Student Loans

For most students, educational loans are a significant part of financial aid. You may borrow to cover billed expenses only (tuition and fees), or borrow additional funds for living expenses up to the full student budget, minus any other aid such as scholarship or sponsorship.

Federal Direct Unsubsidized Loan

• Annual limit: $20,500, disbursed in two equal installments (fall and spring)
• Interest rate: 8.07% fixed for loans first disbursed July 1, 2026 – June 30, 2027
• Origination fee: 1.057%, deducted before disbursement
• Credit check: None
• While enrolled: Interest accrues; no payments required
• Repayment begins: Six months after graduation or after enrollment drops below half-time

The Federal Graduate PLUS Loan is not available to students who begin borrowing on or after July 1, 2026. Students who borrowed it for this program before that date may continue through program completion.

Private student loans

Because the federal loan is capped at $20,500, most domestic students who borrow also take a private loan. You may borrow from any lender. ELMSelect lists lenders our students have used over the past three years, with current rates and terms side by side. It is a starting point, not a recommendation; our office cannot recommend one lender over another, and Yale SOM cannot act as a cosigner.

Typical terms:

• Annual limit: Up to the full student budget minus any scholarship, sponsorship, and federal loan
• Interest rate: Fixed or variable, and based on your credit or a cosigner's
• Origination fee: Many lenders charge none
• Credit check: Yes
• While enrolled: Interest accrues; some loans require interest payments, but most do not
• Repayment begins: Six months after graduation or after enrollment drops below half-time, depending on the lender
• Loan forgiveness: Private loans borrowed for tuition and fees are eligible for the Yale SOM Loan Forgiveness Program

We encourage all international students to look first for funding in your home country: government programs, scholarships, and bank loans. Local loan rates are often more competitive than those from U.S.-based lenders.

With a U.S. cosigner

If you have a cosigner who is a U.S. citizen or permanent resident with strong credit, most lenders on ELMSelect will consider your application. You may be asked for a U.S. Social Security number or taxpayer identification number even with a cosigner.

Without a U.S. cosigner

Quorum Federal Credit Union accepts applications from Yale SOM MBA students who do not have a U.S. cosigner.

Loan terms, rates, and limits are set by the lender. Yale SOM cannot act as a cosigner for any student.

Repayment

Federal loan repayment begins six months after you graduate. Standard repayment is 10 years; extended and income-driven plans are available, and the federal Loan Simulator estimates monthly payments under each. Private loan repayment terms are set by your lender.

Loan forgiveness

Graduates working in the nonprofit or public sector may qualify for the Yale SOM Loan Forgiveness Program. Federal borrowers in qualifying public service employment may also be eligible for Public Service Loan Forgiveness.