PAYING FOR PURDUE A GUIDE FOR YOU AND YOUR FAMILY WHY FROM THE EXECUTIVE DIRECTOR OF FINANCIAL AID PURDUE THE PAYOFF OF A PURDUE DEGREE Dear Student and Family: Benjamin Franklin once said, “An investment in knowledge always pays the best interest.” I’m glad you are taking a look at financial aid options at Purdue. You may have seen on television, in the newspaper or pretty much any news outlet in the country that college is expensive. Most families will need some help to pay the bill. In fact, about 75 percent of all students at Purdue receive some form of assistance. Students graduate from Purdue with more than a top-notch degree. In addition to the value of a quality education, Purdue ranked among the top 20 of the nation’s best public universities by U.S. News & World Report, offers students a return on their investment through the many opportunities available to enhance education and career opportunities. The information in this booklet gives you and your family an overview of our financial aid programs. Additional information is readily available 24 hours a day on our website at www.purdue.edu/dfa. The website also has a net price calculator that will give you an idea of what type of need-based aid you may be qualified to receive. Many families find it a useful tool. SmartMoney magazine has Purdue ranked No. 8 for long-term payback vs. college cost, and both Buzzfeed and The Princeton Review have Purdue ranked as a Best Value University. We are working to maximize not only the experience of our students, but their financial investment as well. Our staff is available Monday through Friday 8 a.m. to 5 p.m. (Eastern) for drop-in visits. You can sit down with one of our highly trained staff members and receive personal guidance. We also offer email, phone and other contact services that are listed in the back of this brochure. There is nothing quite like the college experience, and we hope that this information can help you see the possibilities at Purdue University. While the process of choosing the school that is the right fit for you may seem challenging, the long-term college experience will change your life. Congratulations on your acceptance to Purdue, and Boiler Up! Hail Purdue, Purdue Moves, an initiative geared toward providing the absolute highest value in higher education, is one way that Purdue is keeping college affordable. The effort includes initiatives to further improve student achievement and employment prospects as well as expand scholarships. Purdue Moves also has allowed the University to put a premium on controlling costs through freezing tuition for a third consecutive year, offering more affordable dining options and decreasing on-campus housing costs by 5 percent. Another Purdue-led initiative, the Gallup-Purdue Index, found in a recent survey of 30,000 U.S. college graduates that “students who actively engage in their college experience are more likely to see a return on their investment.” With more than 2,000 undergraduate research projects and nearly 1,000 student clubs and organizations, Purdue students have the opportunity to get deeply involved and explore many of their interests. In fact, 49 percent of our students take advantage of undergraduate research, and 64 percent participate in a study abroad experience, internship or co-op. Purdue also promotes student engagement and advancement by hosting more on-campus career fairs (34) than any other university. For that, CollegeMagazine.com ranks Purdue’s Center for Career Opportunities as the No. 3 best career services office in the nation. Theodore E. Malone Executive Director, Division of Financial Aid CONTENTS 2 To-do list 9 Student employment 4 Estimate your costs 10 Tips for students 6 Types of financial aid 11 Tips for parents 8 Loans and financing plans 12 Final steps A recent Federal Reserve Bank of New York study showed that “investing in a college degree may be more important than ever before, because those who fail to do so are falling further and further behind.” When selecting a college, it’s important to remember that a good financial fit is just as important as educational match. Purdue’s alumni network of 444,000-plus is a testament to the University’s track record for academic excellence and career preparation. Combine that with a commitment to contain student costs while continuing to offer the resources that allow students to pursue their individual interests and you have an institution that will help you get where you want to go, wherever that may be. MEGAN MALONEY BS ’11, Nuclear Engineering Lt. Junior Grade, U.S. Navy Naval Submarine Base Kings Bay, Ga. THE PURDUE PAYOFF “There is a closeness and understanding among Purdue faculty and students that comes from small class sizes and being in a smaller major. Now, I have the experience of how to work and accomplish tasks with a small, diverse group of people.” 