Endowed loans are offered infrequently and in special circumstances as part of financial aid packages for undergraduate, graduate and professional students. Since these details vary by origination date and exact loan type, borrowers should refer to their promissory note for the exact terms and conditions for their loans.
Lender: Northwestern University (from many different private donor bequests)
Servicer: Northwestern Student Loan Office
Borrower: Undergraduate, graduate and professional students
Co-maker: Some Endowed Loans require a credit-worthy co-maker who is a U.S. citizen.
Application process: If your Financial Aid Office has awarded you an Endowed Loan, you can apply online (CAESAR > For Students > Financial Services > NU Loan Application > OWLS).
Promissory Note: When your loan has been approved, the promissory note is mailed to the co-maker, if any, for his or her signature. Then you sign the note and return it to the Student Loan Office.
- Application fee: None
- Insurance fee: None
- Origination fee: Yes, for some Endowed Loans
Loan disbursement: Applied to your student account by term per your award letter.
Rate type: Varies by type of Endowed Loan. Refer to your promissory note.
Recent rates: Varies; refer to your promissory note.
- In school: Yes
- In grace period: Yes
- In forbearance: Yes
- Capitalization: Varies
Grace period: Usually 6 months; refer to your promissory note.
Repayment period: Usually 10 years; refer to your promissory note.
Payment schedule: Provided at your exit interview.
Repayment start date: Usually 6 months after graduation or separation. Refer to your promissory note.
Prepayment: There is no penalty for early repayment. When you make your loan payment, specify that you wish it to be applied as a prepayment.
Minimum payment: Varies by loan. Usually $50 per month per loan.
Late charge: 5% of scheduled payment, not to exceed $15 per loan.
Report to credit bureau: No
Forbearance: Yes. Forbearances are granted based on individual circumstances. Please contact the Student Loan Office with questions and to apply. A financial statement is required.
Cancellation: Varies. Refer to your promissory note for details, and contact the Student Loan Office with questions and to apply.
Federal loan consolidation: No
Repayment assistance: No
Delinquency and default: Transfer billing to co-maker, transfer loan to collection agency, legal action