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Financial aid at Northwestern:
Dispelling the Myths

Please note: The information below is for U.S. citizens and U.S. permanent residents. International students should click here.

We know that the financial aid process is surrounded by myths, misconceptions, and fallacies. What you should know is that we work hard every day to dispel those myths and make a Northwestern education a reality for everyone we possibly can.

Eight myths about financial aid:

Middle-class families do not qualify for financial aid.

My parents will have to sell their home.

I'll graduate with significant debt.

I'll have to choose a major that will lead to a high-paying career, not necessarily one based on my passions.

I can't receive financial aid if I study abroad.

My family will be penalized because we saved for college.

When I reapply for aid after my freshman year, my Northwestern scholarship will go down.

If I work during the year, my grades will suffer.

MYTH: Middle-class families do not qualify for financial aid.
REALITY: Many middle-class families do qualify for financial aid. In fact, 42 percent of Northwestern Scholarship offers went to families making less than $60,000 a year; 26 percent to families making between $60,000 and $90,000; and 32 percent to families making over $90,000. Many factors besides income are considered when determining a financial aid package.
MYTH: My parents will have to sell their home.
REALITY: We don't expect anyone to sell their home. While home equity is one of the factors we consider in determining how much your family will be expected to pay, most of the parents' contribution is determined from income, not assets.
MYTH: I'll graduate with significant debt.
REALITY: Our 2005 graduating seniors who borrowed through federal student loan programs had an average debt of $18,362. Using the standard 10-year repayment term and the 6.8 percent fixed rate for Stafford Loans, this amounts to a monthly payment of $211. Of the 11 schools ranked higher than Northwestern in the 2006 U.S. News and World Report survey of colleges, only Harvard, Princeton, Yale, Stanford, and Cal Tech had lower average student debt levels.
MYTH: I'll have to choose a major that will lead to a high-paying career, not necessarily one based on my passions.
REALITY: Although there is evidence nationally that family finances and college costs play a major role in the selection of a major and a career (see Paying Back, Not Giving Back: Student Debt's Negative Impact on Public Service Career Opportunities by the Public Interest Research Group), Northwestern's need-based aid policy minimizes that role.
MYTH: I can't receive financial aid if I study abroad.
REALITY: Twenty-seven percent of our 2006 graduates studied abroad, and 50 percent of these students received Northwestern grant aid, which averaged $18,336. The University's need-based aid policy ensures that costs and family finances won't keep students from participating in this enriching educational experience.
MYTH: My family will be penalized because we saved for college.
REALITY: Not true. While it is one of the assets we look at, the impact of savings on the parental contribution from assets is usually relatively small. Families who have not saved at all will likely have to finance a larger portion of their family contribution. They will be making sacrifices in the future that you have made up front by saving.
MYTH: When I reapply for aid after my freshman year, my Northwestern scholarship will go down.
REALITY: Northwestern doesn't scale back institutional aid as students progress toward graduation. In 2005-2006, Northwestern scholarships for freshman, sophomores, juniors, and seniors averaged $19,300, $19,983, $18,468, and $18,672, respectively. The lower average in the junior and senior year reflect increases in family income and savings, not a reduction in Northwestern's commitment.
MYTH: If I work during the year, my grades will suffer.
REALITY: The mean GPA of our 2006 graduates who had taken out student loans was 3.41. The mean GPA of those who had earned wages through the Work Study Program was also 3.41. Students who work tend to have higher grades than those who do not. They also report many other benefits, from gaining valuable work experience to enjoying a deeper involvement in the campus community. Alumni regularly cite their experiences working on campus or off as having made very high or high contributions to their personal development.

Financing your education