Loan programs available to full-time Kellogg MBA/MMM students who are U.S. citizens and permanent residents include educational loans through the federal loan program (Federal Direct Stafford Loans, Federal Direct Graduate PLUS Loans, and Perkins Loans.) Private education loans are available for all students - U.S. Citizens, Permanent Residents and International Students.
Changes to Federal Direct Loan Programs (effective July 1, 2012)
There are a number of changes to the Federal Direct Loan Programs made by recent legislation which will begin July 1, 2012 that will impact graduate/professional students. Unfortunately, the changes will result in an increase to the cost of borrowing federal Direct Loans. Please note that due to the Budget Control Act of 2011, for Loan periods first beginning on or after 7/1/2012, Subsidized Federal Direct Stafford Loans will no longer be available for graduate and professional students.
[+] Click here to read more about the changes. Subsidy of Interest on Graduate/Professional Stafford loans(Budget Control Act of 2011)
Summary: All graduate and professional students will lose the interest subsidy on the Subsidized Stafford loan on new loans. The graduate Stafford loan program will become entirely unsubsidized, which means the loan will accrue interest while a student is in school. These changes will not affect the annual and aggregate borrowing limits. Graduate and professional students will still be eligible to borrow up to $20,500 in the Stafford loan program per academic year.
When: This change is effective for loans made for periods of enrollment (loan periods) beginning on or after July 1, 2012.
Impact on Direct Loans received prior to July 1, 2012
The terms and conditions of the Direct Loans received before July 1, 2012 are not affected by these changes.
Federal Direct Stafford and PLUS Loan Program Rebate
(Budget Control Act of 2011)
Summary: In the past, borrowers received an up-front rebate on loan fees. The new law eliminates the up-front origination fee rebate on all Stafford and PLUS loans. These loans will now assess the full 1% fee on Stafford loans and the 4% fee on the Parent PLUS/Graduate PLUS loans, which will be deducted from each loan disbursement.
When: This change will be effective for new Direct Stafford Loans and Direct Parent PLUS/Grad PLUS Loans for which the first disbursement is made on or after July 1, 2012
|
Fees for loans disbursed
before July 1, 2012 |
Fees for loans disbursed
after July 1, 2012 |
| Stafford Loan |
0.5% |
1.0% |
| Parent PLUS Grad PLUS |
2.5% |
4.0% |
Please feel free to contact the Office of Financial Aid if you have any questions.
2012-2013 Federal Loan Options
Funds for the Federal Loan Programs, either in part or total, have been appropriated by the United States Congress and are administered by the University.
You must be a U.S. citizen or permanent resident to participate in the federal loan programs.
| Loan Program Name |
Federal Direct Unsubsidized Stafford Loan |
Federal Direct Graduate PLUS Loan |
Federal Perkins Loan
(Limited Funds) |
Borrower |
Graduate and Professional Students enrolled at least half-time. Students do not need to demonstrate financial need. |
Graduate and Professional Students enrolled at least half-time. Students do not need to demonstrate financial need. |
Graduate and Professional Students enrolled at least half-time who demonstrate exceptional financial need as determined by the Office of Financial Aid. |
Lender |
William D. Ford Federal Direct Loan Program |
William D. Ford Federal Direct Loan Program |
Northwestern University |
Loan Amount |
Up to $20,500 per academic year. |
Up to the cost of attendance less any other financial aid received annually. |
Up to $6,000 annually or the amount of financial need, whichever is less, depending on the availability of funds. |
Financial Aid
Application Process
|
Complete the Free Application For Federal Student Aid (FAFSA); and Kellogg Financial Aid Application-Available if admitted to the Kellogg MBA/MMM Program. |
Complete the Free Application For Federal Student Aid (FAFSA); and Kellogg Financial Aid Application-Available if admitted to the Kellogg MBA/MMM Program. |
Complete the Free Application For Federal Student Aid(FAFSA); and Kellogg Financial Aid Application-Available if admitted to the Kellogg MBA/MMM Program. |
Loan Application Process |
Electronically sign financial aid award letter indicating the amount you wish to borrow and complete the required loan application documents – online entrance counseling session and Direct Stafford Loan Master Promissory Note (MPN). |
Electronically sign financial aid award letter indicating the amount you wish to borrow and complete the required loan application documents – online entrance counseling session and Direct Graduate PLUS Loan Master Promissory Note (MPN). |
Complete the required loan application documents – online entrance counseling session and Perkins Loan Master Promissory Note (MPN). |
Credit Information |
The Federal Direct Unsubsidized Stafford loan program is not credit based. No credit check is required. |
Credit approval is based on federally mandated criteria, not a credit score. In order to qualify, you must not have any of the following items on your credit report:
- Any current delinquency of 90 days or more
- Any of the following within the preceding 5 years of the date of the credit check:
- Default
- Bankruptcy
- Discharge
- Foreclosure
- Repossession
- Tax Lien
- Wage garnishment
- Write-off of a Title IV debt
- Open collection
Recent changes in the law that governs the terms and conditions of Grad PLUS loans establish a specific circumstance for certain Grad PLUS loan applicants who would otherwise be considered to have an adverse credit history. Specifically, a Grad PLUS loan applicant may qualify for a Grad PLUS loan based on extenuating circumstances if the applicant:
- Has been or is delinquent for 180 days or less on mortgage loan payments or on medical bill payments for the applicant or the applicant's family AND does not otherwise have an adverse credit history as determined in accordance with the federal regulations that apply to Grad PLUS loan applicants.
Borrowers with an adverse credit history may apply for the loan with a cosigner (called an endorser) who does not have an adverse credit history. |
The Federal Perkins loan is not credit- based. No credit check is required. |
Interest Rate |
Fixed 6.8%. Interest accrues from the time of disbursement. |
Fixed 7.9%. Interest accrues from the time of disbursement. |
Fixed 5.0% during repayment. Interest does not accrue until the student enters repayment. |
Origination Fee |
1.0% |
4.0% |
0% |
Repayment |
The borrower has up to 10 years to repay the loan under the standard repayment plan. Extended and income-based repayment plans are available under certain conditions. |
The borrower has a maximum of 25 years to repay the loan. |
The borrower has up to 10 years to repay the loan. |
Loan Application Instruction |
Click here for Loan Instructions |
Click here for
Loan Instructions |
Instructions will be sent by the financial aid office if eligible. |
Private Education Loans
Information about Private Education loan programs for students can be found at this website:
http://www.northwestern.edu/sfs/loan_instruc_info/private_loans.html
A number of private outside agencies offer students alternative sources for financing their education. The list located on the above website was created for students as a starting point to begin their research. It is ultimately the student’s decision to select a private education lender. Students are encouraged to investigate these options very cautiously and thoroughly. The Office of Financial Aid will process a loan with any lender the student selects regardless of the lender’s inclusion on this list as long as the student is eligible for the loan.
