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Loan Programs

LOAN PROGRAMS

Education loans are only one of the many possible sources of funding to cover the cost of your Tuck education.

Eligibility varies for each of these loan programs as do rates, terms of repayment, and annual/aggregate loan maximums. International students can maximize their options by identifying a U.S. cosigner with positive credit history.

Tuck adheres to the Code of Conduct policy as established by the Higher Education Opportunity Act.

Federal Direct Loan Programs

Learn more about federal direct loan programs from the U.S. Department of Education.

Direct Unsubsidized Loan

MBA students who are U.S. citizens or permanent residents qualify for $20,500 per academic year. The U.S. Department of Education is your lender. The interest rate is 6.54% effective July 1, 2022 – June 30, 2023. Congress sets interest rates on federal loans each year. The interest rate becomes fixed for the life of the loan.

Interest accrues upon disbursal and capitalizes upon repayment. There is a 1.057 percent loan origination fee deducted from the principal of the loan at the time of disbursement. Repayment begins six months after graduation. The standard repayment period is 10 years; however, you could have up to 25 years to repay your loan depending upon the repayment plan that you choose.

Direct Graduate Plus Loan

MBA students who are U.S. Citizens or Permanent Residents may qualify for up to the cost of attendance as determined by the school less other financial assistance. You must first apply for your maximum loan eligibility of the Direct Unsubsidized loan before the PLUS can be borrowed. The applicant must not have an adverse credit history. This loan has a fixed interest rate of 7.54% effective July 1, 2022 – June 30, 2023. Congress sets interest rates on federal loans each year. The interest rate becomes fixed for the life of the loan.

Interest accrues upon disbursal and capitalizes upon repayment. There is a 4.228 percent origination fee deducted from the principal of the loan at the time of disbursement. Repayment begins six months after graduation. The standard repayment period is 10 years; however, you could have up to 25 years to repay your loan depending upon the repayment plan that you choose.

Institutional Loans

Dartmouth Educational Loan Fund (DELF) Loans

The Dartmouth Educational Loan Fund is made available by the Trustees of Dartmouth College. The rate to new borrowers is currently 6.95%. The interest is set each year and becomes fixed for the life of the loan. Interest accrues upon disbursal and capitalizes upon repayment. The maximum repayment term is 10 years. Eligible students are U.S. citizens, permanent residents of the U.S. and international citizens. To qualify for a DELF loan, the student must be enrolled at least half-time and making satisfactory academic progress towards the degree. Depending on financial need, students may borrow up to $65,000 annually from this source over the two years of their MBA education. Financial need is determined by the cost of attendance less estimated family contribution and scholarship.

Tuck 5 Percent Loans and Tuck Educational Loan Fund (TELF)

These endowed loan funds are made possible through the generosity of many friends and alums of the school. U.S. citizens, permanent residents, and international citizens with demonstrated financial need are eligible and will be considered as part of the financial aid process. These loans are interest-free while the student is enrolled at Tuck and fixed five percent during the repayment period. There is a three-month grace period prior to repayment.

Private Education Loans

U.S based private education loans are available to U.S. citizens, permanent residents, and international citizens. Some lenders may require a co-signer based on residency or credit requirements. Other private education loan options may be available in non-U.S. countries. If you decide to pursue a private loan, you must apply directly through the lender.

The maximum loan amount you may be eligible to borrow is the cost of attendance less other financial aid received. Each loan requires that Tuck certify the approved loan amount. Loans terms, interest rates, and aggregate lending limits will vary by lender.

Tuck does not have preferred arrangements with any private education lenders. Under federal law, you have the right to borrow from the lender of your choice.

To view a comprehensive list of lenders used by Tuck students, visit ELMSelect.

All rates and terms are subject to change without notice.

Comparing Federal vs. Private Loans

 

Federal

Private

Loan Amount

Federal Direct Unsubsidized Loan = $20,500
Federal Graduate PLUS Loan = Up to the cost of education less other aid.

Varies by lender but typically up to the cost of education less other aid.

Aggregate Borrowing Limit

Federal Direct Unsubsidized Loan = $138,500
Federal Graduate PLUS Loan = No aggregate limit

Varies by lender.

Fees

Yes

Many private education lenders do not charge fees.

Interest Rate

Fixed

Offer a variety of loan options that can be variable or fixed.

Incentives

0.25% interest rate deduction for automatic debit.

Varies by lender.

Subsidized

N/A

N/A

Credit Approval

Federal Direct Unsubsidized Loan = N/A
Federal Graduate PLUS Loan = Applicant cannot have adverse credit history.

Based on established credit history and/or credit score.

Debt to Income Ratio

N/A

Varies by lender.

Cosigner/Endorser

Only required for Federal Graduate PLUS loan if borrower has adverse credit history.

May be required for adverse credit history.

Optional to be considered for lower interest rate.

Payment Options

Payments begin after the grace period has concluded.

Varies by lender, you may be required to make payments while in school.

Repayment Plans

There are several repayment plans including options to tie your monthly payment to your income.

Varies by lender.

Grace Period

6 months after graduation.

Varies by lender.

Prepayment Penalty

There is no pre-payment penalty.

Typically, no penalty but you will want to check with your lender.

Loan Forgiveness

You may be eligible to have some of your loan forgiven if you work in public service.

It is unlikely that private lenders will offer loan forgiveness.

 

Repayment

Curious how much you will owe after graduation? Below is the estimated monthly repayment for the various loans available to graduate students based on the maximum loan eligibility. Grad PLUS and private educational loans are based upon the assumption that the student is borrowing the full Federal Direct Unsubsidized Loan.

 

Amount
Borrowed

Interest
Fee

Origination
Fee

10 yr
Repayment

15 yr
Repayment

25 yr
Repayment

Federal Direct Unsubsidized Loans

$20,500

6.54%

1.057%

$233

$179

$138

Federal Direct Graduate PLUS Loans

$94,325

7.54%

4.228%

$1,122

$877

$700

Private Loans*

$94,325

7.25%

0.00%

$1,107

$861

n/a

Tuck 5%

$10,000

5.00%

0.00%

$106

n/a

n/a

*Interest rate and origination fee for private loans will vary by lender.

Amounts are based on one academic year. If you borrow a similar amount while in your second year of enrollment, you can assume that, at a minimum, the total monthly payment will double since the interest, if applicable, continues to accrue.

Consolidation and Refinance

Consolidation allows a borrower to consolidate multiple loans into one loan for ease of payment. Federal student borrowers can consolidate their federal loans into one loan. The interest rate now becomes a weighted average of all the loans rounded up to the nearest one-eighth of one percent. Learn more about consolidation from the Federal Student Aid Office of the U.S. Department of Education.

Student loan refinancing allows the borrower to take out a new loan to pay off the existing loans. This is done through a private student loan lender. Some lenders will allow borrowers to include both federal and private education loans, typically resulting in a lower interest rate.

Types of Loans Borrowed

Loan Borrowers

Percent

Federal Direct Unsubsidized Loan only

18%

Federal Direct Unsubsidized Loan and Federal Graduate PLUS Loan

10%

Federal Direct Unsubsidized Loan and Private Education Loan

15%

Federal Direct Unsubsidized Loan and Dartmouth Education Loan Fund (DELF)

1%

Private Education Loan only (Domestic)

6%

Private Education Loan only (International)

17%

Dartmouth Education Loan Fund only

1%

Tuck Subsidized Loan in addition to loans above

24%