Educational loans can be borrowed by a student or their parent to help with costs not covered by other sources of aid. Unlike scholarships or grants, loans must be paid back.
At Northwestern, scholarships, grants, and work-study cover 100% of demonstrated financial need. Some families choose loans as a way to fund their expected parent or student contribution. In general, students and parents can wait until the summer before the fall term begins to apply for additional loans and complete requirements. Each student loan has different terms and conditions. Before applying or accepting student loans, take some time to research your options.
Please note: If you're an international or undocumented student, your eligibility and aid considerations will be different. Please visit Resources for International Students for more information.
Financial Aid Package: Questions to Ask
A student who receives need-based financial aid from Northwestern University may see Northwestern Scholarships as a component of their financial aid package. Domestic students who demonstrate need may see federal grants or work-study, if they qualify for these programs. Finally, students who are residents of Illinois and demonstrate need may see state grants on their aid package.
The financial aid components listed above will meet a student's demonstrated financial need. You can learn more about demonstrated need on our Financial Need and Eligibility page, and you can use our calculators to get an estimate of what your need may be.
Also, a complete financial aid package may later include outside scholarships (which students must report to Northwestern), and student loans (if the student or parents are using loans as a part of their Estimated Family Contribution).
Students or their parents can utilize educational loans to help finance their contribution.
If a family experiences a change that impacts their financial situation, they should reach out to our office to explore the Special Circumstances Review process.
Loans: Planning Ahead
Our student loan page is a great starting point for this research, and we'll guide you to other helpful resources along the way. Also, admitted and current students are always welcome to make an appointment with a financial aid counselor to discuss this process further. We're here to help!
It is important to ask the following questions if you are considering any private loans:
Does this loan application require a credit review or credit check?
Do I need a cosigner or comaker to apply for and receive this loan?
When does interest begin accruing?
Am I expected to make payments while in school?
What is the interest rate? Can this interest rate change over time, or can it be adjusted with a cosigner?
What will my monthly payment be when I enter repayment? What kinds of payment plans might I qualify for to help with the payments?
How soon will I enter repayment? Are interest-only payments required during enrollment?
How often is the interest capitalized? (The frequency of capitalization will increase the total loan amount that you have to repay because you will be charged interest on a higher principal loan.)
If I use a co-signer, can I receive a better rate?
How will the rate formula (interest and fees charged) change in repayment?
What will my monthly payment be on this loan amount when I am in repayment?
What kind of borrower benefits does the lender offer? (interest rate reductions with automatic withdrawals, principal reduction with a certain number of on-time payments)
Before applying for these loans, it is important for you to ensure that you have reviewed all your federal loan options and eligibility.
Important note: Prospective borrowers should note that they may qualify for loans or other assistance under the federal Title IV programs and the terms and conditions of loans under the federal Title IV programs may be more favorable than those of private education loans.
Why consider federal loans first?
Federal loans generally have better benefits and lower, fixed interest rates.
We encourage you to consider the Federal PLUS/Grad PLUS Loan (depending on your academic level) before applying for a private loan.
Before you apply to a private loan:
Students are encouraged to review the Department of Education's information on Federal Versus Private Loans and speak to their financial aid office to learn about the Federal Loan programs before you apply for a private educational loan.
Undergraduate students applying for federal financial aid may also be eligible for a Federal Pell Grant.
You should use the version the lender provides as it may contain pre-populated information.
Step 2: Use the backup version if needed
You may use this version if your lender does not provide you with one.
Step 3: Gather your financial information
For applicants receiving other forms of aid: Information necessary for completing this form, such as cost of attendance and financial assistance received, is available to you via CAESAR > View Financial Aid.
Step 4: Contact Financial Aid for help
Applicants can also contact our office to speak to a financial aid counselor to retrieve this information.