Federal Loans
The Federal Direct Unsubsidized Loan is available to U.S. citizens and permanent residents who file the FAFSA. Students may borrow up to $20,500 per academic year through this program. The loan has a fixed interest rate of 7.94% for the 2025–26 academic year, with a 1.057% origination fee deducted at disbursement. No credit check is required. Interest accrues while you are in school, and repayment begins six months after graduation or dropping below half-time enrollment.
Private Loans
Private loans are offered by banks, credit unions, and other lenders, and eligibility is based on your credit history. Students can use private loans alone or in combination with the Federal Direct Loan to cover remaining costs, up to the cost of attendance minus other aid. Because these loans depend on creditworthiness, it is important to review your credit report before applying. Some students may secure more favorable terms with a cosigner. Yale SOM cannot serve as a cosigner.
Repayment typically ranges from 5–15 years, with either fixed or variable interest rates. Many students explore private loan options in early summer to allow time for approval and certification. Loans disburse to Yale at the start of the semester, and if borrowing exceeds billed charges, the balance can be refunded for living expenses.
For comparison purposes, students may review ELMSelect, but you are not limited to the lenders listed there.
Frequently Asked Questions
Do I need a credit check?
Federal Direct Unsubsidized Loans do not require a credit check. Private loans are credit-based, and eligibility and rates are determined by the lender.
When do loans disburse and refunds become available?
Loans are sent directly to Yale at the start of each semester (typically mid-August and mid-January). If your borrowing exceeds billed charges, you can request a refund through Yale Hub.
Can I borrow both federal and private loans?
Yes. Many students use the Federal Direct Unsubsidized Loan first and then borrow additional funds through private lenders if they need to cover costs beyond $20,500.
When does repayment begin?
Federal loans have a six-month grace period after graduation or dropping below half-time enrollment. Private loan repayment terms vary by lender; some offer in-school deferment, while others require payments while enrolled.
Does Yale SOM recommend lenders?
Yale provides access to ELMSelect so you can compare lenders used by SOM students in recent years. You are free to borrow from any lender of your choice.
Questions? Contact the Yale SOM Financial Aid Office.