Navigating Financial Aid at Purdue University Northwest: A Comprehensive Guide

Purdue University Northwest (PNW) is committed to assisting both prospective and current students in navigating the financial aid process and identifying resources to fund their education. Regardless of perceived eligibility, all PNW students are encouraged to apply for financial aid.

The Importance of Applying for Financial Aid

The Office of Financial Aid at Purdue University Northwest strongly recommends that all students apply for financial aid, regardless of their perceived eligibility. This ensures that all potential avenues for funding are explored.

Application Timeline and Key Dates

The financial aid application process is an annual activity that can commence as early as October 1st, preceding the academic year for which the student is seeking aid. To be considered for both state and federal financial aid, students should submit the Free Application for Federal Student Aid (FAFSA) by April 15th prior to the academic year of enrollment. Filing after this priority date may limit consideration to federal financial aid programs only.

October 1st: FAFSA becomes available for the upcoming academic year.
February 1st: Deadline for submitting the general scholarship application for donor-funded scholarships.
April 15th: Priority date for FAFSA submission to be considered for state and federal financial aid.

Required Documentation

In addition to completing the FAFSA, students and/or their families may be required to submit supplementary documentation as requested by the Office of Financial Aid. Students seeking donor-funded scholarships must submit the general scholarship application by February 1st, prior to the academic year of attendance.

Types of Financial Aid

Financial aid is broadly categorized into two types: gift assistance and self-help aid. Gift assistance typically does not require repayment, while self-help aid involves repayment or work obligations.

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Understanding the Expected Family Contribution (EFC)

The FAFSA collects information that the federal government uses in a formula to calculate the Expected Family Contribution (EFC). This formula considers various factors, including income, assets, taxes paid, family size, and the number of family members attending college. If a student or their family has unusual circumstances or expenses that may affect the EFC, they should contact the Office of Financial Aid.

Maintaining Satisfactory Academic Progress

Purdue University Northwest mandates that students receiving federal and state aid meet specific standards of Satisfactory Academic Progress (SAP). Academic progress is reviewed at the end of each semester. The following factors are considered:

Credit Hours: Credit hours transferred from other institutions are included in the total earned semester credit hours if accepted in a specific degree area, regardless of financial aid status.
Grades: Letter grades of E, F, I, W, and N do not count as earned credit hours for progress evaluation.
Consequences of Failing to Meet SAP: Students who fail to meet the satisfactory academic progress requirements will be denied federal and state aid, including grants, scholarships, loans, and work-study employment.

Financial Aid Warning and Probation

Students who are placed on academic probation will receive a financial aid warning. After receiving this warning, students may appeal to be placed on financial aid probation. The written appeal should detail the extenuating circumstances that led to the failure to meet SAP standards and outline the corrective actions taken to ensure future academic success. Supporting documentation is encouraged. Students on financial aid probation may also receive an academic plan.

Federal Loan Updates (Effective July 1, 2026)

Significant changes to federal loan programs are scheduled to take effect on July 1, 2026, pending final rules from the Department of Education.

Changes to Grad PLUS Loans

Grad PLUS loans will be discontinued for new borrowers. However, a legacy provision allows students currently enrolled in a graduate program who have already had an Unsubsidized or GRAD PLUS loan certified to continue borrowing Grad PLUS loans under the current terms and limits. This provision is limited to three additional years or the completion of the current program, whichever comes first, and does not apply to new programs.

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Changes to Parent PLUS Loans

Parent PLUS loans will be subject to new caps and rules for new borrowers. Beginning July 1, 2026, parents will be limited to borrowing a maximum of $20,000 per academic year, per student, with a lifetime limit of $65,500 per student. Parent PLUS loans, along with other federal loans, will be prorated if the student is enrolled less than full time. Full-time enrollment for undergraduate students is defined as 12 credit hours or more.

A legacy provision applies to parents who borrowed a PLUS loan before July 1, 2026, or if a dependent student borrowed a federal subsidized or unsubsidized loan prior to July 1, 2026. These individuals will be eligible to borrow under the current rules for three more academic years or until the student completes their program, whichever comes first. For Parent PLUS legacy eligibility, a student who changes majors within the same degree or certificate will be considered to be enrolled in the same program of study, provided they remain in their current program.

Adjustments to Aggregate Lifetime Loan Limits

Aggregate lifetime limits for federal loans will be adjusted beginning July 1, 2026. While undergraduate loan limits will remain the same, separate aggregate limits will be established for each program for students pursuing graduate or professional degrees at another school. The new limits are as follows:

Undergraduate loans: $31,000 for dependent students; $57,500 for independent students.
Graduate degree loans: $100,000 (excluding undergraduate loans).
Professional degree loans: $200,000 (including other graduate loans).
Lifetime cap on all federal loans: $257,500.

Current graduate students using unsubsidized loans will remain at the current aggregate lifetime limits ($138,500, including undergraduate loans) for an additional three years or until they complete their program, whichever comes first. However, changing majors or withdrawing from the program will subject any new loans to the new lifetime limits, and any prior loans will retroactively count towards these new limits.

Loan Proration for Less Than Full-Time Enrollment

All federal loans (undergraduate, graduate, and Parent PLUS loans) will be prorated if the student is enrolled less than full time. Full-time enrollment for undergraduate students is 12 or more credit hours, while for graduate students, it is 8 or more credit hours. Loan amounts may be affected for the Spring semester if a student withdraws from a class or classes during the Fall semester. Loan proration is based on 24 credit hours being completed in an academic year (Fall/Spring). If a student does not make up the hours in Spring to reach 24 credits, the Spring loan amount will be prorated.

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New Student Loan Repayment Plans (Effective July 1, 2028)

The existing income-contingent repayment plans (ICR, PAYE, SAVE) will be retired on July 1, 2028. Two new repayment plans will be introduced: the tiered Standard repayment plan and the Repayment Assistance Plan (RAP).

Borrowers with any new loan disbursed on or after July 1, 2026, will only have the option of the tiered Standard and RAP. Current borrowers with no new loans disbursed on or after July 1, 2026, can continue to enroll in and switch between the current 10-year Standard, Graduated, Extended, Income Contingent (ICR, PAYE, or REPAYE), and Income Based Repayment (IBR) plans until June 30, 2028. They can also remain in the 10-year Standard, Graduated, Extended, or IBR plan until their loans are paid in full. However, if they are enrolled in ICR, PAYE, or SAVE as of June 30, 2028, they will need to switch to either the tiered Standard, RAP, or IBR plan. Borrowers who fail to make a selection will be automatically enrolled in the RAP. Current borrowers in repayment can also opt into the RAP at any point after July 1, 2026.

Contacting the Office of Financial Aid

The Office of Financial Aid is available to assist students with any questions or concerns regarding financial aid. They offer both in-person and virtual appointments.

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