Loans

Explore the best practices for student loans, loan options and loan tools and resources available at Columbia Business School.

Guidelines

Federal Loans

Private Loans

Loan Choice (Federal vs. Private)

Rights & Responsibilities

Loan Tools/Repayment

Best Practices

The following guidelines should be followed as best practices in the student loan process:

Apply early to ensure that your loans are processed in time to meet the tuition deadline. Follow dates listed on the Admitted Student Website or through email communications from our office. The Financial Aid Office cannot guarantee loan funds will arrive on time if applications are submitted after the loan deadline, and late fees may be charged.
Ensure that you have completed all required steps in the application process. Inaccurate and/or incomplete applications will delay the process of receiving loan funds.
Borrow only what you need - overborrowing can lead to challenges in loan repayment.
Track the federal loans you have borrowed by accessing the financial aid review section of the National Student Loan Data System (NSLDS).
Track the private loans you have borrowed by keeping record of all correspondence with your private student loan servicer. In addition, please make sure to shop around for the best pricing when applying for private loans. Learn more about how private loan applications impact your FICO score. When reading a private loan interest rate offer, be aware of whether you are taking on a variable rate loan and the repayment option selected. The repayment option you choose cannot be changed at a later date.
Loan funds are disbursed directly to the University approximately 10 days before the start of each semester. Loan funds received in excess of your total charges will be refunded to you, either by check or direct deposit.
To reduce or cancel a current loan, please reach out to the Office of Financial Aid.

Federal Aid Programs

One of the largest federal aid programs is the William D. Ford Federal Direct Lending Program, which is comprised of loans such as the Federal Direct Unsubsidized and Direct Graduate PLUS Loans. The Federal Direct Lending program is funded by the US federal government, supported by the US Treasury.

Federal Direct Unsubsidized Loan

US citizens and permanent residents may apply for up to $20,500/year through the fixed rate Federal Direct Unsubsidized Loan.

Fixed Rate Federal Graduate PLUS Loans

Domestic students may be able to meet the remaining amount in their financial aid budget through a fixed rate Federal loan, called the Federal Direct Graduate PLUS Loan. Applicants should wait to apply for loans until they have been admitted.

The following chart illustrates the terms of the Federal Direct Unsubsidized and Federal Direct Graduate PLUS loan. Interest rates published are effective for loans disbursed between July 1, 2024 and June 30, 2025. All of the loans are set up with a 10 year repayment unless otherwise requested.

2024-2025 William D. Ford Federal Direct Loans

Properties	Federal Direct Unsubsidized Stafford Loan	Federal Direct Graduate Plus Loan
Interest Rate	8.083% fixed*	9.083% fixed**
Origination Fee	1.057% for loans first disbursed on or after October 1, 2020.	4.228% for loans first disbursed on or after October 1, 2020.
Eligibility	Not need-based, however, FAFSA form needed to qualify. No credit check.	FAFSA form required, must borrow full Unsubsidized Loan first; loan approval based on a credit check.
In-School Interest	Interest accrues from disbursement and is deferred with principal. Unpaid interest may be capitalized when repayment begins.	Interest accrues from disbursement and is deferred with principal. Unpaid interest may be capitalized when repayment begins.
Maximum Borrowing Amount	Maximum of $20,500 per academic year ($10,250 per semester)	Up to the full financial aid budget, less the amount of other financial aid received.

* Based on 10-year Treasury bond yield plus 3.60%.
** Based on 10-year Treasury bond yield plus 4.60%.

Please note: As of July 2012, Federal Direct Subsidized Loans are no longer offered to graduate students - only Federal Direct Unsubsidized Loans.

Eligibility

Eligibility Criteria

For a full listing of eligibility criteria, please visit the University Financial Aid Office's page.

The requirements include but are not limited to:

Be a US citizen or permanent resident (with a green card).
Have a valid Social Security Number.
File a FAFSA (Free Application for Federal Student Aid) each academic year.
Be enrolled at least half time (a minimum of six credits per semester) at the time of disbursement and those credits must be required to complete your degree. Additionally,
- If you drop below six credits, any previous loans you borrowed will be placed into their grace period.
- Free credits in the EMBA program, and credits in excess of the required 60 in MBA program will not count towards Federal Loan eligibility. Therefore, please ensure your cumulative credits at the end of the penultimate semester do not exceed 54 if you would like to retain eligibility for your final semester's federal loans.
Be below the aggregate borrowing limit of $138,500 for any prior subsidized or unsubsidized loans.
Meet satisfactory academic progress as defined in the Policies section of our site.
Must not be in default on a federal student loan.
For the Direct Graduate PLUS loan, you must also pass a credit check by submitting our Graduate PLUS Credit Authorization. If there is any incorrect information on your credit report, be sure to rectify the issue(s).
If you have a credit freeze on your credit information, please contact all three credit bureau(s) to temporarily lift or remove the hold. Credit decisions are valid for 180 days.

