Student Loans
Students who apply for financial aid and who have financial need may be offered a Federal Perkins Loan or a Federal Subsidized Stafford Loan as part of their aid package. Students who cannot demonstrate financial need may be offered an Unsubsidized Stafford Loan, an NU Loan or a PLUS Loan. It is not necessary to apply for need-based federal aid to be considered for the NU Loan or Federal Plus Loan programs.
Jump to view the student loans available (with links to more detailed application instructions):
Federal Loan Options
Subsidized Federal Stafford Loan
- Borrower: Students who demonstrate financial need.
- Lender: Students must select a lender from participating lending institutions. For help choosing a lender, refer to the Financial Aid Office's Preferred Lender List.
- Loan amount: Up to $3500 for the freshman year, $4500 for the sophomore year, and $5500 for the junior and senior years.
- Application Process:
First-time Stafford borrowers: Complete an online entrance interview, select a lender, and then fill out a Master Promissory Note (MPN) on the lender's website.
Returning Stafford borrowers: If you received a Stafford Loan the previous year, sign and return your award notice to the Office of Financial Aid, identifying the amount you wish to borrow. You should use the same lender you used previously, or you will need to complete a new MPN. - Interest Rate: Fixed 6%. The federal government pays interest while the student is enrolled at least half-time or is in deferment.)
- Repayment: Repayment begins six months after graduation or after the borrower ceases to be enrolled at least half-time. Each year while the borrower is in repayment, he or she is required to pay at least $600 or the unpaid balance (which ever is less). The borrower has up to 10 years to repay the loan. There is no penalty for early repayment.
- Take me to application instructions for the Federal Stafford Loan.
Unsubsidized Federal Stafford Loan
- Borrower: Students who do not qualify for the need-based Subsidized Federal Stafford Loan, or those who only have partial need-based Stafford eligibility.
- Lender: Students must select a lender from participating lending institutions. For help choosing a lender, refer to the Financial Aid Office's Preferred Lender List.
- Loan amount: Up to $5500 for the freshman year, $6500 for the sophomore year, and $7500 for the junior and senior years.
- Application Process:
First-time Stafford borrowers: Complete an online entrance interview, select a lender, and then fill out a Master Promissory Note (MPN) on the lender's website.
Returning Stafford borrowers: If you received a Stafford Loan the previous year, sign and return your award notice to the Office of Financial Aid, identifying the amount you wish to borrow. You should use the same lender you used previously, or you will need to complete a new MPN. - Interest Rate: Fixed 6.8%. Interest accrues while the student is in school and during loan deferment; the student doesn't need to pay the interest at this time, but the accumulated interest will be added to the principal and increase the amount to be repaid.
- Repayment: Repayment begins six months after graduation or after the borrower ceases to be enrolled at least half-time. Each year, the borrower is required to pay at least $600 or the unpaid balance (which ever is less). The borrower has up to 10 years to repay the loan. There is no penalty for early repayment.
- Take me to application instructions for the Federal Stafford Loan.
Federal Perkins Loan
- Borrower: Students with exceptional financial need.
- Lender: Northwestern University.
- Loan amount: Up to $5500 per year.
- Application Process:
First-time Perkins borrowers: You will be notified via e-mail and given instructions on how to complete the loan application, entrance interview and MPN.
Returning Perkins borrowers: If you received a Perkins Loan the previous year, sign and return your award notice to the Office of Financial Aid, identifying the amount you wish to borrow. You should use the same lender you used previously, or you will need to complete a new MPN. - Interest Rate: Fixed 5% during repayment. Interest does not accrue until the student enters repayment.
- Repayment: Repayment begins nine months after graduation or after the borrower ceases to be enrolled at least half-time. A minimum payment of $40 per month is required, and the borrower has up to 10 years to repay the loan. There is no penalty for early repayment.
- Take me to application instructions for the Federal Perkins Loan.
Federal PLUS Loan
- Borrower: Parents with satisfactory credit history.
- Lender: Parents must select a lender from participating lending institutions. For help choosing a lender, refer to the Financial Aid Office's PLUS Preferred Lender List (scroll down on linked page).
- Loan amount: Up to the cost of tuition, minus any other aid the student has received. Note that a 3% origination fee will be deducted from each loan disbursement.
- Application Process: Parents should select a lender and complete the PLUS Loan MPN on the lender's web site. Most lenders are now able to provide an instant credit decision with online applications.
- Interest Rate: Fixed 8.5%. Interest is charged on the loan from the date that the first disbursement is made.
- Repayment: Repayment of the principal begins within 60 days of the final disbursement of funds of the academic year. A minimum payment of $600 per year is required, and the borrower has a maximum of 10 years to repay the loan. Parents may choose to defer payments on a PLUS loan until six months after the date the student ceases to be enrolled at least half time. Accruing interest can either be paid by the parent borrower monthly or quarterly, or be capitalized quarterly.
- Take me to application instructions for the Federal PLUS Loan.
Northwestern Loan Options
NU Loan and NU Supplemental Loan
- Borrower: Parents with satisfactory credit history. The NU Loan is only available to returning borrowers.
- Lender: Northwestern University
- Loan amount: Up to the cost of tuition. After the NU Loan has been maximized, the NU Supplemental loan is available.
- Application Process: Funds are limited for the NU Loan Program. You must be offered the NU Loan on your financial aid award before applying.
