Please note that the Part-Time MBA Program at the Kellogg School does not process the financial aid documentation for part-time students. Rather, the Northwestern University Office of Financial Aid on the Chicago Campus manages the qualifications and processing for part-time students. The Northwestern University Office of Financial Aid on the Chicago Campus provided this FAQ for applicants.
I don’t think I will qualify for financial aid. Should I apply anyway?
You should apply for financial aid if you will need assistance funding your program. After you have completed the financial aid application process we can determine your eligibility for need-based sources of aid such as the Subsidized Stafford loan as well as your eligibility for the Unsubsidized Stafford loan and the Graduate Plus loan which are awarded to eligible students regardless of financial need.
To qualify for federal financial aid students must meet the following requirements:
- Be accepted as a degree seeking student enrolled in a minimum of two units.
- Be a U.S. citizen or eligible noncitizen.
- Have a valid social security number.
- Register with the Selective Service if required.
- Certify that you are not in default on a federal student loan and do not owe money on a federal student grant.
- Be in compliance with federal financial aid guidelines concerning convictions for the sale or possession of illegal drugs.
How is the status of an eligible noncitizen defined?
The Department of Education defines an eligible noncitizen as someone who meets the following criteria:
A U.S. permanent resident who has an I-151, I-551 or I-551C permanent resident card
A person holding an Arrival Departure Record (I-94) from U.S. Citizenship and Immigration Services with any of the following designations:
- Refugee
- Asylum granted
- Parolee
- Victim of human trafficking T-Visa (T-2, T-3 or T-4) holder
- Cuban-Haitian entrant
- Conditional Entrant (valid only if issued before April 1, 1980)
Are grants and scholarships available?
Grant assistance is not available to students enrolled in the Kellogg School of Management MBA Program. Although the Kellogg Part-Time MBA Program does not offer grant assistance to students, there are a variety of scholarship programs offered through various civic and professional organizations, state agencies and private foundations. The following websites http://www.finaid.org and http://www.scholarships.com are just two of the free scholarship search engines available online.
What types of loans are available to students?
The federal government offers one need-based loan: the Subsidized Federal Direct Stafford. It also offers two loans for those who do not demonstrate financial need: the Unsubsidized Federal Direct Stafford Loan and the Federal Direct Graduate PLUS Loan. To participate in the federal loan programs you must meet the criteria for federal financial aid listed above.
Subsidized Federal Direct Loan
- Borrower: Students who demonstrate financial need.
- Lender: William D. Ford Federal Direct Loan Program
- Loan amount: Up to $8,500 annually, or the amount of need. (Whichever is less).
- Interest Rate: Fixed 6.8%. The federal government pays interest while the student is enrolled at least half-time or is in deferment.
- Fees: 0.5%*
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: Up to $20,500 annually (minus any Subsidized Federal Stafford Loan funding).
- 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%*
Federal Direct Graduate PLUS Loan
- Borrower: Graduate and professional students enrolled at least half-time. They do 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.
- Interest Rate: Fixed 7.9%
- Fees: 2.5%**
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.
Private Loan Programs
Private loans are usually offered to students that are enrolled less than half-time (below 2 one-unit courses) and international students. Students must complete the University Aid Application before we can process a private loan request. Private loans also require the completion of a separate loan application and are subject to lender credit approval. The interest rate on these loans is determined by the lender based on a variable index such as the Prime Rate or the London Interbank Offering Rate (LIBOR) plus a margin based on credit score and credit history. The interest rate on private loans is variable and interest will begin to accrue once the loan is disbursed. Additional information on evaluating private loans can be found at http://www.finaid.org/loans/privatestudentloans.phtml. Information on lenders offering private loans to students enrolled less than half-time or international students can be found at the Student Financial Services website.
What kind of financial aid is available for International Students?
International students interested in financial aid are offered private student loans. Of the private loan programs that we are aware of, all require a U.S. cosigner for international students. The interest rate on these loans is determined by the lender based on a variable index such as the Prime Rate or the London Interbank Offering Rate (LIBOR) plus a margin based on credit score and credit history. The interest rate on private loans is variable and interest will begin to accrue once the loan is disbursed. Additional information on evaluating private loans can be found at http://www.finaid.org/loans/privatestudentloans.phtml. Please reference the private loan section above for additional information on private loans.
When should I apply for financial aid?
Candidates should apply for financial aid only after they receive an offer to the Kellogg School of Management Part-Time MBA Program. Please check the financial aid application deadlines found on the Chicago Office of Financial Aid Web site at: chicagofinancialaid.northwestern.edu. Continuing Students will need to re-apply for financial aid each Spring.
Can I still apply for financial aid though I plan to participate in my employer’s tuition reimbursement program?
Students participating in their employer’s reimbursement program can still apply for financial aid. Federal guidelines require that we take into consideration outside resources such as tuition reimbursement when determining your award. Please be advised that the amount received in employer reimbursement will impact the amount that we are able to offer in the form of student loans.
Besides financial aid what other tution payment options are available?
The following payment methods are available to Kellogg School of Management Part-Time MBA students:
- A check or money order made payable to Northwestern University can be mailed to the Student Finance Department at 710 N. Lake Shore Drive, Chicago, IL 60611.
- A credit card (American Express, Discover and MasterCard) payment can be made online via the QuickPay system. A 2.75% service fee is assessed on all online credit card payments. Students can access the QuickPay system by selecting the E-Bill and E-Payment link located on the homepage of their CAESAR account.
- In person credit card payments (Visa/MasterCard only) can also be made at the Part-Time MBA Program office. A schedule of dates and times when payments can be submitted is available on the Tuition Payments/Financial Aid section of the Part-Time MBA Student Intranet.
