ELIGIBILITY AND BORROWER RESPONSIBILITIES
§ Student must be enrolled at least half time at Northwestern University.
§ Student must have a satisfactory credit history.
§ Student must apply for either a social security number or individual taxpayer identification number.
§ Student must keep the Northwestern University Student Loan Office informed of changes of name, social security number or ITIN, address, and phone number as well as any changes in his or her enrollment status prior to graduation from Northwestern University.
CO-SIGNER REQUIREMENTS AND RESPONSIBILITIES
§ Co-signer can be a parent, guardian, or relative. A spouse cannot act as co-signer. Other individuals who wish to become co-signers will be approved on a case by case basis.
§ Co-signer must be a U.S citizen or permanent resident of the United States.
§ Co-signer is equally responsible with the student for repayment of the loan. However, it is expected that the student will endeavor to meet the total responsibility of repayment.
LOAN LIMITS
§ Minimum loan amount is $2,000.
§ Maximum loan amount for any one year cannot exceed the amount of unmet financial need as determined by the Financial Aid Office.
§ Maximum aggregate loan amount for each student cannot exceed limit set by Student Loan Office.
INTEREST RATE
§ Variable interest rate is established annually each September 1.
§ A rate change will result in an adjustment to the scheduled payment amount.
IN-SCHOOL INTEREST CHARGES
§ Interest begins accruing once funds are disbursed to the student.
§ An annual statement will be sent indicating any unpaid interest to date.
§ All unpaid accrued interest is capitalized three months after graduation or separation from Northwestern University.
§ Interest capitalization refers to the process by which outstanding interest is added to the principal balance.
APPROVAL
§ Loan approval is subject to review by the NU Student Loan Office.
§ Financial Aid staff must certify all loan applications before loan funds are disbursed to the student's tuition and fees account.
§ Approved loan amount may be less than that requested on the initial application based on the determination of the Financial Aid Office.
§ A loan packet containing the promissory notes and insurance certificate will be sent upon approval. Upon receipt of the loan packet all documents must be signed as instructed and the original notes and insurance certificate must be returned to the Student Loan Office.
DISBURSEMENT
§ A 5% origination fee will be deducted from each disbursement for international students.
§ Loan funds are disbursed directly to the student's Northwestern tuition and fees account.
§ Total approved loan amount is usually disbursed in equal amounts for each term of enrollment during the academic year, unless specified otherwise by the Financial Aid Office.
INSURANCE
§ The student is covered under a group term life and disability insurance policy.
§ The insurance premium is incorporated into the interest rate for the loan.
§ There are no additional fees for the insurance coverage.
§ Both the first co-signer (if applicable) and student must sign the insurance forms provided with the promissory note (further details and restrictions regarding insurance coverage are contained on those forms).
REPAYMENT
§ A repayment schedule will be provided to the student after the accrued interest has been capitalized.
§ Repayment of both principal and interest begins 3 months after separation from the University and continues until the loan is paid in full.
§ Repayment of principal can extend up to a maximum of 10 years following the end of the
grace period. (Repayment for students in the Physical Therapy program extends up to a
maximum of 15 years.)
§ The required minimum monthly payment of principal and interest is based on the total amount borrowed, but in no case, will it be less than $50.
§ Payments are due monthly and statements are sent to the student in advance of each due date.
§ No penalties are assessed for prepayment or early repayment.
§ Forbearance of the loan is available upon request, subject to approval of the Northwestern University Student Loan Office
LATE PAYMENT PENALTIES
§ NU Loan accounts more than 90 days past due may be assigned to an outside collection agency.
§ A late charge equal to 5% of the late payment on any interest and/or principal payment that is overdue 7 days or more will be assessed.
If you have any questions about your Student Loan, please contact your Student Loan Representative for more information.