li>We encourage you and your families to consider the debt from educational loans carefully before accepting any loan offers. Review alternative options available to reduce the amount you borrow.&nbsp;You may use the Federal Student Aid <a href=\"https:\/\/studentaid.gov\/loan-simulator\/\" data-type=\"link\" data-id=\"https:\/\/studentaid.gov\/loan-simulator\/\" target=\"_blank\" rel=\"noreferrer noopener\">Loan Simulator<\/a> to help with this.<\/li>\n\n\n\n<li>Calculate the total debt and monthly payments of loans accrued throughout your entire educational career, not just one academic year.&nbsp;<\/li>\n\n\n\n<li>Compare your total debt to your projected future income. Is this a wise investment? Will the payments be manageable?&nbsp;<\/li>\n\n\n\n<li>Consider your loan co-signers, parents who are borrowing a Parent PLUS Loan and others who may be borrowing on your behalf. Will their potential future debt payments be manageable?&nbsp;<\/li>\n<\/ul>\n\n                <\/div>\n            <\/div>\n        <\/div>\n    <\/div>\n<\/div>\n\n\n\n<div class=\"purdue-accordion-wrap  purdue-accordion-wrap--small\">\n    <div class=\"section has-none-background has-padding-top-none has-padding-bottom-none\">\n        <div class=\"container\">\n            <div class=\"purdue-accordion has-no-bottomborder\">\n                <h3 class=\"accordion__heading purdue-accordion__title  purdue-accordion__title--small\" id=\"title-da2e77dc-4342-4ba5-9ad1-31d56071c3c9\">\n                    <button aria-controls=\"content-da2e77dc-4342-4ba5-9ad1-31d56071c3c9\" aria-expanded=\"false\"><strong>Borrower Responsibilities<\/strong><\/button>\n                <\/h3>\n                <div class=\"accordion__content purdue-accordion__content\" id=\"content-da2e77dc-4342-4ba5-9ad1-31d56071c3c9\">\n                    \n\n<p>Acceptance of an educational loan requires:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>That you use the loan for educational expenses and repay your loan debt in full even if you:\n<ul class=\"wp-block-list\">\n<li>Do not graduate or complete your program of study.<\/li>\n\n\n\n<li>Are unable to obtain employment after ending or completing your program.<\/li>\n\n\n\n<li>Are dissatisfied with the school or did not receive the education or other services you purchased from the school.&nbsp;<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>You must make payments on your student loan at the end of your grace period&nbsp;whether or not&nbsp;you have received a repayment schedule. If your first payment due date is nearing and you have not received a repayment schedule, contact your loan service provider.&nbsp;<\/li>\n\n\n\n<li>You must notify your lender if you change schools, name or address, or enrollment status (e.g., withdraw, graduate or enroll less than half-time).&nbsp;<\/li>\n\n\n\n<li>Upon leaving school, you must notify your loan service provider of your expected employer and permanent address, the address of your next of kin and any changes in your social security or driver&#8217;s license numbers.&nbsp;<\/li>\n\n\n\n<li>If you receive notice that your loan is being serviced by an agency other than your lender, you must&nbsp;refer&nbsp;all further correspondence, inquiries or payments to the new servicer.&nbsp;<\/li>\n\n\n\n<li>You should keep copies of all student loan papers, documents and correspondence.