Application Procedures for Domestic Students

Before receiving an email award letter notification from our office

Create an FSA ID, as it will be required for access to any Department of Education websites
Complete the FAFSA with Columbia University's Title IV school code: 002707. Columbia Business School does not have a different code. After we receive the results, we will set up a financial aid package and our office will send you an email when it is ready to be viewed.
- A new FAFSA is needed to renew your loans for each academic year
Complete Entrance Counseling and a Direct Loan Master Promissory Note (for unsubsidized loan)
Complete a Graduate PLUS Master Promissory Note (MPN for Direct PLUS)
- You will not be asked for a dollar amount in this application
Complete and submit a Graduate PLUS Credit Authorization Form
- Request a Graduate PLUS dollar amount on this form. The maximum amount will be listed on your award letter in the Messages section
- Private loans can be borrowed in lieu of the Graduate PLUS Loan. Applications are already available online with your lender of choice if you are interested in this loan type
- Review the Loan Choice page to compare Graduate PLUS Loans vs. Private Loans; this page details key considerations in deciding between these loan types

Students who wish to borrow both a Federal Direct Unsubsidized Loan and a Federal Graduate PLUS Loan must complete separate Master Promissory Notes for each loan program. There is however, a combined entrance counseling process for both loan types.

After receiving the notification

Log onto Net Partner. To log in you will need to locate your Student ID (PID). This can be found on the emailed award letter notification from our office or by logging on to SSOL with your UNI.
Click on Menu and the Accept Awards tab at the top of the page and accept the portion of the Direct Unsubsidized Loan you wish to receive. The maximum eligibility is $20,500 per academic year.
If you also applied for a PLUS loan, follow the steps above to accept.
Click on the Documents tab at the top of the page to check for any remaining documents as well as the Messages tab to learn more about the various types of aid offered to you.

To secure federal loan funds, you need to both accept the aid on our Net Partner system and complete all of the necessary applications listed above.

Financial Aid Budget

US students who are looking to meet the remaining amount in their financial aid budget can choose to borrow through a private loan instead of the Graduate PLUS loan. International students may apply to be considered for private loans with a US cosigner. In addition, a no-cosigner loan may also be available to those who qualify.

A number of private lenders and outside agencies offer students sources of funding for their MBA financing needs. Our office does not endorse or promote any particular lender, however, the University has created a suggested lender chart for your convenience.

Private loans typically have variable interest rates based upon the student and/or cosigner's credit score, but fixed-rate private loan options are also offered by some lenders. Please note that the University cannot act as a cosigner or sponsor for either domestic or international students.

Below are important guidelines to follow when applying for a private student loan:

You may apply for a semester-only loan or a combined loan for the entire academic year. We recommend one loan application for each academic year to minimize the number of credit inquiries as these can impact credit approval.
You must complete a new application with the lender of your choice for each academic year.
Be sure to select the correct school code for Columbia Business School, which is 002707-03.
Once you accept the loan with your lender, you must submit the Private Loan Request Form found in our Forms Library.

Domestic Student Loans

Eligible Federal Aid

Students should apply for all eligible federal aid available (by submitting the FAFSA) before considering a private, alternative loan, but you are not required to file a FAFSA in order to apply for a private loan. Such loans are for education purposes, which means you must be a registered student and the amount you can borrow cannot exceed your financial aid budget as listed on the Columbia Business School Financial Aid website.

It is recommended that students max out the fixed rate federal loan before taking a private loan. The federal loan programs usually provide better terms related to loan repayment as compared to the private loans. Students can review factors to consider when comparing federal and private loans.

Individual lenders will, at their discretion, evaluate credit history. Private loan terms, conditions, and eligibility requirements will vary, and the borrower (and co-borrower, if applicable) should first compare information among available student loan providers and apply for the one that best suits their needs.

