The Loan Process

Confused about the Loan Process? Check out the processes for the different loan opportunities below.

Also, check out BorrowSmart (a loan comparison tool) to help you look into all your options and determine the best choices for your academic career.

FEDERAL STAFFORD LOAN

Application Process:

  • Complete the FAFSA to be eligible for the Stafford Loan.
  • Sign your Award Letter to accept your offer of the Stafford Loan.
  • If you have never had a Stafford Loan at Northwest University you will need to complete the Entrance Counseling and Master Promissory Note (which explains issues, rights, and responsibilities) online at http://studentloans.gov. (This is only completed the first time you take out a Stafford Loan at Northwest).

Disbursement Process:

Federal Stafford loan funds are sent to the university by Electronic Funds Transfer (EFT). EFT funds will be credited directly to the student’s account. Students are notified via email when their loan funds have been disbursed.

FEDERAL PERKINS LOAN

Application Process:

  • Complete the FAFSA to determine eligibility for the Perkins Loan. (Students must qualify for this loan based on need).
  • Sign your Award Letter to accept your offer of a Perkins Loan.
  • Complete the Perkins Truth in Lending Form.
  • If you have never had a Perkins Loan at Northwest you will need to complete an Entrance Counseling and sign a Promissory Note. (These are only completed the first time you take out a Perkins Loan at Northwest).
  • For more information regarding the Perkins Loan and required Perkins Loan Documents contact Mary Cotton at mary.cotton@northwestu.edu

Disbursement Process:

Perkins Loan funds are credited directly to the student’s account. Students are notified via email when their loan funds have been disbursed.

FEDERAL PARENT (PLUS) LOAN

Application Process:

  • Parents of dependent students enrolled in the traditional undergraduate program must complete the PLUS Loan Request Form.
  • Parents must complete the PLUS Loan Credit Check Application (found online at http://studentloans.gov). The Credit Check Application is good for 90 days.
  • If a parent has never had a PLUS Loan at Northwest they must complete the Master Promissory Note (MPN) online at http://studentloans.gov.
  • Sign your Award Letter to accept the offer of the Parent PLUS Loan.

Disbursement Process:

PLUS loan funds are sent to the university by Electronic Funds Transfer (EFT). EFT funds will be credited directly to the student’s account. Students are notified via email when their loan funds have been disbursed.

FEDERAL GRAD PLUS LOAN

Application Process:

  • Graduate students must complete the FAFSA to be eligible for the Grad PLUS Loan.
  • Complete the Grad PLUS Loan Request Form.
  • Students must complete the PLUS Loan Credit Check Application (found online at http://studentloans.gov). The Credit Check Application is good for 90 days.
  • If you have never had a Grad PLUS Loan at Northwest (or are changing lenders), you must complete the Master Promissory Note (MPN) online at http://studentloans.gov.
  • Sign your Award Letter to accept the offer of the Grad PLUS Loan.

Disbursement Process:

Grad PLUS loan funds are sent to the university by Electronic Funds Transfer (EFT). EFT funds will be credited directly to the student’s account. Students are notified via e-mail when their loan funds have been disbursed.

ALTERNATIVE (PRIVATE) LOAN

Application Process:

  • Apply directly through a lender’s website for an alternative loan.
  • The lender will contact the Financial Aid Services office electronically to request certification of the loan.
  • The Financial Aid Services Office will certify the loan (request the funds from the lender).
  • Sign your Award Letter to accept the offer of the Alternative Loan.

Disbursement Process:

Alternative loan funds are sent to the university from the lenders by Electronic Funds Transfer (EFT). EFT funds will be credited to the student’s account. Students are notified via e-mail when their loan funds have been disbursed.

KEEP IN MIND – up to 4% of the total amount of the Federal Subsidized Stafford Loan, Unsubsidized Stafford Loan, and PLUS Loan may be deducted as a guaranty and origination fee.

If your disbursement includes loan funds that you do not wish to keep, you have 14 calendar days from the date of the disbursement to contact Financial Aid to return the funds.

For more information on Loan Processing, visit http://studentloans.gov.