&nbsp;<\/li>\n<\/ul>\n\n                <\/div>\n            <\/div>\n        <\/div>\n    <\/div>\n<\/div>\n\n\n\n<div class=\"purdue-accordion-wrap  purdue-accordion-wrap--small\">\n    <div class=\"section has-none-background has-padding-top-none has-padding-bottom-none\">\n        <div class=\"container\">\n            <div class=\"purdue-accordion has-no-bottomborder\">\n                <h3 class=\"accordion__heading purdue-accordion__title  purdue-accordion__title--small\" id=\"title-9c342cee-23e5-4fe9-a31c-8215f0f3ae89\">\n                    <button aria-controls=\"content-9c342cee-23e5-4fe9-a31c-8215f0f3ae89\" aria-expanded=\"false\"><strong>Borrower Rights<\/strong><\/button>\n                <\/h3>\n                <div class=\"accordion__content purdue-accordion__content\" id=\"content-9c342cee-23e5-4fe9-a31c-8215f0f3ae89\">\n                    \n\n<p>As a student borrower, you are entitled to:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>A repayment period of at least ten years if the $50 minimum monthly payment is met.&nbsp;<\/li>\n\n\n\n<li>A copy of your repayment schedule and disclosure statement from your lender or guarantee agency.&nbsp;<\/li>\n\n\n\n<li>Have any questions about your Federal Loan answered by your lender or guarantor.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>As a student borrower, you have the right to:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Prepay all or any part of your loan at any time without penalty.&nbsp;<\/li>\n\n\n\n<li>Be notified in writing by your lender if your loans are sold or transferred for servicing.&nbsp;<\/li>\n\n\n\n<li>Have your loan obligation canceled if you die or be\u00adcome totally and permanently disabled.&nbsp;<\/li>\n\n\n\n<li>Defer payment for a specified&nbsp;period of time, if qualified.&nbsp;<\/li>\n<\/ul>\n\n                <\/div>\n            <\/div>\n        <\/div>\n    <\/div>\n<\/div>\n\n\n\n<div class=\"purdue-accordion-wrap  purdue-accordion-wrap--small\">\n    <div class=\"section has-none-background has-padding-top-none has-padding-bottom-none\">\n        <div class=\"container\">\n            <div class=\"purdue-accordion has-no-bottomborder\">\n                <h3 class=\"accordion__heading purdue-accordion__title  purdue-accordion__title--small\" id=\"title-4934f3fe-d847-4579-b286-1883055b7568\">\n                    <button aria-controls=\"content-4934f3fe-d847-4579-b286-1883055b7568\" aria-expanded=\"false\"><strong>Cohort Default Rate<\/strong><\/button>\n                <\/h3>\n                <div class=\"accordion__content purdue-accordion__content\" id=\"content-4934f3fe-d847-4579-b286-1883055b7568\">\n                    \n\n<p>Purdue University\u2019s Cohort Default Rate (CDR) measures the number of federal Stafford and Direct student loan borrowers who default within a specified period of time. Currently, the default period is measured in a 3-year timeframe.<\/p>\n\n\n\n<p>Purdue continues to have a below-national average 3-year default rate and is comparable with other BIG 10 and peer institutions.<\/p>\n\n\n\n<p>Here is a link to the Federal Department of Education&nbsp;<a href=\"https:\/\/nsldsfap.ed.gov\/cdr-searchable-database\/school\/search\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Official Cohort Default Rate Search for Schools<\/strong><\/a>&nbsp;website, where the most up to date Fiscal Year Cohort Default Rates are listed for all schools.<\/p>\n\n\n\n<p><strong>Important CDR Note:<\/strong>&nbsp;CDR rates beginning in 2020 have been significantly impacted by COVID-19 federal emergency relief measures (i.e. repayment and collections suspension on federal student loans from March 2020-September 2024).<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1014\" height=\"639\" src=\"https:\/\/www.purdue.edu\/dfa\/wp-content\/uploads\/2025\/07\/IDAA-Cohort-Default-Rate-6.3.25.jpg\" alt=\"Cohort Default Rate Comparisons chart\" class=\"wp-image-5020\" srcset=\"https:\/\/www.purdue.edu\/dfa\/wp-content\/uploads\/2025\/07\/IDAA-Cohort-Default-Rate-6.3.25.jpg 1014w, https:\/\/www.purdue.edu\/dfa\/wp-content\/uploads\/2025\/07\/IDAA-Cohort-Default-Rate-6.3.25-300x189.jpg 300w, https:\/\/www.purdue.edu\/dfa\/wp-content\/uploads\/2025\/07\/IDAA-Cohort-Default-Rate-6.3.25-768x484.jpg 