ELIGIBILITY AND PARENT RESPONSIBILITIES
§ Applicant(s) [hereafter referred to as "parent borrower(s)"] should be the parent(s) or legal guardian(s) of an undergraduate student who is enrolled at least half-time at Northwestern University. Other individuals who wish to become co-signers will be approved only on a case by case basis.
§ Parent borrower(s) must have a satisfactory credit history.
§ Parent borrower(s) must be a citizen or permanent resident of the United States.
§ Parent borrower(s) and the student must keep the Northwestern University Student Loan Office informed of changes of name, social security number, address, and phone number as well as any changes in the student's enrollment status prior to graduation from Northwestern University.
STUDENT RESPONSIBILITIES
§ It is expected that the parent borrower(s) will endeavor to meet the total responsibility of repayment. Although the parent(s) are responsible for repaying this loan, the student is equally responsible for this debt. In the event the parent(s) default, payment will be the responsibility of the student.
§ If the NU Loan is past due, the student will not be permitted to register for subsequent academic terms.
LOAN LIMITS
§ Minimum loan amount is $2,000.
§ Maximum loan amount for any one given year cannot exceed that offered to the parent(s) by the Undergraduate Financial Aid Office.
§ Maximum aggregate loan amount for each student (or his or her parent(s)) 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.
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 your 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
§ 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 first co-signer is covered by group term life insurance.
§ 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 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 is provided to the parent borrower(s) with the promissory notes.
§ Repayment of both principal and interest begins within 45 days of the initial loan disbursement and continues until the loan is paid in full.
§ Repayment of principal and interest can extend up to a maximum of 10 years.
§ The required monthly payment of principal and interest is based on the total amount borrowed, but in no case, will it be less than $50.
§ No penalties are assessed for prepayment or early repayment.
§ Payments are due monthly and statements are sent to the parent borrower(s) in advance of each due date.
§ Forbearance of the loan is available upon request, subject to approval of the Northwestern University Student Loan Office.
§ Failure to make monthly payments may affect your ability to receive future NU Loan funds and register for future academic terms.
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.