Types of Loans

Federal Perkins Loan
The Perkins loan is a low-interest (5%) need-based loan to help you pay for your education after high school, for both undergraduate and graduate students. You can receive up to $2,000 per semester - $4,000 per year as an undergraduate student, depending on availability of funds at the university. A graduate student may receive up to $3,000 per semester - $6,000 per year, depending on availability of funds. Repayment begins nine months after the student ceases to be enrolled at least half time.  

Federal Family Stafford Student Loans
A Stafford loan is a low interest loan made available to you by an approved lender to help pay for your education after high school. The interest rate has a cap set by the government. There are two kinds of Stafford loans. 

  • Subsidized
    A subsidized student loan is awarded on the basis of the student's financial need.  The federal government does not charge interest on these loans while borrowers are enrolled at least half-time, during a six-month grace period, or during authorized periods of deferment.
  • Unsubsidized
    An unsubsidized student loan is not based on the student's financial need.  Interest is charged throughout the life of the loan. The borrower may choose to pay the interest charged on the loan or allow the interest to be capitalized (added to the loan principal).

Stafford loan award amounts vary and depend upon your financial need (as determined by the federal government), grade level, and dependency status.          

Yearly Loan Limits:

Dependent      Classification                         Independent
$5,500             Freshman (0-29 hours)            $9,500
$6,500             Sophomore (31-59 hours)      $10,500
$7,500             Junior/Senior (60+ hours)       $12,500
                        Graduate/Professional            $20,500

Proration/Graduating Seniors
NSU must prorate the Federal Stafford Loan amount for an undergraduate who enrolls in only one semester as an undergraduate during the academic year and will graduate during the same academic year. The proration is based on a ratio of the number of hours enrolled during the semester divided by 24 hours multiplied by the applicable annual loan limit.

Life Time Loan Limits:

  • $31,000 as a dependent undergraduate student
  • $57,500 as an independent undergraduate student (only $23,000 of this amount may be in subsidized loans)
  • $138,500 as a graduate or professional student (only $65,500 of this amount may be in subsidized loans). The graduate loan limit includes any Stafford Loans received for undergraduate study.


Federal Family Plus Loan (NEW Information about Parent PLUS Loans - Please Read)
Parents of dependent undergraduates with a good credit history may receive PLUS loans. PLUS loan eligibility is not based on financial need. The loans are made regardless of income level. A parent may borrow up to the cost of education minus any other financial aid received. The interest rate has a cap set by the government. PLUS loan repayment starts 30-60 days after full disbursement.  A parent is currently defined as a person's natural or adoptive mother or father, step-parent, or legal guardian. Parents are required to pass a credit check. If for any reason the parent is denied a plus loan, the student may be eligible for additional Stafford loan funds.
Northwestern State no longer offers a "paper" PLUS Application, however, parents can contact lenders directly and they will be happy to assist with the PLUS process.  To start the Parent PLUS process, you may apply over the phone or online:  
        - Call to apply: 1-800-891-1410 
        - Apply online at: www.salliemae.com/nsulaplus

 

 


Alternative Loan
Students who do not qualify for federal financial aid, or who need additional funds beyond what federal financial aid can provide, have an option of applying for an alternative (private or non-federal) educational loan. Alternative loans are generally more expensive, and should only be considered if absolutely necessary. In most cases, the student applicant's credit and/or co-signer's credit must be approved by the lender. The eligible loan amount can be no greater than the Cost of Attendance minus all other Financial Aid.

You (and your co-borrower, if applicable) should carefully research the options and apply for the alternative loan that best suits your needs. Keep in mind that usually your best option is to pursue federal loans. Be sure you have applied for all of the federal loans you are eligible for before you consider private loans.

 

 

Choosing a Lender 

Preferred Lender List Selection Disclosure 
As a service to our student and parent educational loan borrowers, NSU has a list of lending institutions who we believe offer quality products, customer service,  and benefits with their federal and non federal loan products.  We encourage students to visit the lender websites and review their products and services.

The Loan Committee composes a list of lenders from our annual "Request For Proposals" (RFP) process in which lenders submit proposals for our consideration.  The main criteria we expect from lenders include the following:

  • Excellent customer service during processing and repayment
  • Competitive loan products and benefits including interest rates
  • EFT (electronic funds transfer)
  • Benefits to borrowers through the life of the loan
  • Default management

Each year the Loan Committee reviews and researches each proposal received to determine the final lender list.  The lender list is listed in alphabetical order and we have not received any incentives/inducements from any lenders.  If you are interested in a lender that is not on our preferred lender list, please contact our office so we can assist you and so you will have no delays.

Lender Comparison Charts
To compare the services of several lenders we work with on a daily basis, we have prepared these comparison charts so that you can make an informed decision when selecting your lender.  Choosing one of the following lenders will allow us to process your Stafford Loan or Parent Plus application electronically and receive the funds via electronic funds transfer (EFT).  These lenders are known for making quality service available to both the students and the universities they serve.

For those of you choosing to use a private loan lender, the following chart is provided to ease your decision making:

 

Master Promissory Note

To complete your Master Promissory Note (MPN), please select your lender and you will be directed to their online promissory note form:

The Master Promissory Note (MPN) is a contract with the lender that you, the student, must sign prior to your Stafford Loan being disbursed.  Electronically signing your MPN online will ease the process of applying for a Stafford Loan.  You will need to complete an MPN if you are a first time borrower, you change your lender, you are transferring schools, or if you cancel your promissory note.  You are encouraged to contact your lender about the status of your MPN, should you have any questions.

Please remember that while signing your MPN electronically speeds up the process, it can also cause you to lose track of the amounts you are borrowing, so please keep track of your loan amounts.

 

Entrance/Exit Counseling

As required by the Department of Education, all first time borrowers at Northwestern State must receive entrance counseling before receiving their first loan disbursement.  Additionally, all students that have previous loans must receive exit counseling before graduating, dropping below half-time, or resigning from the university.  These counseling sessions will provide you with important information about your loans.

To begin a counseling session, please click on one of the links below:

Entrance Counseling (click here)

Exit Counseling (click here)



Disbursement Rules

Effective Spring 2010 for Stafford Subsidized and Unsubsidized Loans:

Federal regulations state that if a student is in the first year of undergraduate studies and is a first time Stafford loan borrower, the school may not disburse the first installment of the loan until 30 calendar days after class begins.

Effective Spring 2010 for Stafford Subsidized and Unsubsidized Loans and Parent Plus Loans:

Federal regulations state that a single semester loan must be disbursed in two installments, the first half at the beginning of the semester and the second half may not be disbursed until midpoint of the semester.