Applying for a Private Student Loan
A number of private outside agencies offer students alternative sources for financing their education. Unlike federal loans, the terms of private loans are set by the individual lenders. The interest rate and fees are determined by your credit history, your debt-to-income ratio and that of your co-signer.
The preferred lender list is a starting point for you to begin your research. Ultimately, the lender you choose will depend on your unique needs. You are encouraged to investigate the lending options available to you and compare lenders. Our office will process a loan with any lender you have selected regardless of their inclusion on this list as long as you are eligible for the loan. Additionally:
- Northwestern does not recommend, prefer, or endorse any lender, product, or loan type.
- Inclusion or omission of a lender on this list does not represent a recommendation.
- In accordance with Northwestern’s lender code of conduct, staff will not steer you to any specific lender.
- Private loans can only be certified for one academic year at a time.
- Pay special attention to your lending needs as eligibility criteria will vary depending on lender.
Considerations before applying
Before applying for a private loan it is important that you review all of your federal loan options and eligibility. Typically federal loans tend to have better interest rate options but private loans can have competitive rates depending on your credit score. Additionally federal loans have:
- No late fees and do not require a credit check (except the PLUS loan).
- Borrowers have deferment, forbearance, consolidation and forgiveness options available.
Loan Option Comparison
Use the chart below to compare private loan options (including the Northwestern (NU) loan) against federal loan options below to find the best option for you:
Loan Options Comparison
|
Federal Student Loans |
Private Student Loans |
Northwestern NU Loan |
| Payments |
Payments are due after graduation, once you leave school or if you are enrolled less than half-time (1.5 credits/units). |
May require payment while in school.
Some allow you to defer payment while in school.
|
Minimum $100 per month.
Varies and may change due to minimum monthly amount.
|
| Late Fees |
No late fees but more than 90 days delinquency can be reported to national credit bureaus. |
Late fee amount depends on lender.
|
5% late charge equal to the late payment on any interest and/or principal payment overdue more than 7 days
|
| Origination Fee |
1.057% for Subsidized/Unsubsidized loans.
4.228% for Grad PLUS loans. (select students after 7/1/26)
|
Most major lenders do not have origination fees, but smaller lenders might include origination fees. |
5% origination fee (international students only).
|
| Interest Rates |
Interest rate is fixed for the life of loan.
|
Can have variable or fixed interest rates. |
7.5% for the 2025-2026 academic year.
Interest rate is variable and changes annually each July 1st.
|
| Credit Check |
No credit check is required for the Unsubsidized loan.
Grad PLUS loan: requires credit check (select students after 7/1/26).
|
Requires established credit or co-signer. |
Requires credit check or co-signer. |
| Grace Period |
6 month grace period: after graduation, once you leave school or drop below half-time enrollment. |
Depends on lender. |
6 months. |
| Tax Benefit |
Interest may be tax deductible. |
Interest may be tax deductible. |
Interest may be tax deductible. |
| Consolidation and Refinancing |
Loans can be consolidated into a Direct Consolidation loan. |
No consolidation but can be refinanced. |
None. |
| Deferment and Forbearance |
In-school deferment.
Up to 3 years of forbearance available. |
Contact your lender for specific options. |
No deferment.
Forbearance: For economic hardship, monthly payments may be reduced for 6-month intervals for a period up to 3 years.
|
| Repayment Plans |
The borrower has up to 10 years to repay the loan under the standard repayment plan. Fixed payment plans, Income-driven repayment (IDR) plan available.
Visit the Federal Student Aid Website, to learn about federal student loan repayment plans.
|
Depends on lender options but typically a fixed payment.
Contact your lender for specific options
|
PT students: 15 years
MD students 2005 or later: 20 years
All others: 10 years
|
| Prepayment Penalties |
There is no prepayment penalty fee |
Check with your lender for additional fees |
There is no prepayment penalty fee |
| Loan Forgiveness |
May be eligible for Federal Public Service Loan Forgiveness |
Although many private lenders do not offer loan forgiveness programs, some student loans from state agencies can be forgiven in certain circumstances. |
None |
| Co-signer Release |
No co-signer release |
Varies by lender |
No co-signer release |
| Death/Disability |
Discharged, if borrower dies or becomes totally, permanently disabled; endorser not liable for debt if student dies or becomes totally, permanently disabled. |
Varies by lender |
The student is covered under death and disability policy |
Key questions to ask before choosing a private lender
Before completing an application for a private loan, we recommend that you review the following questions with potential lenders to find the best option available for your specific situation.
