See below for important information about the student loan process including documents and resources to guide and inform you.
Read about award renewal requirements for student loans.
Federal Student Loan Programs
Purdue Global students are eligible to apply for the Title IV federal student loan programs. The University currently offers Subsidized Stafford, Unsubsidized Stafford, and Parent/Grad PLUS loans through the William D. Ford Direct Loan program with the U.S. Department of Education.
Federal loans are generally lower-interest rate loans offering students a grace period in which payments are not due, as well as multiple repayment plans.
Loan Entrance Counseling
The U.S. Department of Education requires that all students wishing to borrow under the federal Stafford loan program participate in a loan entrance counseling before receiving funds. To help you satisfy this requirement, visit the Entrance Counseling section of the Federal Student Aid website. Please note, to complete this Entrance Counseling and Exam you will need your FSA ID to access your loan documentation.
Whether you are a first-time borrower or a continuing student borrower, you may apply for a Direct Loan by completing a Free Application for Federal Student Aid (FAFSA) and electronically signing a Master Promissory Note (MPN).
Types of Student Loans
Federal Stafford Loans
Subsized and Unsubsidized Federal Stafford Loans
There are two types of federal Stafford loans—subsidized and unsubsidized.
- Subsidized means that the U.S. Department of Education pays your interest while you are in school and during any other periods of authorized deferment. However, during periods of repayment and forbearance, you are responsible for the interest on your loan. This type of loan is need based, meaning that your eligibility for this loan will be based in part on your financial need.
- Undergraduate Direct Subsidized loans have a fixed interest rate of 2.75% for loans disbursed between July 1, 2020, and June 30, 2021.
- Unsubsidized means that you are responsible for the interest that accrues from the disbursement date, even while you are in school. This type of loan is not based on your financial need.
- Undergraduate Direct Unsubsidized loans have a fixed interest rate of 2.75% for loans disbursed between July 1, 2020, and June 30, 2021.
- Graduate Direct Unsubsidized loans have a fixed interest rate of 4.30% for loans disbursed between July 1, 2020, and June 30, 2021.
These loan payments are deferred while you are enrolled in school. However, once you graduate or fall below a half-time credit load (undergraduate, 6 quarter credit hours per semester; graduate, 2 or 4 quarter credit hours depending on your program), you will enter into a “grace” period of 6 months before your repayments begin. Once this period has expired, you will be required to begin making payments on your student loans.
Important Direct Loan information is also accessible on the U.S. Department of Education Federal Student Aid website.
Grad PLUS Loans
Graduate PLUS loans are only available to graduate students who are enrolled at least half-time and who meet all the eligibility requirements for federal student aid programs. Graduate PLUS loans have a fixed interest rate of 5.30% for loans disbursed between July 1, 2020, and June 30, 2021. These are fixed interest rates for the life of the loan.
You can visit https://studentaid.gov/understand-aid/types/loans/interest-rates to review the Graduate PLUS loans fixed interest rate for the current award year.
Students are responsible for repaying Graduate PLUS loans while they are enrolled in school but have the option to defer payments as long as they remain in at least a half-time status. Interest on the loan will continue to accrue while the student is in school and during any period of forbearance or deferment. Students also have a number of repayment options available to them based on their individual borrower needs.
For more information on Direct PLUS Loans, visit the Federal Student Aid site.
Parent PLUS Loans
Parent PLUS loans are only available to the parent(s) of a dependent undergraduate students enrolled at least half-time and who meet all the eligibility requirements for federal student aid programs. Parents who intend to apply for a Parent PLUS loan, will need to complete the PLUS request process and sign a PLUS MPN on the Federal Student Aid website. Please see below for details on completing the MPN.
Parents are responsible for repaying Parent PLUS loans once the loan is fully disbursed but have the option to defer payments as long as their child remains enrolled in at least a half-time status. Interest on the loan will continue to accrue while the student is in school and during any period of forbearance or deferment. Parents have a number of repayment options available to them based on their individual borrower needs. Parent PLUS loans have a fixed interest rate of 5.30% for loans disbursed between July 1, 2020, and June 30, 2021.
You can visit https://studentaid.gov/understand-aid/types/loans/interest-rates to review the Parent PLUS loans fixed interest rate for the current award year.
Parent Eligibility Requirements for a Direct PLUS Loan
A parent must be the student's biological or adoptive parent or the student's stepparent if the biological or adoptive parent has remarried at the time of application. The child must be a dependent student who is enrolled at least half-time at a school that participates in the Direct Loan Program.
For financial aid purposes, a student is considered "dependent" if he or she is under 24, unmarried, and has no legal dependents at the time the Free Application for Federal Student Aid is submitted. If a student is considered dependent, then the income and the assets of the parent have to be reported on the FAFSA.
Dependent students will not be required to submit Parent documents (PLUS Credit decision, PLUS MPN) if any of the following exceptions apply:
Exceptions for Dependent Students
- Student is a non-Title IV recipient (GOK, cash pay, 100% tuition reimbursement, 100% tuition assistance, military, scholarship recipient, or international student).
- Student has a parent who was denied the Parent PLUS Loan and a credit decision exists on file.
- Students who are seeking a Professional Judgment: Dependency Override will need to have all required professional judgment documents on file.
Interest on PLUS Loans
Unpaid interest accumulates while the student is in school or in any deferment or grace period, and is added to the principal balance at the end of the grace period, deferment period, or forbearance period.
For example, if $1,000 is borrowed and there is $50 in unpaid interest, that $50 is added to the $1,000 at the end of the grace period. Thus, the principal balance will become $1,050 and interest will then accumulate on that amount. Both graduate students and parents of dependent students have the option to pay the interest while the student is in school to avoid having the unpaid interest amount added to the principal balance.
When applying for a loan, it is important to know the rights and responsibilities of a student borrower. Both graduate students and parents of dependent students must understand the seriousness and importance of the repayment obligation being assumed on the loan.
Master Promissory Note
About the Master Promissory Note
The Master Promissory Note (MPN) is a binding contract. The document states your obligation to repay your financial aid loans. The MPN can be used for both subsidized and unsubsidized loans and for one or more academic years (up to 10 years).
- Visit the Federal Student Aid website to complete your MPN.
- Under "Select the type of Direct Loan MPN you would like to preview or complete," choose "MPN for Subsidized/Unsubsidized Loans."
- Log in and complete the student authentication process. Please have your FSA ID ready.
- Provide the required school information: Select INDIANA for the school location and select PURDUE UNIVERSITY GLOBAL, 9000 KEYSTONE CROSSING, SUITE 800, INDIANAPOLIS, IN, 462402145.
- Read the borrower's rights and responsibilities.
- You must provide the names of verifiable references who do not live in your household. Do not leave anything blank.
- Avoid clicking on the "Back" button when completing this form.