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Supplemental and/or alternative loans are available for:
- Students who have borrowed the maximum in Federal Stafford Loan funds
- Students who are NOT eligible for federal loan funds for any of the following reasons:
- Enrolled less than half-time (2 credits per term)
- Enrolled in a certificate program
- Non-matriculated
- Not a U.S. Citizen or Permanent Resident
- Borrowing funds for a loan period with an end date in the past
As with all student loans, the amount borrowed must be for educational expenses and cannot exceed (including all other sources of aid) the Cost of Attendance (2009-2010) for the loan period. The loan period for which funds are borrowed must be a time during which the student was, is, or will be enrolled at NU.
1. Students who have borrowed the maximum in Federal Stafford Loans and who need supplemental loan funds, should first consider the Federal GradPLUS Loan as federal loans offer fixed interest rates (eff. 7/01/06), a number of deferment options, and flexible repayment terms.
Federal GradPLUS Loan
The Federal GradPLUS Loan has a fixed interest rate of 8.5%. The federal government charges a 1% default fee and an origination fee of 3% of the loan amount. These fees are deducted from each loan disbursement. However, the default fee is usually paid on the student's behalf by the lender and guarantor. The student is responsible for the interest that accrues on the GradPLUS Loan from the date the funds disburse. However, payment is optional while the student is in school. Unpaid interest will be capitalized (added to the loan principal) when repayment begins within 60 days after the final loan disbursement.
GradPLUS Loans will be placed into in-school deferment for borrowers who are certified by their school to be attending at least half-time. No payments are required during in-school deferment. The standard repayment term is ten years. Borrowers with high amounts of student loan debt may be eligible for up to a 25-year repayment term and the choice of standard or graduated payments. Extended repayment results in a higher total loan cost than with standard repayment.
Apply for the GradPLUS Loan directly on the lender's website. Students who are not approved on their own may obtain a creditworthy cosigner.
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2. Private lenders also offer a variety of alternative student loan products for those who do not qualify for federal loans. Please check directly with the lender regarding the eligibility requirements for their loans.
Interest rates for private/alternative loan programs are not fixed, may vary quarterly, and are set by each lender based upon their established parameters. Approval ratings may vary from lender to lender. Some students may be required to apply with a creditworthy cosigner. We recommend that students compare interest rates and repayment options before applying for an alternative loan. The following websites may be of assistance in this regard. Student Financial Services will process loans from all lenders.
The application process for most alternative loans is completed online at the lender's website. When all requirements are complete and the loan is approved, the student must provide Student Financial Services with the loan amount, the loan period, and the lender's full name and address. This information may be sent by email to gradfinaid@northwestern.edu, by FAX to (847)467-2451, or by mail to:
Student Financial Services
555 Clark St.,1st Flr
Evanston, IL 60208
Most lenders require school certification verifying the student's enrollment status during the loan period and that the amount of the loan does not exceed their Cost of Attendance. The loan period for which funds are borrowed must be a time during which the student was, is, or will be enrolled at NU.
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Last updated: Aug 25 2009 12:54PM
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