Undergradate Federal Loan Options

Funds for the Federal Loan Programs, either in part or total, have been appropriated by the United States Congress and are administered by the University.

You must be a U.S. citizen or permanent resident to participate in the federal loan programs.

Subsidized Federal Direct Loan

  • Borrower: Students who demonstrate financial need.
  • Lender: William D. Ford Federal Direct Loan Program
  • Loan amount: Depends on a student's grade level
    • Freshmen: $3,500 or demonstrated need (whichever is less)
    • Sophomores: $4,500 or demonstrated need (whichever is less)
    • Juniors and Seniors: $5,500 or demonstrated need (whichever is less)
  • Application Process:
    • First-time Stafford borrowers: Complete an online entrance interview and then fill out a Master Promissory Note (MPN) as directed on the loan application instructions.
    • Returning Stafford borrowers: Return your award notice to the Chicago Office of Financial Aid via CAESAR accept/decline, identifying the amount you wish to borrow and then complete the Master Promissory Note (MPN) as directed on the loan application instructions.
  • Interest Rate: Fixed 4.5%. The federal government pays interest while the student is enrolled at least half-time or is in deferment.
  • Fees: 0.5%*
  • Repayment: The borrower has up to 10 years to repay the loan under the standard repayment plan.
  • Take me to application instructions for the Federal Stafford Loan.

Unsubsidized Federal Direct Loan

  • Borrower: Students who have remaining unmet costs of attendance or who only have partial subsidized Stafford eligibility or do not qualify for the need-based Subsidized Federal Stafford Loan.
  • Lender: William D. Ford Federal Direct Loan Program
  • Loan amount: Depends on a student's dependency status and grade level
    • Dependent Students (Except Students whose parents have been denied for a Parent PLUS loan)
      • Freshmen: $2,000
      • Sophomores: $2,000
      • Juniors and Seniors: $2,000
    • Independent Students and Dependent Students whose parents have been denied for a Parent PLUS loan:
      • Freshmen: $6,000
      • Sophomores: $6,000
      • Juniors and Seniors: $7,000
  • Application Process:
    • First-time Stafford borrowers: Complete your award notice, identifying the amount you wish to borrow. Complete an online entrance interview, then fill out a Master Promissory Note (MPN).
    • Returning Stafford borrowers: Complete your award notice via CAESAR, identifying the amount you wish to borrow and then complete the Master Promissory Note (MPN) as directed in the loan application instructions. 
  • Interest Rate: Fixed 6.8%. Interest accrues while the student is in school and during loan deferment; the student doesn't need to pay the interest at this time, but the accumulated interest will be added to the principal and increase the amount to be repaid.
  • Fees: 0.5%*
  • Repayment: The borrower has up to 10 years to repay the loan under the standard repayment plan.
  • Take me to application instructions for the Federal Stafford Loan.

Federal Perkins Loan

  • Borrower: Students with exceptional financial need.
  • Lender: Northwestern University.
  • Loan amount: Up to $6,000 annually or the amount of need, whichever is less, depending on availability of funds.
  • Application Process:
    • First-time Perkins borrowers: You will be notified via e-mail and given instructions on how to complete the loan application, entrance interview and MPN.
    • Returning Perkins borrowers: Return your award notice to the Chicago Office of Financial Aid, identifying the amount you wish to borrow.
  • Interest Rate: Fixed 5% during repayment. Interest does not accrue until the student enters repayment.
  • Fees: None
  • Repayment: The borrower has up to 10 years to repay the loan. There is no penalty for early repayment.
  • Take me to application instructions for the Federal Perkins Loan.

Federal Direct Parent PLUS Loan

  • Borrower: Parents of Undergraduate students enrolled at least half-time. The student does not need to demonstrate financial need. The borrower must not have adverse credit history (a credit check is required) without a co-signer.
  • Lender: William D. Ford Federal Direct Loan Program
  • Loan amount: Up to the Cost of Attendance less any other financial aid annually.
  • Application Process: Parents should complete the PLUS Loan MPN on the Direct Loan MPN web site. Borrowers with an averse credit history may apply for the loan with a co-signer (called an endorser) who does not have an adverse credit history.
  • Interest Rate: Fixed 7.9%
  • Fees: 2.5%**
  • Repayment: The borrower has a maximum of 25 years to repay the loan.
  • Take me to application instructions for the Federal Direct PLUS Loan. (Make sure you are viewing the directions for the Parent PLUS loan and not the Federal Graduate PLUS loan.)

*Direct Loan Fee Rebate: The Subsidized and Unsubsidized Federal Direct Loans have a 1.0% origination fee and also offer a .5% rebate on the origination fee - resulting in a net fee of .5%, which will be deducted from the gross amount of the loan borrowed. Once you enter repayment, if you make your first 12 monthly payments on time, the rebate becomes permanent. If you fail to make 12 on-time monthly payments; however, a charge for the initial rebate will be added to the outstanding balance of the loan.

**The Federal Direct GradPLUS Loan has a 4% origination fee and also offers a 1.5% rebate on the origination fee - resulting in a net fee of 2.5%, which will be deducted from the gross amount of the loan borrowed. The 12 on-time payment rule also applies to the PLUS loan in order to keep the rebate.