Eligibility Considerations:
- Do you offer loans for my specific situation (less-than-half-time enrollment, past due balance, international?
Rates & Fees
- What is my personalized APR?
- Are there any origination fees?
- How often is interest capitalized?
- What is the total estimated cost of the loan over the full repayment term at the rate I'm offered?
Approval Factors
- What are the credit score minimums?
- Do I need a co-signer?
- If I use a co-signer will I get a better rate?
Repayment
- What is the grace period?
- When will I enter repayment?
- What will my estimated monthly payment be after I enter repayment?
- Are in-school payments required (e.g., interest-only, fixed monthly, or full principle and interest)?
- What are the loan forgiveness options available?
Borrower Perks
- Are there any autopay discounts available?
- Discounts based on GPA or grades?
- Are there co-signer release options available after a certain timeframe or payments?
- Are there any unemployment protections?
Private loan certification process
The certification of private loans can
take 2 to 3 weeks to finalize depending on the completion of the steps below. We recommend that students apply for a private loan at least 1 month prior to the start of their given term.
- Complete the application steps for your program (if applicable).
- Research lenders based on your situation (past due balance, below half-time enrollment, last quarter in school, etc.).
- Once you select a lender, discuss your specific eligibility with your chosen lender before applying to ensure that you qualify for funding and disbursement.
- When you have an approved loan, notify our office by email. Include your student ID, the loan amount and how you want the loan funds distributed between the quarters.
- Our office will certify your private loan up to your Cost of Attendance based on enrollment and other aid accepted.
- Private loan certifications may take 2 to 3 weeks to finalize. Once your loan has been certified, you will receive a confirmation email.
Private loan disbursement
- Final private loan funds eligibility is subject to a combination of your lender's eligibility criteria, cost of attendance, satisfactory academic progress, and enrollment.
- Private loans can only be certified for one academic year at a time.
- Depending on certification, the disbursement of private loans typically lines up with the loan period of your enrolled term and will disburse along with other accepted aid (if applicable).
- When a private loan is certified during an active term, there is a right to cancel period of 7 to 10 business days prior to disbursement.
Refunds
Starting on the first day of each quarter, you can obtain a refund of the actual credit on your Northwestern University Customer Account. See the Student Finance website for additional details.
Returning private loan funds
To return private student loan funds that still appear as a credit on your Northwestern Customer Account, email our office from your Northwestern email account and iinclude:
- your student ID number and
- the exact amount you wish to return to your lender.
To return private student loan funds that have already been paid out to you as a refund within an active term of enrollment:
- You must first make a payment to your student account via CAESAR for the amount you want to return (no more than what originally paid out).
- Once your payment appears as a credit on your Northwestern Customer Account in CAESAR, email our office from your Northwestern email account and include:
- your student ID number and
- the exact amount you wish to return to your lender.
Preferred lender list
The loan programs and lenders listed here are provided to help you in your search for an educational student loan. You are not required to borrow solely from these options and you are encouraged to explore other available options via your own network, bank or credit union.
The lenders included in our preferred lender list were required to submit a Request for Information (RFI) documenting the terms of their loan programs. Those chosen were based on a review of competitive interest rates, fees, quality of service and borrower benefits. To apply for a loan, please contact the lender directly.
Each lender has their own eligibility criteria and enrollment status (full-time, half-time, less than half-time) within a given term of study.
Full-time status options
Lenders in this section provide funding for students enrolled full-time.
International student (with co-signer) options
Kellogg Full-time and EMBA International Students
The Northwestern (NU) Loan has an option for Kellogg full-time and EMBA international students to apply for an NU loan with an international co-signer. The NU international loan (option A & option B) is a need-based loan. To apply for this loan, applicants must complete:
- The Kellogg Financial Aid application steps (academic year specific)
- The NU Loan application (academic year specific)
- Once completed, the Kellogg Financial Aid Office will review your completed application for aid eligibility and the Student Finance Office will review your loan application.
International students (without co-signer) options
Half-time status options
Half-time enrollment is 1.5 credits/units per quarter unless defined otherwise by your specific program of study.
Less than half-time status options
Less than half-time status is enrollment in fewer than 1.5 credits/units in a quarter.
Non-degree/certificate program options
Past due balance options
Students who need a private loan to cover a recent past due balance should confirm the lender's eligibility criteria before applying. A student may qualify based on the timeframe of the past due balance but may not meet other criteria (i.e., you have a past due balance less than 180 days but you were enrolled less than half-time). Before applying consider the following: