Division of Financial Aid 1 Financial Aid at Purdue: What You Need to Know Presented by the Purdue University Division of Financial Aid Span Plan Luncheon

Division of Financial Aid

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Financial Aid at Purdue: What You Need to Know

Presented by thePurdue University


Span Plan Luncheon


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Agenda • Action items• Purdue’s financial aid processes• Understanding the award notification• Loan processes• Private awards• Student employment• Billing and aid disbursement• Payment options• Summer School


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Action Items• Learn about the financial aid process• Complete the 2011-12 FAFSA by March 1st, 2011• Read all email from Purdue• Utilize Financial Aid Self Service System via your

myPurdue account at https://myPurdue.purdue.edu• Sign up for Boilermaker Direct Deposit for excess

financial aid funds via your myPurdue• Familiarize yourself with info on our website:

– www.purdue.edu/DFA


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Student Information Items• Financial aid information and news items

www.purdue.edu/dfa• Satisfactory Academic Progress:

http://www.purdue.edu/dfa/all/sap.php– Aid may be suspended for:

• Academic probation

• Maximum timeframe

• Not completing at least 67% of courses attempted

• Loan counseling information: http://www.purdue.edu/DFA/loans/counseling.php


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Student Tips• Develop and use a conservative budget (use cost-aid

worksheet provided in this presentation)• For good money management advice visit

www.cashcourse.org/purdue • Be wary of credit card marketing

– The average college student has 4+ credit cards– 56% of students receive their first credit card as freshmen

• Use credit cards wisely (if at all)A $4,000 tuition bill charged to credit card costs more than

$9,000 if repaid over 10 years at 19.9% interest rate


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Student Tips• Remember to file the FAFSA before the March 1

priority filing date• Respond to any requests by DFA for additional

information quickly• If family financial situation changes, discuss with

Financial Aid Office (loss of income, divorce, death in family, etc.)


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Aid Eligibility Notice Terminology • Estimated Cost of Attendance: tuition & fees,

room & board, books & supplies, travel, and personal expenses

• Expected Family Contribution-EFC: measurement of family financial strength used to determine eligibility for aid programs

• Financial Need: difference between cost and EFC


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Cost of Education 2010-11Resident Nonresident

• Tuition & Fees $ 9,070 $ 26,622

• Room & Board $ 9,120 $ 9,120

• Books & Supplies $ 1,270 $ 1,270

• Travel $ 180 $ 300

• Personal $ 2,180 $ 2,180

Some programs may have additional fees; please contact the department or see www.purdue.edu/bursar for specific course fees


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Cost/Aid Worksheet

Tuition/Fees (from Financial Aid Notice) $___________Campus Room/Board (from Housing Contract) + $___________ Total Due the University = $___________

Less Grants and Scholarships (from Financial Aid Notice) - $(__________)Less Deposits Paid - $(__________)Estimated Balance Due (after gift aid) =$___________

Less Certified Student Loans Total - $(__________)

Remainder =$___________

If the Remainder is a Positive Number = $ Balance DueIf the Remainder is a Negative Number = $ Excess Aid Refund


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Enrollment and Aid Eligibility • Enrollment may affect financial aid eligibility• Fulltime for financial aid is 12 or more credit

hours, whereas for billing it is 8 or more• Aid is initially awarded based on expected

enrollment noted on FAFSA• Aid is reviewed at end of 4th week of classes. If

enrollment level different from level packaged at aid may be adjusted

• Should contact our office before dropping below 12 credit hours


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Grant and Scholarship Programs

• Students should file the FAFSA annually by March 1st to be considered for all types of federal, state (Indiana residents), and institutional types of aid.

• Check out info on Scholarships at: http://www.purdue.edu/dfa/sandg/schoolaward.php– And

• http://www.purdue.edu/dfa/sandg/announce_pu.php • These scholarships require a separate application


Grant and Scholarship Programs

• International students should visit: http://apps.collegeboard.com/fincalc/efc_welcome.jsp?noload=Y

• For information on funding educational expenses– Payments of institutional gift funds to international

students must be processed through Purdue’s tax area and students will receive funds in a check

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Loan Programs• Loans are financing plans allowing 10 years or

longer for repayment• Loans require repayment with interest• There are a variety of loan programs and each

one has different eligibility requirements, rates and terms

• Eligibility generally requires a minimum of half-time enrollment (6 hours or more)


