Yale Graduate School of Arts and Sciences

Office of Financial Aid

Student Loans

The loan information contained in this section pertains to the 2014-2015 academic year.

Students who meet federal eligibility requirements are able to borrow under the subsidized Perkins and unsubsidized Federal Direct Lending programs. Students must be U.S. citizens or permanent residents and enrolled at least half time in a degree-granting program. Please note that students enrolled in the Division of Special Registration are not eligible for these programs. Additional information is available from the federal student aid Direct Loans website. International students in the Graduate School of Arts and Sciences interested in applying for an alternative loan may contact the Graduate School’s Financial Aid Office.

Per the Budget Control Act of 2011 (BCA), signed into law August 2, 2011, effective for loans made for periods of enrollment beginning on or after July 1, 2012, graduate and professional students are no longer eligible to receive Federal Direct Subsidized Loans. The terms and conditions of Direct Subsidized Loans received by any student for loan periods beginning before July 1, 2012 are not affected by this change. The annual Direct Loan limit for graduate and professional students remains unchanged at $20,500, but this amount will now be limited to Direct Unsubsidized Loans.

Application Procedures

The loan information contained in this section pertains to the 2014-2015 academic year only.

The amount students may borrow through the federal student loan programs may not exceed the total cost of education minus financial resources. According to current regulations, financial resources include all types of financial aid (fellowships, grants, teaching fellowships, etc.) plus a student contribution calculated in part on the adjusted gross income shown on the student’s most recent U.S. Income Tax return. The amount of the student contribution is determined by a need analysis formula developed by the Federal Government.

The following documents are required to apply for federal loans:

1. FAFSA
2. Yale Graduate School financial aid application

The FAFSA is the Free Application for Federal Student Aid. Using information provided online in the FAFSA application, the processing center will send the results directly to the Financial Aid Office via electronic data exchange. To facilitate this exchange, students must identify the Yale University Code (001426) as a recipient on the FAFSA application form.

Please use your 2013 tax return when completing the FAFSA. When completing the FAFSA, we strongly encourage you to use the new Data Retrieval Tool (DRT) which allows you to provide consent to the IRS to upload data from your federal tax return at the time you complete your FAFSA. To use the Data Retrieval Tool, you would have had to file an electronic tax return at least 2 weeks prior to completing the FAFSA, or 6-8 weeks prior if you filed a paper return. If you have not completed your tax return yet, you will not be able to use the Data Retrieval Tool until you file your return. You may not be able to use the IRS Data Retrieval process if:

  • You are married but filed separate returns for the 2013 tax year.
  • Filed an amended 2013 tax return.
  • Had a change in marital status after the end of the tax year on December 31, 2013.

If you are selected for verification, the Graduate School Financial Aid Office will contact you. Students selected for verification will need to provide a transcript of the 2013 tax return and will be instructed to complete a Verification form. The Tax Return is no longer acceptable documentation for the verification process.

The Graduate School Financial Aid application should be signed, dated and sent to:

Yale University Graduate School of Arts and Sciences
Financial Aid Office
P.O. Box 208236
New Haven, CT 06520-8236

OR

Email to: gradfinaid@yale.edu

Please note that under federal regulations graduate and professional students are considered independent for purposes of awarding need-based loans. Accordingly, information about parental income or assets is not required and should not be provided. When a student is married or expects to be married during the academic year, the spouse's income is considered in any analysis of need.

Federal loans consist of the subsidized Perkins Loan, Federal Direct Unsubsidized Loan and the Federal GradPlus Loan programs. Students may be eligible to borrow under these programs if they are enrolled at least half-time in a degree-granting program, are U.S. citizens or permanent residents, are not in default on any previous student loans, are registered with the Selective Service (if so required), and can demonstrate need.

Perkins Loan

The Perkins loan will be available to eligible students for 2014-2015. This may be the last year that this loan will be offered. The Perkins is a subsidized loan and does not accrue interest while you are in school. The current interest rate is 5%. If eligible, the amount you can borrow, depending on the availability of funds, may be between $4,000-$8,000.

Federal Direct Unsubsidized Student Loans

The Federal Direct Unsubsidized loan may be used to replace some or all of the expected student contribution used in calculating eligibility for need-based federal loans.

If eligible, the total maximum amount a student may borrow in the Direct Stafford Unsubsidized Loan is $20,500 per year. The aggregate amount borrowed through this program, including undergraduate loans (subsidized and unsubsidized) is $138,500. There is a 1.072% origination fee for the Federal Direct Unsubsidized Loan.

The unsubsidized loan accrues interest while students are in school. Interest rates are variable but will not exceed 8.25%. Rates are determined each July. For information on the Federal Direct Lending Programs, please go to the Federal Student Aid website.

Federal Direct GradPlus Loans

The Federal Direct GradPlus loan is available to domestic students after they have exhausted the Perkins and Direct Unsubsidized loans.Interest rates are variable but will not exceed 8.25%. Rates are determined each July. There is a 4.288% origination fee for GradPlus Loans.

Students eligible for the Unsubsidized and the GradPlus loans are responsible for paying the interest accrued while they are in school. Repayment is deferred until after the student borrower has graduated or otherwise terminated enrollment in a degree-granting program. (This deferment is normally available for all outstanding federal student loans, even for those borrowed prior to matriculation in the Yale Graduate School.)

For information on the Federal Direct Lending Programs, please go to the Federal Student Aid website.

Alternative Student Loans

Alternative loans or private loans can be used to make up the difference between the cost of education after federal loans are exhausted, or they may replace federal loans. When shopping for a lender, students should review all of the terms and conditions carefully since they can vary significantly from one institution to another. Some considerations when selecting a lender include: interest rates; guarantee and origination fees; how often the interest is capitalized (how often interest is added to the principal to create a new balance on which future interest is calculated); how long it takes to process a loan; whether there is a grace period and how long it is; credit criteria; cosigner requirements; incentives such as interest rate rebates for timely repayment; and deferment options.

SFAS maintains a list of lenders for students to reference. This is not a list of recommended lenders, but a resource to enable students to compare and select lenders that best fit their needs. Students are at liberty to choose any lender, and the Financial Aid office will process loans for eligible students. In addition to this list, students may wish to check with state student loan authorities or federal credit unions, where applicable, for alternative loan products.