Loans

Educational loans enable many students to attend Harvard Divinity School, but it’s important to carefully review the terms and conditions before signing any loan agreement.  

Your loan offers may vary depending on your credit history and current interest rates. In addition, you should carefully consider the total cost of taking out of the loan (factoring in both fees and interest), repayment schedules, your personal tolerance for risk, and whether there are options to defer payments while you’re in school or during periods of financial hardship. 

Please also review Harvard University’s Student Loan Code of Conduct.

Federal Loans

Beginning with the 2026-2027 academic year, there are significant changes to federal loan borrowing for students beginning enrollment. More information is available: 

Students eligible to apply are US Citizens, US Permanent Residents, Citizens of Freely Associated States, Refugees, and Persons granted Asylum. 

International students are not eligible for federal aid.  

To qualify for federal loans, students must submit the Free Application for Federal Student Aid (FAFSA) form and maintain enrollment in a minimum of 8 credits per each term of enrollment. 

First-time borrowers to any federal loan program must complete online entrance counseling prior to the first disbursement of the loan. The counseling states the borrower's rights and responsibilities as well as the consequences of default. Upon receipt of a degree, approval of a leave of absence, or withdrawal from HDS, online loan exit counseling is required. In this session students will receive specific information on repayment options, indebtedness levels, and other general loan information.

In addition to exit counseling, first time borrowers or those who have not borrowed loans through the Direct Loan Program in the past 10 years will also need to complete a master promissory note. Students who enroll at HDS and opt to take out loans will be sent information during the summer prior to enrollment with instructions on how to complete the master promissory note.

Stafford Loans

The Unsubsidized Stafford is a guaranteed student loan; therefore, the only reason students can be turned down is if they have met their annual or aggregate loan limits or are currently in default of a current or previous federal loan. The unsubsidized loan does accrue interest while you are in school and during your six-month grace period. Borrowers will receive quarterly interest statements and will have the option to make interest-only payments or allow the interest to be added to the base amount borrowed.

Beginning with the 2026–27 academic year, there are significant changes to federal loan borrowing for students:

Graduate Unsubsidized Direct Loan Limits for students beginning a new program (effective July 1, 2026):

Professional Programs (including MDiv): Up to $50,000/year, $200,000 lifetime borrowing limit for all graduate Stafford loans. The lifetime borrowing combined aggregate limit for undergraduate and graduate loans is $257,500

Graduate programs(Including MTS, MRPL & ThM): Up to $20,500/year, $100,000 lifetime borrowing limit for all graduate Stafford loans. The lifetime borrowing combined aggregate limit for undergraduate and graduate loans is $257,500

Currently enrolled students remaining in the same program will follow legacy borrowing rules. Eligible students under the legacy provision may borrow a maximum of $20,500 per year (pending eligibility) up to a lifetime total of $138,500 (including undergraduate and graduate indebtedness under the William D. Ford Federal Direct Loan Program and the Federal Stafford Loan Program). 

Interest rate and fees

As of July 1, 2013, the interest rate for Unsubsidized Stafford Loans has returned to a variable rate with a maximum interest rate cap of 9.50 percent. The interest rate will change each year on July 1 based on the 10-year Treasury Note Index plus 3.60 percent. The interest rate for the 2026–27 academic year is 8.07%.

The origination fee as of October 1, 2020, is 1.057 percent.

Eligibility

To qualify, an applicant must be a U.S. citizen or permanent resident and must not be in default of a previous federal education loan. Students must apply for financial aid by completing the Free Application for Federal Aid (FAFSA) for each year enrolled. In addition, you must submit any additional information requested (selective service registration, tax transcripts, W-2's, proof of citizenship etc.).

Deferments

A deferment is a postponement of payment on a loan, during which interest does not accrue if the loan is subsidized. You may qualify for a deferment while you:

  • Are enrolled at least half time in an eligible postsecondary school or studying full time in a graduate fellowship program or an approved disability rehabilitation program.
  • Are unemployed or meet our rules for economic hardship (limited to three years).

Military Service: You may also be eligible for a deferment based on qualifying active duty service in the U.S. Armed Forces or National Guard. Refer to the MPN for your loan or contact the Direct Loan Servicing Center for more information about specific qualifications for deferment based on military service.

In most cases, you need to submit a deferment request to your loan servicer along with documentation of your eligibility for the deferment.

If you've gone back to school and your loan servicer receives enrollment information that shows you're enrolled at least half time, it will automatically put your loans into deferment and notify you. You have the option of cancelling the deferment and continuing to make payments on your loan.

HDS participates in the National Student Loan Clearing House. Students enrolled at HDS will have their enrollment reported after the drop/add period has ended. If your loan servicer is not enrolled in the clearinghouse, you should contact them for a paper deferment form.  Deferments are processed through the registrar’s office. The office of financial aid highly recommends that students confirm with their lender that the deferment has been processed before discontinuing their payments. 

If you are in default on your loan, you are not eligible for a deferment.

Forbearance

If you can't make your scheduled loan payments, but don't qualify for a deferment, you may be eligible for a forbearance. A forbearance allows you to temporarily stop making payments on your loan, temporarily make smaller payments, or extend the time for making payments. Some common reasons for getting a forbearance are illness, financial hardship or serving in a medical or dental internship or residency. You can get more information by contacting your loan servicer.

Under certain circumstances, you can automatically be given a forbearance, for instance, while a deferment is being processed, forbearance, cancellation, change in repayment plan or consolidation, or if you're involved in a military mobilization or a local or national emergency.

