As a graduate student, you are entitled to apply for the following federal student loans if you meet certain eligibility requirements:
- Direct Unsubsidized Loan
- Direct Graduate PLUS Loan
Direct Unsubsidized Loans have an annual borrowing limit of $20,500 and a lower interest rate and origination fee than Direct Graduate PLUS Loans. The Direct Graduate PLUS Loan, which requires a successful credit check, should only be used after reaching the Direct Unsubsidized Loan borrowing limit.
How to Apply for a Direct Unsubsidized Loan
At least 90 days prior to your payment deadline, please:
- Complete the Free Application for Federal Student Aid (FAFSA) each academic year (Federal School Code for Boston University: 002130)
- First-time borrowers should complete Entrance Counseling (select “I Am a Graduate or Professional Student”)
- First-time borrowers should complete a Subsidized/Unsubsidized Master Promissory Note (MPN)
Eligibility Requirements
To be an eligible loan applicant, you must:
- Be a United States citizen or eligible non-citizen
- Enroll in a graduate degree program (certificate programs are not eligible)
- Attend at least half-time (6 or more units per semester)
- Maintain satisfactory academic progress
- Be within the subsidized/unsubsidized lifetime (aggregate) borrowing limit of $138,500
- Have no prior unresolved student loan default
Applying for a Direct Graduate PLUS Loan
The Graduate PLUS Loan has a higher
interest rate and origination fee than the Unsubsidized Loan, and should only be borrowed after Unsubsidized Loan eligibility is exhausted. The PLUS Loan also requires a successful credit check. The annual borrowing limit is the Cost of Attendance: the combination of billed expenses (tuition, fees, etc.) and allowances for other education-related expenses (housing, food, books, etc.) minus any other aid (Unsubsidized Loan, Merit Scholarship, and so forth).
- Complete the Free Application for Federal Student Aid (FAFSA) each academic year (Federal School Code for Boston University: 002130).
- Complete the Graduate PLUS Loan Application on the Federal Student Aid website (select “I Am a Graduate or Professional Student”). When prompted, be sure to select the correct “Award Year” and “Loan Period” (for example, select May–August for summer, August–June for fall and spring, August–December for fall only, or January–June for spring only).
- First-time PLUS borrowers should complete Entrance Counseling (select “I Am a Graduate or Professional Student”).
- First-time PLUS borrowers and those who have borrowed with an endorser in the past should also complete a PLUS Master Promissory Note (MPN). Select “MPN for Direct PLUS Loans.”
Refunds
An automatic refund will be processed if your total federal funds exceed allowable semester expenses, unless you authorize the University to retain the funds to cover other expenses. Allowable expenses are limited to tuition, fees, and contract room and dining plan.
Since federal regulations prohibit the University from using excess federal funds for non-allowable charges (including medical insurance, late fees, Convenience Points, library fines, and prior balances), a federal refund may result in an outstanding balance. To prevent this, complete the Federal Financial Aid Credit Authorization Form through MyBU Student (select “Student Permissions” within the “Financials” navigation in the left-hand menu) or download the form and submit it to Student Accounting Services.
You can also submit an online refund request for any valid credit on your Student Account.
If you do not receive your refund within two weeks, please contact Student Accounting Services.
