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Private Loans

A number of private outside agencies offer students alternative sources for financing their education. Unlike federal loans, the terms of private loans are set by the individual lenders. The interest rate and fees are determined by your credit history, your debt-to-income ratio and that of your co-signer.

The Preferred lender list is a starting point for you to begin your research. Ultimately, the lender you choose will depend on what your unique needs. You are encouraged to investigate the lending options available to you and compare lenders. Our office will process a loan with any lender you have selected regardless of their inclusion on this list as long as you are eligible for the loan. Additionally:

  • Northwestern does not recommend, prefer, or endorse any lender, product, or loan type. 
  • Inclusion or omission of a lender on this list does not represent a recommendation. 
  • In accordance with Northwestern’s lender code of conduct, staff will not steer you to any specific lender. 
  • Private loans can only be certified for one academic year at a time
  • Pay special attention to your lending needs as eligibility criteria will vary depending on lender
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Considerations before Applying

Before applying for a private loan it is important that you review all of your federal loan options and eligibility. Typically federal loans tend to have better interest rate options but private loans can have competitive rates depending on your credit score. 

Additionally federal loans have: 

  • No late fees and do not require a credit check (except the PLUS loan)
  • Borrowers have deferment, forbearance, consolidation and forgiveness options available 

Loan Option Comparison 

Use the chart below to compare private loan options (including the NU loan) against federal loan options below to find the best option for you:

Loan Options Comparison
Federal Student Loans Private Student Loans Northwestern NU Loan
Payments Payments are due after graduation, leave school or if you are enrolled less-than-half-time

May require payment while in school

Some allow you to defer payment while in school

Minimum $100 per month.

Varies and may change due to minimum monthly amount.

 
Late Fees No late fees but more than 90 days delinquency can be reported to national credit bureaus 

Late fee amount depends on lender 

5% late charge equal to the late payment on any interest and/or principal payment overdue more than 7 days
Origination Fee

1.057% for Subsidized/Unsubsidized loans 

4.228% for Grad PLUS loans

 Most major lenders do not have origination fees but smaller lenders might include origination fees

5% origination fee (international students only)
Interest Rates

Interest rate is fixed for the life of loan

 

 Can have variable or fixed interest rates

7.5% for the 2025-26 academic year.

Interest rate is variable and set annually 
Credit Check

No credit check is required for the Unsubsidized loan

Grad PLUS loan (for eligible students) requires credit check but criteria allows options for those with adverse credit to pursue an endorser or appeal

 Requires established credit or co-signer Requires credit check or co-signer
Grace Period 6 month grace period: after graduation, you leave school or drop below half-time enrollment Depends on lender  6 months 
Tax Benefit Interest may be tax deductible Interest may be tax deductible Interest may be tax deductible
Consolidation and Refinancing Loans can be consolidated into a Direct Consolidation loan No consolidation but can be refinanced  None
Deferment and Forbearance In-school deferment

Up to 3 years of forbearance available		 Contact your lender for specific options

No deferment

Forbearance: For economic hardship, monthly payments may be reduced for 6-month intervals for a period up to 3 years.
Repayment Plans

The borrower has up to 10 years to repay the loan under the standard repayment plan. Fixed payment plans, Income-driven repayment (IDR) plan available.

Visit the Federal Student Aid Website, to learn about federal student loan repayment plans.

Depends on lender options but typically  a fixed payment.

Contact your lender for specific options

 

PT students: 15 years

MD students 2005 or later: 20 years

All others: 10 years
Prepayment Penalties There is no prepayment penalty fee Check with your lender for additional fees There is no prepayment penalty fee
Loan Forgiveness May be eligible for Federal Public Service Loan Forgiveness Although many private lenders do not offer loan forgiveness programs, some student loans from state agencies can be forgiven in certain circumstances. None
Co-signer Release  No co-signer release Varies by lender No co-signer release
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  The student is covered under death and disability policy

Key Questions to Ask Before Choosing a Private Lender

Before completing an application for a private loan, we recommend that you review the following questions with potential lenders to find the best option available for your specific situation.

Eligibility Considerations:

  • Do you offer loans for my specific situation (less-than-half-time enrollment, past due balance, international?

Rates & Fees 

  • What is my personalized APR? 
    • Is it fixed or variable 
  • Are there any origination fees?
  • How often is interest capitalized? 
  • What is the total estimated cost of the loan over the full repayment term at the rate I'm offered? 

Approval Factors

  • What are the credit score minimums?
  • Do I need a co-signer?
  • If I use a co-signer will I get a better rate?

Repayment

  • What is the grace period?
  • When will I enter repayment?
  • What will my estimated monthly payment be after I enter repayment? 
  • Are in-school payments required (e.g., interest-only, fixed monthly, or full principle and interest?)
  • What are the loan forgiveness options available? 

Borrower Perks

  • Are there any autopay discounts available? 
  • Discounts based on GPA or grades?
  • Are there co-signer release options available after a certain timeframe or payments?
  • Are there any unemployment protections?

