Step 3: Understanding Your Loan Options

In this step, we will help you:

• Understand the loans you have been offered
• Take action to apply for your loans
• Know the loan application deadlines
• Go directly to the Loan Application Links page (but we STRONGLY recommend you read everything below first)

Understand the loans you have been offered

Below is a general outline of the loans that may be included in your financial aid package. Remember, you can login to MyHLS Financial Aid and click on the Accept Awards tab to see your aid package.

Domestic Students:

• Federal Direct Subsidized Stafford Loan and Federal Direct Unsubsidized Stafford Loan: All domestic graduate students are eligible for a total of $20,500 through this program.
• Federal Perkins Loan: All domestic grant recipients receive $2,600 through this program for the 2009-2010 academic year. This amount is based on the allotment of money we receive per year.
• Harvard Law School Loan: Some domestic students with dependents will receive funding through this program.  The amount will depend on financial need as determined by Student Financial Services.
• Required Supplemental Base Loan : All domestic grant recipients are required to borrow $13,500 through either the GradPLUS program or any other supplemental loan program as part of the mandatory base loan amount totaling $36,600.
• Optional Supplemental Loan:  All domestic students have the option of borrowing, through private supplemental loan programs, to the maximum amount of their student budget. 

International Students:

• Harvard Law School Loans: All international students are eligible for a total of $20,500 through this program. Most international students will receive the first $8,500 as a subsidized loan and the remaining amount as an unsubsidized loan. International student grant recipients receive an additional $2,600 in subsidized funding for a total subsidized amount of $11,100 in order to mimic the Perkins funds that are given to domestic grant recipients.
• Required Supplemental Base Loan: All international grant recipients are required to borrow $13,500 through the lender of their choice as part of the mandatory base loan amount totaling $36,600.
• Optional Supplemental Loan:  All international students have the option of borrowing, through private supplemental loan programs, to the maximum amount of their student budget if qualified.  

We have awarded Direct Stafford loans to all domestic students because, based on the current loan market conditions, we feel that the Direct Loan program offers domestic students the best and most achievable terms as well as the most reliable and stable source of funding. However, you may borrow your Stafford Loan through any lender.

If you are interested in LIPP, you should pay attention to your maximum LIPP eligible borrowing figure, and try not to borrow more than that amount. To see your maximum LIPP eligible borrowing amount, login to MyHLS Financial Aid and click on the Messages tab.

All loans outlined above have specific loan rates and terms. Be certain to read the Education Loans Overview section of our web site for more loan details before signing or applying for any loan.

Take action to apply for your loans

Although all loans are listed as "Accepted" on the Accept Awards tab, you must still take action to secure some of the funding. Please review the details below for further information.

Domestic Students:

• Federal Direct Stafford Loan, Federal Perkins Loan, and Harvard Law School loans do not have formal loan applications since your FAFSA and HLS Financial Aid forms are considered your application. You will, however, need to sign a Master Promissory Note in order for the funds to be disbursed to your account. Instructions on how to sign will be sent to you in the fall.
• Required Supplemental Base Loan borrowers will need to submit a supplemental loan application (Direct GradPLUS or any other private supplemental loan) of at least $13,500.
• Optional Supplemental Loan  borrowers who want to take out loans beyond the amount they were given in Direct Stafford, Perkins, Harvard Loans and/or any Required Supplemental loan will need to apply for a supplemental loan (i.e. a GradPLUS or private supplemental loan). Borrowers who already have a required supplemental base loan and want to borrow more funding should simply add any increased amount to the application making one application for all supplemental borrowing.

International Students:

• Harvard Law School loan borrowers, both subsidized and unsubsidized, do not have a formal application since your HLS Financial Aid forms are considered your application. You will, however, need to sign a Master Promissory Note in order for the funds to be disbursed to your account. Instructions on how to sign will be sent to you in the fall.
• Required Supplemental Base Loan borrowers will need to submit a private supplemental loan application of at least $13,500.
• Optional Supplemental Loan borrowers who want to take out loans beyond the amount they were given in Harvard Law School Loans and/or any Required Supplemental loan will need to apply for a supplemental loan. Borrowers who already have a required supplemental base loan and want to borrow more funding should simply add any increased amount to the application making one application for all supplemental borrowing.    

NOTE!  All loans will be disbursed in two separate disbursements; one each semester.  Be certain to borrow the amount you will need for the entire academic year.  Additionally, if you are borrowing from a loan program that deducts fees prior to disbursement, you should increase your loan by the amount of the fees and we will increase your budget for this expense.             

Know the loan application deadlines

If you apply for your supplemental loan funds prior to July 2nd, your loan should be processed in time to reflect as an anticipated financial aid credit on your July e-bill. If you apply after July 2nd, but before August 1, it should appear as an anticipated credit on your August e-bill.  In any event, you must apply for apply for any supplemental loan that you wish to apply toward your fall term billing balance by August 12, 2009 to ensure that the loan can be credited as anticipated aid in lieu of payment.

Please note that if you have chosen to borrow through the Direct GradPLUS loan program, we will list the loan on the Accept Awards tab of MyHLS Financial Aid as soon as we process it. However, we will not request a credit check until mid-August.  It is possible that your loan could be denied for credit reasons and that you will need to apply to another program or find alternative funding at that time.  If you would like to borrow through the GradPLUS loan program and are uncertain about your credit status, review the GradPLUS credit information listed under our Supplemental Loans section of the Loan Terms page.

If your anticipated financial aid credits exceed the total of your e-bill charges, you will be eligible for a fall cash advance check that can be used for living expenses. Eligible students who have applied for supplemental funding by August 12, 2009 will receive cash advance checks at fall registration. Students who receive a cash advance check should budget those funds for living expenses for the entire fall semester. Spring term cash advance checks will be mailed to local addresses no later than January 15th (if anticipated financial aid credits are greater than e-bill charges). See the Cash Advance & Refund section of our web site for more details.

Now you are ready to go to the Loan Application Links page!