Types of Loans

FEDERAL STAFFORD LOANS:

The Stafford Loan is a guaranteed federal student loan available by completing the FAFSA.

Federal Subsidized Stafford Loan

  • Eligibility – Based on financial need as determined by the FAFSA, and attendance of at least half time, and no unresolved defaults or over payments owed on a Title IV educational loan or grant.
  • Amount – Yearly amount varies based upon class standing.
    Freshmen (0-29 credits): $3,500
    Sophomores (30-59 credits): $4,500
    Juniors (60-89 credits): $5,500
    Seniors (90+ credits): $5,500
  • Terms – Interest rates and loan origination fees are determined by the Federal Government and change periodically. Visit studentloans.gov for more information. Interest is deferred while the student is enrolled at least half time. Payment of principal and interest accrual begins six months after the student ceases to be enrolled at least halftime, with ten years to repay. If a student graduates or ceases to attend at least half time, they are required to complete exit counseling online.

Federal Unsubsidized Stafford Loan

  • Eligibility – Not need-based; based on non-eligibility for a Federal Subsidized Loan, Independent status, or dependent student whose parent was denied for a PLUS Loan. Also based on completed FAFSA, attendance of at least half time, and no unresolved defaults or overpayments owed on a Title IV educational loan or grant.
  • Amount – Dependent students are eligible for at least $2,000 Unsubsidized Stafford Loan.
  • Independent students, and Dependent students whose parents have been denied for the PLUS Loan:
    Freshmen/Sophomores: $4,000
    Juniors/Seniors: $5,000
    Graduate Students: $20,500
  • Terms –  Interest rates and loan origination fees are determined by the Federal Government are are subject to change. Visit studentloans.gov for more information. Borrowers are responsible for the interest while they are enrolled and during repayment period. Interest payments can be deferred while students are in school and during their grace period. Payment of principal and interest begins six months after the student ceases to be enrolled at least half-­time, with ten years to repay. If a student graduates or ceases to attend at least half time, they are required to complete exit counseling online.

Aggregate Stafford Loan Limits

Students cannot take out a total of more than the aggregate amounts (listed below) during their academic career:

Undergraduate Dependent:
Stafford Subsidized and Unsubsidized – $31,000 ($23,000 Subsidized maximum)
Undergraduate Independent:
Stafford Subsidized and Unsubsidized – $57,500 ($23,000 Subsidized maximum)
Graduate Students:
Stafford Subsidized and Unsubsidized – $138,500 ($65,000 Subsidized maximum)

FEDERAL PARENT LOAN (PLUS):

The PLUS Loan is a loan that parents can take out to help pay for their students’ balance.

  • Eligibility – Not need-based. Parent of an enrolled dependent, undergraduate student attending at least half time. Parents must have acceptable credit rating, be a U.S. Citizen or National or eligible resident non-citizen, and have no unresolved defaults or overpayments owed on a Title IV educational loan or grant.
  • Amount – The maximum amount is the student’s estimated budget minus financial aid.
  • Terms – Interest rate for 2014-2015 is 6.84%. A PLUS Loan credit check expires 90 days after completion. Northwest University cannot disburse PLUS Loans from an expired credit check. Repayment of principle and interest begins 60 days after the last disbursement. Loan fees are 4%.

FEDERAL GRAD PLUS LOAN:

The Grad PLUS Loan is a loan that Graduate students can take out to help pay for their remaining balance.

  • Eligibility – Not need-based. Graduate student attending at least half time, completed FAFSA, and no unresolved defaults or overpayment owed on a Title IV educational loan or grant.
  • Amount – The maximum amount is the student’s estimated budget minus financial aid.
  • Terms – Interest rates and loan origination fees are determined by the Federal Government are are subject to change. Visit studentloans.gov for more information. Repayment of principle and interest begins 60 days after the last disbursement. However, in-school deferment will be automatically granted based on school certification. Direct Graduate PLUS Loans may be aligned with the grace period of any Federal Direct Stafford Loan. Loan fees are charged according to Federal laws.

ALTERNATIVE LOAN:

Alternative (Private) Loans are loans that students can apply for directly through a lender of their choice to help cover costs not covered by other aid.

  • Eligibility – Not need-based. Students must have acceptable credit rating and/or co-signer.
  • Amount – The maximum amount is the difference between the student’s estimated cost of attendance and the amount of financial aid he/she is already receiving.
  • Terms – Interest rates, loan fees, and repayment terms vary by lender.

Private Student Loans (CONTINUED):

Private Alternative Loans are an option for students and families who are unable to pay for their entire education using Scholarships, Grants, or Federal Loans.

NU does not endorse any lender, but recommends that you compare the lenders to find which one can best meets your needs. The following lenders have provided alternative (private) loans for NU Students for the past 5 years.

Alaska Student Loan
1-800-441-2962
Discover Alternative Loan
1-877-728-3030
Sallie Mae
1-888-272-5543
Wells Fargo
1-800-658-3567

Credit Union Lenders

If you prefer using a credit union to take out an alternative student loan, check out:
Credit Union Student Choice website.

 

Loan Code of Conduct

Click here for the Northwest University Loan Code of Conduct.

For help determining a specific loan amount to borrow, please contact:
Student Accounts.

Questions? Please contact the main Financial Aid Office at 425.889.4210 or finaid@northwestu.edu.