Clone of 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)

Loan 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

Application Procedures

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

International Students Loans

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.

Federal Loans	(Unsub/Grad 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

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
Review Federal Loans and Identify Loan Servicer(s)
Review Loan Repayment Options
Estimate Monthly Loan Payments
Read about Tax Benefits for Education
Loan repayment workshop hosted by the Columbia Business School Financial Aid Office