Tag Archives: scholarships

Financial Aid February: How to Accept Your Aid

13 Feb

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

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!

Financial Aid February: Applying for More Aid

7 Feb

The FAFSA registers you to be considered for aid from Purdue and the federal/state government. To be considered for additional Purdue/private scholarships or private loans, you need to take a few extra steps, such as completing a separate application. Additional information about eligibility and steps to apply for each type of resource are listed below:

finaical aid february 2 - applying for more aid.jpg

Purdue Departmental Scholarships

Incoming freshmen need to have a complete admissions application submitted by November 1 to be considered for Purdue’s merit scholarships.

In addition to having a complete admissions application by November 1, new students enrolling in one of the following colleges or schools should also complete the Purdue Supplemental Scholarship Application by January 1, 2017.

  • Agriculture
  • Health & Human Sciences
  • Krannert School of Management
  • Polytechnic Institute

The deadline for incoming freshmen to complete the Purdue Supplemental Scholarship Application is January 1st of the year they intend to enroll. The deadline for the 2017-18 school year closed on January 1st, 2017.

Scholarships awarded through the supplemental scholarship application are based on merit, need, or a combination of the two. If you wish to be considered for those scholarships with a need component you will need to file your Free Application for Federal Student Aid (FAFSA) by the January 1 deadline as well.

Current Students: There are different deadlines for different programs:

  • Agriculture — February 1
  • Chemical Engineering — April 1
  • Health and Human Sciences — January 1
  • Liberal Arts — February 15
  • Management — March 2
  • Polytechnic Institute* — March 1

*Polytechnic Institute Statewide students should complete the Supplement Scholarship Application and select Purdue Polytechnic as their school. Polytechnic Institute Statewide students may complete the application through August. 

What You’ll Do:

Go to the Purdue Supplemental Scholarship Application and follow the directions.

Other Purdue Departmental Scholarships

Some schools and departments use applications other than the Purdue Supplemental Scholarship Application. Find your department below to see if you qualify, and also check to see if you qualify for any other scholarships offered at Purdue.

Click here or on the chart below for access to clickable links!1page-0

Private Scholarships

There are many private scholarships available — especially for incoming freshmen — and you should definitely be applying for these as early as possible. Scholarship opportunities can be found in your local community and nationwide and will have different application processes. However, it is important to be wary of scholarship scams. You should not pay a fee to an organization to find scholarship opportunities for you or to complete an application for a scholarship that is offered.

We recommend talking to a guidance counselor or checking out free resources like FastWeb or scholarships.com to learn about opportunities you may be eligible for.

The Bursar’s Office provides details about mailing checks from donors, how they are applied to your bill, and other processing information for private scholarships that you receive.

Remember to thank the sponsor of your scholarship. Learn more here.

Parent PLUS Loans

A Federal Parent PLUS Loan can be taken out by a parent in the parent’s name to help their dependent undergraduate student help pay for college. This loan has the same interest rate for everyone regardless of credit. For more details and information read about Parent PLUS Loans here.

Private Loans

A large number of private education loan options are available to assist you and your family in meeting college costs. Loan applications are completed with your lender of choice and require good credit or a co-signer with good credit. We recommend applying at least 30 days prior to the date you need the funds and complying quickly to information requests from your lender. Read more about student loans.

Answering the Who, How, & Why of FAFSA

26 Jan

fafsa
Getting you through FAFSA, one question at a time.FAFSAQs

 

  • Who

    • Who Should File a FAFSA?
      If you are interested in getting any Federal Financial Aid, including federal direct loans, you need to file the FAFSA at www.fafsa.gov/  to become eligible. Federal loans are almost always preferable to private loans.  In addition, many colleges’ need-based scholarships rely on FAFSA information to verify that you are eligible. In short, everyone should file the FAFSA – even if you don’t think you’ll qualify for any federal aid

     

    • Whose Information is Needed to File a FAFSA?
      This answer depends on if you are a dependent student or not. Unsure if you’re Dependent or Independent? Check here. (Note: this is not the same as being independent for tax filing)
      Dependent students: You need tax information for both you AND your parents. If your parents are divorced, you need the information on whoever you receive the most support (51%) from.Independent students: You only need your own information unless you are married. If so, you will need your spouse’s information as well.
  • What

     

     

    • What If Things Change After I File The FAFSA?
      If your family situation has a significant change after you’ve filed your FAFSA, and any time while you’re in school, stop by your Financial Aid office to see if you qualify for a “special circumstance”.  These could include job loss, divorce, death of a parent, child birth or other unexpected situations that impact your financial status.