768w, https:\/\/www.purdue.edu\/dfa\/wp-content\/uploads\/2025\/07\/IDAA-Cohort-Default-Rate-6.3.25-609x384.jpg 609w\" sizes=\"auto, (max-width: 1014px) 100vw, 1014px\" \/><\/figure>\n\n                <\/div>\n            <\/div>\n        <\/div>\n    <\/div>\n<\/div>\n\n\n\n<div class=\"purdue-accordion-wrap  purdue-accordion-wrap--small\">\n    <div class=\"section has-none-background has-padding-top-none has-padding-bottom-none\">\n        <div class=\"container\">\n            <div class=\"purdue-accordion has-no-bottomborder\">\n                <h3 class=\"accordion__heading purdue-accordion__title  purdue-accordion__title--small\" id=\"title-6dd80595-6efe-43ae-a535-88a6e0459f98\">\n                    <button aria-controls=\"content-6dd80595-6efe-43ae-a535-88a6e0459f98\" aria-expanded=\"false\"><strong>Consequences of Default<\/strong><em>\u00a0<\/em><\/button>\n                <\/h3>\n                <div class=\"accordion__content purdue-accordion__content\" id=\"content-6dd80595-6efe-43ae-a535-88a6e0459f98\">\n                    \n\n<p>When you accept a student loan, you also undertake the obligation to repay it. This is a serious obligation, as you may not include student loan debt should you ever file bankruptcy.&nbsp;<\/p>\n\n\n\n<p>Contrary to popular belief, default on a student loan is not ignored by colleges, banks or the government. Defaulting on student loans will affect your credit rating, and extended default eventually can lead to prosecution. Whatever your circumstances, don\u2019t default! Lenders would rather work with you if you&nbsp;are&nbsp;finding it difficult to repay and can offer alternatives rather than have you default.&nbsp;&nbsp;<\/p>\n\n\n\n<p>Collection agency action:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Withholding of federal income tax refunds&nbsp;<\/li>\n\n\n\n<li>Garnishment of wages&nbsp;<\/li>\n\n\n\n<li>Loss of eligibility for federal student aid&nbsp;<\/li>\n\n\n\n<li>Difficulty in obtaining other credit&nbsp;&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>In most instances, student loans may not be discharged through bankruptcy. If you&#8217;re having trouble making payments, <strong>don&#8217;t wait<\/strong>! Get help from your loan holder or servicer immediately.&nbsp;<\/p>\n\n                <\/div>\n            <\/div>\n        <\/div>\n    <\/div>\n<\/div>\n\n\n\n<div class=\"purdue-accordion-wrap  purdue-accordion-wrap--small\">\n    <div class=\"section has-none-background has-padding-top-none has-padding-bottom-none\">\n        <div class=\"container\">\n            <div class=\"purdue-accordion has-no-bottomborder\">\n                <h3 class=\"accordion__heading purdue-accordion__title  purdue-accordion__title--small\" id=\"title-f780df0b-d6ef-4d99-8816-c91ac194ee2a\">\n                    <button aria-controls=\"content-f780df0b-d6ef-4d99-8816-c91ac194ee2a\" aria-expanded=\"false\"><strong>Consolidation\u00a0<\/strong><\/button>\n                <\/h3>\n                <div class=\"accordion__content purdue-accordion__content\" id=\"content-f780df0b-d6ef-4d99-8816-c91ac194ee2a\">\n                    \n\n<p>Here are some pros and cons of loan consolidation:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Obtain a fixed interest rate and one monthly payment&nbsp;<\/li>\n\n\n\n<li>Extend the time for repayment (up to 30 years)&nbsp;<\/li>\n\n\n\n<li>Reduce the monthly payment amount&nbsp;<\/li>\n\n\n\n<li>Pay in full one or more of your existing student loans&nbsp;<\/li>\n\n\n\n<li>You may pay MORE overall&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>The interest rate for the consolidation loan is the \u201cweighted average\u201d of the interest rates on the loans being consolidated and is fixed for the life of the loan. Before committing to loan consolidation, be sure to discuss your particular situation fully with a loan consolidation specialist to see if loan consolidation is best for you.