Financial Aid at Purdue: What You Need to Know

1
Financial Aid at Purdue What You Need to Know

• Presented by the
• Purdue University
• Division of Financial Aid
• Span Plan Luncheon

2
Agenda

• Action items
• Purdues financial aid processes
• Understanding the award notification
• Loan processes
• Private awards
• Student employment
• Billing and aid disbursement
• Payment options

3
Action Items

• Learn about the financial aid process
• Complete the 2009-10 FAFSA by March 1st, 2009
• Read all email from Purdue

4
Action Items

• Utilize Financial Aid Self Service System via
  your myPurdue account at https//myPurdue.purdue.e
  du
• Sign up for Boilermaker Direct Deposit for excess
  financial aid funds via your myPurdue

5
Student Information Items

• Financial aid information and news items
  www.purdue.edu/dfa
• Satisfactory Academic Progress
  www.purdue.edu/DFA/all/sap.htm
• Loan counseling information www.purdue.edu/DFA/lo
  ans/counseling.htm

6
Student Tips

• Develop and use a conservative budget
• 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

7
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.)

8
(No Transcript)
9
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

10
Estimated Cost of Education 2008-09

• Resident Nonresident
• Tuition Fees 7,750 23,224
• Room Board 7,930 7,930
• Books Supplies 1,140 1,140
• Travel 290 450
• Personal 1,710 1,710
• Total 18,820 34,454
• Engineering, Management, and Flight have
  additional fees

11
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

12
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

13
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.
• International students should visit
  http//www.edupass.org/finaid/ for information on
  funding educational expenses
• Payments of institutional gift funds to
  international students must be processed through
  Purdues tax area and students will receive funds
  in a check

14
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)

15
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
• Electronically signed documents must be completed
  for further processing of the loan
• Interest rates Perkins 5, Purdue 5
• Repayment of principal deferred while student
  enrolled at least half-time
• 6-9 month grace period, with 10 years to repay

16
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)
• Up to 5,500 national limit for dependent
  freshman
• 3500 subsidized or unsubsidized (depending upon
  level of financial need) up to 2000 additional
  unsubsidized loans.
• Sophomore limit up to 6500
• Junior/Senior limit up to 7500
• Subsidized interest rate fixed at 6.0 for
  undergraduates
• Unsubsidized and Graduate borrower interest rate
  fixed at 6.8

17
Federal Stafford Loan

• 0.50 loan fee with 1.5 penalty fee in repayment
  if fail to make 12 consecutive on-time payments
• 6-month grace period after borrower ceases
  half-time enrollment, 10 years to repay
• Students must accept loans online via Financial
  Aid Self Service System or can utilize Call
  Center (765-494-0998)
• All borrowers must complete Stafford Master
  Promissory Note on-line at www.dlenote.ed.gov
• 10,000 borrowed approximately 115 monthly
  payment

18
Federal Parent PLUS Loan

• A creditworthy parent or graduate students is the
  borrower
• Parent borrows directly from federal government
  (not from bank)
• Interest rate is fixed at 7.9 but accrues after
  disbursement
• 2.5 loan fee with 1.5 penalty fee in repayment
  if fail to make 12 consecutive on-time payments
• Standard 10-year repayment period
• Parent borrowers must submit signed parent loan
  request form to the Division of Financial Aid via
  mail or fax [phone]) Form at
  www.purdue.edu/dfa/all/0809/parentplus.pdf
• All borrowers required to complete a PLUS Master
  Promissory Note on-line at www.dlenote.ed.gov

19
Federal PLUS Loans

• A signed promissory note is required before the
  Federal Direct Loan Servicing Center can run a
  credit check.
• In-school repayment deferment available for
  parent PLUS borrowers, but must be requested via
  www.dlservicer.ed.gov
• Unless parent borrower requests an in-school
  deferment, repayment begins 60 days after full
  disbursement of loan (i.e., March 2009)
• Each 10,000 borrowed approximately 124
  monthly payment

20
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 www.purdue.edu/dfa/loans/altloans.htm

21
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 www.purdue.edu/dfa/sandg/r
  eporting.htm
• 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

22
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

23
Student Employment Tips

• Job search tips
• Search for jobs via www.purdue.edu/dfa/studentjobs
  
• 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
• Co-op info www.ecn.purdue.edu/Coop/

24
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

25
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.
• Beginning in 2009-10 no paper invoices will be
  sent, you will view invoice 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 [phone] - E-mail
  askbursar_at_purdue.edu

26
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
• Confirm your registration by logging into 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

27
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 log-in to your myPurdue account
• 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

28
A Note from the Bursars 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.

29
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

30
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

31
Timeline

• January February Complete the 2009-10 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
• 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)

32
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 and did not receive entire aggregate
  amount (4,731) during academic year

33
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 7,500 (5,500 sub,
  2,000 un-sub), if borrowed 6,000 in academic
  year the most available for summer would be
  1,500.

34
Financial Aid for Summer (cont)

• Must have a complete 2008-09 FAFSA on file with
  Purdue WL. If planning on utilizing CDV benefits
  also have to file 2009-10 FAFSA.
• Have to complete a summer aid application. It
  will be available online later this month at
  www.purdue.edu/DFA
• In order to be considered for all forms of aid
  need to have submitted summer aid application by
  March 1st

35
Division of Financial Aid Services

• Call Center Services 765-494-0998
• M-F, 8am-5pm
• Frequently Asked Questions (FAQs) on-line at
  www.purdue.edu/DFA/askus.htm
• E-mail Inquiry Service facontact_at_purdue.edu
• Informational Website www.purdue.edu/DFA
• Walk In Services Schleman Hall, Room 305
• M,T,W, F 9am-5pm, Th 1pm-5pm
• FAX [phone]