Types of Adult Undergraduate Aid

Federal Pell Grant

A Federal Pell Grant, unlike a loan, does not have to be repaid. The FAFSA determines your eligibility for a Pell Grant. The grant amount you qualify to receive depends on your financial need, costs to attend school, status as a full-time or part-time student, and plans to attend school for a full academic year or less. Not all students will qualify to receive a Pell grant.

Federal Direct Loans

Direct Loans, from the William D. Ford Federal Direct Loan Program, are low-interest loans for eligible students to help cover the cost of higher education at a four-year college or university, community college, or trade, career, or technical school. Eligible students borrow directly from the U.S. Department of Education.

Federal Direct Loans include the following types of loans:

  • Subsidized Loans—Subsidized Loans are for students with financial need. NWU will review the results of your FAFSA and determine the amount you can borrow. You are not charged interest while you’re enrolled at least half-time. See current interest rate to view a chart on the rates the Department of Education offers. The Department of Education charges a small fee to originate the loan.
  • Unsubsidized Loans—You are not required to demonstrate financial need to receive an unsubsidized loan. Like subsidized loans, NWU will determine the amount you can borrow. Interest accrues on an unsubsidized loan from the time it’s first disbursed. You may pay the interest while you are in school and during grace periods and deferment or forbearance periods, or you can allow it to accrue and be capitalized and added to the principal of your loan. See current interest rate for information on current rates. The Department of Education charges a small fee to originate the loan.

More details about the amount you may qualify to borrow can be found on the Direct Loans website. The amounts differ for dependent and independent undergraduates. For additional information, please review the Adult and Graduate Financial Aid Program (PDF).