Student loans are available to help finance your educational expenses if you are unable to pay for all of your educational costs through a combination of your resources and any other scholarships or grants you may qualify for. Northwestern College participates in direct lending through the U.S. Department of Education.

Subsidized Federal Stafford Loan

Interest does not accrue on a Subsidized Federal Stafford Loan until six months after the student leaves college. Students who demonstrate need are eligible for this loan. This loan is repayable after graduation at a fixed rate of 4.5% for the 2010–11 academic year and 3.4% for the 2011–12 academic year. Please read About Student Loans for more information about annual limits and interest rates.

Unsubsidized Federal Stafford Loan

Unlike the Subsidized Federal Stafford Loan, the Unsubsidized Federal Stafford Loan accrues interest while the student is enrolled. Students can choose to pay the interest while enrolled or capitalize the unpaid accrued interest when repayment begins. This loan is non-need based with a fixed rate of 6.8% for the 2010–11 academic year. Please read About Student Loans for more information.

How to apply for a Federal Direct Stafford Loan

• Apply for financial aid if you have not already done so.
• After receiving your notice of financial aid eligibility (award letter), accept your Federal Stafford Loan via theROCK.
• Complete an on-line Direct Loan Master Promissory Note (MPN).
• For first-time Stafford Loan borrowers only, complete on-line Direct Loan Entrance Counseling.

Federal Parent Loan for Undergraduate Students (PLUS)

Parents of dependent students may borrow up to the cost of education less other financial aid for their child at a fixed interest rate of 7.9% for the 2010–11 academic year. To apply a parent PLUS loan, follow these steps:

1. Complete a Federal Direct PLUS Loan Application and Credit Authorization form and return it to the Graduate and Continuing Education Financial Aid Office.
2. Complete the PLUS Loan Master Promissory Note.

Lender-sponsored Private Loans

Students who have not applied for financial aid should contact a counselor in the financial aid office prior to applying for a private loan. Private loans typically have higher rates than Stafford or Parent PLUS loans and co-signers may be required. Interest rates are based on credit and are variable. Students do not need to complete a FAFSA to borrow these loans and repayment terms will vary by lender. Get more information or apply for a private loan.

Loan Entrance Counseling

First time borrowers through the Stafford Loan program are required to complete loan entrance counseling to ensure they understand their rights and responsibilities. Complete your Subsidized/Unsubsidized Federal Direct Stafford Loan entrance counseling.

Loan Exit Counseling

Upon graduation (or dropping below half-time status), students who have borrowed will be required to complete loan exit counseling. If you have borrowed a Federal Stafford Loan please complete your Stafford Loan Exit Counseling.