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Financial Aid February: How to Accept Your Aid

13 Feb financial-aid-february-leader

After reviewing your award notice, all that’s left to do is to accept or reject your offers for the award year. The majority of grants — free money that does not need to be paid back — are automatically accepted on your behalf. However any loans offered will require your decision, and at this point you will need to report any private scholarships you received.

While no official deadline for accepting aid exists, keep in mind that financial aid will not credit to your Purdue invoice until aid is accepted. The Division of Financial Aid recommends you accept aid no less than four weeks before the start of the semester. Each type of aid has unique requirements for acceptance.

 

Federal Loans, Purdue Loans, and Work-Study

  1. Accept the offered aid on myPurdue under the “Financial” tab > “Award for Aid Year” > “Accept Award Offer.”
  2. Follow the directions based on type of aid below.

Subsidized/Unsubsidized Stafford Loans

You will need to complete a Master Promissory Note (MPN) and Loan Entrance Counseling at www.StudentLoans.gov. Sign into the website with the student information and click “Complete MPN” or “Complete Counseling.”

Purdue Loans

Complete a promissory note at ECSI — a third-party servicer Purdue uses for this loan. This is done each year you borrow a Purdue loan.

Federal Work-Study

  • Find a Work-Study job by searching through job postings for student life or other on-campus departments and contacting listed employers for the application process.
  • Once you have secured a Work-Study job, visit the Financial Aid office on campus for a Payroll Authorization Form (PAF). Give this form to your employer when you begin your job. Remember you can only work during the semesters you are enrolled and can pick up the PAF no earlier than the first day of the semester.

Parent PLUS Loans

  1. One parent needs to submit a Parent PLUS Loan application at www.StudentLoans.gov. Sign into the website with the parent information and click “Request PLUS Loan.”
  2. Once credit approved, the same parent, if a first-time Parent PLUS borrower, will complete a Master Promissory Note (MPN) at www.StudentLoans.gov. Sign into the website with the same parent information and click “Complete MPN.”
  3. If credit denied, the parent has several options: replace the Parent PLUS loan with $4,000-$5,000 Unsubsidized Stafford Loan and/or private loan up to the remaining cost, reapply for the Parent PLUS Loan with a co-signer, or reapply with a different parent borrower.

Graduate PLUS Loans

You will need to complete a PLUS Loan application at www.StudentLoans.gov. Sign into the website with the student information and click “Request PLUS Loan.”

Once credit approved, the student, if a first-time Grad PLUS borrower, will complete a Master Promissory Note (MPN) at www.StudentLoans.gov. Sign into the website with the student information and click “Complete MPN.”

Private Loans

  • Research your private loan options. Review our private loan information and search online for lenders. Complete a loan application with your lender. Most lenders have applications available on their website.
  • Once credit approved, contact your lender for the next steps necessary.
  • Your lender will contact the Division of Financial Aid for certification of your loan. Once certified, the loan will appear in your financial aid package on your myPurdue account.

Note that the private loan application process typically takes at least 30 days. Apply as early as you can so that funds arrive in time for the bill due date.

Private Scholarships

Report your private scholarship to the DFA on your myPurdue:

  1. Log in to your myPurdue account.
  2. Under the “Financial” tab > “Award for Aid Year” select current aid year from the drop down box.
  3. Select the “Resources/Additional Information” tab and report your private scholarships.
  4. Don’t forget to give your donor the Bursar address to send a paper check.

Financial Aid February: Understanding your Award Notice

9 Feb financial-aid-february-leader

If you — as a newly accepted student — applied for financial aid and submitted all verification information that was requested you should expect to receive an award notice from Purdue Division of Financial Aid (DFA) in late February.

This will be sent to your Purdue.edu email address, which you gain access to by activating your career account. The email notification directs students to view their financial aid offer online in their myPurdue system under the Financial tab. Notifications will also be sent to parents who supplied a parent email address on the FAFSA.

First-time students at Purdue will receive an award letter through postal mail. Families can review the recorded Paying for Purdue Award Notice Webinar online as an additional resource.

Award letter example

While the first place that your eyes will look is undoubtedly the Free Money section, a better place to start is by looking at the estimated Cost of Attendance (COA) on the right side. The COA is not your bill! Rather, it is an estimate of the costs of being a full-time student and living in West Lafayette for the school year. It also shows the maximum amount of aid you are allowed to receive for the year, not what you ought to be taking. Your actual bill will come later once you’ve signed up for courses. The only costs you will owe Purdue directly are for tuition/ fees, a meal plan (if you have one), and housing costs if you live on campus.

Now that you know that maximum amount of aid you can receive, the free money awaits. If you have any grants or scholarships, they will appear here. If you have an outside scholarship and have not reported it yet , you can do that via your myPurdue. Grants and scholarships are the ideal form of aid since you do not have to pay them back!

If you subtract your gift aid from the Cost of Attendance, you are left with your remaining “Net Cost”. You can look to cover this amount with the “self-help aid”, using money you already have, or a combination of the two. This is the amount you must cover with money you either have now or in the future.

The self-help aid section is where your offered loans and work study will show up. While these options aren’t as preferable as free money they are a better option for many than trying to pay out of pocket.Fin Aid Feb Award Notice.jpg

It’s important to know that while work study is a form of financial aid, it does not credit your account like the other forms of aid do! Having work study opens up many employers on and around campus who will only hire work study students. The student still needs to find a job and earn the money which is paid via a bi-weekly paycheck. If you don’t work enough hours to receive your entire work study amount, you don’t receive it. Work study is a good way to be able to supply yourself with spending money throughout the year, but it is not a reliable way to pay your Purdue bill since you receive it after the bill is already due.

The other type of self-help aid is the loan. Every loan is slightly different, both in interest and in the steps you need to take to receive it. Federal loans typically are preferable to private loans and often offer more flexible repayment options as well.

As you review the award notice and look up different Financial Aid Terms, keep in mind that grants and scholarships are types of gift aid that do not need to be repaid. Loans and work-study are types of self-help financial aid that must be repaid either in money or labor.fin_need.png

One question that often comes up is where the FAFSA fits into all of this? The FAFSA’s primary job is to create the Expected Family Contribution (EFC) number, which reflects a family’s anticipated financial strength. The formula for financial need is made by subtracting the EFC from the Cost of Attendance. The remaining amount is the maximum amount of need-based aid a student is eligible for. This can be scholarships/ grants with a need requirement, subsidized loans, or Federal Work Study. It is not guaranteed that your financial need will be filled with need-based aid.

Remember that even if you don’t think you will be eligible for need-based aid, you should still file the FAFSA as some scholarships have it as one of their requirements!

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