Resources

The Suggested Lender List provides a comparison chart of such information from a select group of lenders offering private education loans. Students have the right and ability to borrow from the educational lender of their choice and are not limited to those on the Suggested Lender List.
For application instructions, please visit each lender's website or else you may contact the lender using their toll-free number. Once you accept the loan with your lender, submit the Private Loan Request Form through our website.
Typical processing time for private loans is 3-4 weeks. Please plan accordingly and apply by the deadline recommended by the Financial Aid Office.
Information about loan programs can be found on the University’s Student Financial Aid site.

International Students Loans

Cosigner Options

International students may choose to borrow a fixed or variable interest rate private educational loan with a creditworthy US cosigner. Each year, Columbia University publishes a suggested lender list which provides a comparison chart of private lenders offering education loans to international students with a creditworthy US cosigner. Your US cosigner must be a US citizen or permanent resident. Keep in mind that for some lenders, a student must have a social security number in addition to having a cosigner. For application instructions, please visit each lender's website. The amount you can borrow cannot exceed your financial aid budget as listed on the Columbia Business School Financial Aid website. Once you accept the loan with your lender, submit the Private Loan Request Form through our website. Processing time for loans is 4-6 weeks assuming all documentation is in order. Please plan accordingly and apply by the deadline recommended by the Financial Aid Office.

No-cosigner Options

There are currently two no-cosigner lenders accepting loan applications for August-entering students – Prodigy Finance and MPower Financing. Prodigy does not approve loans for all nationalities and their funding-application process includes matching students to secured investor funds. MPower approves most nationalities but has limitations to their loan amounts. Students are encouraged to also look into home country loan options and/or to apply with a US cosigner for the best possible rates.

Our best advice at this time is to apply to all possible loan programs so that you have the best chance at approval and to have full information before you begin the I-20 process.

Borrower Characteristics

Among full-time (US Citizen/Permanent Resident) MBA students who borrow at CBS, roughly half choose to borrow federal Graduate PLUS loans and half choose to borrow private loans. Generally, students who borrow the federal loans share a number of key borrower characteristics that differ from those we generally see in students who choose to borrow private loans.

Borrower Characteristics	Direct Federal Unsubsidized & Graduate Plus	Private Loans
Credit History	Good credit or average credit Perhaps a shorter established credit history, for example new permanent residents	Excellent credit Generally longer established credit history Access to a cosigner with excellent credit
Risk Tolerance	Generally lower risk tolerance	Generally higher risk tolerance
Repayment Plan/Strategy	Plan to take a longer time to pay Expect to need flexibility to restructure their monthly payments Unsure about their plans following graduation	Plan to pay the loan off aggressively over a short period of time Less concerned about flexible repayment options Confident in their repayment ability following graduation
Other Considerations or Trends	Students who have borrowed in the federal loan program for prior degrees and still have outstanding prior loan debt Students who have dependents	Students who have borrowed previously but have paid the loans in full or who have borrowed a private loan in a prior degree

Differences Between Federal & Private Loans

In deciding between federal and private loan options, students should consider the differences between each loan type. Below are some things to keep in mind when comparing loan products.

Loan Characteristics	Direct Federal Unsubsidized & Graduate Plus	Private Loans
Interest Rate	Fixed interest rate for both loans for the life of the loan All borrowers receive the same interest rate, regardless of an individual's credit evaluation	May be fixed or variable Depends on borrower’s credit evaluation by the lender May be tied to a specific repayment plan as indicated on the loan application or promissory note
Origination Fee	Federal Direct Unsub =1.057% Federal Grad PLUS = 4.228% *(for loans first disbursed on or after Oct. 1, 2020)	Most private loans do not have an origination fee (varies by lender) Origination fees are typically lower (2-2.5% on average)
Deferment/Grace Period	In-school deferment (repayment deferred until 6 months after graduation or enrollment drops below 6 credits)	In-school deferment (unless the terms of the loan require payment after disbursement) Grace period is typically 6 months after graduation (may vary by lender)
Repayment Options	Flexible repayment plans Standard repayment term is 10 years; Extended is 25 years Income-based repayment plans available May change repayment plan at least once per year	Repayment plans vary by lender (typically ranging from 5-15 years) You may be required to commit to a repayment plan at the time of your application Usually little to no flexibility to change repayment plans
Forbearance Options	Generous forbearance options for economic hardship or unemployment (up to 36 months) if you cannot make your loan payment	Forbearance options vary by lender and are typically much shorter than the federal forbearance
Automatic Discharge for Death or Disability	Loans are automatically discharged for total disability or death Family members are not held responsible for loan payments	Discharge options vary by lender and are not guaranteed Family members or spouse may be responsible for loans under these circumstances

As a federal loan borrower, you are entitled to certain rights and responsibilities. It is important to be aware of these and consequently, we have provided a selection of such rights and responsibilities below. For details, please read the information below which was excerpted from The Student Guide published by the U.S. Department of Education.

