Student Loans

Applying for Student Loans

Northwood University participates in the Federal Direct Loan program. Listed below is a brief summary of the Federal Direct Loans program.

Complete Your FAFSA

Complete Master Promissory Note

Student Loan Code of Conduct

 

FEDERAL DIRECT LOANS

Criteria

Subsidized    

Unsubsidized   

Parent Plus   

Graduate Plus   

Financial need is determined by Free Application
for Federal Student Aid (FAFSA)

X      

No interest charged while student enrolled at least 1/2 time,
during grace period and deferment periods

X      

Not based on financial need as determined by the FAFSA

 

X X X

Interest is charged during all periods

 

X X X

Credit Based Loan

    X X

Must complete the Free Application for Federal Student Aid (FAFSA)     

X X X X

Student must be enrolled at least 1/2 time, student and parent
must be U.S. citizens or eligible non-citizens

X X X X

Student must maintain Satisfactory Academic Progress

X X X X

Loan is borrowed from U.S. Dept. of Education

X X X X

Repayment begins 6 months after the student graduates,
falls below 1/2 enrollment or withdraws from school

X X    

Repayment begins 60 days after the loan is fully disbursed;
deferments are available upon request

    X X

No prepayment penalties

X X X X

Who is responsible for repayment?
Subsidized           Unsubsidized         Parent Plus         Graduate Plus        
Student X X   X

Parent

    X  

Interest Rates
Subsidized Unsubsidized Parent Plus Graduate Plus
16–17 Academic Year 3.76%
Undergraduate
3.76%
Undergraduate; 
5.31%
Graduate
6.31% 6.31%
17–18 Academic Year

Amounts to be Determined by Department of Education


Loan Fee

Subsidized Unsubsidized Parent Plus Graduate Plus
16–17 Academic Year 1.069% 1.069% 4.276% 4.276%
17–18 Academic Year Amounts to be Determined by Department of Education

Loan Limits:

Dependent Undergraduate Students:

Freshman – $5,500 (no more than $3,500 subsidized); Sophomore – $6,500 (no more than $4,500 subsidized); Junior/Seniors – $7,500 (no more than $5,500 subsidized).

Independent Undergraduate Students:

Freshman – $9,500 (no more than $3,500 subsidized); Sophomore – $10,500 (no more than $4,500 subsidized); Junior/Seniors – $12,500 (no more than $5,500 subsidized).

Award Disbursement:

Federal, state, and most institutional financial aid is divided equally between the Fall and Spring semesters of enrollment and will be credited to the student’s account upon verification of enrollment in courses required for degree for that period. Revisions of awards or late awards will be applied throughout the year as required due to fluctuations in eligibility. Some financial aid funds may require adjustment due to being restricted to direct costs (i.e., tuition, fees, housing and meal plan charges, etc.) that show directly on the student’s Northwood University account. Federal Direct Loan funds will be credited to the student’s account. If you wish to cancel all or a portion of the Federal Direct Subsidized/Unsubsidized loan(s), a written request must be received by the Business Office within 30 days of notification. If you wish to cancel all or a portion of the Federal Direct PLUS loan(s), a written request must be received by the Business Office within 14 days of the date of notification. The student is responsible for all charges not covered by financial aid. If the student’s credits exceed their charges, a refund will be processed within 14 days of the credit being generated. Students have the option of retaining the credit balance on his or her student account if the business office is notified in writing for the aid year. Account credit balances cannot be carried forward from one academic year to the next. Excess parent PLUS Loan funds are required to be returned to the parent, unless authorized by the parent to be refunded to the student. Overpayments resulting from full or partial cancellation of aid will normally result in a debit balance on the student’s account and must be paid back according to the repayment policies of the University. It is the student’s responsibility to verify the accuracy of all charges, payments, financial aid, refunds, and other general transactions.

Satisfactory Academic Progress:

Federal regulations require that the university establish and implement a policy to measure if a financial aid recipient is making satisfactory academic progress toward a degree. Satisfactory academic progress is measured by evaluating both GPA achievement (qualitative measurement) and pace (quantitative measurement) to ensure successful program completion within the maximum timeframe allowed. The standards are subject to change per federal regulations. The Financial Aid Office would notify students if any changes were to occur. Find more information here

Repaying Student Loans:

Visit the following pages under Student Loans to learn more about the individual loan programs, accepting/rejecting loans, and repayment:

  • Federal Direct Loan Program
  • Federal Direct PLUS Loan (for parents of undergraduate students)
  • Federal Direct Grad PLUS Loans (for Masters students)
  • Private (Alternative) Loans
  • Responsible Borrowing and Loan Repayment

Exit Counseling:

What is Exit Counseling?

Exit counseling provides important information to prepare you to repay your federal student loan(s).

If you have received a subsidized, unsubsidized or PLUS loan under the Direct Loan Program or the FFEL Program, you must complete exit counseling each time you:

  • Drop below half-time enrollment
  • Graduate
  • Leave school

You can complete exit counseling here