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Endowed Loan

Lender: Northwestern University (from many different private donor bequests)

Servicer: Northwestern University Student Finance

Borrower: Undergraduate, graduate and professional students

Co-maker: Some Endowed Loans require a credit-worthy co-maker who is a US citizen.

Application process: If your Financial Aid Office has awarded you an Endowed Loan, you can apply online (CAESAR  >  Student Homepage  >  Financial Aid >  Northwestern Loan Application ).

Promissory Note: When your loan has been approved, the promissory note is emailed to the co-maker, if any, for his or her signature. Student signature is also required and the note is emailed to the student.

Fees:

  • Application fee: None
  • Insurance fee: None
  • Origination fee: Yes, for some Endowed Loans

Loan disbursement: Applied to your student account by term per your award letter.

Rate type: Varies by type of Endowed Loan. Refer to your promissory note.

Recent rates: Vary; refer to your promissory note. 

Accrual:

  • In school: Yes
  • In grace period: Yes
  • In forbearance: Yes
  • Capitalization: Varies

Grace period: Usually 6 months; refer to your promissory note.

Repayment period: Usually 10 years; refer to your promissory note.

Payment schedule: Provided at your exit interview.

Repayment start date: Usually 6 months after graduation or separation. Refer to your promissory note.

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: Varies by loan. Usually $50 per month per loan.

Late charge: 5% of scheduled payment, not to exceed $15 per loan.

Report to credit bureau: No

Deferment: No

Forbearance: Yes. Forbearances are granted based on individual circumstances. Please contact Student Finance with questions and to apply. A financial statement is required.

Cancellation: Varies. Refer to your promissory note for details, and contact Student Finance with questions and to apply.

Federal loan consolidation: No

Repayment assistance: No

Delinquency and default: Transfer billing to co-maker, transfer loan to collection agency, legal action