Yale Graduate School of Arts and Sciences

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. Most recent tax return with all attachments
3. 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.

The tax return and Graduate School financial aid application should be sent to:

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

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 loan programs include both subsidized and unsubsidized loans. Students eligible to borrow subsidized loans accrue no interest while they are in school. Students eligible to borrow unsubsidized loans are responsible for paying the interest accrued while they are in school. In either case, 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.)

The Federal Stafford Subsidized Student Loan Program enables students to apply for an annual maximum of $8,500, but the actual amount approved cannot exceed the total cost of education, less student contribution and financial aid. The aggregate amount borrowed through this program, including undergraduate loans, may not exceed $65,500.

The Federal Stafford Unsubsidized Student Loan Program enables students to borrow up to $12,000 per year with a cumulative maximum of $73,000. The unsubsidized Stafford loan may be used to replace some or all of the expected student contribution used in calculating eligibility for need-based federal loans. Because interest accrues while students are still in school, the unsubsidized Stafford is the most expensive federal loan.

Interest rates are variable but will not exceed 8.25%. Rates are determined each July. Students are notifed directly by their lenders each year.

Stafford loans are offered by many lending institutions, but as terms and conditions can vary, students should find a program that best suits their financial need. Students who need help selecting a lender should contact the Graduate School Financial Aid Office or visit the Student Financial Services web pages.

Eligible students may qualify to borrow under the Perkins program if they demonstrate additional need after borrowing a maximum subsidized Federal Stafford loan of $8,500. The maximum annual Perkins loan to master's students in the Graduate School is $2,000; this limit is determined by the availability of funds and students' previous loans.

The total amount of Perkins loans borrowed, including undergraduate loans, may not exceed $30,000. Perkins loans currently carry a 5% interest rate, which does not begin to accrue until nine months after the student borrower ceases to be enrolled at least half time, at which time repayment begins.

The GradPlus loan is available to domestic students after they have exhausted the Stafford and Perkins loans. The GradPlus loan is offered by many lending institutions, but as terms and conditions can vary, students should find a program that best suits their financial need. Students who need help selecting a lender should contact the Graduate School Financial Aid Office or visit the Student Financial Services web pages.

Alternative loans or private loans can be used to make up the difference between the cost of one’s education and one’s financial aid award and 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.

The Federal Work-Study program enables eligible students to meet a portion of their academic year financial need through part-time employment. Graduate students who qualify may be able to obtain part-time positions through their own departments or other departments within the University, depending on availability. Please note that while the Graduate School Financial Aid Office certifies eligibility for Federal Work Study employment, it is unable to arrange employment for students. Students interested in work study positions should contact the University’s Student Employment Office. Applicants must have the results of a current-year Free Application for Federal Student Aid (FAFSA) analysis on file with the Graduate School Financial Aid Office.