There are various low-interest federal student loan programs available to NWC students and/or the parents of dependent students. If your total financial need cannot be met by grants, other campus-based aid or outside sources, you may apply for the federal student loan programs by first, submitting the FAFSA and completing the application process. Northwestern College participates in direct lending through the U.S. Department of Education.
Subsidized Federal Direct Stafford Loan (For Undergraduate Students)
This is a need-based undergraduate loan that the government pays the interest on while the student is enrolled in school on at least a half-time basis. Loan repayment begins 6 months after a student graduates, withdraws from school, or drops below half-time enrollment. The interest rate is currently fixed at 3.4%. Please read About Federal Direct Student Loans for important details concerning Federal Direct loans, annual and aggregate limits, loan fees, and interest rates.
Unsubsidized Federal Direct Stafford Loan
This is a non need-based loan for which all students qualify. In this program, The interest may be capitalized to the principal amount borrowed or a student may choose to make payments on the interest while in school. As with the Subsidized Federal Stafford Loan, repayment begins 6 months after a student graduates, withdraws from school, or drops below half-time enrollment. Please read About Federal Direct Student Loans for important details concerning Federal Direct loans, annual and aggregate limits, loan fees, and interest rates.
To apply for Federal Direct Stafford Loans:
- Once you receive your Financial Aid Award Letter, log on to theROCK and accept your Federal Stafford Loan(s).
- First-time Stafford Loan borrowers, must complete an online Direct Loan Master Promissory Note (MPN) and Direct Loan Entrance Counseling at StudentLoans.gov.
- For first-time Stafford Loan borrowers only, complete online Direct Loan Entrance Counseling.
Federal Direct Stafford Loan Exit Counseling
Upon graduation, withdrawal from school, or dropping below half-time enrollment, students who have borrowed Federal Direct Stafford Loans will be required to complete an online Stafford Loan Exit Counseling form.
Federal Parent Loan for Undergraduate Students (PLUS)
This is a government-insured loan made by the U.S. Department of Education for parents of undergraduate dependent students. The Parent PLUS loan is non need-based, is for parents to borrow on behalf of their student, and is based partly on the parents' credit worthiness. Parents may borrow up to the cost of education less other financial aid for their child at a fixed interest rate of 7.9%. Interest is paid by the parent and there is no grace period. Repayment starts within 60-days of the final disbursement of the funds for the given academic year. Parents who wish to defer repayment until after their student graduates should go to studentloans.gov. View the Parent PLUS Loan FAQ's for more detailed information.
To apply for a Parent PLUS Loan:
- Complete a Federal Direct Parent PLUS Loan Application and Credit Authorization Form and return it to the Graduate & Continuing Education Financial Aid Office.
- Complete the online Parent 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. View Private Loans to get more information about securing a private loan.
Quick Facts on Private Loans:
- Students do not need to complete a FAFSA to borrow a private loan.
- Private loans typically have higher interest rates than Stafford or PLUS loans
- A co-signer may be required.
- Interest rates are based on credit and are variable.
- Repayment terms will vary by lender.