Types of Loans

FEDERAL DIRECT LOANS:

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

Direct Subsidized 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.

Direct Unsubsidized 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 over-payments owed on a Title IV educational loan or grant.
  • AmountDependent students are eligible for at least $2,000 in a Direct Unsubsidized 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 Federal Direct Loan Limits

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

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

FEDERAL DIRECT PLUS LOAN (PARENT):

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 over-payments 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 DIRECT PLUS LOAN (GRADUATE):

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 over-payment 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 Loan. Loan fees are charged according to Federal laws.

ALTERNATIVE (PRIVATE) LOAN:

Private student loans are consumer loans made to individuals to help supplement, not replace, other financial aid sources to fill funding gaps. They are provided by for-profit and nonprofit lending organizations, and are not backed by the federal government (it is highly recommended that Federal Direct Loans (including PLUS) be fully utilized before a private bank loan is obtained). When applying for a private loan, students should only borrow what is needed to cover their educational expenses. Some lenders also require a cosigner (a person who promises to become legally responsible to pay the debt if the student fails to do so).

  • 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.

Northwest University does not endorse any one lender, and encourages borrowers to thoroughly research and compare different lenders in order to find the one that best meets their present and future needs.  For your reference, below is a list of lenders that have provided private student loans to Northwest students over the past 5 years:

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 425.889.5210 or finaid@northwestu.edu.