Eligibility for U.S. Government loan programs is limited to students who are citizens of the United States or who hold a permanent resident visa, who will be enrolled at least half time in a degree/certificate program, and who are not in default on previous education loans. The student must enroll in courses toward the degree/certificate requirements. The loan amount that a student can receive is usually limited by one or more factors, such as calculated financial need, the cost of education, annual or maximum loan limits, the applicant's credit rating, etc. For this reason, it is important to know the specific eligibility requirements, loan terms, and application deadlines for each program under consideration.

Loans are a vital resource used in meeting educational expenses. Potential borrowers should keep in mind that loans must be repaid and that repayment ability should be calculated in relation to total debt and future earnings. Failure to meet loan repayment obligations can jeopardize one's credit rating and eliminate eligibility for federal student assistance funds. Students who have prior education loans with in-school deferment provisions must request an application for deferment from the school or lending institution that originally approved the loan, and must request that the form be completed by the University Registrar?fs Office each year that they are enrolled at least halftime (6 credits).

For some loans, repayment begins six to nine months after the student ceases halftime enrollment (not upon graduation as is commonly assumed). For other loans, repayment begins within 30 to 60 days after the loan is disbursed.

Students who have completed residency requirements and who are engaged in writing a dissertation or are completing other academic requirements may be eligible to apply for certified full-time status in order to apply for a student loan, continue loan deferment privileges, or obtain appropriate visa coding for international student status.

Students seeking certified full-time student status must contact the SED Records Office, Room 127, in order to obtain an application that must be completed before the start of the spring and fall semesters.

Federal Direct Loan
The Federal Direct Loan is a long-term, low-interest education loan. As with other federal need-based programs, eligibility is determined through the FAFSA (Free Application for Federal Student Aid). The maximum annual amount that graduate students may borrow is $20,500, of which up to $8,500 may be subsidized. Students who are first-time borrowers at Boston University must complete an entrance interview before funds will be released. To apply for a Federal Direct Loan, a student must indicate an intention to apply for the loan on the SED Graduate Application for Financial Assistance, as well as complete the FAFSA (Free Application for Federal Student Aid).

After admission, the student will be asked to complete a loan request form to specify the amount of the loan to be processed.

Perkins Loan
This is a federally funded, long-term educational loan allocated to students who demonstrate the greatest financial need. There are no interest charges until six months after you cease half-time enrollment (6 credits) and begin repayment. During repayment you will be charged 5 percent simple interest. To apply for a Perkins Loan, a student must indicate an intention to apply for the loan on the SED Graduate Application for Financial Assistance and complete the FAFSA (Free Application for Federal Student Aid).

Cancellation provisions are available to those who enter certain fields of military service, to those who become teachers of certain handicapped children, to full-time teachers in certain preschool (Head Start) programs or designated Chapter 1 schools, to volunteers under the Peace Corps Act or the Domestic Volunteer Service Act of 1973, and those working in certain law enforcement or corrections positions.

Federal Loan Cancellation/Deferment Options for Teachers
If you are a teacher or become a teacher serving in a low-income or subject-matter shortage area, it might be possible for you to cancel or defer your student loans.

For information on Stafford and Perkins loan repayment and cancellation options, please visit the Federal Student Aid website:
Perkins Loan Forgiveness for Teachers
Stafford Loan Forgiveness for Teachers

Alternative Private Loans
Several banks and private lending agencies offer educational loans to credit-worthy applicants. Total financial aid including federal and private loans cannot exceed a student’s calculated need. Based on your enrollment, length of study, etc. Boston University generates a budget for each student. You may apply for a private loan up to the amount of unmet need between this overall budget and the total of all other forms of financial assistance you are receiving. Please check with the SED Graduate Financial Assistance Office to determine how large a loan you may request.

For information on Alternative Credit-Based Loans, please refer to the University's main Financial Aid website.

Please review each lender’s loan guidelines to see if you meet their particular eligibility requirements.