1 TO-DO LIST IMPORTANT FINANCIAL AID TASKS 1 ESTIMATE COST AND FINANCIAL AID 2 SUBMIT YOUR FAFSA Complete the following 3 VERIFY INFORMATION/ REVIEW AWARDS 4 WATCH REVIEWING THE AWARD NOTICE WEBINAR 5 ENSURE YOUR AID IS IN ORDER 6 PAY YOUR INVOICE ONLINE important steps to receive Use the Financial Submit a 2015-16 In early March, submit In early April watch In June or July, consult In mid-July, you’ll financial aid at Purdue. As Aid Estimator and Free Application for requested verification our Paying for with a Division of receive an email outlined in your admission Net Price Calculator Federal Student Aid information, found at Purdue-Reviewing Financial Aid (DFA) notice regarding at www.purdue.edu/ (FAFSA) by March 1, mypurdue.purdue.edu the Award Notice counselor while your online invoice dfa/estimator to help 2015. The application under the “Financial” webinar. No action on campus during for tuition, fees and plan for educational is available at tab, then “Financial is required to accept Purdue’s Summer campus housing expenses at Purdue. www.fafsa.gov. Filing Aid Requirements.” In most scholarships Transition, Advising (with credits for any student and parent mid-March, admitted or grants. Additional and Registration financial gift aid or tax returns prior freshmen who filed a steps are necessary (STAR) program, or processed loans). By to submitting the FAFSA, submitted all to accept some types call to make sure mid-August, pay any myPurdue portal, FAFSA will make requested information of scholarships and your financial aid is outstanding balance including your financial some financial aid and created a career to accept or decline in order. or sign up for the processes easier, but account can view offered loans or installment plan, use estimated 2014 their awards on Federal Work-Study. and confirm your tax information if you myPurdue. letter, activate your online career account at www.purdue.edu/apps/ account/AccountSetup to gain access to your aid award information. haven’t already filed. registration. Get ready to become a Boilermaker! - 3 2 $ 3 ESTIMATE YOUR COSTS BEFORE YOUR AWARD NOTICE ARRIVES You don’t have to wait for your financial aid package to arrive to anticipate what kind of aid you may receive as a Purdue student. The University offers an online estimator to help begin your financial planning. Use this to see just how affordable a Purdue education could be for you and your family. PURDUE’S ONLINE FINANCIAL AID ESTIMATOR AND NET PRICE CALCULATOR By using the estimator/calculator, you can receive a financial aid package estimate that includes an estimated “net price” figure (estimated costs less anticipated need-based scholarship and grant aid). Cost and estimates are based on 2014-15 figures and award rules for undergraduates. It assumes a student will annually file the FAFSA by the March 1 priority filing deadline. Aid estimates are based on fulltime undergraduate enrollment. JASON WILLIAMSON BSCE ’97 Principal Dunaway Associates Fort Worth, Texas Note: Purdue’s financial aid estimates and the College Board’s Net Price Calculator are intended for undergraduate domestic students only. The aid estimate does not represent a final determination of actual financial assistance. THE PURDUE PAYOFF www.purdue.edu/dfa/estimator ESTIMATED COST OF ATTENDANCE: 2014-15 Listed to the right are standard student expense estimates for the 2014-15 academic year at Purdue. The Bursar’s Office current tuition and fee calculator is available at www.purdue.edu/bursar TWO SEMESTERS, FULL-TIME ENROLLMENT Fees and tuition* Room and board allowance DIRECT COST ESTIMATE SUBTOTAL Books/supplies allowance Transportation allowance Personal and miscellaneous INDIRECT COST ESTIMATE SUBTOTAL TOTAL COST OF ATTENDANCE 4 INDIANA RESIDENT NONRESIDENT $10,002 $10,030 $20,032 $28,804 $10,030 $38,834 $1,210 $210 $1,550 $2,970 $1,210 $360 $1,550 $3,120 $23,002 $41,954 *Some programs have additional fees: Technology$572 Engineering$2,050 Management$1,436 Flight Individual courses in this program have additional fees. Refer to the Bursar’s Office website, www.purdue.edu/bursar, or contact the department for specific flight course fees. “Without a doubt I would not be where I am professionally if it weren’t for the experience that I gained during my time at Purdue University.” 