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Purdue and Perkins Loans• The student is the borrower, no co-signer required• Must accept or reject loan online via your myPurdue account• Once accepted, student notified by e-mail to go online and

complete promissory note and related documentation prior to loan disbursement

• Details on Perkins Loans found at: http://www.purdue.edu/dfa/loans/perkins.php

• Details on Purdue Loans found at:http://www.purdue.edu/dfa/loans/puloans.php

• Repayment of principal deferred while student enrolled at least half-time

• 6-9 month grace period, with 10 years to repay


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Federal Stafford Loan• Student is borrower, no established credit required• Borrow directly from federal government (not through a bank)• No interest accrues on subsidized loans (need-based); • Interest accrues on unsubsidized loans (non-need-based)• 6-month grace period after borrower ceases half-time enrollment,

10 years to repay• All borrowers must complete Stafford Master Promissory Note

on-line at www.dlenote.ed.gov• $10,000 borrowed = approximately $115 monthly payment• Visit www.purdue.edu/dfa/loans/stafford.php for details


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Independent Students*

Freshman $3,500 $6,000 $9,500

Sophomore $4,500 $6,000 $10,500

Junior or senior $5,500 $7,000 $12,500


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Federal Parent PLUS Loan

• A creditworthy parent or graduate students is the borrower• Parent borrows directly from federal government (not from bank)• A signed promissory note is required before the Federal Direct

Loan Servicing Center can run a credit check• Standard 10-year repayment period• Each $10,000 borrowed = approximately $124 monthly payment• All borrowers required to complete a PLUS Master Promissory

Note on-line at www.dlenote.ed.gov• Visit http://www.purdue.edu/dfa/loans/gradplus.php for grad

student borrowing and http://www.purdue.edu/dfa/loans/plus.php for parent borrowing details


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• The borrower must be a creditworthy student or student with creditworthy co-signer

• Variable interest rates are based on LIBOR or prime lending rates plus or minus points (check with your lender for current rates)

• Payments are deferred until borrower ceases (minimum) half-time enrollment but interest accrues

• More info at http://www.purdue.edu/dfa/loans/altloans.php

Private / Alternate Loans


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Private Awards• Students must report all awards from donors outside Purdue that

are not already listed on their aid notice• Submit information today or download the Outside Award

Reporting Form at http://www.purdue.edu/dfa/sandg/AwardReportingForm.pdf

• Private awards will only credit the student bill after the funds have been received from the donor and processed by the Bursar office

• Students should contact their donor to determine when funds will be sent to the Bursar office

• Do not send private award checks with the fee bill• Endorse co-payable checks, write PUID on the check, mail to

Purdue University Bursar Office/Outside Awards, 610 Purdue Mall, West Lafayette, IN 47907-2050 or hand-deliver to Bursar, Hovde Hall, Room 20


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Student Employment• Student employment…

– Earnings help keep student loan debt lower– Can improve student retention and academic performance– Boosts career achievement after graduation

• Students apply for jobs on their own (no placement)• Federal Work-Study (FWS) eligibility is a need-

based award that may make student more employable; bi-weekly pay; note that FWS awards are not credited to the student bill

• “Regular” student employment opportunities also available


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Student Employment Tips• Job search tips:

– Search for jobs via https://www2.itap.purdue.edu/DFA/JobPosting/JobSearch.cfm

– Visit Division of Financial Aid Student Employment Services, Schleman Hall Room 302: “It Works!”

– Check with Professors, Departments, Residence Halls, Memorial Union, Recreational Sports, etc.

– See Purdue Exponent and Lafayette Journal & Courier job listings

– Internship info: www.cco.purdue.edu/Student/Internships.shtml

– Co-op info: https://engineering.purdue.edu/ProPractice


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Other Sources of Funding• Federal tax credits

• Hope “Scholarship” and Lifelong Learning tax credits• 1098-T Form available on-line from Purdue each

January (unless gift aid exceeded tuition bill)• R.O.T.C. program• Vocational Rehabilitation• Private aid sources (www.fastweb.com or www.finaid.org) • Home Equity • IRA Withdrawal/Loan


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Billing Information• Tuition, and fees are billed separately for the fall and

spring semesters (about 6 weeks prior to the start of classes each semester). University housing is billed according to chosen plan.

