The federal loan programs (Stafford and Perkins) are frequently used in helping to create a financial aid package. Northwestern will consider a student's eligibility for either one or both programs. For more information on available loan programs, see the section on Components of an Aid Package - Loan Programs. More information on federal loan programs can also be found on the Department of Education website.

Stafford loans come in two forms - subsidized and unsubsidized. With a subsidized Stafford loan (which is considered need-based), the interest does not accrue while the student is in school because the government pays the interest on the student's behalf. In addition, there is a six month grace period after the student leaves the institution during which interest does not accrue. An unsubsidized Stafford loan means that the interest starts accruing immediately, and the student has the option of making interest payments while in school, or deferring the interest and paying back both the principle and the accrued interest after the grace period. The Stafford loans are entirely in the student's name. The University uses federal guidelines to determine eligibility for the subsidized Stafford loan program. If a student or family would like to inquire about unsubsidized eligibility, they can contact a counselor in the Office of Financial Aid.

The Stafford has a fixed interest rate of 6.8%.

For students with additional need, a Perkins loan may be added to the package. This loan, which is only offered in a subsidized program, does not accrue interest until nine months after the student leaves the institution. Perkins loan money is in limited supply and is awarded at the discretion of the Financial Aid Office.

The interest rate is set at a constant 5%.

Parents can choose the NU Loan, the federal PLUS loan, or the Access Group Sponsored Loan. These loans can be used to help with the annual family contribution. The federal PLUS loan has a fixed interest rate of 8.5% and the lender will charge an origination fee of up to 3%. Rates for the NU Loan and the Access Group Loan are variable and change each summer. The NU Loan interest rate is 7.75% for 2007-08, and there is no application fee for applications submitted online through the OWLS system. The Access Group Sponsored Loan has an interest rate range of 3.89% - 5.09% based upon the 3-month LIBOR and the parent's credit history. Families must reapply for these loans each academic year and have approved credit.

Families can choose to borrow the Unsubsidized Stafford Loan and/or the NU Loan or PLUS loans.

Some families are unable to finance their contribution with the various loans mentioned above. It can, at times, be necessary for either a parent or student to borrow through an alternative loan program. Alternative loans are through private lenders and may be helpful for students looking to cover such things as past-due balances and the family contribution. While Northwestern does not necessarily "recommend" specific lenders, it will supply a family with lenders that previous students have found success with. Please contact a counselor in the Financial Aid Office for details.

No. The Federal Stafford Master Promissory Note (MPN) is a multi-year document. You do not need to indicate either the amount you are borrowing or the loan period, because this form will also serve as your promissory note for future loans. We will process your Stafford Loan for the amount which you are offered on your Financial Aid Award Notice unless you reject the loan. If you wish to borrow a lesser amount you should notify us. If your Stafford eligibility increases over the course of the academic year, you will be required to confirm your acceptance of the additional loan offer before we will process the loan.

The interest rate for all lenders is the same. We strongly encourage all students to select one of our preferred lenders, since funds come into the University electronically. This allows the funds to be applied directly to your billing account, and will save you time. You will not have to go to the Student Accounts Office each quarter when your loan funds come in to endorse a check. We cannot select a lender for you. You will notice however, on the Preferred Lenders List that some of our lenders currently have borrower benefits that might save you money in the long run. The lender does have the right to change or discontinue such benefits.

The Federal Stafford Loan MPN and the PLUS Loan MPN should be completed online. Select a lender from the Preferred Lender List and follow the link provided to complete the MPN on your chosen lender's website. You must use the links provided on the Preferred Lender List to access the MPN online. The Perkins Loan application process is completed online through iPROMise. Once you have indicated to our office that you wish to borrow from the Perkins loan program you will be sent instructions on how to complete the Perkins Loan Application, the Master Promissory Note and the Perkins Loan Entrance Interview. These instructions will be sent to you via your Northwestern e-mail account from Campus Partners within two weeks of your acceptance of the Perkins Loan. NU Loan applications are to be completed online through the OWLS system via CAESAR (For Students > Financial Services > NU Loan Application > OWLS).