Private Educational Loans
A number of private outside agencies, including those listed below, offer families additional sources of financing. We encourage student to investigate these options very cautiously and thoroughly. It is important for borrowers to ask as many questions upfront before applying as each application affects your credit score. Be sure to ask the lender about interest rate, fees, and repayment. Most private loans require and co-signer, which should also help you attain better loan terms.
Unlike federal loans, the terms of private loans are set by the individual lenders. The interest rate and fees are determined by your credit history, your debt-to-income ratio and that of your co-signer. The interest rates for private educational loans are variable and are most often based on a range using Prime or the London Interbank Offered Rates (LIBOR) as a base and add an additional percentage based on the borrower's credit. The current Prime and LIBOR rates are available at the Federal Reserve Statistical Release.
Before applying for these loans it is important for you to ensure that you have exhausted all of your federal aid eligibility. Federal loans have better rates and benefits. We encourage you to consider the Federal PLUS Loan before applying for a private loan.
Before deciding on a lender, here are some questions you need to ask:
- How soon will I enter repayment? Are interest-only payments required during enrollment?
- How often is the interest capitalized? (The frequency of capitalization will increase the total loan amount that you have to repay because you will be charged interest on a higher principal loan.)
- If I use a co-signer can I receive a better rate?
- How will the rate formula (interest and fees charged) change in repayment?
- What will my monthly payment be on this loan amount when I am in repayment?
- What kind of borrower benefits does the lender offer? (interest rate reductions with automatic withdrawals, principle reduction with a certain number of on-time payments)
The Office of Financial Aid does not endorse or promote any specific private lenders. To assist students in reasearching lenders below is a comprehensive list of lenders who lent to Northwestern undergraduate students within the past year.
Overture Student Loan Marketplace
Overture Student Loan Marketplace is a free service that allows borrowers to review and compare trustworthy private loan terms from multiple lenders side-by-side, avoiding unnecessary credit pulls. Some of the benefits include:
- Ability to evaluate private loan terms from multiple lenders
- Side-by-side Comparison
- One credit pull and you determine the best option
- National lenders included
CitiAssist
- Borrower: Students or parents with satisfactory credit history and an ability to repay.
- Lender: CitiBank (800-394-7580)
- Loan amount: Up to the cost of tuition minus any other aid the student has received.
- Application Process: Apply online at www.citiassist.com. There is no application or origination fee, but a co-signer may be required.
- Interest Rate: Variable rate. Interest is adjusted quarterly.
- Repayment: The principal is deferred while the student is enrolled. The borrower has a maximum of 15 years to repay the loan.
Sallie Mae Smart Option Loan
- Borrower: Students or parents with satisfactory credit history and an ability to repay.
- Lender: Sallie Mae (888-2-SALLIE)
- Loan amount: Up to the cost of tuition minus any other aid the student has received.
- Application Process: Apply online at http://schools.salliemae.com/?L=802218&S=00173900. There is no application or origination fee, but a co-signer may be required.
- Interest Rate: Variable. Interest is adjusted quarterly.
Repayment: Students must pay interest while enrolled. The principal is deferred while the student is enrolled. The borrower has a maximum of 15 years to repay the loan.
Chase Select Loan
- Borrower: Students or parents with satisfactory credit history and an ability to repay. A cosigner is not required but lower rates may be obtained with one.
- Lender: Chase (866-306-0868)
- Loan amount: Up to the cost of tuition minus any other aid the student has received.
- Application Process: Apply online at www.chaseselectloans.com.
- Interest Rate: Variable rate. Interest is adjusted quarterly.
- Repayment: The principal and interest payments are deferred while the student is enrolled. The borrower has a maximum of 20-25 years to repay the loan.
Discover Student Loans
- Borrower: Students or parents with satisfactory credit history and an ability to repay.
- Lender: Discover Student Loans (877-728-3030)
- Loan amount: Up to the cost of tuition minus any other aid the student has received.
- Application Process: Apply online at www.discoverstudentloans.com.
- Interest Rate: Variable rate. Interest is adjusted quarterly.
- Repayment: The principal is deferred while the student is enrolled. The borrower has a maximum of 20-25 years to repay the loan.
Wells Fargo Collegiate Loan
- Borrower: Students or parents with satisfactory credit history and an ability to repay.
- Lender: Wells Fargo (800-378-5526)
- Loan amount: Up to the cost of tuition minus any other aid the student has received.
- Application Process: Apply online at https://www.wellsfargo.com/student/undergrad/collegiate.
- Interest Rate: Variable rate. Interest is adjusted quarterly.
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Repayment: The principal is deferred while the student is enrolled. The borrower has a maximum of 20-25 years to repay the loan.
U.S. Bank No Fee Loan
- Borrower: Students or parents with satisfactory credit history and an ability to repay. Borrowers with limited or no credit history or income may require a cosigner.
- Lender: U.S. Bank (800-242-1200)
- Loan amount: Up to the cost of attendance less other financial aid received. For applicants approved at the highest interest rate, the annual loan amount shall be no more than the cost of attendance less financial aid received up to $20,000.
- Application Process: Apply online at www.usbank.com/nofeeapp.
- Interest Rate: Low variable interest rate - three tiers depending upon creditworthiness.
- Repayment: The principal and interest payments are deferred while the student is enrolled at least half-time. The borrower has up to 15 years to repay the loan.