5 TYPES OF FINANCIAL AID HELP TO PAY COLLEGE COSTS www.purdue.edu/dfa/sandg/index.php SCHOLARSHIPS, GRANTS AND TAX CREDITS Purdue awards a combination of gift (scholarship and grant programs) and self-help (loans and Federal WorkStudy) aid from federal, state, Purdue and private sources. Combined, these aid sources amount to almost $350 million a year in undergraduate aid dollars. Federal grant programs: Students from lower-income families may qualify for the Federal Pell Grant program — the building block of financial aid packages for needy families. Students who qualify for the Pell Grant also may qualify for the Federal Supplemental Educational Opportunity Grant. Indiana state grant programs: Students from lower-income, Indiana resident families may qualify for the Frank O’Bannon Indiana Higher Education Award administered by the Indiana Commission for Higher Education, www.in.gov/che, Division of Student Financial Aid (SFA). In addition to the O’Bannon education awards, SFA administers several additional award programs. Qualified students may receive 21st Century Scholar awards, National Guard Supplemental grants, as well as the Child of Disabled Veteran and Public Safety Officer Supplemental Grant Program (CVO/CDV). See www.in.gov/sfa for a complete program list. Federal tax credits: Middle-income families that may not qualify for need-based grant aid are likely to qualify for education tax credits. The federal government delivers significant financial aid dollars to middle-income families at the end of the tax year after payments have been made to Purdue. The University will prepare a 1098-T form each January that shows the amount of tuition and fees billed by Purdue, less gift aid received. The American Opportunity Tax Credit or the Lifetime Learning Tax Credit may offer significant tax benefits to your family. Consult your tax advisor or the Internal Revenue Service for more information or visit www.irs.gov/uac/ Tax-Benefits-for-Education:Information-Center. STUDENT AID AT PURDUE Undergraduate students 2014-15 (projected) Loans 6 Employment 8% 42% 50% Scholarships/ Grants University-wide merit scholarships: Purdue awards the Trustees and Presidential scholarships to highly qualified students through a competitive process based on information provided with the online admission application. Recipients are notified via letter and on the “New Student” tab at mypurdue. purdue.edu by Feb. 21, 2015. Visit admissions.purdue.edu/costsandfinaid/scholarships.php for additional information on these scholarships. Field of study-related scholarships: Some colleges/schools require submission of a supplemental application to be considered for their scholarships. Additional information not found on the admissions application is collected for consideration in academic-area scholarship awarding. The Purdue Supplemental Scholarship Application will be available from mid-December to Feb. 1. This application has questions that ask for the Expected Family Contribution (EFC) and Parental Contribution (PC), estimates that can be found from either the processed FAFSA or the Purdue Financial Aid Estimator/ College Board’s Net Price Calculator at www.purdue.edu/dfa/estimator. For details on academic-area scholarship awarding, visit: www.purdue.edu/dfa/ sandg/schoolaward.php. Purdue need-based scholarships: Once admitted, freshmen who believe they will have financial need are encouraged to complete both the FAFSA by March 1, 2015, and the supplemental scholarship application by Feb. 1, 2015 (Students must have a complete admission application on file by Nov. 1, 2014, to guarantee an admission decision in time to meet the Feb. 1, 2015, deadline). The supplemental scholarship application can be accessed through your myPurdue accout in the freshman checklist. Private scholarships: Many Purdue students seek private scholarship opportunities from their high schools, community organizations, parents’ employers, etc. As a result, one out of every 10 students at Purdue receives a private scholarship. For tips on identifying opportunities, visit www.purdue.edu/dfa/sandg/ private-resource.php. Reserve Officers’ Training Corps (ROTC): The ROTC program at Purdue offers excellent financial assistance for eligible students interested in military service. Visit www.purdue. edu/vpsa/rotc for more information. KAI VAUGHN BSM ’07 Inclusion & Diversity Consultant Humana THE PURDUE PAYOFF “Purdue programs like Krannert Women in Management offered the necessary hands-on experience to help me unlock my full potential, providing me with the tools to join the ranks of other successful Purdue alumnae.” 