Domestic Students
Student Loans 101
We expect that most students will take out a loan to fund their MBA, in combination with fellowship awards, external scholarships, and savings. Domestic students can apply for federal student loans, private student loans, or use a combination of both.
When you take out a student loan, you assume a legal obligation to repay the principal amount you borrow, plus interest, under a defined repayment schedule. The following information is provided to help in your financial aid planning. Please be aware that HBS is not able to endorse or promote specific loans or banking institutions.
Harvard University is committed to the highest standard of ethics and conduct, in all areas, including financial aid. Please review the Harvard University Student Loan Code of Conduct (pdf).
Trying to figure out how you’re going to afford your Harvard MBA can feel very scary…there are a lot of ways for you to get support as you decide how you want to finance your time at HBS.
Loans for Domestic Students
Federal Student Loan Programs
Federal student loans are available through the Federal Direct Loan Program. The two types of federal student loans are Unsubsidized Stafford Loans and Graduate PLUS Loans:
Unsubsidized Stafford Loans
Available to qualified students who are U.S. Citizens or U.S. Permanent Residents. They carry a fixed interest rate and a maximum loan amount of $20,500.
Graduate PLUS Loans
Available to qualified students who are U.S. Citizens or U.S. Permanent Residents. They carry a fixed interest rate, and the annual loan limit is based on cost of attendance minus other financial aid received.
Many students request a Stafford Loan first, because it usually carries a lower interest rate and loan fee. Students then apply for the Graduate PLUS Loan to make up the difference.
Private Student Loans
Private student loans come from financial institutions such as banks or credit unions.
Interest rates are often variable, which means your interest rate and payments can go up over time (although some lenders now offer variable and fixed rates for students).
Private student loans may be a good option if you have an excellent credit history and plan to pay off your loans quickly (usually within five years after graduation).
Repayment options may be less favorable compared to federal student loans.
The annual loan limit is based on cost of attendance minus other financial aid received.
If you are considering taking out a private student loan, you should request a copy of your credit report in advance to make sure everything is in order with your credit history.
Personal Loans
Personal loans from relatives or friends may be an option for some students. We strongly recommend that you carefully consider the terms and repayment details.
Students receiving need-based HBS Scholarships who have a personal loan will be required to provide a notarized loan agreement to the Kraft Family Financial Aid Office.
Personal loan agreements are considered legal documents for financial aid purposes.