Federal Loan Requirements

First-Time Borrowers

First time loan borrowers at Purdue Northwest, must complete a Master Promissory Note (MPN) and Loan Entrance Counseling. Your loan(s) will not be disbursed (paid to your account) until both requirements are completed.

First-year, first-time borrowers will have their first loan disbursement (for Federal Direct Subsidized and Unsubsidized Loans) delayed by 30 days as required by the Department of Education.

Enrollment Requirements

Students must enroll at least half-time (6 credit hours for an undergraduate student) in order to receive a Federal Direct Loan (Subsidized and Unsubsidized Loans, and PLUS Loans). Repayment will begin after your grace period if you drop below half-time, graduate or withdrawal.

Loan Disbursements

Your Federal Direct Loans will be disbursed in two equal payments, up to ten days before the start of the semester.

  • If you attend in the fall and spring, you will receive one disbursement in the fall and one disbursement in the spring
  • If you attend only in the fall or only in the spring, you will typically receive half of your loan five to ten days before the semester start date and the remaining half of your loan at the calendar midpoint of the semester
    • The calendar midpoint typically occurs around mid-October for the fall semester and mid-March for the spring semester.

Interest Rates and Loan Fees

Interest rates vary by loan type, student level (undergraduate or graduate) and when the loan was first disbursed (paid to your account).

Accepting or Declining Your Loans

Once you receive your financial aid offer notification, you may be offered Federal Direct Subsidized or Unsubsidized loans or Federal PLUS (Parent loan).

  • You may accept or decline the Federal Direct Subsidized or Unsubsidized loans
    • You can accept a partial amount or the full loan
  • Federal Direct Subsidized Loans are need based and should be accepted first
  • Federal Direct Unsubsidized Loans are not based on financial need
  • Your parent will accept the PLUS loan by going to StudentAid.gov to and click on the Parent tab to complete the Parent PLUS application and MPN)

If you plan to enroll during the summer term, you may want to reserve a portion of your loans. You will automatically be considered for summer loans if you are enrolled at least half-time, have loan eligibility remaining and meet all other awarding requirements.

Loan Proration

  • Undergraduate students who will receive a degree in December or August of the current aid year must have their Federal Direct Loans prorated based on enrollment hours for their final semester
  • Undergraduate students who will receive a degree in the spring semester who did not attend Purdue Northwest in the preceding fall semester must have their Federal Direct Loans prorated based on enrollment hours for the Spring semester
  • Loan proration is initiated when you notify the Office of Financial Aid or the Office of the Registrar of your intent to graduate
  • Loan reductions may occur if students are enrolled in less than 12 credit hours
    • These reductions may result in a balance due from the student

Loan Exit Counseling

Loan Exit Counseling is required for all students who have graduated, withdrawn, or enrolled less than half-time. Exit Counseling provides information to students on your rights and responsibilities as a student loan borrower. You will also learn useful tips to help you manage your loans and prevent loan delinquency or loan default. Complete your Exit Counseling session and get information on managing repayment.

  • Notify the Office of Financial Aid if before you decide to change enrollment or withdraw from Purdue Northwest to find out how this will affect your aid.

The Financial Literacy webpage has information on loan repayment and other resources.