Purdue University: Student Loan Forgiveness Program Explained

Purdue University offers a range of financial aid options for students, including federal and private loans, grants, and scholarships. While there is no specific Purdue University loan forgiveness program, the university does offer loan management support and guidance to help students navigate their repayment options. Additionally, Purdue employees with federal student loans may be eligible for loan forgiveness through the Public Service Loan Forgiveness Program (PSLF). This program provides relief for those who have made 120 qualifying payments while working full-time for a qualifying employer, which includes Purdue University. The university also offers a Returning Student Relief Grant, which clears outstanding debt of up to $4,500 for eligible students reenrolling at Purdue Global.

Federal and private loan programs

Purdue University offers a range of federal and private loan programs to its students. Federal loan programs are available to students who complete the FAFSA, and private loans can be obtained through banks or loan vendors.

One notable federal loan program is the Public Service Loan Forgiveness (PSLF) Program, which offers loan forgiveness to employees with outstanding federal student loans. This program is not unique to Purdue University and is a federal initiative. Under PSLF, the remaining balance on federal direct loans is forgiven after borrowers have made 120 qualifying payments while working full-time for a qualifying employer. Purdue University is listed as a qualifying employer. A recent waiver, the Limited PSLF Waiver, allows borrowers with the wrong type of loans or payments to receive credit for past periods under PSLF.

Purdue University also offers a low-interest institutional loan program for undergraduate juniors and seniors who meet certain criteria, such as completing the FAFSA by April 15 and demonstrating financial need.

In terms of private loan programs, Purdue University does not recommend any specific lenders but provides tools to assist students in finding private education loans. Private loans may have different terms and conditions compared to federal loans, so it is essential for borrowers to carefully review the details before committing.

Additionally, there are other federal and state student loan forgiveness programs outside of Purdue University that individuals may qualify for. These include programs for specific professions, such as teachers, nurses, lawyers, and those in the military or national service. The requirements and benefits of each program vary, and it is worth exploring the options to see if you meet the eligibility criteria.

PSLF waiver

Purdue University employees with federal student loan debt may be eligible for loan forgiveness through the Public Service Loan Forgiveness Program (PSLF). PSLF forgives the remaining balance on federal direct loans after individuals have made 120 qualifying payments while working full-time for a qualifying employer, such as Purdue University.

The PSLF Program has specific requirements that must be met for an individual to qualify for loan forgiveness. Firstly, the individual must be employed by a qualifying employer, which includes certain non-profit organizations and US government organizations at any level (federal, state, local, or tribal), as well as the US military. Secondly, the individual must have made at least 120 qualifying payments on their federal direct loans. Finally, the loans must be consolidated into the direct loan program, and the individual must submit PSLF forms. It is important to note that there is no specific application for the waiver; borrowers will be automatically opted in after submitting the required documentation.

In October 2021, the U.S. Department of Education announced a limited-time PSLF waiver to provide relief to borrowers who had encountered problems with the program. This waiver, known as the Limited PSLF Waiver, allowed borrowers with the wrong type of loans or payments to receive credit for past repayment periods. Specifically, it enabled borrowers with Federal Family Education Loans (FFEL), Perkins loans, or other federal student loans (excluding Parent PLUS loans) to receive credit for repayment periods that would not otherwise qualify for PSLF. Additionally, it waived the requirement for full and on-time payments for all borrowers.

While the limited-time PSLF waiver ended in October 2022, there are still opportunities for loan forgiveness and payment reduction. Borrowers can explore options such as the Income-Driven Repayment Account Adjustment and the one-time payment count adjustment for eligible borrowers enrolled in an IDR program. Furthermore, Temporary Expanded Public Service Loan Forgiveness (TEPSLF) offers expanded qualifying repayment plans, including the Graduated Repayment Plan, the Extended Repayment Plan, and the Consolidation Standard Repayment Plan. It is important to note that TEPSLF is separate from the Limited-Time PSLF waiver and has its own set of requirements and benefits.