Rights

You have the right to a grace period before your repayment period begins. Your grace period begins when you leave school or drop below half time status, and lasts six months.
Your lender must give you a loan repayment schedule that states when your first payment is due, the number and frequency of payments, and the amount of each payment.
You must be notified when the loan is sold if the sale results in making payments to a new lender or agency. Both the old and new lender or agency must provide this notification and must provide the identity of the new lender or agency holding the loan, the address to which the borrower must make payments, and the telephone numbers of both the old and new lender or agency.
You have the right to prepay any part of your loan at any time without penalty. Please contact your lender for payment instructions.

Responsibilities

You must repay your loans according to the terms of the Master Promissory Note (MPN).
Think about what your repayment obligation means before you take out a loan. If you do not repay your loan on time or according to the terms in your MPN, you may go into default, which has serious consequences and will affect your credit rating.
You must make payments on your loan even if you don’t receive a bill or repayment notice. You must also make monthly payments in the full amount your repayment plan has established. Partial payments do not fulfill your obligation.
If you apply for a deferment or forbearance, you must continue to make payments until you’re notified the request has been granted. If you do not, you may go into default. You should keep a copy of any request form you submit, and you should document all contacts with the organization that holds your loan.

Tools and Resources

As you begin to navigate loan repayment, you may want to explore the following online tools and resources:

Student Loan Payment Checklist
Determine Loan Portfolio (SSOL Student Loan History)
Identify Loans and Servicers
Read about Tax Benefits for Education

General Loan Repayment Resources

Resources

Review Loan Repayment Options
Loan Repayment Workshop hosted by the Columbia Business School Financial Aid Office
Loan Repayment Presentation

Calculators

Full-time MBA Loan Amortization Calculator- Full Interest Accrual (Login required)
EMBA Loan Amortization Calculator- Full Interest Accrual (Login required)
Federal Loan Repayment Estimator
Prepayment Calculator
Salary Estimator

Federal Loan Repayment

The Standard Repayment Plan

A Standard Repayment Plan with a fixed annual repayment amount paid over a fixed period of time not to exceed 10 years.

The Graduated Repayment Plan

Paid over a fixed period of time not to exceed 10 years. With this plan, your payments start with a relatively low amount and then increase, generally every two years.

The Extended Repayment Plan

With a fixed annual or graduated repayment amount to be paid over a period not to exceed 25 years. If you’re a FFEL borrower, you must have more than $30,000 in outstanding FFEL Program loans to be eligible for this plan. If you’re a Direct Loan borrower, you must have more than $30,000 in outstanding Direct Loans This means, for example, that if you have $35,000 in outstanding FFEL Program loans and $10,000 in outstanding Direct Loans, you can choose the extended repayment plan for your FFEL Program loans but not for your Direct Loans. Your monthly payment will be lower than it would be under the Standard Plan, but you’ll ultimately pay more for your loan because of the interest that accumulates during the longer repayment period.

Income-Driven Repayment Plans

Note: Federal Income-Driven Repayment Plans are currently under review. Please make sure to monitor communications from your loan servicer regarding possible implications. Visit Federal Student Aid for more information.

Income-Based Repayment (IBR) Plan

The Income-Based Repayment Plan became available July 1, 2009. To qualify for the IBR Plan, you must have a partial financial hardship. Under this plan, during any period when you have a partial financial hardship, your required monthly payment amount will not exceed 15 percent of the difference between your adjusted gross income and 150 percent of the Federal Poverty Guideline amount for your family size and state. For assistance in calculating potential monthly payments under this plan, please see the IBR calculator. You are considered to have a partial financial hardship if the amount you would be required to repay on your eligible student loans under a Standard Repayment Plan with a 10-year repayment period is more than the amount you would be required to repay under the IBR Plan. If you repay under this plan and meet certain other requirements over a 25-year period, any remaining balance on your loans may be canceled. Contact the Direct Loan Servicing Center (for Direct Loans) or your FFEL lender (for FFEL Program loans) for more information about the IBR Plan.

