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New Student Federal Loan Options
We strongly recommend that all U.S. citizens and permanent residents apply for federal student loans before pursuing other loan options. The Federal Direct Unsubsidized Loan is a low-interest loan available to students for post-secondary educational expenses. Most domestic matriculated students are eligible for an Unsubsidized Loan each academic year. The Federal Direct loan program is part of the Title IV aid program that offers Federal financial assistance to students and includes, among other funds, the Direct Unsubsidized and Direct Graduate PLUS loan.
To be eligible for federal financial aid, a student must:
- Be a US citizen or permanent resident and compliant w/ US Selective Service requirements
- Be enrolled in a degree program
- Be registered for at least half-time (6 credits per semester that are accepted towards the degree program)
- Maintain good academic standing according to their program handbook
- Not have an outstanding balance from a prior period of enrollment at Boston University
- Not be in default on a previous Federal Stafford, Perkins, or other educational loans
- Have not met the cumulative (aggregate) limit for the Federal Direct (formerly Stafford) Subsidized/Unsubsidized loan program of $138,500 for graduate and professional students, including any amount borrowed for undergraduate study
Direct Unsubsidized Loans
The maximum Direct Unsubsidized Loan limit is $20,500 per academic year. Interest begins accruing at the time of the loan disbursement. Students can elect to pay the interest while in school or have it capitalized into a repayment schedule that starts six months after you leave school. The Standard Repayment term extends up to 10 years, with deferments available during unemployment, economic hardship, or continued education. Loan funds are issued in two disbursements each year, typically timed to coincide with the start of each semester.
The interest rate for all Direct Unsubsidized Loans disbursed on or after July 1, 2024 and prior to July 1, 2025 is a fixed rate of 8.08%. The origination fee is 1.057% for loans disbursed after October 1, 2020 and prior to October 1, 2025.
How to apply for fall 2024/spring 2025
- Obtain an FSA ID from the US Department of Education.
- Complete the 2024-2025 Free Application for Federal Student Aid (FAFSA). Boston University’s FAFSA school code is 002130. Please use the IRS Data Retrieval tool to transfer information from your 2021 federal tax return onto your application.
- Submit the Master Promissory Note (MPN)*
- Must be completed online (select Subsidized/Unsubsidized MPN)
- May be used for one or more academic years (up to ten years)
- Complete Entrance Counseling. It communicates your rights and responsibilities as a Federal Direct Loan borrower.
- Must be completed by first-time borrowers of Boston University
- Must be completed online (select “I am a Graduate or Professional Student”
- Complete the 2024-2025 Questrom School of Business Application for Federal Financial Aid
Federal Graduate PLUS Loan
The Graduate PLUS Loan, is credit-based, unlike the Unsubsidized Loan. This is a loan reserved for graduate students who have already borrowed the maximum amount of the Unsubsidized Loan and can cover up to the cost of attendance (tuition, room and board, books, supplies, travel, personal expenses, and loan fees).
The credit review process does not evaluate debt-to-income ratios or credit scores. To be approved, you cannot have an adverse credit history.
The interest rate for PLUS loans disbursed on or after Jul 1, 2024 and before July 1, 2025 is 9.08% fixed. The origination fee is 4.228% for loans disbursed after October 1, 2020 and prior to October 1, 2025.
How to apply for fall 2024/spring 2025
Students must submit the FAFSA and should apply for an Unsubsidized Loan prior to requesting a Graduate PLUS Loan.
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- Complete the Federal Direct Graduate PLUS Master Promissory Note
- Complete Entrance Counseling
- First-time borrowers only. Students who have borrowed Federal Graduate PLUS Loans in prior years through the Direct Loan Program may have this requirement waived
- Apply by completing the 2024-2025 Graduate PLUS loan application on the FSA website
