By Katie Kelsall, Assistant Director of Admissions & Financial Aid
We understand there are many factors to consider when deciding whether to pursue a master’s degree, one of which will be how to finance your education. While we are committed to distributing as much scholarship and fellowship funding as possible, our resources are limited, and many ÌÇÐÄvlog¹ÙÍø students will use a combination of savings and student loans to finance some or all of their education. Here are several tips to keep in mind when exploring student loan borrowing options.
Decide how much you need to borrow
You are allowed to receive financial aid, including student loans, up to the Cost of Attendance, which includes direct costs such as tuition and fees, as well as other expenses, like housing, food, and health insurance. In other words, the maximum amount you can borrow in student loans is your total Cost of Attendance minus any scholarships, fellowships, and/or sponsorship you may receive.
Keep in mind that you are never required to borrow the maximum, and we encourage you to borrow only what you need. You may consider using more of your personal funds toward your education so that you borrow less. You may also keep your costs lower by having roommates, cooking meals at home, and other lifestyle changes. We also recommend estimating your monthly repayment amount using an
Compare your loan options: federal vs. private student loans
There are two types of available to U.S. citizens and permanent residents: the Federal Direct Unsubsidized Direct Loan and the Federal Graduate PLUS Loan. Both of these loans have fixed interest rates and several repayment options. While the maximum you can borrow in Unsubsidized Loan funds is $20,500 per academic year, you may borrow up to the Cost of Attendance in Graduate PLUS Loan funds. Please keep in mind, however, that the Graduate PLUS Loan requires credit approval. Unfortunately, federal loans are not available to international students, but there are private loan options available.
may be a good option for both international and domestic students. Typically, private loan rates are based on your credit history and are variable; however, there are now more fixed interest rates available depending on the lender. Both domestic and international students may benefit from having a U.S. co-signer on private loans. When exploring private loan options, you may want to start with your current bank or credit union, or—for international students—loans in your home country.
Many domestic students borrow both federal and private loans, but ultimately the decision is up to you.
Explore loans for international students
As mentioned above, international students do not qualify for federal student loans; however, there are several private loan options available. All international students may borrow up to $20,000 per academic year from the without a cosigner. International students who can obtain a U.S. co-signer may be able to borrow more.
Other loan options for international students can be found via (search ‘Harvard University’, then ‘International’). International students may also want to explore government loans in their home countries.
Consider your post-graduation career plans and salary
While you will have the opportunity to explore different career paths and consult with counselors in the Office of Career Advancement once you enroll, it is also important to think about your potential career outcomes before you borrow student loans. Domestic students who are planning to work in the public or non-profit sector may want to borrow federal loans as they have more repayment options, such as graduated and extended repayment plans, that can help you manage your monthly payments.
If you know you will be entering a higher paying field, you may want to consider borrowing a private student loan, which typically has fewer repayment options, but also may offer lower interest rates than federal student loans. These types of loans may be a good option for students who plan to pay off their loans quicker and want a lower interest rate. Keep in mind that although you may also refinance your loans after graduation, you cannot refinance private student loans to federal.
Understand ÌÇÐÄvlog¹ÙÍø’s Loan Repayment Assistance Program
Both domestic and international students who go into public service may be eligible for our Loan Repayment Assistance Program, which helps our graduates pay off the student loans they borrowed to attend ÌÇÐÄvlog¹ÙÍø.
Seek guidance and support from others
Remember you do not need to make this decision on your own! As a member of the Harvard community, you have many resources to guide you. The Harvard Federal Credit Union offers free budget, debt repayment, and loan counseling through its partner . And, of course, the assistant directors in the Office of Admissions &Financial Aid are always here to help!
