The information below is applicable for students in:

• The Graduate School
• McCormick School of Engineering and Applied Science (Professional Masters programs)
• School of Education and Social Policy (Professional Masters programs)
• School Of Communication (Professional Masters programs)

If you plan on borrowing a Federal Stafford Loan or a Federal GradPLUS Loan and have not previously borrowed from these loan programs while attending Northwestern University, you will need to select a lender. The lender is the institution from which the money is actually borrowed. (Federal Perkins Loan funds are borrowed directly from the university, so no lender selection is required.)

Students who have previously borrowed funds through a particular lender may find it convenient to continue to borrow through that same lender. You can access your lender information on the National Student Loan Data System. However, please note that Northwestern University participates only in the Federal Family Education Loan Program (FFELP). We are not currently a participant in the Federal Direct Loan Program. If you previously borrowed funds through the latter program, you will need to select a FFELP lender for your Federal Stafford Loans and/or Federal GradPLUS Loans while attending Northwestern University.

To assist students and families in selecting a lender, we have compiled a list of institutions that we consider excellent in the educational lending field. Each provides prompt reconciliation of loan issues, fast electronic payment of funds directly to Student Accounts, and offer a variety of savings programs during loan repayment. You may also wish to use a loan calculator to compute the potential savings of different repayment options.

Customer service, savings programs and repayment options are important when choosing a lender. However, because of federal legislation that reduced federal subsidies to lenders -- not to mention the lack of liquidity in the student loan market-- lenders are changing borrower benefits with little notice. Therefore, we recommend checking directly with the lender in this regard.

How was the Preferred Lender list developed?      

Northwestern continues to provide students and their families with a Preferred Lender List despite current concerns regarding such lists because we believe that it is helpful to our students, who often request guidance in the selection of a lender. The Office of Student Financial Services cannot make a specific recommendation from this list and will process a loan from any lender selected by a student. Please feel free to contact us if you have any questions about the process or the lenders selected. 

Federal Stafford Loan (Preferred Lender List)

You are to indicate your lender selection when you accept your loan(s) online via CAESAR. If you choose one of the preferred lenders for your Federal Stafford Loan(s), you will receive an email from the lender you selected with instructions for completing the Stafford Master Promissory Note (MPN) on the lender’s website. Your lender will not contact you until they receive the loan certification from Student Financial Services*, so please allow a fews days for completion of this transmission.

If you select "OTHER" when you accept your Stafford Loan(s) on CAESAR, you are choosing a lender that is not on the preferred lender list. In that case, you will need to provide Student Financial Services with your lender information (full name, address and phone number) by email to gradfinaid@northwestern.edu. You will also need to contact your lender directly to obtain instructions for completing the Stafford Master Promissory Note (MPN).

*Note: Student Financial Services will not process your loan(s) until your online Stafford entrance counseling is completed. See your To Do List on CAESAR for details.

Federal GradPLUS Loan  (Preferred Lender List)

Whether or not you choose a lender (for your Federal GradPLUS Loan) that is on the preferred lender list, you will complete the GradPLUS Loan application and Master Promissory Note (MPN) on your lender's website. Student Financial Services will be notified (by your lender) of the amount for which your loan was approved and will provide the required school certification once your online GradPLUS entrance counseling is completed (see To Do List on CAESAR).

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How was the Preferred Lender list developed?

Recently, there has been a great deal of discussion regarding how lenders are chosen by financial aid offices. Northwestern University's financial aid community adheres to the Code of Conduct as established by the Higher Education Opportunity Act as well as the National Association of Student Financial Aid Administrators' (NASFAA) Statement of Ethical Principles and Code of Conduct for Institutional Financial Aid Professionals. View Northwestern University's Financial Aid Code of Conduct.

Northwestern University is committed to choosing lenders who provide good service and benefits to our students. This is done by surveying more than 20 lenders every two years. Lenders are asked to provide information regarding their services via a Request for Information (RFI). (View Northwestern's current RFI.) The lenders' responses to the RFI are ranked using criteria developed by the National Association of Student Financial Aid Administrators (NASFAA). The results of these rankings and the responses to the RFIs are examined by a committee of financial aid administrators made up of members Northwestern's financial aid community.

A second meeting is held with the Associate Provost for Enrollment Management and the Associate Vice President of Financial Operations. Northwestern’s financial aid community presents their choices for inclusion on the list taking into account efficient processing, customer service (for parents, students, and administrators) and benefits to the borrower. The final selections must be approved by the Associate Provost and the Associate Vice President.

Northwestern continues to provide students and their families with a Preferred Lender List despite current concerns regarding such lists because we believe that it is helpful to our students, who often request guidance in the selection of a lender. The Preferred Lender List is intended as a guide only. Northwestern University will process loans from any lender selected by a student. Please feel free to contact us if you have any questions about the process or the lenders selected. 

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