Loan Terms

Harvard Law School, like all of Harvard University, participates in the Direct Lending Programs offered through the Department of Education. Through this program, students are able to borrow their Direct Stafford and Direct GradPLUS loans directly from the federal government, and there are several advantages to the Direct Loan Programs. Students also have the option of borrowing their Stafford and GradPLUS Loans from any private lender/bank via the Federal Family Education Loan Program (FFELP) instead of the Direct Loan Program. The loan terms are the same regardless of whether the funds are borrowed through the Direct or the FFEL program; the differences arise in the processing of your application, the fee structure, and repayment incentives.

We have awarded all domestic students Direct Stafford loans 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. International students have been awarded Harvard Law School Loans and may borrow additional money, to the maximum amount of their budget, through private loan programs.

There are a number of loan sources that are available to finance your education. The following is an outline of these sources:

Federal Direct Stafford Loans (available to all U.S. citizens and eligible non-citizens)
Federal Perkins Loans (used as part of base loan package for domestic grant recipients)
Harvard Law School Loans (used as replacement for federal loans for international students, and for students with exceptional need as determined by SFS staff)
Supplemental Loans (available to all students with a good credit history)

Application Process: In order to receive any of the above loan sources, students must apply for financial aid through the HLS financial aid application process. Any additional steps for each loan program are outlined in the sections below.

Federal Direct Stafford Loan Program

All students who are U.S. citizens or eligible non-citizens are guaranteed a maximum of $20,500 per academic year in Stafford Loan funding. Depending on the student’s financial information as submitted on the FAFSA, up to $8,500 of these funds is subsidized (does not accrue interest until repayment begins) and the remaining portion is unsubsidized (accrues interest from the date of disbursement). For international students, Harvard Law School loans are used to replace federal loans.

Stafford Loans have the following program features, as set by federal regulations:

Maximum $20,500 per year, up to $8,500 subsidized depending on student financial need
Cumulative debt limit of $138,500 including any former Stafford Loans. Students cannot exceed borrowing limit of $65,000 in subsidized Stafford funding
Fixed interest rate of 6.80% for the life of the loan
Origination Fee: 0.50%
Guarantee Fee: 1.0% (up-front rebate - no deduction taken at disbursement. The borrower retains the rebate by making the first 12 monthly payments on-time)
Six-month grace period: (repayment begins in the seventh month following the last day of enrollment at HLS)
Repayment options: Standard, Graduated, Extended and Income Contingent
Deferment provisions: continued education, military service, service in various volunteer programs, VISTA, Peace Corps
Forbearance provisions: up to 24 months for periods of extreme financial hardship
Cancellation due to death or permanent disability

Additional Application Requirements:
Your financial aid award is processed with Direct Subsidized and Direct Unsubsidized Stafford loans. If you choose to borrow from a FFELP lender, you will need to apply directly through that loan company. They will then forward an electronic certification to us for processing. Additionally, you'll need to complete the online form to cancel your Direct Stafford loans:

Loan Adjustment-Cancellation Form

You may want to compare Stafford lenders in order to determine which program and lender best meets your financial needs, personal preferences, and future financial goals. In order to help you make an informed decision, you will want to look at other lenders. We also recommend that you review the following pages: Advantages of Direct Loans, and How Do I Choose a Loan Program?.

Federal Perkins Loan Program

Harvard Law School is given Perkins loan funding each year. These funds are generally awarded to grant recipients as part of the base loan package.

Federal Perkins Loans have the following program features, as set by federal regulations:

Maximum $6,000 per year (actual awarded amount varies depending on amount of funding available)
Cumulative debt limit of $40,000
Fixed interest rate of 5.00% for the life of the loan
Subsidized loan (interest does not accrue until you enter repayment)
No loan fees
No separate application
Nine-month grace period (repayment begins in the tenth month following the last day of class in your graduation year.)
Ten-year repayment period ($40 minimum monthly payment)
Deferment and forbearance provisions similar to Stafford Loan Program
Cancellation of loans available for graduates who work in certain professions (law enforcement such as DA, PeaceCorps, teaching)
Cancellation due to death or permanent disability

Additional Application Requirements:
In order to accept the loan, the student must sign an electronic master promissory note. A master promissory note generally only needs to be signed once during your time at HLS, and future Perkins loans can be disbursed based on the original promissory note. If you are awarded a Perkins loan, you will be notified, via e-mail, when you need to complete a promissory note - usually during the month of September.

Harvard Law School (HLS) Loan Program

Harvard Law School has a limited amount of its own loan funds. These funds are used to replace federal loan funds for international students. If there are remaining funds available, Harvard Law School loans are given out to other students according to institutional policy.

Harvard Law School Loans have the following program features:

Fixed interest rate of 7.00% for the life of the loan
May be subsidized or unsubsidized
No loan fees
No separate application
Six-month grace period (repayment begins in the seventh month following the last day of class in your graduation year)
Ten-year repayment period ($50 minimum monthly payment)
Deferment and forbearance provisions similar to Stafford Loan Program
Cancellation due to death or permanent disability

Additional Application Requirements:
In order to accept the HLS loan, the student must sign an electronic master promissory note. A master promissory note generally only needs to be signed once during your time at HLS, and future HLS loans can be disbursed based on the original promissory note as long as the terms of the note does not change. If you are awarded an HLS loan, you will be notified, via e-mail,when you need to complete a promissory note - usually during the month of September

Supplemental Loans

The term "supplemental loan" describes any type of loan a student would borrow, if needed, to supplement their need-based loan funds (i.e. Stafford, Perkins, and HLS loans). A supplemental loan is often used to finance any remaining costs not covered by grants and need-based loans – for example, in replacement of a parent resource assessment. Students may apply for a supplemental loan to the maximum amount of their budget minus other financial aid.

Supplemental loans can be broken down into two categories; federal supplemental loans and private supplemental loans.

Federal Supplemental Loans

The federal supplemental loans are called Federal GradPLUS loans and feature a fixed interest rate for the life of the loan. Like other federal loans, they include provisions for deferment, forbearance, and death/disability cancellation that may not be available through private supplemental loans. Federal GradPLUS loans can be borrowed through either the Direct Loan program via the Department of Education, or the Federal Family Education Loan Program via banks, credit unions, or other lending agencies.

Federal Direct GradPLUS Loan information

Private Supplemental Loans

The private supplemental loans are education loans that are financed through banks, credits unions, or other non governmental lending agencies. While some private supplemental loans offer a fixed interest rate for the life of the loan, most private supplemental loans have a variable rate that changes periodically, typically quarterly. Variable rate loans may be offered at a current rate that is lower than that of fixed rate loans, but can increase with market fluctuations to levels higher than fixed rate loans.

Fixed-rate private supplemental loan information (MEFA Graduate Loan Program)

Variable-rate private supplemental loan information (on Harvard University's i-site for Graduate and Professional Students)

Choosing a supplemental loan program

You may want to compare Federal GradPLUS programs with private loan programs in order to determine which loan best meets your financial needs, personal preferences, and future financial goals. Harvard has no financial interest in your choice of lender. In order to help you make an informed decision, we recommend that you review and use the tools available on this site:

Advantages of Direct Loans

How Do I Choose a Loan Program?