Overview

MWU Loan is funded through the Midwestern University Foundation and serviced by ECSI, under the supervision of Midwestern University. It is intended to provide an additional source of assistance after students have used other available sources of federal, state, and institutional grants and loans (excluding PLUS or Grad PLUS Loans).

Interest

The MWU Loan carries a fixed rate as determined by the disbursement period below:

• 6.0% for loans originated, with a first disbursement, between April 1, 2014 and June 30, 2018
• 6.1% for loans originated, with a first disbursement, between March 1, 2019 and June 30, 2020
•  4.45% for loans originated, with a first disbursement, after July 1, 2020
• 5.25% for loans originated, with a first disbursement, after July 1, 2021

The interest begins to accrue from the date of first disbursement of the loan funds. You can elect to make interest payments while you are in school and during your grace period, or you can pay the interest off before it is capitalized. Any unpaid interest will be capitalized (added to the principal) when you enter repayment at the end of your grace period. The loan offers a 0.25% interest rate reduction for automatic debit (ACH) enrollment.

Grace Period

The loan has a six month grace period that begins at the time you leave school.

Repayment of Principal and Interest

The repayment of principal and interest begins in the seventh month after the last day of attendance or separation from your program of study. The minimum monthly payment is $100.00. There is no penalty for pre-payment. The MWU Loan cannot be consolidated with Federal student loans. The MWU Loan offers three repayment plan options, allowing you to select and change plans to best meet your needs. If you do not make a selection, you will be automatically enrolled in the Standard (10-year) Plan. You can switch from one plan to another once per year, as long as the maximum term for the new plan is longer than the amount of time your loans have already been in repayment.

Cosigner Release

A cosigner may be released from the MWU Loan at the written request of the borrower, if all of the following criteria are met:

• At least 48 consecutive, on-time payments of principal and interest have been made on the MWU Loan.
• The borrower has a FICO score of at least 750 and meets all of the basic financial and supplemental financial eligibility criteria on his/her own.
• The borrower has an adjusted gross income of at least $75,000.

Deferment and Forbearance

The MWU loan offers a variety of deferment and forbearance options for those that qualify. Most deferments are not automatic. You must re-apply 30 days prior to the end of that 12-month period.

Deferment: A period of time in which the repayment of the principal and interest of a loan is temporarily delayed. Interest will continue to accrue. You must continue making scheduled payments until you are notified that the deferment has been granted. Situations when you may apply for deferment are:

• During a period of at least half-time enrollment at an eligible school.
• While you are in a full-time course of study in an approved graduate fellowship program or in an approved full-time rehabilitation training program for the disabled.
• During a period of unemployment. You must be diligently seeking, but unable to find, full-time employment.
• During a period of economic hardship (includes Peace Corps service).
• During a period of active duty military service during a war, military operation, or national emergency.
• During the 13 months following the conclusion of qualifying active duty military service, or until you return to enrollment on at least a half-time basis, whichever is earlier, if:
  • you are a member of the National Guard or other reserve component of the U.S. armed forces and,
  • you were called or ordered to active duty while enrolled at least half-time at an eligible school or within six months of having been enrolled at least half-time.

Keep in mind that during deferment any unpaid interest is capitalized and added onto the principal balance when the loan comes out of deferment.

Forbearance: A period of time that temporarily allows you to stop making payments on the loan, to temporarily make small payments, or extend the time for making the payments while experiencing personal or financial difficulties. Interest will continue to accrue during the forbearance. You must continue making scheduled payments until you are notified that the forbearance has been granted. If your loan was cosigned, you and the cosigner must complete and sign all applicable sections in the forbearance form. Forbearance is not automatic, if more time is needed you and the cosigner must re-apply. Forbearance may be granted if:

• You are servicing in an approved internship or residency program and meets specific eligibility requirements.
• The total amount owed each month for all your students loans (of any type) received by you is 20 percent or more of your total monthly gross income (additional conditions apply).
• You are a member of the National Guard and have been activated by a governor, but you were not eligible for a military deferment.

Keep in mind that during forbearance any unpaid interest is capitalized and added onto the principal balance when the loan comes out of forbearance.

Deferment/Forbearance Request Forms

Your completed forms and supporting documentation must be submitted to Student Loan Administration at MWU.