How is financial need determined?
There are several components taken into consideration when determining a student's financial need. A student's Expected Contribution is determined by information provided on the FAFSA. The Expected Contribution is then subtracted from the student's cost of attendance, which is an estimate of the expenses a student will incur during the academic year. The end result is the student's financial need.
How much of my tuition cost will my financial aid cover?
The Office of Financial Aid typically offers students financial aid to cover tuition and books. Your financial aid award will consist of your student loans and any outside resource, such as employer reimbursement, that you may receive. Please be advised that the amount received in employer reimbursement will impact the amount that we are able to offer in the form of student loans.
How do I pay for books?
If your financial aid application was completed by the deadline date and you borrowed funds in excess of tuition, the remaining funds will be available to you for a refund after the first day of classes each term. Once the loans have posted to your student account, you can request a refund of the credit balance that can be used to pay for books.
If your application for financial aid was completed after the deadline date, you will be expected to use your own funds to pay for books and reimburse yourself after loans have posted to your student account.
How many classes are required to qualify for federal loans?
Students must enroll in two full units per term/quarter in order to be eligible for federal loans.
What happens if I enroll in only one unit?
Students enrolled in only one unit are not eligible for federal loans but may apply for a private loan to cover tuition costs and books. Please reference the private loan section above for additional information on private loans.
How are loan funds disbursed?
Loan funds are disbursed to Northwestern University at the start of classes each term and will be applied to any charges (i.e. tuition) on your student account. If you borrow funds in excess of tuition, the remaining funds will be available to you for a refund after the first day of classes each term. You will be responsible for any charges not covered by your loan funds.
Does academic performance impact my ability to continue to receive financial aid?
Federal and state regulations require that recipients of federal financial aid maintain satisfactory academic progress in their program of study. It is the University's expectation that students will make progress towards completion of the degree in which they are enrolled. These requirements apply to part-time as well as to full-time students for all terms of enrollment within an academic year, including those terms for which no financial aid was granted.
Satisfactory Academic Progress for federal financial aid purposes is reviewed at the end of each academic year. Students who do not meet Satisfactory Academic Progress are placed on probation for the next term of enrollment. Students placed on Satisfactory Academic Progress Probation can receive federal financial aid for the probation term, but must demonstrate satisfactory progress during that term to be released from probation and to receive federal financial aid for the following term.
What happens to my loans if I decide to withdraw from one or both of my classes during a term?
If you withdraw from one or both courses during a term in which federal loans have been disbursed, loan funds will be returned if 60% of the term has not elapsed. You will be responsible for paying any resulting tuition balance using your own funds.
Are there programs available that will allow me to reduce my loan debt after graduation?
Yes. The Collins Family Loan Assistance Program is open to all Kellogg graduates. This program assists eligible graduates entering careers in the public and nonprofit sectors by paying a percentage of their student loan debt during the time they are employed fulltime in a low-salaried position in the public or nonprofit sector. Click here for additional information on this program
The federal government offers the Public Service Loan Forgiveness program designed to reduce or cancel federal loan debt for qualified applicants working in the public sector. Additional information on this as well as other federal loan forgiveness programs can be found here.
What types of tax benefits are available for educational expenses?
The following tax benefits are available to help students reduce their educational costs: the Hope Scholarship, Lifetime Learning Tax Credit, Tuition and Fees Deduction and the Student Loan Interest Deduction. The following link will direct you to additional information on each benefit: http://www.northwestern.edu/sfs/tuition/tax_information.html. In depth information on program requirements can also be found in IRS Publication 970 available at www.irs.gov.
When will I be expected to begin repayment on my federal loans?
Repayment on your Federal Stafford loans will begin after you are no longer enrolled at least halftime and a six month grace period has elapsed. You can expect to begin repayment on your Graduate PLUS loan 45 days after you are no longer enrolled at least halftime. Though the Graduate PLUS loan does not have a six month grace period, students may request a six month forbearance so that repayment on their Graduate PLUS loan will start at the same time as their Stafford loan repayment.
What repayment plans are available for my federal loans and what type of monthly payment can I expect?
Students entering repayment on their federal loans can chose from the following payment plans:
Standard Repayment Plan
Under this plan the borrower will make fixed monthly payments for up to 10 years. The minimum monthly payment amount is $50. This plan may be good for borrowers who can manage larger monthly payments and want to repay the loan quickly.
Graduated Repayment Plan
Under this plan the borrower will make lower monthly payments initially with payment amounts gradually increasing every two years. The borrower has up to 10 years to repay the loan. This plan may be good for borrowers who expect their income to increase steadily over time.
Extended Repayment Plan
To be eligible for this plan the borrower’s federal loan debt must be greater than $30,000. The borrower should also have no Direct Loan balance as of October 7, 1998. Under this plan the borrower will make lower monthly payments based on fixed annual or graduated repayment amounts and will have up to 25 years to repay the loan. This plan may be good for borrowers needing smaller monthly payments. This plan extends the repayment period of the loan resulting in more interest being paid.
Income-Contingent Repayment Plan
Under this plan the borrower’s monthly payments will be adjusted annually based on their adjusted gross income. The maximum repayment period is 25 years. At the end of the 25 year period the unpaid balance is discharged. The student may be taxed on the discharged amount.
Income-Based Repayment Plan
Under this plan monthly payments are based on income and family size. The borrowers must be experiencing a partial financial hardship when selecting this plan. The maximum repayment period is 25 years.
Click here for a loan calculator where you can estimate your monthly payment amount under each plan.
