Financial Support Upon Graduation

• The LAP is open to Kellogg graduates with financial need who borrowed U.S.-recognized financial aid loans while enrolled at Kellogg. These loans must have been certified by the Kellogg Financial Aid office. These loans include, federal, NU loans, or private education loans. Eligibility for this program is based on financial need. Need is defined as the cost of attendance minus the student's contribution and any scholarships or employer reimbursement. Please contact the Kellogg Financial Aid Office at finaid@kellogg.northwestern.edu if you have any questions.
• Kellogg alumni may participate in the program up to 10 years after graduation before their loan repayment schedules expire, provided they meet the income and employment requirements.
• Applicants must be current on loan repayments at the time of application and must be on the maximum length loan repayment schedule.
• Graduates who are eligible for and have received loan deferments or forbearance will not simultaneously be eligible for the LAP.
• Loan assistance will be terminated when individuals no longer meet the eligibility requirements listed below.

• Graduates employed by nonprofit organizations in the United States that are tax-exempt under sections 501 (c)(3), (4) or (6) of the Internal Revenue Code are eligible for the program.
• Employees of local, state or federal governments also are eligible.
• Recipients of the Kellogg Social Entrepreneurship Award are also eligible.
• To assist in the determination of eligibility, graduates working outside the U.S. for public or nonprofit organizations are required to demonstrate the legitimacy of their organization, either by producing certification from the organization’s host country or by demonstrating accreditation by an international organization.
• An applicant working abroad also must demonstrate how any cost of living allowances or stipends impact his or her ability to repay educational loans.

• A reasonable amount of assets will not disqualify an applicant for the LAP.
• A substantial amount of physical and financial assets (real estate excluded), however, may lead to a reevaluation of the candidate’s financial condition.

• Qualifying graduates with adjusted annual incomes of $125,000 or less are eligible for aid.
• Adjusted income is calculated as half of the combined spouse’s and alumnus’ salaries or alum’s salary if higher minus $5,000.00 for the spouse and $5,000.00 for each dependent.
• In order to ensure that all qualified applicants receive some support from the LAP, the maximum amount that an applicant may receive is up to $15,000.00 per calendar year with a maximum aid period of up to ten years’ maximum after graduation date if their monthly loan payments for their need-based loans borrowed while in attendance at Kellogg justify that level of aid.
• To further clarify, this program only includes education loans borrowed while in attendance at Kellogg that were considered financial need-based loans by the Kellogg Financial Aid Office when determining a students’ financial aid package.
• Kellogg’s LAP support for applicants with non-need based loans will be determined by a special committee. The total loan amount considered cannot exceed the cost of tuition.
• Support from Kellogg’s LAP is dependent upon availability of funds for each year.

1. Essay (1-2 pages) describing his/her background, involvement in the public/nonprofit/ngo sector as well as career focus
2. Personal income and asset statement
3. Summary of Kellogg educational debt
4. Federal income tax return
5. Verification of employment and salary level for the applicant sent by the employer directly to the Kellogg Office of Financial Aid
6. Verification of employment and salary level for the applicant’s spouse (if applicable) sent by the employer directly to the Kellogg Office of Financial Aid
7. Proof of employer’s nonprofit status or comparable documentation for nongovernmental organizations
8. Documentation (payment schedules) of need-based loans for both Kellogg School and non-Kellogg related loan obligations.

A. Disbursement

• Upon determination of eligibility, available funds will be distributed among eligible applicants. Due to the limited size of the LAP endowment, and depending upon the number of eligible applicants and available funds, applicants may receive less that the maximum amount possible under the program.
• Funds will be disbursed on a semi-annual schedule.
  
  • The first payment will be released between Feb. 15-Mar. 1, contingent upon proof of employment and salary level.
  • The second payment will be distributed on or about July 1 after the Kellogg Office of Financial Aid receives a complete tax return and May pay stub showing year-to-date income and current salary from the applicant.
• If the award recipient becomes ineligible during a year for which the LAP funds already have been disbursed, the recipient must repay the portion for which he or she has become ineligible. Therefore, award recipients are required to sign a promissory note for each disbursement, as if signing for an interest-free loan. The note will be canceled if the recipient remains eligible throughout the calendar year. If an applicant becomes ineligible once funds have been disbursed for the year, he or she must repay that year’s disbursement along with the balance of the educational debt. An applicant will become ineligible, and thus be required to repay his or her loan, under the following conditions:
  
  • The applicant completes repayment of the original educational debt.
  • The applicant leaves the qualifying employment
  • The applicant otherwise fails to comply with program requirements, including administrative procedures.
• When a graduate no longer qualifies for the LAP and has not repaid his or her entire educational debt, he or she will begin to repay the balance of the loan in the following calendar year. The details will be handled individually with the program administrator. The specific terms of repayment will be based on the applicant’s salary upon leaving qualifying employment, generally according to the following repayment schedule:

B. Loan Consolidation / Acceleration

• If the applicant has chosen to consolidate his or her student loans, the LAP payments will be based only upon the Kellogg-related portion of the consolidated payment schedule.
• LAP payments are based on the standard 10-year repayment option. If the applicant chooses to accelerate his or her payment, the LAP payments will remain at the 10-year repayment rate.

Kellogg’s Financial Aid Office will administer the program with input from an Advisory and Selection Committee. The Committee will review and evaluate the application in terms of the applicant’s income and debt levels with respect to the LAP’s objectives and available resources.

For more information, contact finaid@kellogg.northwestern.edu

For the KSEA Award:

• Clearly and concisely articulates how the venture’s proposed idea will address the root causes or create systemic social change
• States the theory or framework on which you base your premise of social change
• Outlines a three-year implementation and operational plan, including staffing for functions such as client outreach, funding, distribution and marketing
• Indicates tangible results to date, if any
• Defines how outcomes and success will be measured, and how this measurement is an established effective practice or new to the field
• Explains how scale and sustainable impact will be achieved
• Indicates the financing support plan
• Provides a financial model with at least a three-year projection
• Summarizes the management team’s strengths and areas of needed management expertise, regardless of whether the expertise is currently in place
• Identifies missing/needed resources and pathways to access them

• Is the venture self-sustaining?
• Will the venture create significant social impact?
• Does the venture address a root cause or deliver enduring benefit?
• Is the approach innovative, unique or a significant improvement to existing approaches?
• Does the leadership have a clear idea & implementation strategy? Can they execute?
• Is there a demonstrated viable scaling plan?
• Has the leader demonstrated commitment to the idea and venture?
• Is the leadership well-positioned for success?