The Northwestern University Loan (NU Loan) is offered in financial aid packages for U.S. and international students and parents of undergraduate students.
The chart below provides a partial list of the terms and conditions for the NU Loan:
Since these details vary by origination date and exact loan type, borrowers should refer to their promissory note for the actual terms and conditions for their loans.
|Grace period||Increases to 6 months for most NU Loans
Exception: Undergraduate parent loans have no grace period.
|Repayment Period||Varies. The monthly payment may shorten the repayment period.
|Payment Schedule||Provided at graduation if no interest has accrued or at the end of the grace period if interest has accrued and has to be capitalized.
Exceptions: The repayment schedule for the undergraduate parent loan is mailed with the promissory note. Signature is required to acknowledge receipt of repayment schedule.
|Repayment start date||6 months after graduation or separation.
Exception: Undergraduate parents must begin repayment within 45 days of initial disbursement of funds.
|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||$100 per month|
5% of monthly payment not to exceed $15
If a payment is returned by the bank, a fee will be assessed. Fees are determined by the University. Currently the fee is $30 per transaction.
|Report to credit bureau||No|
|Forbearance||For economic hardship, monthly payments may be reduced for 6-month intervals for a period up to 3 years. Refer to your promissory note for details, and contact the Student Loan Office with questions and to apply. A financial statement is required.
Exceptions MD students can receive forbearance on loans as long as required to complete a residency or fellowship.
|Federal loan consolidation||No, the NU Loan is a private loan|
|Delinquency and default||Transfer billing to co-maker, transfer loan to collection agency, legal action|