Applying for Student Loans

Northwood University participates in the Federal Direct Loan program. Listed below is a brief summary of the Federal Direct Loans. All borrowers must complete a Federal Direct Master Promissory Note (MPN). Please note that first time borrowers who receive loans are required to participate in mandatory Entrance Counseling or contact the Financial Aid Office for a personal interview, before loan proceeds will be released.

Entrance counseling is not required for returning students who previously completed this requirement. Upon completion of your education, you will be required to participate in Exit Counseling or contact the Financial Aid Office for a personal interview.

William D. Ford Federal Direct Loan (Direct Loan) Program 2012-2013

The following federal loan chart and information is subject to change at any time depending on the actions of the federal government. Please research your loan options carefully and borrow responsibly. For additional information regarding specific federal student loan interest rate and fee information, please visit the Federal Student Aid website at www.studentloans.gov.

FEDERAL DIRECT LOANS

Criteria

Subsidized

Unsubsidized

PLUS/Grad

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

Interest is charged during all periods

 

X

X

Parent must be credit worthy

 

 

X

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

X

X

X

Student must be enrolled at least 1/2 time, student and parent must be US citizen or eligible non-citizen

X

X

X

Student must maintain Satisfactory Academic Progress

X

X

X

Loan is borrowed from U.S. Dept of Education

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

No prepayment penalties

X

X

X

  • Dependent undergraduate students: freshman: $5,500 (no more than $3,500 subsidized); sophomore: $6,500 (no more than $4,500 subsidized); and 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); and junior/seniors $12,500 (no more than $5,500 subsidized).

How to Apply for Direct Federal Loans

First-time Borrowers:

Your social security number and your Department of Education-issued PIN will be required. If you do not have a PIN, you may request one from www.pin.gov.

Previous Borrowers:

You do not need to complete an MPN or Entrance Counseling if you have completed them previously.

Accepting, Rejecting, or Changing your Loan Amounts:

Northwood University uses Passive Confirmation for the acceptance of Subsidized and Unsubsidized loan awards. This means you will receive the loan amounts shown on your Official Award Letter unless you notify us that you do not want them.

  • If you want to accept the Subsidized and Unsubsidized loans and loan amounts shown on your Official Award Letter you DO NOT need to take action. The Financial Aid Office will process your loan if all other requirements as outlined below are met.*
  • If you want to reject your loan(s) or change the loan amount(s), you DO need to take action. First, go to the WebAdvisor tab at http://my.northwood.edu.
    • To reject your loan(s), select Accept or Reject Financial Aid Loan Awards. Select Year 2014. You will see all your financial aid awards at the top of the page. At the bottom of the page you will see the loan(s) that you are able to Accept or Reject. Please choose Reject from the drop down beside the loan or loans you want to reject. If you are rejecting your loan(s) you must do so within 14 days of receiving your award letter. If you decide later on that you want to borrow, you can go back into WebAdvisor and accept eligible loans.
    • To change your loan amount(s), go to the Financial Aid section, click on Financial Aid Forms and select the 2014-2015 Federal Direct Loan Change Form. This form must be completed and signed and can be mailed or faxed to the Financial Aid Office. Please note: You may only lower the loan amounts awarded.

IMPORTANT: Federal Direct Loans are governed by federal regulations. Before the Financial Aid Office processes your reject or change requests, the staff will check to be sure the resulting loans meet Federal requirements. For example: If you have both subsidized and unsubsidized loan eligibility, your unsubsidized loan must be zeroed out before we can reduce your subsidized loan. If we cannot process your reject or change request due to Federal requirements we will contact you. Otherwise, you will receive a revised award letter with your requested changes.

PLEASE NOTE: The school will notify you via e-mail that your loans have been disbursed and that you have the right to cancel all or a portion of a loan. If you want to cancel all or a portion of your loan(s) you must do so within 30 days of the date the school sends you this notification.

*Before processing your loan(s) you must have completed the following:

  • New students must have paid a commitment fee to the University.
  • Returning students must be registered or pre-registered for classes for the period of enrollment of the loans.
  • New student loan borrowers must have completed their Master Promissory Note (MPN).

Passive Confirmation is not used to accept PLUS and GradPLUS loans. Procedures for acceptance and application are below:

Federal Direct PLUS Loan (for parents of undergraduate students)

Parents of an undergraduate student can apply for a credit-based Federal Direct PLUS Loan to assist with out-of-pocket educational expenses on behalf of the student. The parent must be a credit-worthy US citizen or eligible non-citizen.

Parents can defer repayment if their student is enrolled at least half-time (6 hours), and for an additional 6 months after the student graduates or drops below half-time enrollment. If the Federal Direct PLUS Loan is denied, the student will be eligible to borrow up to an additional $4,000 for freshmen and sophomores or $5,000 for juniors and seniors of Federal Direct Unsubsidized Loan.

  • To apply for the Federal Direct PLUS Loan, the parent must complete a Master Promissory Note (MPN) and a Federal Direct PLUS Loan application online at http://www.studentloans.gov. Your Department of Education-issued PIN will be required to complete the MPN, as it becomes an electronic signature. If you do not have a PIN, you may request one from http://www.pin.gov . If you have previously borrowed for this student you do not need to complete a new MPN.
  • Next complete a Federal Direct PLUS Loan Request form. The Federal Direct PLUS Loan Request form is available online at www.northwood.edu. First, select your campus, then select Financial Aid, and then select Financial Aid Forms. This form must be completed and signed and can be mailed or faxed to the Financial Aid Office.

Federal Direct GradPLUS Loan (for graduate students)

A graduate or professional student can apply for a credit-based Federal Direct Graduate PLUS loan for up to the student's cost of attendance minus other estimated financial assistance.

  • To apply for a GradPLUS Loan, the student must complete a pre-approval credit check and a Federal Direct Graduate PLUS Loan Master Promissory Note (MPN) at http://studentloans.gov. Click the Sign In box and choose Request a Graduate PLUS Loan. This will produce an instantaneous credit decision. Approved borrowers can proceed to selecting the student name to complete the Graduate PLUS Master Promissory Note (MPN). Paper MPN's can be requested from the Financial Aid Office. If you have previously borrowed a GRADPLUS Loan you do not need to complete a new MPN.
  • First time borrowers must complete mandatory Grad PLUS Entrance Loan Counseling at http://studentloans.gov.
  • Next complete and return the Federal Direct Graduate PLUS Loan Request Form. The form is available online at www.northwood.edu. First, select your campus, then select Financial Aid, and then select Financial Aid Forms. This form must be completed and signed and can be mailed or faxed to the Financial Aid Office.

If you have any questions or concerns regarding this information, please contact your Financial Aid Office.

Michigan Campus
Financial Aid Office
4000 Whiting Drive
Lower Level Miner Hall
Midland, Michigan 48640
Phone: 989.837.4230
Fax: 989.837.4130
Email

Office Hours:
Monday - Friday
8:30 a.m. - 5:00 p.m. EST

Florida Campus
Financial Aid Office
Turner Education Center
2600 N. Military Trail
West Palm Beach, FL 33409
Phone: 561.478.5590
Fax: 561.681.7990
Email

Office Hours:
Monday - Friday
8:30 a.m. - 5:00 p.m. EST