Northwestern University offers a unique institutional loan program for students to assist them in meeting their educational financing needs. The NU Loan for Undergraduate Study Abroad Students can be used to meet a portion of your financial need as determined by your Financial Aid Office. This loan is funded privately by the University and administered by the NU Student Loan Office. You are required to obtain at least one co-signer in order to apply for the loan. Both you and your co-signer(s) must complete an NU Loan application.
The following is a summary of this loan program. Please read this information carefully before submitting the application. Contact your Financial Aid Office if you have further questions.
ELIGIBILITY AND BORROWER RESPONSIBILITIES
§ Student must be enrolled in a study abroad program through Northwestern University.
§ Student must keep the NU Student Loan Office informed of changes of name, social security number, address, and phone number as well as any changes in his or her enrollment status prior to graduation or separation from Northwestern University.
§ Student must have at least one co-signer.
CO-SIGNER REQUIREMENTS AND RESPONSIBILITIES
§ Co-signer should be a parent or guardian, but can be another 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 is equally responsible with the student for payment 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 $500.
§ Maximum loan amount is $5,000.
INTEREST
§ Variable interest rate is established annually each September 1.
§ A rate change will result in an adjustment to the scheduled payment amount.
§ Interest begins accruing once funds are disbursed to the student's tuition account.
§ All unpaid accrued interest is capitalized three months after graduation or separation from the 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
§ There are no loan application, guarantee, or origination fees.
§ 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.
REPAYMENT
§ A repayment schedule will be provided to the student after the accrued interest has been capitalized.
§ Repayment of principal and interest begins three months after separation from Northwestern University and continues until the loan is paid in full.
§ Repayment of principal and interest can extend up to a maximum of 10 years following the end of the grace period.
§ During repayment, 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.
§ No penalties are assessed for prepayment or early repayment.
§ Payments are made monthly and statements are sent to the student in advance of each due date.
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 which 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.