Loan repayment plans

Purdue University offers a range of federal and private loan programs to its students and parents. Federal loans are available to students who complete the FAFSA, and private loans can be obtained by contacting banks or loan vendors. The university also provides a Financial Aid Estimator and Net Price Calculator to help students and their families estimate the amount of financial aid they may receive and manage their costs effectively.

Purdue University offers flexible repayment plans for its students. There is a $50 minimum monthly payment, but a larger amount may be required if necessary to repay the loan within the time limit. There is no early repayment penalty, and students have the option to make voluntary payments during the grace period to reduce the interest. The grace period is typically six months from the date a student ceases half-time enrollment status, during which no interest accrues, and no payments are due. However, it is important to note that there may be variable grace periods depending on individual circumstances.

For federal student loans, the Direct Loan Servicer at studentaid.gov or 1-800-557-7394 can provide information about in-school deferments and payment plans. Additionally, the university has a team of Student Loan Advisors who can assist students in navigating and selecting the best repayment plan for their unique needs. These advisors can also help initiate the application process by contacting the loan servicer.

Purdue University also offers the Public Service Loan Forgiveness Program (PSLF), which forgives the remaining balance on federal direct loans after individuals have made 120 qualifying payments while working full time for a qualifying employer, which includes Purdue University. The PSLF Program has recently announced a temporary waiver, called the Limited PSLF Waiver, which allows borrowers with the wrong type of loans or payments to receive credit for past periods.

Federal Pell Grants

Purdue University employees with federal student loan debt may be eligible for forgiveness through the Public Service Loan Forgiveness Program (PSLF). PSLF forgives the remaining balance on federal direct loans after the borrower has made 120 qualifying payments while working full-time for a qualifying employer, such as Purdue.

Now, onto Federal Pell Grants.

The program was established by the Higher Education Act of 1965 and was originally known as the Basic Educational Opportunity Grant. In 1980, it was renamed in honour of Democratic US Senator Claiborne Pell of Rhode Island, who played a pivotal role in creating the program. The grant is administered by the US Department of Education, which determines a student's financial need and resulting Pell eligibility using a standard formula that evaluates financial information reported on the Free Application for Federal Student Aid (FAFSA).

It is important to note that Federal Pell Grants are not loans and, therefore, do not need to be repaid. Students can use their grants at any of the approximately 5,400 participating postsecondary institutions, benefiting about 5.4 million full-time and part-time college and vocational school students across the country.

Loan forgiveness eligibility

Purdue University offers a range of financial resources to help students pay for their education, including federal and private loans, grants, and scholarships. While there is no specific Purdue University student loan forgiveness program, there are several options for loan forgiveness or debt relief that students and employees of the university may be eligible for.

Public Service Loan Forgiveness Program (PSLF)

The PSLF program forgives the remaining balance on federal direct loans for individuals who have made 120 qualifying payments while working full-time for a qualifying employer, which includes Purdue University. The program has recently been updated with a temporary waiver that allows borrowers with the wrong type of loans or payments to receive credit for past periods. This waiver also applies to individuals who have Federal Family Education Loans (FFEL), Perkins loans, or other federal student loans (excluding Parent PLUS loans).

Returning Student Relief Grant

The Returning Student Relief Grant is available to withdrawn students who meet the eligibility requirements to reenroll at Purdue Global and complete a program of study. This grant clears outstanding debt (up to $4,500) owed directly to Purdue Global from prior enrollment, excluding Title IV student loans or other private funding.

Federal Pell Grants

Purdue Global offers Federal Pell Grants to undergraduate students who have not previously earned a bachelor's, master's, or professional degree. The maximum Pell Grant award for the 2024-2025 award year is $7,395.

Federal Student Loan Repayment Plans

There are several federal student loan repayment plans available that can make payments more affordable. These include the option to change your repayment plan at any time with no cost, as well as loan deferment, which temporarily postpones payment on a loan with no interest accrual under certain conditions.

Frequently asked questions