Financial Aid at Purdue – What You Need to Know

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Division of Financial Aid
Financial Aid at Purdue:
What You Need to Know
Presented by the
Purdue University
Division of Financial Aid
Span Plan Luncheon
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Division of Financial Aid
Agenda
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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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Division of Financial Aid
Action Items
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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:
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www.purdue.edu/DFA
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Division of Financial Aid
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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Division of Financial Aid
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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Division of Financial Aid
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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Division of Financial Aid
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Division of Financial Aid
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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Division of Financial Aid
Cost of Education 2010-11
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Resident
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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Division of Financial Aid
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 Due
If the Remainder is a Negative Number = $ Excess Aid Refund
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Division of Financial Aid
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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Division of Financial Aid
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
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Division of Financial Aid
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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Division of Financial Aid
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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Division of Financial Aid
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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Division of Financial Aid
Federal Stafford Loan
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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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Division of Financial Aid
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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Division of Financial Aid
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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Division of Financial Aid
Private / Alternate Loans
• 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
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Division of Financial Aid
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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Division of Financial Aid
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; biweekly pay; note that FWS awards are not credited to
the student bill
• “Regular” student employment opportunities also
available
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Division of Financial Aid
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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Division of Financial Aid
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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Division of Financial Aid
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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Division of Financial Aid
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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Division of Financial Aid
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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Division of Financial Aid
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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Division of Financial Aid
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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Division of Financial Aid
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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Division of Financial Aid
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)
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Division of Financial Aid
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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Division of Financial Aid
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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Division of Financial Aid
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
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
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