Loan Options

Yale’s financial aid policies ensure that 100% of every undergraduate’s demonstrated need is met with a package that does not include loans. But some students prefer to cover some or all of their Student Share with loans instead of taking a term-time or summer job, and families may find it more convenient to defer some costs until after graduation.

Families may be eligible for certain types of loans regardless of whether a student receives Yale Scholarship. While the options listed below are the most common for undergraduates, Student Financial Services can help guide students and families through the process of applying for and receiving a loan of their choice. 

Information on loans for graduate and professional students is available under Graduate Aid.

Loan options for undergraduate students

A guaranteed student loan for undergraduates who are U.S. citizens or permanent residents and who have demonstrated financial need as determined by federal regulations.

Eligibility:

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

Interest rate:

Fixed at 5.50% for loans first disbursed from July 1, 2023, through June 30, 2024

Loan fees:

1.057% origination fee for loans first disbursed from October 1, 2020, through September 30, 2024

Loan limits:

The federal government sets limits on the amount in Direct Subsidized loans that a student may be eligible to receive in each academic year and in total. Limits vary based on the student's year in school, among other factors.

For loan limits and further details, please see under "How much can I borrow?" on the Federal Student Aid webpage on Direct loans.

Interest accrual:

No interest is charged while a student is in school at least half-time and during deferment periods.

Repayment:

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

For information on repayment plan options, visit the Federal Student Aid Repayment Plans webpage.

Application procedure:

New borrowers will be notified to complete the Direct Loan Master Promissory Note once Yale originates the loan with the Department of Education. They will also be notified to complete the Federal Loan Entrance Counseling Session required for all first-time borrowers.

Additional resources:

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

Interest rate:

Fixed at 5.50% for loans first disbursed from July 1, 2023, through June 30, 2024

Loan fees:

1.057% origination fee for loans first disbursed from October 1, 2020, through September 30, 2024

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 "How much can I borrow?" on the Federal Student Aid webpage on Direct loans.

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 Aid Repayment Plans webpage.

Application procedure:

New borrowers will be notified to complete the Direct Loan Master Promissory Note once Yale originates the loan with the Department of Education. They will also be notified to complete the Federal Loan Entrance Counseling Session required for all first-time borrowers.

Additional resources:

A student loan for those with financial need who do not qualify for U.S. federal or Canadian student loans. View the Truth in Lending disclosure for Yale Student Loans.

Eligibility:

Available to international students and students not otherwise eligible for Federal Direct Subsidized loans or Unsubsidized loans, Perkins loans, or Canada Student Loans

Interest rate:

7.5%

Loan fees:

None

Loan limits:

Because the Yale Student Loan is based on financial need, the annual amount is limited to the amount of the student’s Student Employment amount less outside scholarships, other need-based loans, and term-time earnings. In addition, first-year students may borrow no more than $2,850 and upper-level students may borrow no more than $3,350 per year in Yale Student Loans.

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

Application procedure:

Families that need additional funding for educational expenses after considering all potential scholarships, federal grants, work-study funds, and federal loans may also want to consider an “alternative” or “private” loan. Such loans are offered by private lenders, such as banks and credit unions. Families are advised to use these loans sparingly and may wish to discuss their particular situation with SFS staff.

For alternative/private loans, students apply directly to lenders. Those lenders, in turn, contact Yale, and the two parties work together to issue the loan funds through the university.

Loan options for parents

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

Eligibility for parents:

  • You and your child must each be a U.S. citizen or eligible noncitizen.
  • You must be a biological or adoptive parent (or, in some cases, the stepparent) of the student for whom you are borrowing.
  • Your child must be a dependent student who is enrolled at least half-time. Generally, a child is considered dependent for federal purposes if he or she is under 24 years of age, has no dependents, and is not married, a veteran, a graduate/professional degree student, or a ward of the court.
  • You and your child 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.

Interest rate:

Fixed at 8.05% for loans first disbursed from July 1, 2023, through June 30, 2024

Loan fees:

4.228% for loans first disbursed from October 1, 2020, through September 30, 2024

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). For the parents of dependent undergraduates, the PLUS loan enters repayment as soon as it is fully disbursed, but a deferment may be requested. If the loan is deferred, the borrower is responsible for interest payments on the loan during the deferment period. He/she may pay the interest monthly while the loan is in deferment or may capitalize the interest by allowing it to accrue and adding it to the principal when the loan goes into repayment.

Repayment:

A Direct PLUS Loan enters repayment as soon as it is fully disbursed (paid out). Parent borrowers may request a deferment while their student is enrolled at least half-time and for an additional six months after that enrollment ceases. Borrowers must contact their loan servicer to request a deferment.

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

Additional resources:

Families that need additional funding for educational expenses after considering all potential scholarships, federal grants, work-study funds, and federal loans may also want to consider an “alternative” or “private” loan. Such loans are offered by private lenders, such as banks and credit unions. Families are advised to use these loans sparingly and may wish to discuss their particular situation with SFS staff.

For alternative/private loans, students apply directly to lenders. Those lenders, in turn, contact Yale, and the two parties work together to issue the loan funds through the university.

Additional loan information

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.

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