7 LOANS AND FINANCING PLANS WAYS TO DEFER COLLEGE COSTS www.purdue.edu/dfa/loans/index.php STUDENT AND PARENT LOANS Student and parent loan programs are financing plans that enable families to spread college costs over a 10-year repayment period (or longer). Loans require repayment with interest, but payments can be deferred until the student is no longer in college. Loan eligibility usually requires a minimum of half-time enrollment (six or more credit hours). Each of the different types of educational loans has varying requirements and borrowing limits. Families can compare loan options at www.purdue.edu/dfa/loans/ financing.php. n Purdue and Federal Perkins Loans: Five percent fixed interest rate student loans, generally limited to $2,000 per year; awarded to lower- and middle-income families. Visit www.purdue.edu/dfa/loans/ puloans.php for information on applying for, accepting or declining offered Purdue University Loans or www.purdue.edu/dfa/loans/ perkins.php for information on applying for, accepting or declining offered Federal Perkins Loans. n Federal Direct Stafford Loans: Student loans with fixed interest rates, limited to $5,500 freshman year, $6,500 sophomore year, and $7,500 junior and senior years. Loan origination fees apply. First-time Stafford borrowers should review the Stafford Loan information at 8 www.purdue.edu/dfa/loans/ stafford.php for information on applying for and accepting or declining offered Stafford Loans. Borrowers also must complete Loan Entrance Counseling and sign a Master Promissory Note at www.studentloans.gov. n Federal Direct Parent PLUS Loans: Fixed interest rate loans for creditworthy parents, limited to the cost of attendance minus other aid. Loan origination fees apply. Interested parents should review the Federal PLUS Loan information at www. purdue.edu/dfa/loans/plus.php. Families can apply for the Parent PLUS loan as early as April at www.studentloans.gov. n Private alternative loans: Generally higher fixed or variable interest rate loans offered by private lenders that require borrower or co-signer to be creditworthy; limited to cost of attendance minus other aid. Visit www.purdue.edu/dfa/ loans/altloans.php for additional information. STUDENT AND PARENT LOAN REPAYMENT Repayment of educational loans usually begins after the student is no longer enrolled in college, or drops below half-time enrollment. Visit www.studentaid.gov/repay-loans/ understand/plans for a list of options. n For a student who borrows $20,000 in student loans during the undergraduate years, the repayment amount is about $209 per month over 10 years at the 2014-15 rate (assuming a 4.66 percent fixed interest loan). n For a parent who borrows $20,000 from a Parent PLUS loan program for 2014-15, the repayment amount is about $235 per month over 10 years (assuming a 7.21 percent fixed interest rate). Note: Loan interest rates and origination fees are subject to change as a result of action by Purdue, the federal government and/or private lenders. Visit www.purdue.edu/dfa/loans for current loan information. PURDUE FINANCING PLAN Tuition and on-campus housing are billed for the fall and spring semesters separately, about six weeks prior to the start of classes each semester. Families have the option of either paying the balance due after all aid is applied or using the Purdue Installment Plan by the first day of classes. The installment plan offers an alternative way to ease the burden of having to make one large payment each semester. For detailed information on how the installment plan works, and how to sign up for the upcoming year, visit www.purdue.edu/bursar/payments/ installment.html. STUDENT EMPLOYMENT EARN MONEY FOR COLLEGE COSTS www.purdue.edu/dfa/stuemp/stuinfo.php Students are the primary beneficiaries of a Purdue education and they often help pay part of their own costs. One of the ways many students earn money for college is through employment — an important and sometimes significant form of “self-help” financial aid. Purdue’s Student Employment Services helps identify on- and off-campus job opportunities, and the Federal WorkStudy program provides additional job opportunities for eligible lower- and middle-income students. All Purdue students are eligible to receive student employment search services. Student employment opportunities are posted online and can be accessed through www.purdue. edu/dfa/stuemp/stuinfo.php. Many employers begin to list fall semester positions during the summer. BENEFITS OF PART-TIME STUDENT EMPLOYMENT CAREER DEVELOPMENT PROGRAMS n Working 8-12 hours per week while Internship programs and cooperative education programs are excellent ways for Purdue students to gain work experience after their freshman year while also earning money for college. in school actually has been shown to help academic achievement. n Students who work on campus tend to form a stronger connection to the campus community and are more likely to stay in school. n Employment enables students to learn transferable job skills that can be important after graduation. n Employment income can lower students’ potential loan debt. Note: Student Employment Services recommends that full-time students limit their work hours to no more than 20 hours per week during the academic year. Working beyond this maximum has been shown to adversely affect grades and degree completion. n Internships: Purdue students often complete internships during breaks. For a link to opportunities, visit www.cco.purdue.edu. n Professional practice programs: Often referred to as “co-op” programs, professional practice programs allow students to alternate semesters of on-campus study with semesters of full-time employment. Visit www.engineering.purdue. edu/ProPractice for more information. 