Borrower Obligations and Exit Interviews
Your responsibilities as a student loan borrower may begin while you are still enrolled at Northwestern University. Understanding your repayment obligations and available payment options can help you better manage your loan balance after graduation or separation from the University.
Optional In-school Payments
With the exception of NU Loans issued to undergraduate parents, repayment of the loan principal generally begins after a student graduates or separates from Northwestern University. Parent NU Loans require repayment beginning 45 days after the date of disbursement.
Although principal payments may be deferred while enrolled, most loans begin accruing interest immediately upon disbursement. Borrowers who choose to make interest payments while in school may reduce the overall cost of borrowing. In some cases, paid student loan interest may qualify as a deduction on a federal income tax return.
For NU Loans, any unpaid interest accrued during the in-school and grace periods will be capitalized at the end of the grace period. Capitalization means the unpaid interest is added to the outstanding principal balance of the loan, which increases the total amount subject to repayment and may increase the monthly payment amount.
Exit Interviews
Federal regulations require all borrowers of federal student loans to complete an exit process before graduation, but Northwestern encourages all student loan borrowers (even those with non-federal loans) to complete an exit process.