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). 

Interest

The MWU Loan carries a fixed rate of 6% per annum. 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. 

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  

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:

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:

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.