9 A SPECIAL MESSAGE FOR NON-RESIDENTS AND THEIR FAMILIES As a state-supported university, Purdue serves both the resident taxpayers of Indiana and students from across the nation and world. Nonresidents, who pay higher tuition than Indiana residents, often need to develop comprehensive financing strategies to cover the cost of a Purdue degree. Non-resident families need to plan to pay non-resident tuition for each year at Purdue. Sometimes families believe that their student TIPS FOR STUDENTS HOW TO ACHIEVE FINANCIAL SELF-RELIANCE www.purdue.edu/mymoney Part of becoming a successful college 1 TALK TO YOUR PARENTS ABOUT EXPENSES and paying bills on time. Have the “money talk” with your parents to determine how much of your college costs will be your responsibility, then begin planning how you’ll hold up your end. For instance, let’s say you’ll be responsible for 25 percent of Purdue costs. You may want to consider the following ideas: Follow these four tips n How much money can you save student involves learning how to manage your time and finances, and take care of business such as filing applications and you’ll be starting your college experience on the right foot. by working full-time during summer breaks? Are you able to work part-time while in college to help pay your share? n How much of a dent can you 2 make by pursuing private scholarships from your high school or community? n How much student loan money is available to cover the rest of your share, and will the repayment be manageable? 10 4 will cover their entire cost to attend Purdue. Parent loans are available but require the borrower to be creditworthy. Students whose parents have adverse credit may find it difficult to finance a Purdue education. Their families may need to seek direct financial support from extended family or friends, or find someone to co-sign with them on a loan. If this is not possible, families should carefully consider whether Purdue is a good financial fit. READ PURDUE.EDU EMAIL The Division of Financial Aid, Bursar’s Office and other Purdue offices will send important information to you (not your parents) via your Purdue email address. Read and then forward these emails to your family to keep them in the loop. Read the Financial Aid Terms and Conditions information at www. purdue.edu/dfa/terms/index.php to understand how to maintain your financial aid eligibility. 3 can become an Indiana resident and be charged lower tuition. Under Board of Trustees policy, students who move to Indiana to pursue higher education will not be granted Indiana residency. Each student and family should carefully consider both the financial costs during the undergraduate years and the potential total debt to be paid after graduation. Division of Financial Aid staff members can assist you in weighing your options. Very few non-resident dependent students receive a financial aid package that TIPS FOR PARENTS HELP YOUR STUDENT TAKE ON NEW RESPONSIBILITIES www.purdue.edu/mymoney BE WARY Be wary of scholarship search or financial aid preparation services who charge a fee and aggressive marketing techniques by private loan and credit card companies. Use credit wisely — if you choose to use it at all. RAISE YOUR FINANCIAL IQ WITH MYMONEY Being able to manage your personal finances is a learned skill. The MyMoney Powered by Purdue website at www.purdue.edu/mymoney can help you attain financial freedom by providing the tools and information needed to empower you to wisely manage debt and increase your knowledge and awareness of topical financial issues. As a parent, you can play a key role in helping your student become savvy about money management and college financing. Follow these tips to help your son or daughter achieve financial independence while pursuing a college degree. 1 DISCUSS YOUR EXPECTATIONS Talk to your student about college costs, making it clear what you’re willing to cover and what portion you expect them to handle. For example, maybe you plan to cover 75 percent but expect your son or daughter to pay the remaining 25 percent of Purdue costs. This discussion will not only establish clear communication but also set the groundwork for a positive, evolving relationship. 