<p>Ok, so I've heard a ton about NU capping loans at $20,000, but I'm not sure how accurate this is, because it seems way too good to be true. Does anyone who either attends the university or simply is an expert have the inside scoop on this??</p>
<p>It’s true, they’re capping loans at 20k meaning that all other financial aid you need will be covered with grants. Be careful though; this doesn’t mean that your debt after graduation is capped at 20k – you still have to pay your EFC without university help.</p>
<p>^ Not all of the non-loan financial aid will be grants - some of it will probably be work study. But a lot of it should be grants, which it nice.</p>
<p>This is only loans directly to the student. Parents may be offered a LOT more than the $20k in loans… They could easily end up with closer to $200k of debt.</p>
<p>Oh yeah thats right, grants + work study. If you’re lucky, you might get even the 20k in loans covered by the university too.</p>
<p>This cap is only for capping subsidized loans - the perkins loan and the subsidized stafford loan. It depends on the need of the student whether they qualify for subsidized loans or not. Unsubsidized loans are not included in the cap. </p>
<p>Beginning with the 2008-09 academic year, the University will cap federal need-based
loans (Federal Perkins loans and Federal Subsidized Stafford loans) at
$20,000 for students receiving Northwestern Scholarship assistance.
Students will receive additional scholarship assistance to replace approved loans
that exceed the cap. These additional funds will most likely be provided at the
beginning of the senior year and will be included in the financial aid award as the
“Debt Cap Scholarship”.</p>