&nbsp;<\/p>\n\n\n\n<p>If you do not have any Federal Direct Student Loans, you must first contact the holders of your loans or loan servicer to see if they participate in the consolidation loan program. If so, they will provide you with the application and an explanation of the procedure.&nbsp;<\/p>\n\n\n\n<p>If the federal loan holder does not offer a federal consolidation loan program, does not offer you acceptable income-sensitive terms or you intend to apply for the&nbsp;<a href=\"https:\/\/studentaid.gov\/manage-loans\/forgiveness-cancellation\/public-service\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Public Service Loan Forgiveness Program<\/strong><\/a>, you can apply for&nbsp;a Federal&nbsp;Direct&nbsp;<a href=\"https:\/\/studentaid.gov\/app\/launchConsolidation.action\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Consolidation<\/strong><\/a>&nbsp;Loan.&nbsp;<\/p>\n\n                <\/div>\n            <\/div>\n        <\/div>\n    <\/div>\n<\/div>\n\n\n\n<div class=\"purdue-accordion-wrap  purdue-accordion-wrap--small\">\n    <div class=\"section has-none-background has-padding-top-none has-padding-bottom-none\">\n        <div class=\"container\">\n            <div class=\"purdue-accordion has-no-bottomborder\">\n                <h3 class=\"accordion__heading purdue-accordion__title  purdue-accordion__title--small\" id=\"title-e2413da5-b7a9-4946-a22e-b4cbe8d9f774\">\n                    <button aria-controls=\"content-e2413da5-b7a9-4946-a22e-b4cbe8d9f774\" aria-expanded=\"false\"><strong>Credit Check Processing for Borrowers who have requested a Credit Freeze\u00a0<\/strong><\/button>\n                <\/h3>\n                <div class=\"accordion__content purdue-accordion__content\" id=\"content-e2413da5-b7a9-4946-a22e-b4cbe8d9f774\">\n                    \n\n<p>As a result of recent data breach events and heightened security concerns, many consumers are understandably taking steps to protect their personally identifiable information (PII). One of those steps may be placing a \u201ccredit freeze\u201d on their credit profile at one or more of the credit bureaus, which prevents further credit activity from occurring without additional consent.&nbsp;<\/p>\n\n\n\n<p>Because a credit check is part of the process when a borrower or endorser completes a Direct PLUS Loan Request or an Endorser Addendum on the\u202f<a href=\"https:\/\/studentaid.gov\/\" target=\"_blank\" rel=\"noreferrer noopener\">Studentaid.gov<\/a>&nbsp;website, borrowers or endorsers with an active credit freeze may not be able to fully complete either process, or may receive an error message when the credit check is run. The borrower or endorser must remove the credit freeze first; this action cannot be done by the school or Federal Student Aid.<\/p>\n\n\n\n<p>Note: Federal Student Aid can process an inquiry at two of the three main credit bureaus (currently Equifax and TransUnion). If a borrower or endorser places a credit freeze at only one credit bureau, Federal Student Aid could still receive a credit determination based on information provided by the secondary credit bureau.&nbsp;<\/p>\n\n\n\n<p>Federal Student Aid implemented additional messaging on the\u202f<a href=\"https:\/\/studentaid.gov\/\" target=\"_blank\" rel=\"noreferrer noopener\">Studentaid.gov<\/a>&nbsp;website on October 29, 2017. The messaging informs borrowers and endorsers that those who have a credit freeze on their credit profile will need to remove it before completing a Direct PLUS Loan Request or the Endorser Addendum. Federal Student Aid encourages schools working with borrowers and endorsers who may receive an error during the credit check process to ask about a credit freeze as a cause for the error.