Pay As You Earn (PAYE) Repayment Plan

Monthly payments are 10% of discretionary income, the difference between your adjusted gross income and 150% of the poverty guideline for your family size and state of residence (other conditions may apply). You must also prove partial financial hardship. Additionally, you must be a new borrower on or after October 1, 2007, and must have received a Direct Loan disbursement on or after October 1, 2011. If you repay under the Pay As You Earn Plan and meet certain other requirements over a 20-year period, the unpaid portion may be forgiven. You may have to pay tax on the amount that is forgiven.

Income-Contingent Repayment (ICR) Plan

With an Income-Contingent Repayment Plan, payments are calculated each year based upon your adjusted gross income, family size, and your total Direct Loan borrowing amount. If you repay under this plan and meet certain other requirements over a 25-year period, the unpaid portion may be forgiven. You may have to pay tax on the amount that is forgiven.

Income-Sensitive Repayment Plan (FFEL Loans only)

With an Income-Sensitive Repayment Plan, your monthly loan payment is based on your annual income. As your income increases or decreases, so do your payments. The maximum repayment period is 10 years. Ask your lender for more information on FFEL Income-Sensitive Repayment Plans.

Private Loan Repayment

If you borrowed private loans, you can view those outstanding loans directly on your lender’s website. Most lenders offer 15 or 20 years to repay this loan type. Repayment begins usually 6 months after graduation or 6 months after you drop below 6 credits, whichever happens first.

If you borrowed any Columbia Institutional Loans or Perkins Loans, you will manage your loan repayment with University Accounting Service (UAS). Please visit the University Accounting Service (UAS) website to set up an account.

Loan Forgiveness

Public Service Loan Forgiveness

Federal Loan Forgiveness Program is called Public Service Loan Forgiveness (PSLF). To qualify, you must have made at least 120 payments on non-defaulted federal loans under certain repayment plans while holding a full-time, public service position. For further details such as borrower eligibility requirements and what constitutes a public service position, please visit the Federal Student Aid website. Be sure to also review the Questions & Answers section.

CBS Loan Assistance

Columbia Business School’s Loan Assistance Program aims to encourage MBAs to take management and leadership positions in the public and nonprofit sectors, and with social ventures. The program was created to help alleviate the financial burden associated with repaying education loans while pursuing a career in these sectors, which typically pay lower salaries but have unmet needs that Columbia Business School graduates are able to address.

International and US-based MBA graduates are eligible to apply within the first five years after the date of graduation, and may be eligible to participate for up to ten years after graduation. Awards are based on annual income and education debt level.

To learn more about the program and eligibility criteria please visit the Loan Assistance Program page.

Company Sponsorship

Company sponsorship can provide excellent opportunities for reimbursement of educational costs already funded by students through loans. You should contact your company to explore any resources at their disposal.

The Biden-Harris Administration Student Debt Relief Plan

Visit the Federal Student Aid site to get the latest updates on the Biden-Harris Administration’s student debt relief efforts.

Best Practices

Federal Aid Programs

Federal Direct Unsubsidized Loan

Fixed Rate Federal Graduate PLUS Loans

2024-2025 William D. Ford Federal Direct Loans

Eligibility

Eligibility Criteria

The requirements include but are not limited to:

Application Procedures for Domestic Students

Before receiving an email award letter notification from our office

After receiving the notification

Financial Aid Budget

Below are important guidelines to follow when applying for a private student loan:

Domestic Student Loans

Eligible Federal Aid

Resources

International Students Loans

Cosigner Options

No-cosigner Options

Borrower Characteristics

Differences Between Federal & Private Loans

Rights

Responsibilities

External CSS

Tools and Resources

General Loan Repayment Resources

Federal Loan Repayment

The Standard Repayment Plan

The Graduated Repayment Plan

The Extended Repayment Plan

Income-Driven Repayment Plans

Income-Based Repayment (IBR) Plan

Pay As You Earn (PAYE) Repayment Plan

Income-Contingent Repayment (ICR) Plan

Income-Sensitive Repayment Plan (FFEL Loans only)

Private Loan Repayment

Loan Forgiveness

Public Service Loan Forgiveness

CBS Loan Assistance

Company Sponsorship

The Biden-Harris Administration Student Debt Relief Plan

External CSS