Health Professions Student Loans (HPSL)

General Information

Source of Funds: Federal government and Purdue University.

Loan Amounts Annual Maximum: Depends on financial need as calculated by the Division of Financial Aid.

Deadline: Priority is given to ontime FAFSA filers meeting March 1 deadline.

Aggregate Maximums: None.

Minimum Credit Hours Per Semester: 12 (enrolled in schools of Veterinary Medicine or Pharmacy and Pharmacal Sciences).

Cosigner Required?: No.

Rate of Interest: 5% Annually on declining balance

Origination/Insurance Fees: None.

Repayment: $15 minimum monthly payment.  Larger amount may be required, if necessary, to repay loan within time limit. (Must remain in 12 credit hours or grace period begins immediately)

Early Repayment Penalty: None.

Maximum Repayment Period: 10 years.

Consequences of Delinquency: Account will be listed with a collection agency.  Report will be made to a credit bureau.  Loans made from Purdue will result in readmission to Purdue University being denied and official transcripts withheld.  All further aid at Purdue University will be denied to student.  Legal action will be taken on extended default.

Special Application Requirements

Parent's Financial Information: Students must file FAFSA for consideration. All professional students will be considered independent according to the need analysis formula in Title IV of the Higher Education Act. Nonetheless, institutions still must take parents' information into account for the purpose of awarding HPSL funds. This requirement cannot be waived. In cases where the parents refuse to provide income information, an affidavit documenting such a refusal cannot be accepted in lieu of the required information. Unless the parents are deceased, a student who does not provide parental income information may not be considered for HSPL funds.

Borrower's Benefits

Interest Benefits: Borrower pays no interest while enrolled in school at least half time or during the grace period after leaving school.

Grace Period: The 12 month period from the date the student ceases half-time enrollment status.  No interest accrues during grace period.  No payment due, but voluntary payment may be made to reduce interest after grace period.

Deferred Payment Provisions: Applications are obtained and deferments granted through lender of the funds.  Borrowers should seek detailed information from the lender.

Cancellation Provisions:  May be cancelled in the event of death or total permanent disability of borrower.

Borrower's Responsibilities

Entrance/Exit Interview: Handled through Purdue University Collections Office (UCO).  Report to UCO prior to dropping below half-time status, withdrawing, graduating, or transferring.

Notification of Change of Name and/or Address: Notify UCO, Purdue University, West Lafayette, IN 47907-1081.