     

    • What Types of Federal Financial Aid are there?
      There are three main types of financial aid:
      1. Grants — Federal Pell Grants do not have to be repaid and are sometimes referred to as “gift aid”.  Grants are similar to scholarships, except that they are often for those who demonstrate financial need, where scholarships can be either merit-based or need-based.
      2. Student Loans — This is the type you hear about most often.  Filling out the FAFSA is required to be eligible for Federal Direct loans.  Federal loans are almost always preferable to private loans from lending institutions, because they have fixed interest rates and flexible repayment options.
      3. Federal Work Study (FWS) — Work study may provide you with more opportunities to find on-campus jobs. Rather than being given the funds in the beginning of the semester like loans and grants, FWS earnings are distributed to you as part of your paycheck.
  • Where

     

    • Where Do I Get the School Code and FSA ID?
      You’ll need the school code for whatever schools you are interested in applying to. They are available here. Your FSA ID is used to login and electronically sign your FAFSA.  Set it up at here.

     

    • Where Do I Get Help?
      College Goal Sunday will be held on Sunday, February 12th at 2:00 p.m. in Indiana and it provides FREE FAFSA filing assistance. It is at Ivy Tech in West Lafayette, but to find a location near you in one of the participating 42 states, go to www.CollegeGoalSundayUsa.org.  You can always call the Financial Aid office of your prospective school to ask questions as well.
  • When

    • When Can I start the FAFSA?
      You can begin the FAFSA any time after October 1st of the year before you plan to attend college. The FAFSA uses the student/parent tax information from two years ago (You could start filing Oct. 1 of 2016 for the 2017-18 school year using your 2015 tax information) . You can estimate the required information to beat a college priority filing date, but the info must be corrected after the taxes are complete!

     

    • When is the FAFSA Due?
      If you are a Purdue student, the FAFSA priority filing date is March 1st, so be sure to have it done by then! Other colleges (and states) have their own priority dates. Check for deadlines here.
  • How

    • How Do I Get my Financial Aid?
      Your financial aid is sent directly to your school and they will apply it directly toward your billing and send any excess aid to you to be used for books and other education related expenses. The exception is Work Study which needs to be earned by working, and is paid via a paycheck.

     

    • How Much is the Maximum That Can be Borrowed?
      Most students don’t know this, but there is a maximum amount of Federal Loans you can take out each year. There is also a maximum amount you can take throughout your college career! If you take the maximum amount for four years, there won’t be as much left for a fifth year if needed. Plan ahead!Remember: Everything you borrow you will have to pay back with interest for the next 10 (or more) years. For every $5,000 you borrow at 6% interest, you pay back $6,661.23 over 10 years ($55.51/ month)
    • FAFSA-brw-chart
  • Why

    • Why Should I Do a FAFSA?
      Other than qualifying for grants and Federal Loans? Many state grants and institutional scholarships require FAFSA information submitted. Even if you aren’t sure, it is always worth submitting!

Have more questions? Ask them in the comments and we’ll do out best to answer them!

What to do over Winter Break?

27 Dec

Hannah Stewart, Purdue University Student and Peer Counselor
www.purdue.edu/mymoney

Santa GIF

Oh thank heaven finals are over! Let the holidays begin! The presents, the food, family, it’s a great time of celebration and enjoyment, for a while at least. I know it’s hard to believe, but there is a lot of downtime over the holidays and some of us, dare I even say it, get bored. Even if you don’t bore easily, there are plenty of actions you can take that just might make your break a little better.

The spring semester is coming. I know the fall semester just ended and no one wants to think about school over a holiday break, but you can at least prepare.

Grandmother giving stock of money for college savingsLook for books in advance; it can often be cheaper since you can order from Amazon, rent online, etc. Write out your Christmas list, you could always ask for books as a Christmas gift! Money usually is given as a gift too and it might be beneficial to save for rent or other college related expenses.  During the downtime of the holidays, it’s a good time to set and make a budget. It’s also a good time to make next semester’s schedule.