&nbsp;<\/p>\n\n\n\n<p>If you have additional questions about credit check processing, contact the&nbsp;<a href=\"https:\/\/fsapartners.ed.gov\/help-center\/fsa-customer-service-center\/service-centers-for-schools\/fsa-partner-and-school-relations-center\" target=\"_blank\" rel=\"noreferrer noopener\">COD School Relations Center<\/a>.&nbsp;<\/p>\n\n                <\/div>\n            <\/div>\n        <\/div>\n    <\/div>\n<\/div>\n\n\n\n<div class=\"purdue-accordion-wrap  purdue-accordion-wrap--small\">\n    <div class=\"section has-none-background has-padding-top-none has-padding-bottom-none\">\n        <div class=\"container\">\n            <div class=\"purdue-accordion has-no-bottomborder\">\n                <h3 class=\"accordion__heading purdue-accordion__title  purdue-accordion__title--small\" id=\"title-713c4d0d-4c61-4769-b30d-14664af36269\">\n                    <button aria-controls=\"content-713c4d0d-4c61-4769-b30d-14664af36269\" aria-expanded=\"false\"><strong>Debt Management\u00a0<\/strong><\/button>\n                <\/h3>\n                <div class=\"accordion__content purdue-accordion__content\" id=\"content-713c4d0d-4c61-4769-b30d-14664af36269\">\n                    \n\n<p>In order to manage your student loan debt, you will need to manage your finances in general. Good money management involves setting goals, setting a time frame to reach those goals and developing and following a budget. To reach your goals, you should begin thinking about your budget while in college. The amount of your expected starting salary is an important element in creating and managing a budget. You may wish to contact the&nbsp;<a href=\"http:\/\/www.cco.purdue.edu\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Purdue University Center for Career Opportunities<\/strong><\/a>&nbsp;for up-to-date salary information for your field and the part of the country in which you intend to live.&nbsp;<\/p>\n\n\n\n<p>The U. S. Department of Education has made available to students the office of the&nbsp;<a href=\"https:\/\/studentaid.gov\/help-center\/answers\/article\/how-can-the-ombudsman-group-help-me\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>FSA Student Loan Ombudsman<\/strong><\/a>. This office works with student loan borrowers to informally resolve federal loan disputes and problems. It is best to think of the Ombudsman as a last resort.&nbsp;&nbsp;<\/p>\n\n\n\n<p>When you have made a reasonable effort to resolve your student loan problem with your lender\/servicer and the problem is still not resolved,&nbsp;<a href=\"https:\/\/studentaid.gov\/help-center\/answers\/article\/how-to-contact-ombudsman-group\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>contact<\/strong><\/a>&nbsp;the Ombudsman.<\/p>\n\n                <\/div>\n            <\/div>\n        <\/div>\n    <\/div>\n<\/div>\n\n\n\n<div class=\"purdue-accordion-wrap  purdue-accordion-wrap--small\">\n    <div class=\"section has-none-background has-padding-top-none has-padding-bottom-none\">\n        <div class=\"container\">\n            <div class=\"purdue-accordion has-no-bottomborder\">\n                <h4 class=\"accordion__heading purdue-accordion__title  purdue-accordion__title--small\" id=\"title-0e15889d-2099-4f3c-83cb-9a831b29ca52\">\n                    <button aria-controls=\"content-0e15889d-2099-4f3c-83cb-9a831b29ca52\" aria-expanded=\"false\"><strong>Deferment and Forbearance<\/strong><\/button>\n                <\/h4>\n                <div class=\"accordion__content purdue-accordion__content\" id=\"content-0e15889d-2099-4f3c-83cb-9a831b29ca52\">\n                    \n\n<p>The difference between <a href=\"https:\/\/studentaid.gov\/manage-loans\/lower-payments\/get-temporary-relief\">deferment and forbearance<\/a> has to do with&nbsp;<a href=\"https:\/\/studentaid.gov\/understand-aid\/types\/loans\/interest-rates#unpaid-capitalize\">interest accrual (accumulation)<\/a>. During a deferment, interest doesn\u2019t accrue on some types of loans. During a forbearance, interest accrues on&nbsp;all&nbsp;loan types.