 

Private Loan Certification Process

The certification of private loans can take 2 to 3 weeks to finalize depending on the completion of the steps below. We recommend that students apply for a private loan at least 1 month prior to the start of their given term.
  1. Complete the Application steps for your program (if applicable)
  2. Research lenders based on your situation (past due balance, below-half-time enrollment, last semester in school, etc.)
  3. Once you select a lender, discuss your specific eligibility with your chosen lender before applying to ensure that you qualify for funding and disbursement
  4. When you have an approved loan, notify our office by completing the Private Loan Certification form.
  5. Our office will work with you to finalize your financial aid offer letter up to your cost of attendance.
    1. This means that we can only certify your private loan up to the cost of your attendance based on enrollment and other aid accepted.
  6. Private loan certifications take 2 to 3 weeks to finalize. Once your loan has been certified, you will receive a confirmation email.

Private Loan Disbursement

  • Final private loan funds eligibility are subject to a combination of your lender's eligibility criteria, cost of attendance, Satisfactory academic progress, and enrollment.
  • Private loans can only be certified for one academic year at a time
  • Depending on certification, the disbursement of private loans typically lines up with the loan period of your enrolled term and will disburse along other accepted aid (if applicable)
  • When a private loan is certified during an active term, there is a right to cancel period of 7 to 10 business days prior to disbursement

Refunds

You can request a refund online via CAESAR:Navigate to: CAESAR > Main menu > Student Financial Services > Request a Refund.

Note that, for most programs, credit account balances are not automatically refunded; they must be requested for each applicable term. For additional assistance contact Student Finance.

Returning Private Loan Funds

To return private student loan funds that appear as a credit on your Northwestern account, email our office from your Northwestern email account and iinclude:
  •   Your student ID number, name of loan and indicate the exact amount you wish to return to your lender. 
To return private student loan funds that have paid out to you as a refund within an active term of enrollment:
  • You must first make a payment to your student account via CAESAR for the amount you want to return (no more than what originally paid out)
  • Once an official credit appears on your account in CAESAR, email our office from your Northwestern email account and include:
    • Your student ID number, name of loan and indicate the exact amount you wish to return to your lender. 

Preferred Lender List

The loan programs and lenders listed here are provided to help you in your search for an educational student loan.

  • You are not required to borrow solely from these options and you are encouraged to explore other available options to you via your own network, bank or credit union. 

The lenders included in our Preferred Lender list were selected via a Request for Information (RFI) process and selected lenders were required to submit an RFI documenting the terms of their loan programs. Those chosen were based on a review of competitive interest rates, fees, quality of service and borrower benefits. To apply for a loan, please contact the lender directly.

Full Time Status Options

Each lender has their own requirement on eligibility criteria and enrollment status (half-time, less-than-half-time, or full-time) within a given term of study will determine your eligibility for that loan. Lenders in this section provide funding for students enrolled in full-time status. 

 

International Students (US Co-signer) Options

  • Most lenders require that students reside in the United States at the time of disbursement
  • Lenders require an I-20 to apply (these type of loans might not be a good option for new students)

Lenders

Kellogg Full-time and EMBA International Students

The NU loan has an option for Kellogg Full-time and EMBA international students to apply for an NU loan with an international co-signer. For the NU international loan (option A & option B) it is a need based loan. For consideration to apply for this loan, applicants must complete:

  • The Kellogg Financial Aid application steps (academic year specific)
  • The NU loan application (academic year specific)
  • Once Completed, the Kellogg Financial Aid Office will review your completed application for aid eligibility and the Student Finance office will review your loan application. 

International Students (No Co-signer) Options

Half-Time Status Options

Half-time eligibility is determined by your specific program of study. Each lender has their own requirement on eligibility criteria and enrollment status (half-time, less-than-half-time, or full-time) within a given term of study will determine your eligibility for that loan. 

Less than Half Time Status Options

Less-than-half-time eligibility is determined by your specific program of study. Each lender has their own requirement on eligibility criteria and enrollment status (half-time, less-than-half-time, or full-time) within a given term of study will determine your eligibility for that loan. 

 

Non-Degree/Certificate Programs Options

Past Due Balance Options

Students who are looking to use a private loan to cover a recent past due balance should consider their lender's eligibility criteria before applying. A student may qualify based on the timeframe of the past due loan but may not meet other criteria (i.e. if you have a past due balance less than 180 days but you were enrolled in less than half time status). Before applying consider the following:

  • When is the past due balance from?
  • Does your enrollment status meet your lender's criteria? 
  • Did you meet Satisfactory Academic Progress?

Lenders 

Bar Loan Loan Programs

Residency & Relocation Options

Northwestern University's Office of Financial Aid adheres to the Code of Conduct as established by the Higher Education Opportunity Act as well as the National Association of Student Financial Aid Administrators' (NASFAA) Statement of Ethical Principles and Code of Conduct for Institutional Financial Aid Professionals. View Northwestern’s Financial Aid Code of Conduct Policy.