Loans
Federal Loans
Even if you do not qualify for a grant or scholarship, nearly every student completing a FAFSA and meeting financial aid requirements is eligible for some form of Federal student loan.
Federal student loans have fixed interest rates and offer several repayment plans as well as deferment options if you are having trouble making payments.
Students may choose to accept or decline Federal student loans. If you choose to accept your loan, understand a loan is a legal obligation that you are responsible to repay with interest.
Make Informed Borrowing Choices
Debt & Borrowing Money Tutorial
The following resources and tips can help you make informed borrowing choices:
- Keep track of your borrowing history and find your loan servicer.
- Notify your loan servicer when you graduate, withdraw from school, drop below half-time enrollment, transfer to another school or change your name or address
- Repayment begins once you graduate, drop below half-time or leave school after your grace period
- Half-time enrollment is at least 6 credit hours for undergraduate students and at least 4 credit hours for most graduate students
- Use the Federal Student Aid Loan Simulator to calculate your monthly loan payments.
- View the Department of Education video Responsible Borrowing or read Be a Responsible Borrower (PDF) for ways to graduate with less debt.
- Use the U.S. Department of Labor’s Occupational Outlook Handbook to estimate salaries for different careers or research employment.
- Understand the terms of your loan; when you sign your Master Promissory Note (MPN), you are agreeing to repay the loan. Read the Plain Language Disclosure for Direct Subsidized and Unsubsidized Loans which provides additional information on your loan(s).
- If needed, deferment and forbearance options are available.
- Your Federal Direct loans will be submitted to the National Student Loan Data System (NSLDS) and will be accessible by authorized users of the data system.
Loan Types
Federal Direct Subsidized and Unsubsidized Loans are loans for students.
Direct Subsidized Loans are available to undergraduate students with financial need. The Department of Education pays the interest on a subsidized loan
- while you are in school at least half-time
- for the first six months after you leave school
- during a period of deferment
Always accept the full amount of subsidized loan offered to you before accepting your unsubsidized loan.
Direct Unsubsidized Loans are available to undergraduate and graduate students; financial need is not required.
Federal Direct Parent PLUS (Parent Loan for Undergraduate Students) is for the parent of a dependent student. The amount offered is typically the cost of attendance minus all other aid and resources. A parent may borrow less than the amount offered if desired.
Federal Direct Graduate PLUS is for graduate and professional degree students.
Federal Perkins Loans are no longer available Purdue Northwest. If you had a Perkins loan in the past at Purdue Northwest, your Perkins loan is serviced by Educational Computer Systems Inc. (ECSI).
- ECSI borrower information
- The ECSI customer service number is (888) 549-3274
Purdue University Northwest students may choose to borrow a private loan in addition to or in place of a Federal Direct Loan. The Office of Financial Aid does not recommend any particular lender. Students are encouraged to compare the differences between Federal and Private Loans and discuss federal student aid options before applying for a private loan.
It is important for prospective borrowers to note that you may qualify for Federal loans or other Federal financial aid and that the terms and conditions of a Federal loan may be more favorable than the provisions of private education loans.
See the Truth in Lending Act Section 1638(e) for terms and disclosure related to private education loans.
Applications for private education loans or alternative loans are made by the student through a lender. Prior to disbursing a private loan the lenders are required to obtain a Private Education Loan Applicant Self Certification Form from the applicant.
Private Education Loan Applicant Self-Certification Instructions