Borrowing at Yale

A guaranteed student loan for U.S. citizens or permanent residents who do not show financial need under federal regulations. Direct Unsubsidized loans may also be available to undergraduates who have reached the borrowing limit for Direct Subsidized loans.

Eligibility:

• You must be a U.S. citizen or a permanent resident
• You must be enrolled at least half-time in a degree program
• You must maintain satisfactory academic progress
• You cannot be in default on a federal student loan

Loan limits:

The federal government sets limits on the amount in Direct Unsubsidized loans that a student may be eligible to receive in each academic year and in total. Limits vary based on whether the student is pursuing an undergraduate or graduate degree, among other factors.

For loan limits and further details, please see under Loan Amount Limits on the Federal Student Aid Direct Subsidized and Direct Unsubsidized Loans webpage(link is external).

Interest accrual:

Students are responsible for interest payments on the loan while in school. A student may pay the interest monthly while still in school or may capitalize the interest by allowing it to accrue and adding it to the principal when the loan goes into repayment.

Repayment:

Six month grace period; time frame depends on the type of repayment plan.

For information on repayment plan options, visit the Federal Student Loan Repayment Plans webpage(link is external).

Application procedure:

Please visit the website of your schools financial aid office for application procedures.

Additional resources:

Federal Student Aid website: Federal Student Loans

Loans for the parents of dependent undergraduate students, as well as for graduate- and professional-school students.

Eligibility:

• You must be a U.S. citizen or eligible noncitizen.
• You must be enrolled at least half-time in a graduate-level program leading to a degree or certificate.
• You must not be in default on any federal education loans or owe an overpayment on a federal education grant, and must meet other general eligibility requirements for federal student aid.
• A credit check that will be performed and will exclude anyone with an adverse credit history.

Loan limits:

Direct PLUS loan amounts are limited to the cost of attendance minus any other financial assistance received.

Interest accrual:

Interest begins to accrue as soon as the loan is fully disbursed (paid out). Graduate and professional students are responsible for interest payments on the PLUS loan while in school. A student may pay the interest monthly while still in school or may capitalize the interest by allowing it to accrue and adding it to the principal when the loan goes into repayment.

Repayment:

Direct PLUS loans for graduate and professional students are automatically placed into deferment while the student is enrolled at least half-time and for an additional six months after that enrollment ceases.

Once the loan enters repayment, the time frame depends on the type of repayment plan. For information on repayment plan options, visit the Federal Student Loan Repayment Plans webpage.

Application procedure:

Please visit the website of your college financial aid office for application procedures.

Additional resources:

Federal Student Aid website: Federal Student Loans

A student loan for those with financial need.

Eligibility:

Available to students in some schools; not all schools offer this loan.

Interest rate for graduate students:

9.19%

Loan fees:

5%

Loan limits:

Yale Student Loan, Loan amounts may not exceed the cost of attendance minus any other financial assistance received. However, each participating school determines the actual loan limit for its own students.

Interest accrual:

Interest begins to accrue upon disbursement of loan funds. Students are responsible for interest payments on the loan while in school. A student may pay the interest monthly while still in school or may capitalize the interest by allowing it to accrue and adding it to the principal when the loan goes into repayment.

Repayment:

Six month grace period; maximum 10 years
The standard repayment term is 120 months with a minimum monthly payment of $50.

Application procedure:

Students should contact their school’s financial aid office for information on loan availability and application procedures.

Private loans are credit-based educational loans that are offered by private lenders, such as banks and credit unions. Families can apply for private loan(s) directly through lenders’ websites. If approved, those lenders, in turn, contact Yale, and the two parties work together to issue the loan funds through the university to the student’s YalePay account.

Generally, it is recommended that families in need of additional funding for educational expenses consider all potential outside scholarships, federal grants, work-study funds, and federal loans before considering a private loan. It is advised that families use these loans sparingly and contact Undergraduate Financial Aid should they have questions or wish to discuss their particular situation.

Additional resources:

U.S. Dept. of Education website: Loans
ELMSelect lender-comparison tool

View Connecticut’s Student Lending Code of Conduct

The State of Connecticut’s code of conduct for student loans, from Connecticut’s Office of the Attorney General. Read carefully prior to taking out a student loan.

View Yale’s Student Lending Code of Conduct

Yale’s institutional statement on its student lending code of conduct. Read carefully prior to taking out a student loan.

View the TILA Disclosure for Disadvantaged-Student Loans

Truth in Lending Act disclosure for the Disadvantaged Students Loan Program

View the TILA Disclosure for Federal Nursing Loans

Truth in Lending Act disclosure for the Federal Nursing Student Loan Program.

View the TILA Disclosure for Yale Student Loans

Truth in Lending Act disclosure for the Yale Student Loan Program.

View the TILA Disclosure for Yale Medical-Student Loans

Truth in Lending Act disclosure for the Yale Medical Student Loan.