If you are in default on your loan, you are not eligible for a forbearance.

Grace period

When you graduate, drop below half-time, or withdraw from your academic program, you will receive a six-month grace period for your Direct Subsidized and Unsubsidized Loans. Once your grace period ends, you must begin repaying your loan(s). If the loan is subsidized interest is not accrued during this time.

Repayment options

There are several repayment options available to students. Please visit the Federal Student Aid website for repayment plan information. Students who are interested in determining what their estimated monthly payment might be can consult a loan calculator.

Graduate PLUS Loan

Important note: Due to recently passed federal legislation, the Federal Direct Graduate PLUS Loan Program will be eliminated on July 1, 2026. Only students continuing in their current HDS program and who have borrowed a Direct Loan before July 1, 2026, will be able to borrow through this program for up to 3 more years or until program completion, whichever comes first. New students entering HDS for the 2026-2027 academic year will not be able to access this loan program.

Graduate students are eligible to borrow a Federal Direct Graduate PLUS Loan. The PLUS Loan allows students who qualify to borrow funds up to their cost of attendance minus all sources of financial aid. Before applying for a Graduate PLUS Loan, students are required to meet with a financial aid counselor.

Interest rate and fees

As of July 1, 2013, the interest rate for the Graduate PLUS Loan has returned to a variable rate. The interest rate will change each year on July 1 based on the 10-year Treasury Note Index plus 4.60 percent. The interest rate for the 2026–27 academic year is 9.07%.

The origination fee as of October 1, 2020, is 4.228 percent.

Eligibility

To qualify, an applicant must be a U.S. citizen or permanent resident and must have a satisfactory credit history. Individuals who apply and are turned down due to credit issues are eligible to obtain an endorser (co-signer) and reapply.

Amount

Borrowers are eligible to receive up to the cost of education minus all other aid received from all sources. Graduate PLUS Loan borrowers must first apply and be approved for their Stafford Loan eligibility prior to borrowing a PLUS Loan.

How to apply

HDS students must meet with a financial aid representative before a PLUS Loan will be certified. To apply for a Direct Graduate PLUS Loan, applicants must complete and return a credit check authorization form. Once you have passed the credit check, you will be notified of approval.

Deferments, forbearance, and repayment plans

Unlike private loans, PLUS Loans are federal loans which qualify for deferment, forbearance, forgiveness, consolidation, and several different repayment plans. Deferments include unlimited in-school deferment, and up to 3 years of deferment for financial hardship and unemployment. PLUS Loans also qualify for up to 3 years of forbearance.

There are several repayment options available that are designed to meet the individual needs of borrowers, including income-driven repayment plans that determine your monthly payment amount based on your income and family size. Your loan servicer can help you understand which repayment options are available to you. Generally, you’ll have 10 to 25 years to repay your loan, depending on the repayment plan that you choose. Learn about your repayment options.

Grace period

Please note, however, that PLUS Loans do not have a grace period and repayment will begin within 30 days of completing your program or dropping below half-time enrollment. There are, however, options to request a forbearance so that you can begin repaying your PLUS Loan after the same six-month grace period afforded the Stafford Loan.

Private Student Loans

Private loans are credit-based loans that may be borrowed in addition to the Federal Direct Unsubsidized Loan or other loan programs, meeting the gap between the student budget and the financial aid offer. Students must enroll in a minimum of eight credits per term in a degree-granting program to be eligible. Careful attention should be given to the interest rate (whether it is fixed or variable), to the length of the repayment period, to any borrower benefits (such as interest rate reductions and services) and to the deferment options. Students who anticipate continuing their studies beyond HDS should pay attention to the deferment options for each of the loans.

The Financial Aid Office can only certify loans for up to a maximum of the difference between your student budget and the financial aid you receive from all sources. The difference between your student budget (refer to the HDS Student Aid Portal) and the amount you are receiving in financial aid from all sources is equal to the maximum supplemental student loan you may borrow.

Please note: Processing private loan requests can be a lengthy process; loan applications are reviewed by the responsible lender/agency prior to its certification by the HDS Financial Aid Office. Students who know they will require a private loan should begin the process, usually in mid to late June for fall enrollment.

Consider all options when choosing a private educational loan. It is important to research and compare each option in detail, so you select the best possible product for your individual needs. Students are not required to borrow through the lenders included on this site. These loans were included based on their accessibility to a variety of students, interest rate options, credit criteria, financial management tools and repayment options. Please refer to the specific lender's website for comprehensive information regarding their loan program. 

Harvard University and HDS have no financial interest in which private loan you choose to borrow. Please review the Harvard University Student Loan Code of Conduct (PDF).

Private Student Loan Programs

Private Student Loans are available from numerous banks and lending institutions. They have different approval criteria, interest rates, repayment plans, terms, and conditions. Therefore, it is important to carefully compare private supplemental student loan products.  More information about these loans can be found through the Harvard Private Loan website, and you can learn more about recent changes to federal student loans and Harvard's response here.

To support students who may be affected by the changes that go into effect on July 1, 2026, Harvard University has developed a University-wide Preferred Lender List for the 2026–27 academic year, including a loan option for international students, modeled after a program that has existed at Harvard Law School for a decade. To develop this list, Harvard is performing an assessment of prospective private lenders and defining lender guidelines consistent with federal rules governing preferred lender arrangements. The rates and terms from lenders on this list are expected to be better for many borrowers than other available lending options.