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AZ/IL: Midwestern University Foundation Launches Cost-Saving Private Loan Program to Help Students Reduce Debt

July 01, 2015

by Office of Communications

The Midwestern University Foundation has launched a new loan program for its graduate health professions students, which will reduce costs to borrowers and help them better manage their educational debt.

Through the Glendale Industrial Development Authority and the Illinois Finance Authority, the Midwestern University Foundation has issued $30 million in tax-exempt revenue bonds to create this innovative program. The loans will be available exclusively to third- and fourth-year students in the University's graduate programs of dental medicine, pharmacy, optometry, veterinary medicine, and the health sciences at its two campuses in Glendale, AZ, and Downers Grove, IL.  These loans will have no origination fees for the students and offer a lower fixed interest rate (currently 6%) than that available to students who borrow funds from the Federal Direct Student Loan Grad Plus Program.

"This private student loan program is one way that Midwestern University is working to find solutions to providing less-expensive borrowing options for our students," emphasized Kathleen H. Goeppinger, Ph.D., Midwestern University President and Chief Executive Officer. "We are proud of the favorable rating on our bonds, which reflects the success of our academic programs and of our graduates."

Standard & Poor's has rated the Foundation's Senior bonds for this program as "AAA," based on the Foundation's strong track record in the student loan business. The Foundation has backed up its lending performance by contracting with MeasureOne, an independent firm, to analyze the loans of students who attended Midwestern University between 1995 and 2015. The historic low default rate of Midwestern graduates has resulted in the favorable bond ratings for the Foundation.

This private student loan program is one important way that Midwestern University is working with its students to reduce their debt burden. The University's Office of Financial Aid provides a series of programs to educate students about strategies to limit their borrowing while they are in school. The University offers Financial Literacy Scholarships to recognize students who are successful at debt management, as well as many privately funded scholarships that are awarded to students for community service and academic excellence. Midwestern University is home to more than 6,000 students on its two campuses, with 10 colleges and 25 degree programs.

Read the Phoenix Business Journal's interview with Dr. Goeppinger about this new program.

More Information

For more information, please contact:
Office of Communications
630.515.7333 (IL) or 623.572.3353 (AZ)