Check your grades early. I know you don’t want to think about it, because the past is past, right? However, there are timelines to contest grades. If you have any questionable grades this is the time when you should be reconciling with your professor. Double check to make sure all you grades have been entered correctly and send emails early and often if needed. Also, double check you’re making Satisfactory Academic Progress (SAP), it is one element to keeping your federal financial aid eligibility. You can always check your SAP status on your myPurdue or contact the Division of Financial Aid as well. Just log in, and under the “financial” tab, click on academic progress on the left, and choose the current academic year. The last tab, Academic Progress, shows your current SAP status.

I cannot stress this enough: the FAFSA (Free Application for Federal Student Aid) openend up October 1st and must be filed every year that you’re in school in order to receive financial aid. TheFAFSA home screen on-time filer deadline for Purdue University is March 1st every year, DON’T MISS OUT! It’s not just grants and scholarships that depend on the FAFSA; if you have Stafford loans they also require filed a FAFSA. Recent FAFSA changes have you using the taxes from 2 years before you file, so if you’re filing for the 2017-18 school year you’ll use 2015 tax information. It also tends to be easier to file the FAFSA when both parents and students can work together, and the holidays usually provide a perfect opportunity. Although filing FAFSA is not as fun as opening presents on Christmas morning, it’s fast and super important, so make sure to pencil in sometime for it.

Another really important thing about this time of year is that it’s when scholarship applications open up for the next academic year. That’s right, free money is up for grabs, so go apply! Academic advisors typically email students letting them know, but you can also check out this list of Purdue departmental scholarship information.  The Division of Financial Aid also has a General Purdue Scholarship Application that is available now and is due (along with a completed FAFSA) by January 1st. Private scholarship applications typically start opening up this time of year too. Two resources for private scholarships are FinAid and FastWeb. So research and apply for scholarships. After all, who doesn’t like free money?

So yes the holidays are here, relax and enjoy yourself! Go have fun and refresh! Just keep these things in mind as they can help for a less stressful spring semester.

Renewing Your Trustees or Presidential Scholarship at Purdue

7 Dec

Trustees Presidential Scholarships.jpg

If you’re one of the lucky Purdue students to receive a Trustees or Presidential Scholarship, the thought of what you need to do to keep your scholarship may have come up. While these awards do renew automatically, there are some criteria you should know to keep your eligibility.

For starters, you need to complete at least one full academic year in the program (major) that you were originally admitted to. If you decide that you want to change majors, you will have to wait until after the spring semester of your first year or your scholarship will be lost

In addition, you need to maintain continuous full-time enrollment each semester (excluding the summer) with 12 or more credits or you will lose your eligibility. If you are taking 12 credits and drop a class to go below, this will put your scholarship in jeopardy.

While taking 12 credits keeps you full time, there is another credit completion mark you must hit. You must have completed a total of 30 credits at the end of your first year, 60 by the end of your second year and 90 by the end of your third year. Important to note is that transfer and AP credits both apply to this 30/60/90 goal as well as the courses you take at Purdue. This can give you a bit of a cushion, especially in your first year, to hit your 30/60/90 benchmarks. If you started at Purdue before Fall 2014, the 30/60/90 rule does not apply to you.

Along with maintaining full-time enrollment, you need to maintain a cumulative 3.0 GPA. These grades are checked at the end of each spring semester and if your cumulative GPA is below 3.0 at that time, you will lose it. However, if you have lost it for one year you can regain it at the end of the next spring semester if your cumulative GPA rises above 3.0 again (assuming you meet all the other renewal criteria).

If you made it through your freshman year without transferring and you’re hitting your 30/60/90 goal while keeping your 3.0 cumulative GPA you’re probably well on your way to graduating in four years. Which is good, because the scholarships are good for up to four years (8 semesters) of eligibility. If you take an extra year or semester past that, you won’t have the scholarship to help out.

If you are participating in a Purdue approved co-op or internship that takes you away from Purdue, that semester will not count against your semester usage, credit hour completion totals, or 12+ credit rules. Due to your different pattern of enrollment, you may appeal to use a semester of your award during the summer. Summer appeals should only be used when you will not be on campus a total of eight fall and spring semesters.

Now, if you have been doing your best but fell short of one or more of these requirements, there is the option to appeal if you have extenuating circumstances. Keep in mind that high school was easy and college wasn’t so you got really into Netflix and sleeping instead is not considered an extenuating circumstance.

Looking for renewal information about other Purdue scholarships including the Emerging Leaders, Marquis, Purdue Achievement, Purdue Hispanic, or Purdue Merit Scholarships? Check out this link with details on maintaining those scholarships. You can also find more information on the Trustees and Presidential Scholarships as well as other Freshman Scholarships here.