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>In most cases,&nbsp;<strong>interest&nbsp;will accrue<\/strong>&nbsp;during your period of deferment or forbearance. This means your balance will increase and&nbsp;<strong>you\u2019ll pay more<\/strong>&nbsp;over the life of your&nbsp;loan.<\/li>\n\n\n\n<li>If you\u2019re pursuing loan&nbsp;forgiveness, any period of deferment or forbearance&nbsp;<strong>may not count<\/strong>&nbsp;toward your forgiveness requirements. This means you\u2019ll stop making progress toward forgiveness until you resume repayment.<\/li>\n<\/ul>\n\n\n\n<p>Additional details on deferment and forbearance, information on how to apply and a <a href=\"https:\/\/studentaid.gov\/help-center\/answers\/topic\/glossary\/articles\" target=\"_blank\" rel=\"noreferrer noopener\">glossary<\/a> of definitions can be found at <a href=\"https:\/\/studentaid.gov\/\" target=\"_blank\" rel=\"noreferrer noopener\">Federal Student Aid<\/a>.<\/p>\n\n                <\/div>\n            <\/div>\n        <\/div>\n    <\/div>\n<\/div>\n\n\n\n<div class=\"purdue-accordion-wrap  purdue-accordion-wrap--small\">\n    <div class=\"section has-none-background has-padding-top-none has-padding-bottom-none\">\n        <div class=\"container\">\n            <div class=\"purdue-accordion has-no-bottomborder\">\n                <h3 class=\"accordion__heading purdue-accordion__title  purdue-accordion__title--small\" id=\"title-5fe8c7ec-88a2-41ff-b265-51e1ceb07943\">\n                    <button aria-controls=\"content-5fe8c7ec-88a2-41ff-b265-51e1ceb07943\" aria-expanded=\"false\"><strong>Grace Period\u00a0<\/strong><\/button>\n                <\/h3>\n                <div class=\"accordion__content purdue-accordion__content\" id=\"content-5fe8c7ec-88a2-41ff-b265-51e1ceb07943\">\n                    \n\n<p>The Federal Loan grace period begins the day after you leave school (\u201cleaving school\u201d means graduat\u00ading, withdrawing, or dropping to less than half-time enrollment status). The grace period for most Federal Loans is six months; during this period, no payments are due. Learn more at&nbsp;<a href=\"https:\/\/studentaid.gov\/h\/manage-loans\" target=\"_blank\" rel=\"noreferrer noopener\">https:\/\/studentaid.gov\/h\/manage-loans<\/a>.<\/p>\n\n                <\/div>\n            <\/div>\n        <\/div>\n    <\/div>\n<\/div>\n\n\n\n<div class=\"purdue-accordion-wrap  purdue-accordion-wrap--small\">\n    <div class=\"section has-none-background has-padding-top-none has-padding-bottom-none\">\n        <div class=\"container\">\n            <div class=\"purdue-accordion has-no-bottomborder\">\n                <h3 class=\"accordion__heading purdue-accordion__title  purdue-accordion__title--small\" id=\"title-0dc2d54e-100b-40b6-9b7d-cd7a183e0577\">\n                    <button aria-controls=\"content-0dc2d54e-100b-40b6-9b7d-cd7a183e0577\" aria-expanded=\"false\"><strong>Repayment\u00a0<\/strong><\/button>\n                <\/h3>\n                <div class=\"accordion__content purdue-accordion__content\" id=\"content-0dc2d54e-100b-40b6-9b7d-cd7a183e0577\">\n                    \n\n<p>With the&nbsp;<strong>Subsidized<\/strong>&nbsp;Federal Loan, interest accrues during certain periods. The grace period is 6 months when no payment is required. Approximately 30-45 days after the grace period ends, your first payment will be due. Thereafter, payments are due once a month until the loan is paid in full. You will receive a repayment schedule and disclosure statement for each of your student loans from your loan service provider. This schedule will tell you how much your payments will be when they are due, and over what&nbsp;period&nbsp;of time&nbsp;you will be paying.