Loans are typically a large part of the average financial aid package; however it is up to the student to decide how much they need to borrow based on their own individual financial situation. This year, the full amount will be processed. You may request less than the amount listed on your award letter by e-mailing the amount you wish to borrow to email@example.com.
Please remember the financial aid package is based on one academic year at a time. The package represents the aid that you are eligible to receive during the current academic year and you can apply for additional aid the following academic year by filling out a renewal FAFSA. An academic year is defined as August-July for Financial Aid purposes at NNU.
Currently there are two Federal Loans available, subsidized and unsubsidized.
Subsidized means the interest on the loan is paid by the government while the student is enrolled at least half time. No interest or principle payments are required until six months after the student graduates, withdraws from school, or drops below half-time status. Ability to participate in this program is determined by FAFSA results, which calculate your need.
Unsubsidized means interest is accruing continuously from the day the funds disburse. You can choose to pay the interest while enrolled or defer it and add it to the principle of your loan, as long as you are attending at least half time. If you do not qualify for the subsidized limit, students may receive an unsubsidized loan to make up the difference. Fees of 0-3% are withheld from the borrowed amount by the lender or guaranty agency. However, the student must repay the full loan amount.
Federal Direct Loan
The Federal Direct Loan is available through the William D. Ford Federal Direct Loan Program to help pay for educational expenses. The Office of Financial Aid awards subsidized or unsubsidized loans, or a combination of both, based on financial need. The table below shows limits on subsidized and unsubsidized loans for both dependent and independent students.
Federal Direct Student Loan Limits
|Year in School||Dependent (Subsidized)||Independent (Subsidized)||Dependent (Additional Unsubsidized)||Independent (Additional Unsubsidized)|
Rates, Fees and Terms
|Loan Type||Student Grade Level||2015-2016
Fixed Interest Rate
(first disbursed after 10/1/2015)
Fixed Interest Rate
(first disbursed after 7/1/2016)
(first disbursed after 10/1/2016)
|Direct Subsidized Loans||Undergraduate Students||4.29%||1.068%||3.76%||1.069%|
|Direct Unsubsidized Loans||Graduate / Professional Students||5.84%||1.068%||5.31%||1.069%|
|Direct PLUS Loans||Parents of Dependent
Undergraduate Students and Graduate / Professional Students
Parent PLUS Loan
The PLUS Loan is for parents borrowing on behalf of dependent students. The PLUS loan is in the parent's name and cannot be transferred to the student. A parent can apply for a Direct parent loan on the web at www.studentloans.gov using the parents PIN number. Approval for this loan is based on a simple credit check.
The amount you may borrow annually is determined by subtracting the financial aid awarded to the student (including any loans) from the total costs of attendance determined by the school. There are no annual borrowing limits set by the federal government. However, the amount you can borrow may be impacted by creditworthiness. Please refer to the award letter sent to your student by the NNU Office of Financial Aid to determine the amount of PLUS loan you may need to borrow.
Parent borrowers must:
- Be borrowing on behalf of a dependent undergraduate student;
- Be either a U.S. Citizen, U.S. National or eligible non-citizen;
- Not be in default on any education loan or owe a refund on any education grant;
- Not have an adverse credit history as defined by the Department of Education.
The PLUS loan fixed interest rate is:
- 6.84% until June 30, 2016
- 6.31% on July 1, 2016
The PLUS loan origination fee is:
- 4.272% until September 30, 2016
- 4.276% on October 1, 2016
The origination fee goes to the federal government to offset program costs, the remaining amount is sent to the school. These loan funds are electronically disbursed in two disbursements (one in fall and one in spring) directly to the school and posted to the student's account. Even though a fee is deducted, parents are responsible for repaying the entire loan amount. Loan terms vary based on total amount borrowed. Re-payment of this loan begins within 60 days of the final disbursement unless the parent borrower has requested deferment. If a parent is denied the PLUS, the student automatically becomes eligible for additional unsubsidized loan funds.