FAFSA: Who, What, When, How & Why?

26 Jan

fafsa
Getting you through FAFSA, one question at a time.FAFSAQs

 

  • Who

    • Who Should File a FAFSA?
      If you are interested in getting any Federal Financial Aid, including federal direct loans, you need to file the FAFSA at www.fafsa.gov/  to become eligible. Federal loans are almost always preferable to private loans.  In addition, many colleges’ need-based scholarships rely on FAFSA information to verify that you are eligible. In short, everyone should file the FAFSA – even if you don’t think you’ll qualify for any federal aid

     

    • Whose Information is Needed to File a FAFSA?
      This answer depends on if you are a dependent student or not. Unsure if you’re Dependent or Independent? Check here.(Note: this is not the same as being independent for tax filing)Dependent students: You need tax information for both you AND your parents. If your parents are divorced, you need the information on whoever you receive the most support (51%) from.

      Independent students: You only need your own information unless you are married. If so, you will need your spouse’s information as well.

  • What

     

     

    • What If Things Change After I File The FAFSA?
      If your family situation has a significant change after you’ve filed your FAFSA, and any time while you’re in school, stop by your Financial Aid office to see if you qualify for a “special circumstance”.  These could include job loss, divorce, death of a parent, child birth or other unexpected situations that impact your financial status.

     

    • What Types of Federal Financial Aid are there?
      There are three main types of financial aid:
      1. Grants — Federal Pell Grants do not have to be repaid and are sometimes referred to as “gift aid”.  Grants are similar to scholarships, except that they are often for those who demonstrate financial need, where scholarships can be either merit-based or need-based.2. Student Loans — This is the type you hear about most often.  Filling out the FAFSA is required to be eligible for Federal Direct loans.  Federal loans are almost always preferable to private loans from lending institutions, because they have fixed interest rates and flexible repayment options.3. Federal Work Study (FWS) — Work study may provide you with more opportunities to find on-campus jobs. Rather than being given the funds in the beginning of the semester like loans and grants, FWS earnings are distributed to you as part of your paycheck.
  • Where

     

    • Where Do I Get the School Code and FSA ID?
      You’ll need the school code for whatever schools you are interested in applying to. They are available here. Your FSA ID is used to login and electronically sign your FAFSA.  Set it up at here.

     

    • Where Do I Get Help?
      College Goal Sunday will be held on Sunday, February 21st at 2:00 p.m. in Indiana and it provides FREE FAFSA filing assistance. It is at Ivy Tech in West Lafayette, but to find a location near you in one of the participating 42 states, go to www.CollegeGoalSundayUsa.org.  You can always call the Financial Aid office of your prospective school to ask questions as well.
  • When

    • When Can I start the FAFSA?
      You can begin the FAFSA any time after January 1st of the year you plan to attend college.  The FAFSA uses the student/parent tax information from the previous year. You can estimate the required information to beat a college priority filing date, but the info must be corrected after the taxes are complete!

     

    • When is the FAFSA Due?
      If you are a Purdue student, the FAFSA priority filing date is March 1st, so be sure to have it done by then! Other colleges (and states) have their own priority dates. Check for deadlines here.
  • How

    • How Do I Get my Financial Aid?
      Your financial aid is sent directly to your school and they will apply it directly toward your billing and send any excess aid to you to be used for books and other education related expenses. The exception is Work Study which needs to be earned by working, and is paid via a paycheck.

     

    • How Much is the Maximum That Can be Borrowed?
      Most students don’t know this, but there is a maximum amount of Federal Loans you can take out each year. There is also a maximum amount you can take throughout your college career! If you take the maximum amount for four years, there won’t be as much left for a fifth year if needed. Plan ahead!

      Remember: Everything you borrow you will have to pay back with interest for the next 10 (or more) years. For every $5,000 you borrow at 6% interest, you pay back $6,661.23 over 10 years ($55.51/ month)

    • FAFSA-brw-chart

      Chart courtesy of Penn State University

      
      
  • Why

    • Why Should I Do a FAFSA?
      Other than qualifying for grants and Federal Loans? Many state grants and institutional scholarships require FAFSA information submitted. Even if you aren’t sure, it is always worth submitting!