• In 2009-10 Purdue stopped using paper invoices. You will view invoices online through myPurdue

• Bills are due on the first day of the semester• Please contact the Bursar office if you have any

questions regarding your invoice• Phone: (765) 494-7570 - E-mail:

[email protected]


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Billing Information (continued)• If you have a balance due after financial aid is

applied, you may choose to utilize the Installment Plan, which is accessed through your myPurdue account

• If balance on invoice = zero, confirm your registration at: www.myPurdue.purdue.edu

• A tuition/fee/housing calculator is available online at www.purdue.edu/Bursar


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Installment Plan• The net balance due for tuition, fees, and housing is

divided into 4 payments per term• Enroll in the plan by making a down payment of at least

25% by the due date, then make 3 three subsequent monthly payments of 25% of the original balance

• A finance charge is applied to the remaining balance• For more info go to:

http://www.purdue.edu/Bursar/installment.html • To authorize your parent or another party to make

payment, once logged-on to the Bill & Payment site you can set-up an “Authorized User” who will then have the ability to view and make payments on-line


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A Note from the Bursar’s Office

• Purdue has contracted with TouchNet Information Systems to allow payment by Master Card, Discover, and American Express. TouchNet does not accept Visa. A convenience fee of 2.75% applies.

• Be very careful taking on debt using credit cards toward University payments. Loans secured through the financial aid process usually provide more reasonable interest rates.


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Financial Aid Fund Disbursement• All student aid is applied in sequence:

1. Tuition and fees (billed on term-by-term basis)

2. On campus housing (billed according to chosen plan)

3. Excess aid is disbursed to the student

• Scholarships, grants, fee remissions, Purdue/Perkins loans, and certified Stafford & PLUS loans are credited to the student bill

• Refund checks (excess aid) will be mailed to the student or, direct deposit to the bank account of your choice may be set up via your myPurdue account

• Be prepared to cover expenses for the first couple of weeks of each semester


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Boilermaker Direct Deposit• Students can enroll in Direct Deposit to expedite the

refund of their excess financial aid• To enroll, log-in to your myPurdue account, select the

Financial tab, and click on Manage Your Account or Authorize Direct Deposit ,then click on the Refund tab and follow the directions utilizing the Payment Profile link

• Important Note: Your Purdue E-mail account is the primary means of communication for E-billing, important announcements and critical date reminders


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Timeline• January – February: Complete the 2011-12 FAFSA• Beginning in March: Provide DFA with any requests for additional

information• April: Start sending our award notifications• May: Start accepting Loans and completing promissory notes and

entrance counseling documents, as needed, online• June: Enroll in direct deposit via myPurdue, if not already done so• July: Billing begins• August: Pay bill and accept charges in order to confirm your registration• Late August: Begin refunding excess aid. (A variety of criteria must be

met before financial aid credits the bill or excess aid is refunded)


Financial Aid for Summer

• There is limited aid available for summer school

• Pell grant is available (even if enrolled less than 6 credit hours) if you meet eligibility requirements

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Financial Aid for Summer (cont)

• Stafford and Purdue Loans are available if enrolled at least 6 credit hours. However, can only borrow remaining aggregate amount. For example: Junior limit is $12,500 ($5,500 sub, $7,000 un-sub), if borrowed $10,000 in academic year the most available for summer would be $2,500.

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Financial Aid for Summer (cont)

• Must have a complete 2010-11 FAFSA on file with Purdue WL. If planning on utilizing CDV benefits also have to file 2011-12 FAFSA.

• Have to complete a summer aid application. It will be available online in January at: www.purdue.edu/DFA

• In order to be considered for all forms of aid need to submit the summer aid application by March 1st

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Division of Financial Aid Services Call Center Services: 765-494-0998

M-F, 8am-5pm• Frequently Asked Questions (FAQ’s) on-line at:

http://www.purdue.edu/dfa/finaidfaq.php E-mail Inquiry Service: [email protected] Informational Website: www.purdue.edu/DFA Walk In Services: Schleman Hall, Room 305

M,T,W, F 9am-5pm, Th 1pm-5pm FAX: 765-494-6707

Documents

Division of Financial Aid 1 Financial Aid at Purdue: What You Need to Know Presented by the Purdue University Division of Financial Aid Span Plan Luncheon