Entrance and Exit interviews are federally required sessions that each student with a Federal Stafford and/or Perkins Loan is required to complete in order to receive information concerning borrowers' rights and responsibilities. Information will be provided concerning repayment, defaulting, and deferments. The Entrance Interview must be completed before loan funds can be delivered to the student. The Exit Interview must be completed before the student leaves the University. Entrance Interviews for new Stafford borrowers are done online at Mapping-Your-Future. Entrance Interviews for new Perkins borrowers are done online via iPROMise. Exit Interviews are handled by the Student Loan Office. More information regarding Entrance Interviews can be found at Loan Materials - Entrance Interviews.

If you have applied for a Federal Stafford Loan or a Federal PLUS loan, a Notice of Guarantee will be sent to your permanent address when the loan has been guaranteed. When a Federal Perkins Loan has been approved, the Perkins Loan Application item will show as completed on your "to-do list" on CAESAR. Upon approval of the NU Loan, a packet with promissory notes will be sent to the parents or co-signers for signatures. Students may always contact the Office of Financial Aid to inquire about the status of their loans.

A loan may not have been processed for the following reasons:

• Your lender did not receive your loan application.
• You were selected for verification and we cannot process the loan until verification has been completed.
• We are waiting for your official federal data to come in from the Central Processor.

A loan may be reduced for one of the following reasons:

• You received an outside scholarship.
• You did not have enough credits to receive the original Stafford Loan offer.
• After you received your original award, our office was informed that you are a Community Assistant (CA).

If three weeks have elapsed and funds have not come in for a loan that was processed electronically, check with the Office of Financial Aid. If it has been four weeks for an application that was not processed electronically, do the same.

Yes.

Only if funds are still available.

You may apply for the winter and spring quarter portions of the NU Loan offer so long as you have not already paid your student's full tuition bill for the quarter. The Student Loan Office determines final approval of all NU Loan offers.

For Federal Stafford Loans and Federal PLUS Loans, a 3% origination fee may be deducted proportionately from each disbursement. Some guarantors also charge an additional 1% insurance fee. There is no fee for NU Loan applications submitted online through the OWLS system. No fee is required for the Federal Perkins Loan, either.

Funds for the Federal Perkins Loan and the NU Loan are applied directly to the student's billing account once all application materials and promissory notes are completed. Students must complete the Perkins Loan Application, Entrance Interview and Master Promissory Note on the iPROMise website. Promissory notes for the NU Loan are mailed to parents (or co-signers) with instructions to sign, have the student sign, and return to the Student Loan Office.

Federal Stafford Loans and Federal PLUS Loans are disbursed either by check or by electronic funds transfer (EFT). For those lenders who do not participate in EFT, loan checks are mailed directly to the Office of Student Accounts. Postcards are mailed to students' campus addresses with instructions to go to the Office of Student Accounts to endorse their checks. Once endorsed, the funds must first be applied to the billing account regardless of whether or not the account is currently carrying a balance due. Students will not be allowed to keep their loan checks. However, if the loan proceeds do create a credit balance the student may request those funds once the check has been applied. Students who receive their loans by EFT are not required to provide any additional signatures. All EFT funds are applied directly to the billing accounts. If credit balances are created by EFT, students may request those funds from the Office of Student Accounts.

The same procedure applies to Federal PLUS Loans received by EFT and by check. However, Federal PLUS checks are mailed to the parents with instructions to endorse and return. If the checks create credit balances, parents can indicate whether the credit should remain on the bills or be issued to themselves.

If your NU Loan is denied, then we will explore other financing options with you at that time.

Families who are interested in borrowing from the NU Loan Program must log in to OWLS (Online Web Loan System) via CAESAR (For Students > Financial Services > NU Loan Application > OWLS) to complete the NU Loan application online. For more information regarding the application procedures, please consult the Student Financial Services website.

Paper applications for the NU Loan will be available upon request from the Student Loan Office.

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If you don't find the answer to your question or would like to discuss your concerns with a counselor, please contact us by phone at (847) 491-7400 or e-mail us at ug-finaid@northwestern.edu.