• Federal Loans for Domestic Students
• Private Loans for Domestic Students
• Loans for International Students
• Loan Repayment Assistance and Forgiveness Programs
• Withdrawal or Leave of Absence
• Deferring Federal Loan Payments

Federal Loans for Domestic Students

Federal Direct Loans

There are two types of Federal Direct Loans availalbe for U.S. Citizens and Permanent Residents to borrow:

• Unsubsidized Stafford
• Graduate PLUS Loans

Unsubsidized Stafford Loans

Borrowers are eligible to receive a Federal Direct Unsubsidized Stafford Loan for up to $20,500 per academic year. The interest rate for Stafford Loans to graduate students is fixed at 6.8% and 1% origination fee. The maximum amount that can be received is the lesser of $20,500 or the difference between a student’s cost of education—as determined by Student Financial Services—and all other aid from all sources that a student is receiving.

Graduate PLUS Loans

Borrowers are eligible to receive a Graduate PLUS Loan for up to the difference between a student’s cost of education—as determined by Student Financial Services—and all other aid from all sources that a student is receiving. The interest rate for Graduate PLUS Loans is fixed at 7.9% and a 4% origination fee. Unlike the Stafford loan, Graduate PLUS loans have a credit component. Information on your credit report that will disqualify borrowers includes (but is not limited to):

• Any current delinquency of 90 days or more
• Any of the following within the preceding five years of the date of the credit check: default, bankruptcy, discharge, foreclosure, repossession, tax lien, wage garnishment, write-off of a Title IV debt, open collection.

Interest Accural and Loan Disbursement

Interest begins accruing on Federal Direct Loans from the time it is disbursed. For students enrolled for the full academic year, loans will be disbursed in two equal amounts with one disbursement at the beginning of each semester.

Repayment Terms

There are several repayment plans that allow borrowers repayment flexibility. Repayment plans are chosen after graduation—prior to entering repayment—and may be changed. Repayment plans include a standard 10 year plan, a 25 year extended repayment plan, a graduated plan and an income based repayment plan (IBR). Repayment begins six months after ceasing to be enrolled on at least a half-time basis.

Detailed information on repayment plans.

Sample Repayment Amounts (Stafford and Grad PLUS)

Amount	Standard 10 Year	Extended 25 Year	Graduated	IBR $40K AGI	IBR $60K AGI	IBR $80K AGI
$50,000	$575	$350	$399starting $870 ending	$297	$547	N/A
$75,000	$882	$544	$600   starting $1,305 ending	$297	$547	$797
$100,000	$1,185	$735	$800  starting $1,742 ending	$297	$547	$797
$130,	$1,546	$965	$1,040 starting $2,264  nding	$297	$547	$797

Campus Based Federal Loans

The Perkins loan is a campus based federal loan. Unlike direct loans, HKS is provided a limited amount of Perkins loan funds and therefore not all students will be able to receive these funds. Eligibility for Perkins is determined by Student Financial Services and is offered to borrowers with greater than $20,000 in outstanding educational loan debt, at the time of admission, demonstrating high financial need as determined by filing the Free Application for Federal Student Aid (FAFSA).

Perkins loans vary from $3,000 to $6,000. The interest rate is 5% with interest not accruing until nine months after a recipient is no longer enrolled on a half-time or greater basis. The repayment term is ten years.

Interest Accrual and Loan Disbursement

Interest does not begin accruing on Perkins loans until nine months after a borrower ceases to be enrolled on at least a half time basis. For students enrolled for the full academic year, loans will be disbursed in two equal amounts with one disbursement at the beginning of each semester.

Terms and Conditions of Both Direct and Campus Based Federal Loans

Deferments and Forebearances

Periods of time during which borrowers are not required to make payment on their federal educational Loans are called deferments and forbearances.

Borrowers are eligible for deferment while enrolled at least half-time, during periods of unemployment, while on active duty in the military during war-time or national emergency, while participating in a graduate fellowship and when experiencing temporary financial hardship. Deferment—other than for being enrolled—is limited to a period of three years for each category.

Students experiencing financial difficulty who do not qualify for a deferment can request forbearance for a maximum of three years.

Eligibility

In order to be eligible for a federal educational loan, a student must be a US citizen or permanent resident not in default on a student loan and who meets other federal criteria including registration with selective service (if male) and submission of the Free Application for Federal Student Aid (FAFSA). Be sure to use the correct school code (E00215). Frequently, students incorrectly select the Harvard Code (002155) preventing receipt of the FAFSA.

Graduate PLUS loan borrowers will also need to complete a credit check authorization form. This form will be made available in early June.

Loan Entrance Counseling and Completing Promissory Notes

During orientation borrowers will attend a loan entrance counseling session during which the rights and responsibilities associated with borrowing a federal direct loan will be reviewed. Borrowers will also need to complete an online certification that acknowledges acceptance of the terms.

Borrowers will receive instructions on how to complete promissory notes. Promissory notes will remain in effect for the entire period of attendance at Harvard Kennedy School(HKS) if enrolled at HKS continuously. If enrolled in a joint degree program with a non-Harvard school, a borrower will have to complete a new promissory note upon return to HKS.

A copy of the Direct Loan Entrance Counseling Guide (PDF) can be found here containing sample repayment information. Visit www.direct-ed.gov for additional information.

Loan Exit Counseling

Borrowers are required to attend a student loan exit counseling session during their last semester of enrollment or prior to pursuing a leave of absence. In person sessions are held each spring. On-line exit counseling certification must also be completed through NSLDS.