Midwestern University Foundation announces new loan deferment option
The Midwestern University Foundation recently announced a new loan deferment plan for all student borrowers of its loan program. To provide relief during the COVID-19 national emergency, student borrowers of the Midwestern University Foundation Loan Program are automatically being placed in an administrative forbearance, which allows all borrowers to temporarily stop making monthly loan payments, including both principal and interest.
This suspension of payments began on May 1, 2020 and will last until October 31, 2020. All borrowers can still make payments if they choose.
During the period of zero-percent interest (May 1, 2020, through Oct. 31, 2020), the full amount of a student borrower's payments will be applied to principal once all the interest that accrued prior to May 1, 2020 is paid. Loans that are originated or disbursed during the May 1, 2020 to Oct. 31, 2020 period will automatically be placed in the administrative forbearance and no interest will accrue until after Oct. 31, 2020.
"This period of interest and principal payment relief will provide our student borrowers, who have been impacted by the current public health crisis, a chance to focus on their immediate needs and not be concerned with loan payments coming due. It will also allow student borrowers, who continue to make payments, a unique opportunity to take advantage of a period of zero interest to meaningfully reduce their student debt," said Kathleen H. Goeppinger, Ph.D., President and Chief Executive Officer of Midwestern University.
The Foundation Loan provides certain eligible full-time Midwestern University students, who apply and meet the qualifications, with an alternative to the Federal Grad PLUS loan program to finance their graduate education.
The Midwestern University Foundation also recently announced it is reducing the interest rate on the Foundation Loan to 4.45% for all loans that are originated and have a first disbursement after July 1, 2020. The program also offers a further 0.25% reduction in interest for students who maintain an active ACH (Automated Clearing House) account for payments, thereby reducing the effective rate to 4.20% while in repayment.
In addition, the Midwestern University Foundation Loans continue to have no origination fees. Midwestern University is home to more than 7,000 students on its two campuses in Downers Grove, IL and Glendale, AZ.