Scholarship Scams

30 Mar

Raysha Duncan, Financial Aid Administrator
www.purdue.edu/mymoney

man hiking in woods; text overlay: How to Avoid Scholarship Scams

Right about now many of you are on the hunt for scholarships for the coming school year. And why wouldn’t you be? There are great resources out there to utilize such as www.fastweb.com and www.scholarships.com!  But some scholarship resources aren’t quite as friendly. The Federal Trade Commission has investigated numerous consumer complaints in recent years about such firms and found fraudulent activity.

What are some fraud warning signs to keep your eye out for?

-You are required to pay a fee to apply

-A “money-back guarantee”

-The application requires credit card/bank account information

-Offers “exclusive” information

What are some common scholarship scams?

Phony scholarship-promises cash if you pay a registration fee

Phony scholarship matching service-pay a fee and they guarantee you will win awards

Phony educational loan-pay a fee and receive a low interest rate

Phony financial aid seminar-a high pressure, poorly concealed sales pitch

Phony grant-promises to replace loans with grant if you pay a processing fee

How do you report a scholarship scam?

National Fraud Information Center (NFIC)

File an online complaint at www.fraud.org, call their toll-free hotline at 1-800-876-7060

Federal Trade Commission (FTC)

To report suspected fraud, visit www.ftc.gov to use the online consumer complaint form, call 1-888-FTC-HELP (1-202-382-4357)

State Attorney General’s Office

File your complaint with the Consumer Protection Division in your state.

Better Business Bureau (BBB)

Report business fraud, or ask for information about a company. Visit www.bbb.org (You must have an address for the questionable organization to file a complaint).

For complaints involving mail fraud, visit www.usps.com/postalinspectors. To file an online complaint, call the Postal Crime Hotline at 1-800-654-8896

What is Financial Aid?

9 Feb

Raysha Duncan, Financial Aid Administrator & Purdue Alumna
www.purdue.edu/mymoney

what is financial aid - open road

So you’ve filed your FAFSA or are considering filing your FAFSA and you’re wondering…what exactly does this get me anyway? Filing your FAFSA makes you eligible for two main types of aid: gift aid and self-help aid. Some schools require that you file a CSS Profile to be eligible for their institutional scholarships. That is not required at Purdue, so I’ll just be covering what we award through the FAFSA, since that is the only application required.

Gift Aid

This refers to all scholarships and grants, or, to put it more simply, all the types of aid that you don’t have to pay back.

Grants are typically need-based aid awarded from either the federal government or your state. The most common grant is the Federal Pell Grant. This is a need-based grant awarded to students with lower Expected Family Contributions (EFC).

Scholarships can be need or merit-based and students can get them from various sources. Typically, students receive scholarships either from their university or from a private donor. There are websites such as www.scholarships.com and www.fastweb.net to help students find all kinds of private scholarships. There are some pretty obscure scholarships out there, so if you look hard enough, you may even find one that fits your eccentric hobbies. Be sure and apply for a lot of different scholarships, but never pay to apply for a scholarship. If you’re being asked to pay to apply, then it’s probably a scam.

For information on grants and scholarships available to Purdue students, please visit the Division of Financial Aid’s website.

Self-Help Aid

This type of aid consists of loans and Federal Work Study. Loans are the most common type of self-help aid; they’re also the only type of financial aid that really makes it on the news. Students are expected to pay back their student loans once they have graduated and depending on what type of loan you take, there may be interest accruing on it while you’re in school. Federal Student Loans consist of Perkins Loans and Stafford Loans. Parents may also have the option of taking out a Parent PLUS Loan to help cover any remaining costs that the student has; Parent PLUS loans are taken out in the parent’s name, so the parent is the one who is expected to pay them back. Students also have the option of taking out private student loans, which are loans they apply for through a third-party lender and are then sent to their college.

It’s important to remember that ALL LOANS HAVE TO BE PAID BACK, so always try to borrow as little as possible so you aren’t burdened with huge loan payments once you graduate college.

 

Purdue students will want to file their FAFSA by March 1st to meet Purdue’s priority filing deadline. Incoming freshmen to Purdue who filed their FAFSA by this date or “on-time” can expect to receive their financial aid award mid-March and continuing students at Purdue who filed “on-time” can expect to receive their financial aid award mid-June. Feeling anxious? You can also check out the CollegeBoard Net Price Calculator to get an estimate of the aid you might be eligible for at Purdue.

The Purdue University Division of Financial Aid has also created a step-by-step guide on How to Apply for Financial Aid checklist on their website.

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