MIT Student Financial Services Loans

MIT FEDERAL CREDIT UNION CUSTOM PROGRAM FOR MIT SLOAN SCHOOL OF MANAGEMENT STUDENTS

A credit-based alternative loan for professional students attending the MIT Sloan School of Management. Graduate students in the M.B.A., Leaders for Global Operations, Master of Finance, Master of Science in Management Studies, and Sloan Fellows programs are eligible to borrow under the Custom Program.

MIT has arranged for the MIT Federal Credit Union to offer a loan program for students at the Sloan School of Management. This program makes it possible for international students to borrow funds for their education without a co-signor and at competitive rates. MIT previously had a similar program with another private bank. That bank terminated its program in the Fall of 2008 during the U.S. financial market crisis. MIT contacted four banks about replacing the program, and other than the MIT Federal Credit Union, no other bank would provide a loan program for un-cosigned loans for international students at a competitive interest rate.

This custom loan program is an option for Sloan students, but students do not have to borrow from the Credit Union. As always, MIT will certify any loan selected by a Sloan School of Management student and does not place any limit or restriction on a student's choice of lender. MIT SFS advises students to carefully consider any loan they borrow and to compare rates, fees and other expenses when considering loans.

How to Apply

Applying for the first time? Complete step 1 before the start of the academic year to receive credit on your fall semester bill. Applications are accepted throughout the academic year.

Reapplying? Complete step 1 before the start of the academic year to receive credit on your fall semester bill. Applications are accepted throughout the academic year. In future years, you will simply need to update your loan request with your current borrowing needs.

  • Step 1 – Complete the MIT Graduate Loan Application.
  • Step 2 – If you are a U.S. citizen or permanent resident, file a FAFSA, as you are expected to borrow the maximum Federal Direct Subsidized Loan and Federal Direct Unsubsidized Loan before borrowing under this program.
  • Step 3 – Apply and sign for your loan online at MIT Federal Credit Union. (Domestic students can apply and e-sign. International students can apply but must wet sign the application in person at the credit union) Domestic students will need to provide income documentation (for borrower and coborrower, if applicable) before loan approval. Both Domestic and International students will receive an instant credit decision. You must be a member of the Credit Union before your loan may be disbursed.


About This Loan

Eligibility requirements
  • Must be enrolled in an eligible Sloan School of Management Program: M.B.A., Leaders for Global Operations, Master of Finance, Master of Science in Management Studies or Sloan Fellows.
  • U.S. students must have positive credit history and have the option of applying with a creditworthy co-signor
  • International students must be at least 18 years old. International students do not need to have a co-signor, but if they apply with one they will receive an interest rate reduction. Co-signors must be either a U.S. citizen or permanent resident with a valid Social Security number.
  • Enrolled (full-time or half-time)
  • Annual credit review will be performed for all continuing domestic applicants.
Maximum annual loan
  • Cost of education minus any financial aid as certified by MIT.
  • Students may be approved for a line of credit up to $170,000 which may be accessed during the student’s enrollment at MIT.
  • $5,000 minimum for new borrowers and those who have previously borrowed less than $5,000.
Aggregate limit
  • Graduate students: $170,000
Interest rate
  • Variable interest rates of prime rate +2.75% for international students. For domestic students interest rate will depend upon credit scoring and may vary from prime rate +2.00% to prime rate + 2.75%. (International students will have rate of prime + 2.75%; applicants with a coborrower will have a rate of prime + 2.25%)
  • Students who apply with a US Co-signor will receive a 0.50% interest rate reduction.
  • Interest rate varies quarterly, and has a rate floor of 5.50% and a rate cap of 18%.
  • If interest is not paid while in school, it is capitalized once the borrower begins repayment.
Fees
  • No origination or prepayment fees
Repayment
  • Begins 6 months after graduation or withdrawal from school
  • Flexible repayment terms including graduated repayment for the first two years.
  • Graduate students have up to 25 years to repay depending on loan balance, plus any periods of deferment or forbearance.
  • Students may make interest only payments during deferment periods.
  • Students who sign up for auto-payment qualify for a 0.25% interest rate reduction.
Important Sites

Loan entrance counseling
Online counseling via WebSIS (Kerberos ID and MIT Certificate needed) is required for all first-time borrowers of Federal Direct Loans, Federal Perkins Loans and MIT Technology Loan.

Campus Partners
Campus Partners handles billing and payment for Federal Perkins Loans and MIT Technology Loans.

Direct Loan Servicing Ctr.
The DLSC handles billing and payment for Federal Direct Loans and Graduate PLUS Loans.

Loan payment calculator
Estimate your loan payments.

Loan exit counseling
If you borrowed Federal Direct Stafford Loans and/or Perkins loans, you are required by federal law and MIT policy to make an appointment for an exit interview with your loan counselor before graduation. Click here for contact information. Required reading: the SFS loan exit counseling guide.
Compare loans

These two printable charts can help you compare loans available to undergraduates and their families, and loans available to graduate students.

View Undergraduate loans

View Graduate loans
 
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