Graduate Student Loan Option Comparison

	Graduate PLUS Loans	Private Loans	Institutional Loans (Northwestern University Loans)
*Borrower*	Student is the borrower.	Student is the borrower	Student is the borrower
*Lender*	Federal Government	Varies-banks, credit unions etc	Northwestern University
*Eligibility*	Student must borrow full Stafford Loan eligibility before borrowing Grad PLUS Loan. Must be enrolled at least half-time and meet requirements to receive federal aid. Must complete the FAFSA and University Aid Application. Must be a US Citizen or Permanent Resident Credit check required.	Student should borrow full Stafford Loan eligibility before borrowing NU Loan. Varies by lender. Some lenders will lend to students enrolled less-than-half-time. Must complete lender application and University Aid Application Most lenders will require a U.S. Citizen cosigner for International borrowers Credit check required.	Student must borrow full Stafford Loan eligibility before borrowing NU Loan. Available to full-time students only. Must complete lender application and University Aid Application. U.S. Citizen cosigner required for International borrowers Credit check required.
*Interest Rate*	Fixed 9.083 % for the life of the loan for loans with a first disbursement between 7/1/24 and 6/30/25. Interest begins to accrue at the time of disbursement. Interest rates will change each year on July 1 for loans with a first disbursement between July 1 of that year and June 30 of the following year.	Varies by lender, credit score and co-signer status. Some are fixed and some are variable (again based credit score and co-signer status). Some loan programs have interest rate caps, some do not, check with lender. Interest begins to accrue at the time of disbursement.	Interest rates are variable and may change each year on September 1 The 2023-24 rates are: U.S. Student: 6.5% GPAL (International): 6.5% Kellogg International B (for JDMBA only): 6.5% Interest rate cap is the interest cap as determined by the state. Interest begins to accrue at the time of disbursement.
*Annual Maximum*	Cost of attendance less financial aid.	Generally cost of attendance less financial aid.	Generally cost of attendance less financial aid.
*Aggregate Maximum (lifetime)*	None	Varies by lender.	Aggregate maximum varies by program. Please contact the Student Loan Office for information about your specific program’s aggregate limit.
*Fees (origination fees are automatically deducted from your loan at the time of disbursement)*	4.228% origination fee for loans disbursed on or after 10/1/20.	Varies from 0-10% for origination and/or repayment fees, according to the lender, student’s credit score and whether the loan is co-signed.	0% fees for Need-Based and Optional NU Loans 4% fees for International B Loan 5% for GPAL (International ) Loan
*Credit Check*	Basic credit check performed; however, no credit score or debt-to-income ratio is used. Federal regulations state that the borrower must not have adverse credit (no accounts in default, collections status, charge off, write off or 90 days or more past due status). If credit requirement is not met, a credit-worthy endorser is an option for eligibility.	Most lenders perform a credit check using your credit score. Debt to income ratio may also be considered. A credit worthy co-signer may be required for best terms or eligibility.	You may be approved without a cosigner based on your credit score and program of study. If, for whatever reason, you are not approved based on your credit alone, you will be able to apply with a co-maker.
*Grace Period*	None, but 6 month forbearance available to align with beginning of Stafford Loan repayment.	Varies by lender between 0-9 months.	Six months after graduation for most NU Loan types.
*Deferment and Forbearance*	In-school deferment and availability of a 6 month forbearance to align with beginning of Federal Direct loan repayment start. Up to 3 years of forbearance available.	Varies by lender. Many lenders offer limited forbearance options (some may require interest only payments while in forbearance).	Forbearance is allowed for a maximum of 36 months, in intervals of 6 months. Exceptions: MD students can receive forbearance on loans as long as required to complete a residency or fellowship.
*Loan Forgiveness Options*	May be eligible for Federal Public Service Loan Forgiveness	None	None
*Repayment terms/periods*	Choice between standard, graduated, extended, income-contingent and income-based repayment terms.	Varies by lender but generally no (or interest only) payment is due while student is enrolled. Repayment term can range from 10-25 years based on lender and amount borrowed. Does not qualify for federal income-based repayment plans.	The standard repayment period is 10 years. Exceptions: Physical Therapy students: 15 years MD student loans: 20 years Does not qualify for federal income-based repayment plans.
*Death/disability*	Discharged, if borrower dies or becomes totally, permanently disabled; endorser not liable for debt if student dies or becomes totally, permanently disabled.	Varies by lender. Some lenders do offer discharge if borrower dies or become totally, permanently disabled. Liability of co-signer may also vary be lender.	Coverage for death and disability is available for the student only. In the event of the death or permanent disability of the student, the co-maker will not be held liable for the debt.
*Consolidation*	Eligible for Federal Direct Consolidation Loan.	None	None