Financial Aid

Federal Direct Loans

Eligibility Requirements

Federal student loans are available through the Federal Direct Loan Program. These loans are available to qualified students who are U.S. Citizens or U.S. Permanent Residents. Review of federal eligibility is required prior to awarding.

Citizenship

Be a US citizen or eligible non-citizen.

Degree Program

Enrollment Status

Satisfactory Academic Progress

No Default

Aggregate/Lifetime Limits

Glossary

Federal Unsubsidized Loan

Unsubsidized Loan Information
- The maximum annual borrowing limit is $20,500 for full-time enrollment
- Unsubsidized loans begin accruing interest at the time of the loan disbursement
- The interest rate for all Direct Unsubsidized Loans disbursed on or after July 1, 2025 and prior to July 1, 2026 is a fixed rate of 8.07%
- The origination fee is 1.057% for loans disbursed after October 1, 2020 and prior to October 1, 2025
- Visit the Federal Student Aid website for additional information about Federal Unsubsidized Loans
How to Apply (26-27 FAFSA)
- Create your Federal Student Aid ID via StudentAid.gov
- Complete the Free Application for Federal Student Aid (FAFSA) each academic year
  
  Boston University’s FAFSA school code is 002130
- First-time BU borrowers must complete Entrance Loan Counseling (ELC) by selecting the option “I am a Graduate or Professional Student”
- First-time BU borrowers must complete a Subsidized/Unsubsidized Master Promissory Note (MPN)

Federal Graduate PLUS Loan

Graduate PLUS Loan Information
The One Big Beautiful Bill Act (OBBBA) has eliminated the Graduate PLUS Loan as of July 1, 2026. If you qualify for Legacy Provisions and would like to borrow a PLUS Loan, follow the steps below. Otherwise, you may want to consider a Private Credit Based Loan.
- The Graduate PLUS Loan is credit-based – to be approved, one cannot have an adverse credit history
- The PLUS Loan is reserved for graduate students who have already borrowed the maximum amount of the Unsubsidized Loan
- Students may annually borrow a PLUS Loan up to the Cost of Attendance, minus any other aid
- The current interest rate for PLUS loans disbursed on or after July 1, 2025 and before July 1, 2026 is 9.07% fixed
- The origination fee is 4.228% for loans disbursed after October 1, 2020 and prior to October 1, 2026
- Visit the Federal Student Aid website for additional information about Federal Graduate PLUS Loans
How to Apply (26-27 FAFSA)
- Complete the Free Application for Federal Student Aid (FAFSA) each academic year
  
  Boston University’s FAFSA school code is 002130
- Complete the Graduate PLUS Loan Application on the Federal Student Aid website
  
  Fall/Spring requested Loan Period Start/End Dates: August – May
  
  Fall requested Loan Period Start/End Dates: August – December
  
  Spring requested Loan Period Start/End Dates: January – May
  
  Summer requested Loan Period Start/End Dates: May – August
- First-time BU borrowers must complete Entrance Loan Counseling (ELC) by selecting the option “I am a Graduate or Professional Student”
- First-time BU borrowers must complete a Direct PLUS Loans Master Promissory Note (MPN)

Federal Loan Requirements

Entrance Loan Counseling (ELC)

Entrance Loan Counseling (ELC): ensures student borrowers understand the terms and conditions of their loan and their rights and responsibilities. Borrowers will learn what a loan is, how interest works, options for repayment, and how to avoid delinquency and default.

Boston University requires all first-time BU borrowers to complete Entrance Loan Counseling
Entrance Counseling takes about 30 minutes to complete and must be completed in a single session
Select “I am a Graduate or Professional Student”

Master Promissory Note (MPN)

Master Promissory Note (MPN): is a legal document in which student borrower’s’ promise to repay their loan(s) and any accrued interest and fees to the U.S. Department of Education. It also explains the terms and conditions of the loan(s).

Boston University requires all first-time BU borrowers to complete a new Master Promissory Note
A MPN expires every 10 years – If a loan does not disburse within the first 12 months of the MPN being completed, the MPN expires
Graduate/Professional students can be eligible for Direct Unsubsidized Loans, Direct PLUS Loans, or both – students must complete an MPN for each loan type they intend to receive
Select “I am a Graduate or Professional Student”
Students should complete the MPN for Subsidized & Unsubsidized Loans and/or the MPN for Direct PLUS Loans, depending on the loan they are applying for

Exit Loan Counseling

Exit Loan Counseling: is a process that ensures students understand their loan obligations and are prepared for loan repayment.

Exit Counseling must be completed when a student graduates, takes a leave of absence/withdraws/transfers, or drops below half-time enrollment.
Reviews federal student loan payments plans and how to contact one’s federal loan servicer
Select “I am a Graduate or Professional Student”

One Big Beautiful Bill

One Big Beautiful Bill Act (OBBBA)

Congress has enacted significant updates to federal student aid programs that will take effect for the 2026–27 academic year. Key changes include new borrowing limits for graduate and professional students, caps on Parent PLUS loans, and a new lifetime loan limit across all Direct Loans. The Department of Education is still finalizing details, and we will continue to share updates as they become available.

New annual loan borrowing limit is $20,500 for graduate students & $50,000 for professional students.
New aggregate loan borrowing limit is capped at $100,000 for graduate students & $200,000 for professional students, and does not include amounts borrowed as an undergraduate.
Borrowers who are both graduate and professional students at some point in their educational careers may only borrow up to $200,000 in total for graduate & professional school.
$257,500 lifetime borrowing limit on all federal student loans (excluding Parent PLUS Loan amounts borrowed on behalf of the student).
The Graduate PLUS Loan Program has been eliminated.
Federal student loan limits for part-time students will be prorated, meaning that students can only borrow an amount directly proportional to their enrollment status.

Legacy Provisions

If a borrower has a Federal Direct Loan (Subsidized, Unsubsidized, PLUS) made before July 1, 2026, while enrolled in a credentialed program, the borrower can continue to borrow under current loan terms & limits for 3 academic years OR the remainder of one’s program, whichever is less.
Students who take a leave of absence (LOA) or withdraw from their program on or after July 1, 2026, will lose access to the legacy provisions, even if the student returns to the same program.
Old aggregate loan borrowing limit is 20,500 for graduate students.
Old aggregate loan borrowing limit is capped at $138,500 for graduate and professional students, and does include amounts borrowed as an undergraduate

Disclaimer

This is not a definitive guide to all federal student loan updates – for more information, please refer to the federal government’s source for official guidance: studentaid.gov

MBA CENTER

For Residential MBA Students:
CONTACT
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617.353.7800

OFFICE HOURS
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For OMBA students needing support, please contact ombasuccess@bu.edu

SPECIALTY MS & PhD CENTER

For students in the MSBA, MSMFT, MiM & PhD programs:

CONTACT
qstmsphd@bu.edu
617.353.7800

OFFICE HOURS
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HAR 416

FOLLOW US
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