Federal Loans

Those who qualify for need-based aid may borrow a subsidized Stafford Loan.

One unique feature of the Subsidized Direct Loan is that the U.S. Department of Education pays for the interest on the loan while the student is in school. This is not true for the Unsubsidized Direct Loan and the PLUS loan; for those loans, the borrowers are responsible for all interest that accrues over the life of the loan.

• Who Can Borrow: Students who demonstrate financial need as determined by the FAFSA. Students with at least 1.5 units are eligible for federal loans.
  • Students enrolled at least half-time who demonstrate financial need as determined by the Office of Financial Aid
• Lender: Department of Education.
• Loan Amount: Up to $3,500 for the freshman year, $4,500 for the sophomore year, and $5,500 for each of the junior and senior years.
• Interest Rate:
  • Fixed 6.52% for the life of the loan for loans first disbursed between 7/1/2026 and 6/30/2027
  • Fixed 6.39% for the life of the loan for loans first disbursed between 7/1/2025 and 6/30/2026
  • Rates for loans first disbursed prior to 7/1/2025 can be found on the Federal Student Aid website.
• Fees:
  • A 1.057% origination fee will be deducted from each loan disbursement for loans where the first disbursement is made on or after October 1, 2020 and before October 1, 2026. Use our online federal loan fee calculator to determine the impact of fees on your loan.
  • Fees for loans first disbursed prior to 10/1/2020 can be found on the Federal Student Aid website.
• Repayment Terms: Repayment begins six months after graduation or after the borrower ceases to be enrolled at least half-time. Each year while the borrower is in repayment, he or she is required to pay at least $600 or the unpaid balance (whichever is less). The borrower has up to 10 years to repay the loan. There is no penalty for early repayment. To assist with planning, the Department of Education provides very helpful budget and repayment calculators at studentaid.gov.
• Application Instructions: Fill out the FAFSA (see Apply for Aid for more information) for the appropriate academic year. After accepting your loan offer on CAESAR, you will be required to complete an online entrance counseling and the Master Promissory Note (MPN) at studentaid.gov.

Students who qualify for federal student aid can borrow Direct Unsubsidized Loans regardless of their need. The student is responsible for the interest that accrues for the whole lifetime of this loan. Interest begins accruing from the time the loan is taken out.

• Who Can Borrow: Students who do not qualify for the need-based subsidized Stafford Loan, or those who only have partial need-based Stafford eligibility. Students with at least 1.5 units are eligible for federal loans.
  • Students enrolled at least half-time. They do not need to demonstrate financial need.
• Lender: Department of Education.
• Loan Amount: Up to $5,500 for the freshman year, $6,500 for the sophomore year, and $7,500 for each of the junior and senior years (minus any subsidized loans they have received).
• Interest Rate:
  • Fixed 6.52% for the life of the loan for loans first disbursed between 7/1/2026 and 6/30/2027
  • Fixed 6.39% for the life of the loan for loans first disbursed between 7/1/2025 and 6/30/2026
  • Rates for loans first disbursed prior to 7/1/2025 can be found on the Federal Student Aid website.
  • Interest accrues while the student is in school and during loan deferment, and the accumulated interest is the responsibility of the student. The interest will be added to the principal and increase the amount to be repaid. The student isn't required to make payments while in school, but the student has the option of making payments while in school. (Students can indicate this on their MPN. Payments will be made to the loan servicer).
• Fees: A 1.057% origination fee will be deducted from each loan disbursement for loans where the first disbursement is made on or after October 1, 2020 and before October 1, 2026. Use our online federal loan fee calculator to determine the impact of fees on your loan.
• Repayment Terms: Repayment begins six months after graduation or after the borrower ceases to be enrolled at least half-time. Each year while the borrower is in repayment, they are required to pay at least $600 or the unpaid balance (whichever is less). The borrower has up to 10 years to repay the loan. There is no penalty for early repayment. To assist with planning, the Department of Education provides very helpful budget and repayment calculators at studentaid.gov.
• Application Instructions: Complete an online entrance interview, and complete a Master Promissory Note (MPN) at www.studentaid.gov. You will also need to complete a Free Application for Federal Student Aid (FAFSA) (see Apply for Aid for more information) for the appropriate academic year.

The Parent Loan for Undergraduate Students (PLUS) is an unsubsidized federal loan for the parents of dependent students. Learn more about the PLUS Loan and other federal aid programs on the U.S. Department of Education's Federal Student Aid website.

General Parent PLUS Loan Information

• Who Can Borrow:
  • Parents (U.S. citizens or eligible noncitizens) of dependent students with satisfactory credit history.
  • Parents of a federally dependent undergraduate enrolled at least half-time. The borrower must not have adverse credit history (a credit check is required) without an endorser.
• Loan Amount: New borrowers (parents of students starting at Northwestern in Fall 2026) may borrow $20,000 per year, with an aggregate limit of $65,000 over the course of the student's enrollment at Northwestern. Legacy borrowers (parents of continuing students who have already borrowed federal loans) may have additional eligibility. Read more about the Federal direct loan changes.
• Interest Rate: 9.07% for 2026-27. Interest is charged from the date of the first disbursement until the loan is paid in full.
• Fees: A 4.228% origination fee will be deducted from each loan disbursement for loans where the first disbursement is made on or after October 1, 2020 and before October 1, 2026. Use our online federal loan fee calculator to determine the impact of fees on your loan.
• Repayment Terms: Repayment of the principal begins within 60 days of the final disbursement of funds for the academic year. A minimum payment of $600 per year is required, and the borrower has a maximum of 10 years to repay the loan.
• Deferment: Parents may choose to defer payments on a PLUS Loan until six months after the student ceases to be enrolled at least half-time. Accruing interest can either be paid by the parent borrower monthly or quarterly, or capitalized quarterly (indicated on your PLUS Request and to be paid to the servicer). To assist with planning, the Department of Education provides very helpful budget and repayment calculators.
• Application Instructions: Families need to complete a FAFSA (see Apply for Aid for more information) for the appropriate academic year. Parents should also complete the PLUS Loan Request as well as a Parent PLUS Master Promissory Note, found by logging onto www.studentaid.gov with your Federal Student Aid (FSA) ID. A credit check is required. Families should not apply for a PLUS Loan earlier than mid-June for an upcoming academic year since it requires a credit approval that is only valid for 180 days.