Loan Repayment: MWU Loan

MWU Loan

MWU Loan is funded through the Midwestern University Foundation and serviced by Heartland 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). 


The program offers only fixed-rate loans. The fixed interest rate is currently 6% per annum from the time of disbursement. A 0.25% interest rate reduction is available if you enroll in active/permanent automatic debit (ACH) for your monthly payments.

Grace Period

Repayment of principal and interest begins 6 months after graduation or separation from your program of study. Payments can be made while enrolled in school and during the grace period.

Interest Capitalization

Accrued interest will be capitalized at the end of the in-school and grace periods, as applicable.

Repayment of Principal and Interest

The minimum monthly payment is $100.00. There is no penalty for pre-payment. This 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. 

Repayment Plan

Time Frame Monthly Payment Quick Comparison
Standard 10 years
(120 months)
Fixed, equal payments, subject to a minimum of $100.00 per month. Payments are calculated based upon the total amount borrowed. You will pay less interest overall with this plan.
Graduated 10 years
(120 months)
Payments start lower, then increase (generally, every 2 years) as you get further into repayment. You will pay more interest over time than you would under the Standard plan.
Extended 15 years  
(180 months)
Fixed, equal payments, subject to a minimum of $100.00 per month. You must have a minimum of $30,000.00 in outstanding MWU Loan to qualify. Payments are lower than the Standard plan, because they are spread over a longer term. However, you will pay more interest over time than under the Standard or Graduated plans.

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:

Deferment and Forbearance Criteria

The MWU loan offers a variety of deferment and forbearance options for those that qualify. Interest continues to accrue during deferment and forbearance, and must be paid (monthly, or as a lump sum) prior to the end of the deferment or forbearance period. All deferment and forbearance options are granted in increments of up to 12 months. You must reapply 30 days prior to the end of that 12-month period.

Deferment and Forbearance Options


Time Available Criteria
Active School Enrollment Unlimited Must be considered at least half-time student
Internship/Residency Up to 2 years Must be employed full-time by an approved employer
Active Duty Military Up to 3 years Serving as active duty military during a war, military operation, or national emergency. Or was 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
Economic Hardship Up to 2 years Must be granted economic hardship deferment for federal loans, or receiving federal/state public assistance, or working full time but considered below 150% of poverty guidelines
Forbearance Up to 3 years Granted when you are temporarily unable to make scheduled payments for reasons including (but not limited to) financial hardship and illness. Both borrower and co-signer are required to provide information on the forbearance request form.

Deferment/Forbearance Request Form
Your completed form and supporting documentation must be submitted to Student Loan Administration at MWU.    

Things You Should Know: