Loan Programs

LOAN PROGRAMS

Education loans are only one of the many possible sources of funding to cover the cost of your Tuck education.

Eligibility varies for each of these loan programs as do rates, terms of repayment, and annual/aggregate loan maximums. International students can maximize their options by identifying a U.S. cosigner with positive credit history.

Tuck adheres to the Code of Conduct policy as established by the Higher Education Opportunity Act.

FEDERAL DIRECT LOAN PROGRAMS

Website

Direct Unsubsidized Loan

Graduate students who are U.S. citizens or permanent residents qualify for $20,500 per academic year. The U.S. Department of Education is your lender. The current interest rate is 6.08 percent. Congress sets interest rates on federal loans each year. The interest rate becomes fixed for the life of the loan.  

Interest accrues and capitalizes upon repayment. There is a 1.059 percent loan origination fee deducted from the principal of the loan at the time of disbursement. Repayment begins six months after graduation. The standard repayment period is 10 years; however, you could have up to 25-years to repay your loan depending upon the repayment plan that you choose.

Direct Graduate Plus Loan

Graduate students who are U.S. Citizens or Permanent Residents may qualify for up to the cost of attendance as determined by the school less other financial assistance. You must first apply for your maximum loan eligibility of the Direct Unsubsidized loan before the PLUS can be borrowed. The applicant must not have an adverse credit history. This loan has a fixed interest rate of 7.08 percent. Congress sets interest rates on federal loans each year. The interest rate becomes fixed for the life of the loan.  

Interest accrues and capitalizes upon repayment. There is a 4.236 percent origination fee deducted from the principal of the loan at the time of disbursement. Repayment begins six months after graduation. The standard repayment period is ten years; however, you could have up to 25 years to repay your loan depending upon the repayment plan that you choose.

INSTITUTIONAL LOANS

Tuck 5 Percent Loans and Tuck Educational Loan Fund (TELF)

These endowed loan funds are made possible through the generosity of many friends and alums of the school. U.S. citizens, permanent residents, and international citizens with demonstrated financial need are eligible and will be considered as part of the financial aid process. These loans are interest-free while the student is enrolled at Tuck and five percent during the repayment period. There is a three-month grace period prior to repayment.

Dartmouth Educational Loan Corporation (DELC) Loans

The terms on which DELC loans are available are set by the corporation and are subject to change. The rate to new borrowers is currently 6.95 percent. The maximum repayment term is 10 years. To qualify for a DELC loan, the student must be a credit-worthy U.S. or Canadian citizen or permanent resident, or an international citizen with established positive credit history in the U.S. Depending on financial need, a student may be eligible to borrow up to $65,000 annually from this source over the two years of their MBA education. Financial need is determined by the cost of attendance less estimated family contribution. Students may be required to provide a guarantor for their loan approval.

Custom International Loan

Tuck offers funding options for international citizens attending our MBA program. The program does not require a U.S. co-signer and offers competitive terms. A student is eligible to borrow up to 80 percent of the cost of attendance annually as determined by a needs analysis using the information provided on the international financial aid application. Our goal in providing the program is to supplement the student’s other financial resources. International students should also investigate all sources of funding from within their home country including government and private scholarships and loans. International students may also be eligible for other types of loans if they have a U.S. cosigner with positive credit history.

Private Education Loans

U.S based Private Education Loans are available to U.S. citizens and permanent residents who have positive credit history, and to international students with a creditworthy U.S. cosigner. Other private education loan options may be available in non-U.S. countries. If you decide to pursue a private loan, you must apply directly through the lender.

The maximum loan amount you may be eligible to borrow is the cost of attendance less other financial aid received. Each loan requires that Tuck certify the approved loan amount. Loans terms, interest rates, and aggregate lending limits will vary by lender.

Tuck does not have preferred arrangements with any private education lenders. Under federal law, you have the right to borrow from the lender of your choice.

To view a comprehensive list of lenders used by Tuck students, visit www.elmselect.com. Select Dartmouth College > MBA.  

All rates and terms are subject to change without notice.

Comparing Federal vs. Private Loans

 

Federal

Private

Loan Amount

Federal Direct Unsubsidized Loan = $20,500
Federal Graduate PLUS Loan = Up to the cost of education less other aid.

Varies by lender but typically up to the cost of education less other aid.

Aggregate Borrowing Limit

Federal Direct Unsubsidized Loan = $138,500
Federal Graduate PLUS Loan = No aggregate limit

Varies by lender

Fees

Yes

Many private education lenders do not charge fees.

Interest Rate

Fixed

Offer a variety of loan options that can be variable or fixed.

Incentives

0.25% interest rate deduction for automatic debit.

Varies by lender

Subsidized

N/A

N/A

Credit Approval

Federal Direct Unsubsidized Loan = N/A
Federal Graduate PLUS Loan = Applicant cannot have adverse credit history.

Based on established credit history and/or credit score.

Debt to Income Ratio

N/A

Varies by lender

Cosigner/Endorser

Only required for Federal Graduate PLUS loan if borrower has adverse credit history

May be required for adverse credit history.

Optional to be considered for lower interest rate.

Payment Options

Payments begin after the grace period has concluded.

Depending upon your lender, you may be required to make payments while in school.

Repayment Plans

There are several repayment plans including options to tie your monthly payment to your income

Varies by lender

Grace Period

6-months after graduation

Varies by lender

Prepayment Penalty

There is no pre-payment penalty

Typically, no penalty but you will want to check with your lender.

Loan Forgiveness

You may be eligible to have some of your loan forgiven if you work in public service.

It is unlikely that private lenders will offer loan forgiveness.

 

Repayment

Curious how much you will owe after graduation?

Below is the estimated monthly repayment for the various loans available to graduate students based on the maximum loan eligibility.  Grad PLUS and private educational loans are based upon assumption student is borrowing the full Federal Direct Unsubsidized Loan.

 

Amount
Borrowed

Interest
Fee

Origination
Fee

10 yr
Repayment

15 yr
Repayment

25 yr
Repayment

Federal Direct Unsubsidized Loans

$20,500

6.6%

1.066%

$234

$180

$140

Federal Direct Graduate PLUS Loans

$88,620

7.6%

4.264%

$1,057

$827

$660

Private Loans*

$88,620

7.25%

0.00%

$1040

809

n/a

DELC

$65,000

6.95%

0.00%

$753

n/a

n/a

Tuck 5%

$10,000

5.00%

0.00%

$106

n/a

n/a

Amounts are based on one academic year. If you borrow a similar amount while in your second year of enrollment, you can assume that, at a minimum, the total monthly payment will double since the interest, if applicable, continues to accrue.
*Interest rate and origination fee for private loans will vary by lender.

Consolidation and Refinance

Consolidation allows a borrower to consolidate multiple loans into one loan for ease of payment. Federal student borrowers can consolidate their federal loans into one loan. The interest rate now becomes a weighted average of all the loans rounded up to the nearest one-eighth of one percent.

Student loan refinancing allows the borrower to take out a new loan to pay off the existing loans. This is done through a private student loan lender. Some lenders will allow borrowers to include both federal and private education loans, typically resulting in a lower interest rate.

Types of Loans Borrowed

Domestic Loan Borrowers

Percent

Federal Direct Unsubsidized Loan only

20%

Federal Direct Unsubsidized Loan and Federal Graduate PLUS Loan

17%

Federal Direct Unsubsidized Loan and Private Education Loan

26%

Federal Direct Unsubsidized Loan and Dartmouth Education Loan (DELC)

18%

Private Education Loan only

10%

Dartmouth Education Loan only

1%

Tuck subsidized Loan in addition to loans above

35%