Sallie Mae Parent Loan
The Sallie Mae Parent Loan is a private educational loan that is an additional option for parents or other creditworthy individuals (including spouses, family members, and guardians) to consider when financing all or part of a student's undergraduate or graduate education. Private student loans can help cover the rest of a student's college costs after institutional aid and federal grant and loan aid has been applied.
Sallie Mae Parent Loan interest rates:
- Variable from 4.00% to 10.37%
- Fixed from 5.74% to 12.87%
If you need additional funding to supplement your financial aid package, alternative student loans are an option. Alternative loans are private loans offered by lending institutions. They are not part of the federal government’s Direct Loan program.
We encourage you to first file the Free Application for Federal Student Aid (FAFSA) to be considered for all other available aid programs before pursuing alternative loans. Our office strongly encourages you to first utilize any grants, scholarships, work study employment and federal student loan eligibility before considering alternative loans. The interest rates and repayment terms with alternative loans are generally less favorable than those of the federal student loan programs.
Northwest Nazarene University does not recommend any specific lenders for private alternative loans. If you decide to utilize an alternative loan, we recommend comparing the loan products and lenders to find the best interest rate and repayment options for your situation. Please remember that you will have to pay back these loans with interest, so only borrow what you need.
NNU uses ELMSelect as an online, lender-neutral platform to display a historical list of lenders and education loan products that our students have used over previous years. These lenders have not been ranked and are presented in no particular order.
For Federal Direct Student Loan Programs, loan repayment begins six months after you graduate, withdraw, or drop below half-time status for the loans you have borrowed while attending NNU. The exact schedule and amount of your repayment will not be known until your loan repayment begins. Check with the Department of Education for more information and loan repayment calculators to assist you in estimating your monthly payment.
If you had student loans prior to attending NNU, please be aware that you may have already used your six month grace period for those loans. As soon as you graduate, withdraw, or drop below half-time status and even possibly with half-time status if you do not have a new loan for that year, you can enter repayment on those prior loans immediately.
For loan deferment options, it is best to contact the U.S. Department of Education. If you are unsure who your lender is, please sign into www.nslds.ed.gov using your FSA ID or contact the Office of Financial Aid. This website will only show your federal student loan and grant history and does not include any alternative or outside loans you may have borrowed.
The United States Government through the Office of Education has made funds available for several Federal Grant Programs. Available funds are allocated on the basis of greatest financial need to applicants filing by the designated dates. Because such need is a confidential matter between the family and the college, public announcement of the amount of grant awards is not made.
Federal Pell Grant
All undergraduate students are urged to apply for the Pell Grant. Eligibility is determined by filing the Free Application for Federal Student Aid (FAFSA). The U.S. Department of Education will e-mail a confirmation that your FAFSA information has been received. You can then check your Student Aid Report (SAR) at the same website where you completed your FAFSA (www.fafsa.ed.gov).
Federal Supplemental Educational Opportunity Grant
Federal Supplemental Educational Opportunity Grants (FSEOG) provide assistance to undergraduates with no prior undergraduate degree and who demonstrate exceptional need. Application for this type of financial aid is done by filling out and submitting the Free Application for Federal Student Aid (FAFSA). Basic eligibility requirements must be met, as determined by the federal government. The amount of the award is based on the expected family contribution and the availability of funds. These grants are given only to those students who are awarded Pell Grants. The maximum FSEOG award at Northwest Nazarene University is $200.
If a student withdraws from all courses during a semester, regardless of the reason, federal regulations require Northwest Nazarene University (NNU) to determine the amount of Title IV Federal aid that the student has earned. The Title IV aid programs that are covered by this law are: Federal Pell Grants, Direct Loans (both subsidized and unsubsidized), Direct PLUS Loans, Federal Supplemental Educational Opportunity Grants (FSEOGs), Federal Perkins Loans, TEACH Grants, and Iraq and Afghanistan Service Grants.
Though a student’s aid is posted to their account at the start of each period, funds are earned as the student completes the period. If a student withdraws during their expected term of enrollment the amount of Title IV aid that the student has earned up to that point is determined by a specific formula. If the student received more assistance than has been earned at the time of withdrawal, the excess funds must be returned by the school and/or by the student to the federal government. This is referred to as a Return to Title IV (R2T4).