&nbsp;<\/p>\n\n\n\n<p>For&nbsp;<strong>Unsubsidized<\/strong>&nbsp;Federal Loans, students are responsible for paying interest during the&nbsp;period of time&nbsp;that the principal is deferred. Because most lenders will permit students to defer interest repayment during school enrollment, the interest accrues during this deferred period.&nbsp;<\/p>\n\n                <\/div>\n            <\/div>\n        <\/div>\n    <\/div>\n<\/div>\n\n\n\n<div class=\"purdue-accordion-wrap  purdue-accordion-wrap--small\">\n    <div class=\"section has-none-background has-padding-top-none\">\n        <div class=\"container\">\n            <div class=\"purdue-accordion\">\n                <h3 class=\"accordion__heading purdue-accordion__title  purdue-accordion__title--small\" id=\"title-49ee275d-1dd3-4305-8071-3fd110f61467\">\n                    <button aria-controls=\"content-49ee275d-1dd3-4305-8071-3fd110f61467\" aria-expanded=\"false\"><strong>Right to Cancel Loans\u00a0<\/strong><\/button>\n                <\/h3>\n                <div class=\"accordion__content purdue-accordion__content\" id=\"content-49ee275d-1dd3-4305-8071-3fd110f61467\">\n                    \n\n<p>Federal regulations allow student loan borrowers up to 14 days after the disbursement of funds to cancel or reduce the loans. The following describes the process to request a cancellation or reduction of student loans.&nbsp;<\/p>\n\n\n\n<p>Students may contact the Bursar requesting the cancellation of any disbursed loans.<\/p>\n\n\n\n<p>Please be aware that you will be required to replace the funds that were applied to your account. Per the Office of the Bursar, you have the&nbsp;<a href=\"https:\/\/www.purdue.edu\/bursar\/payment\/paper.php\" target=\"_blank\" rel=\"noreferrer noopener\">option of paying<\/a>&nbsp;by mail or in person. Make all checks, traveler\u2019s checks, cashier\u2019s checks, or money orders&nbsp;<strong>payable to Purdue University<\/strong>. Please be sure to&nbsp;<strong>include the student\u2019s Purdue ID number<\/strong>&nbsp;on all payments.&nbsp;You may view financial aid funds applied to your account (including Federal loan funds) by logging into your myPurdue account.&nbsp;<\/p>\n\n\n\n<p>If you repay your loans directly to the Direct Loan Servicer, your loan account will be credited as a repayment on the loan rather than a reduction\/cancellation. This means that your loan fees will not be reduced, nor will it renew&nbsp;your&nbsp;academic year eligibility. If you have already borrowed your academic year limit, you will not be able to re-borrow this amount later.&nbsp;<\/p>\n\n                <\/div>\n            <\/div>\n        <\/div>\n    <\/div>\n<\/div>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":24,"featured_media":0,"parent":676,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_acf_changed":false,"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"class_list":["post-685","page","type-page","status-publish","hentry"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.purdue.edu\/dfa\/wp-json\/wp\/v2\/pages\/685","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.purdue.edu\/dfa\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.purdue.edu\/dfa\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.purdue.edu\/dfa\/wp-json\/wp\/v2\/users\/24"}],"replies":[{"embeddable":true,"href":"https:\/\/www.purdue.edu\/dfa\/wp-json\/wp\/v2\/comments?post=685"}],"version-history":[{"count":64,"href":"https:\/\/www.purdue.edu\/dfa\/wp-json\/wp\/v2\/pages\/685\/revisions"}],"predecessor-version":[{"id":6182,"href":"https:\/\/www.purdue.edu\/dfa\/wp-json\/wp\/v2\/pages\/685\/revisions\/6182"}],"up":[{"embeddable":true,"href":"https:\/\/www.purdue.edu\/dfa\/wp-json\/wp\/v2\/pages\/676"}],"wp:attachment":[{"href":"https:\/\/www.purdue.edu\/dfa\/wp-json\/wp\/v2\/media?parent=685"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}