2 COACH YOUR STUDENT ABOUT NEW RESPONSIBILITIES Help your student take an active role in understanding his or her new responsibilities, such as completing financial aid forms, submitting loan applications, and paying bills for tuition and living expenses. Make sure your student checks their Purdue email account regularly for important updates from Purdue offices and keeps you in the loop by forwarding important messages. 3 ALERT THE DIVISION OF FINANCIAL AID TO SPECIAL CIRCUMSTANCES If you experience a sudden change in income or expenses, discuss your special circumstances with Purdue’s Division of Financial Aid. We may be able to reassess your family’s aid eligibility in the event of an involuntary loss of income, divorce, death in the family, etc. Note: Purdue will only re-evaluate your financial aid if you can document serious circumstances; the University does not negotiate financial aid nor try to match offers from other colleges. 11 FINAL STEPS GET READY TO MAKE SMART FINANCIAL DECISIONS When you receive your AWARD NOTIFICATION FINANCING STRATEGIES official award notice, You should receive your award notice in mid-March. The notice provides an estimate of educational expenses, types of aid awarded such as gift funds (scholarships, grants, fee remissions) as well as self-help forms of financial aid (loans, Federal Work-Study) the student qualifies for at Purdue. It also will include information about other aid resources that can be considered to cover any remaining educational costs. Carefully read all the information in it before taking any action. Families go about paying for Purdue in a number of ways. Refer to the following strategies to establish a plan that will work best for your family: make time to sit down with your family and form a strategy on how you will make the investment in your Purdue education. Remember: Your financial aid eligibility is based on your individual financial need as determined by annually filing the FAFSA, the rules governing the various student aid programs, available funds and full-time enrollment (unless otherwise noted in award messages). Contact the Division of Financial Aid if you have questions about your award letter. n Use student and parent savings. Minimize future debt and interest payments by using the money you and your family have saved so far to help pay your balance. Remember to factor in any money you’ll save by working during summer breaks. n Use current earnings. Take advantage of Purdue’s Installment Plan and spread out the payments on your fall or spring term balance. In addition to your parents’ contributions, you can earn money to offset expenses by working 8-12 hours per week while attending classes. n Explore other options. Pursue pri- vate scholarship opportunities and take advantage of tax credits if your family qualifies. Consider requesting help from extended family. n Use future earnings. Through educational loans, you and/or your parents can spread college costs over 10 years (or more) of loan repayment. It’s best, however, to consider borrowing only what you need after you’ve exhausted other financial aid options. 12 CONTACT US GET THE HELP YOU NEED Get answers to your financial aid questions by contacting Purdue’s Division of Financial Aid via your preferred method of communication: PHONE: 765-494-5050 Call this number for 24/7 financial aid information and to reach our highly trained staff members, available from 8 a.m. to 5 p.m. (Eastern time) Monday through Friday. EMAIL: [email protected] Send us a financial aid question by email, and you’ll typically receive an answer within one or two working days. IN PERSON: Schleman Hall, Room 305 Get in-person assistance by coming to our office to meet with a counselor, available from 8 a.m. to 5 p.m. (Eastern time) Monday through Friday. STUDENT EMPLOYEMENT SERVICES: Schleman Hall, Room 302 Receive guidance in your search for a part-time job to help connect with on- and offcampus employers. Get in-person assistance by coming to our office to meet with a staff member, available from 8 a.m. to 5 p.m. (Eastern time) Monday through Friday. Or call 765-494-5056 during the same hours. WEB: www.purdue.edu/dfa You can access almost everything you need to know about financial aid at Purdue on the Web, including student job postings and answers to frequently asked questions. myPurdue: mypurdue.purdue.edu Log in to this site to check your financial aid and billing status. In addition, you can use this site to find information about financial aid, tuition and fees, fee and housing credits, tax credits and more. Access information through the “Financial” tab. Produced by Purdue Marketing and Media FIN.14.4947 An equal access/equal opportunity university NONPROFIT ORGANIZATION U.S. POSTAGE PAID DIVISION OF FINANCIAL AID Schleman Hall of Student Services, Room 305 475 Stadium Mall Drive West Lafayette, IN 47907-2050 PAYING FOR PURDUE www.purdue.edu/pfp PURDUE UNIVERSITY
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