Federal regulations require a recalculation of financial aid eligibility if a student:
- officially withdraws from all courses for the semester;
- stops attending before the semester ends without officially withdrawing;
- fails all classes and/or;
- does not complete all the sessions for which they were originally registered for in a period of enrollment.
Students who do not begin attendance in classes are not eligible for federal financial aid and must repay any federal assistance originally received.
The R2T4 calculation may result in the student and/or parents being responsible for directly returning additional loan amounts to the U.S. Department of Education.
Any amount of unearned grant funds that must be returned is called an overpayment. The maximum amount of a grant overpayment that must be repaid is half of the grant funds received or that were scheduled to be received. Grant overpayments of $50 or less do not need to be repaid. Arrangements can be made through NNU or the U.S. Department of Education to return the unearned grant funds.
Determining the Amount of Federal Aid Earned
Students earn the Title IV Federal aid they originally received by remaining enrolled in and participating in all classes for which they are registered. Participation may be through physical attendance or active participation such as submission of homework or participation in course discussions for online courses.
The amount of federal aid that has been earned is determined on a pro rata basis. For example, if 30% of the period of enrollment has been completed prior to withdrawal, the student has earned 30% of his or her aid, but has not earned the remaining 70%. Return of Title IV funds are based on this 70% unearned percentage.
Once a student has attended 60% of the semester for which he or she is registered, the student is considered to have earned all of the financial aid originally awarded and will not be required to return any funds.
If the student received (or the student’s parent received on their behalf) excess Title IV program funds that must be returned, NNU must return an amount equal to the lesser of:
- the student’s institutional charges multiplied by the unearned percentage, or
- the students Title IV program assistance multiplied by the unearned percentage.
Post-Withdrawal Disbursement of Title IV Funds
If a student does not receive all of the funds earned, the student may be due a post-withdrawal disbursement. Prior to disbursal of a post-withdrawal disbursement, the student must provide NNU with permission to do so. The student may choose to decline some or all of the loan funds so that no additional debt is incurred.
NNU is entitled to use all or a portion of the student’s post-withdrawal disbursement of grant funds for tuition, fees, and room and board charges. NNU must be provided with permission from the student to use the post-withdrawal grant disbursement for all other school charges. If the student does not give NNU the requisite permission, the student will be offered the funds; however, this will result in a balance due to NNU.
For Students Enrolled in Modules
A student is considered withdrawn if the student does not complete all of the days in each session that the student was originally scheduled to complete. NNU tracks enrollment in each session that does not span the entire fall, spring, or summer semester and combines the sessions to determine the students expected period of enrollment.
NNU determines if a student enrolled in a series of modules is a withdrawal and subject to recalculation of federal financial aid eligibility based on the following questions:
- After beginning attendance in the period of enrollment did the student cease to attend or fail to begin attendance in a course he or she was scheduled to attend? If the answer is no, this is not a withdrawal.
- Was the student still attending any other courses when the student ceased to attend or failed to begin attendance in a course? If the answer is yes, this is not a withdrawal.
- After ceasing to attend or failing to being attendance in a course did the student confirm with NNU that they will be attending a course in a session beginning later in the enrollment period? If the answer is yes, this is not a withdrawal.
If the answer is no, this is a withdrawal and the R2T4 calculation will be performed.
The requirements for Title IV program funds when a student withdraws are separate from the NNU refund policy. Therefore, a student who withdraws may still owe funds to NNU to pay for outstanding institutional charges. NNU may also charge a student for any Title IV program funds that the school was required to return.
To learn more about debt relief from the U.S. Department of Education, visit www.studentloans.gov. Never pay a company for debt relief services, as these services are provided for free by the U.S. Department of Education.
For eligible borrowers, these services include, but are not limited to:
- Lowering or capping monthly payments
- Loan forgiveness
- Loan consolidation
- Default advice
To view your federal student loan balances, visit the National Student Loan Data System at nslds.ed.gov.
For more information, please view the video below. (1:08)