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Loan Programs

We strongly recommend that all U.S. citizens and permanent residents of the U.S. apply for federal student loans first before pursuing any other loan option.  Students must be enrolled at least half-time to qualify for federal student loans. 

Follow the instructions for applying for financial aid.

Please read our loan policy statement.

For your planning purposes, Babson offers BorrowSmart®, a tool that shows how you can minimize education debt by combining a monthly payment plan with the loan of your choice. BorrowSmart at Tuition Management Systems (TMS)

Federal Direct Loan Program

  • The Federal Direct Loan is the most widely available student loan for U.S. citizens and permanent residents of the U.S
  • Students are eligible to borrow up to $20,500 per year through the Federal Direct Loan Program
  • The Federal Direct Loan interest rate for graduate student borrowers for the 13-14 academic year is fixed at 5.41% percent and there is a 1.051% origination fee deducted at disbursement
  • The Standard Repayment term extends up to 10 years, with deferments available during unemployment, economic hardship, or continued education
  • Interest begins accruing at the time of the loan disbursement. Students can elect to pay the interest while in school or have it capitalized into a repayment schedule that starts six months after you leave school
  • Borrowers are required to sign a Master Promissory Note and to complete entrance and exit loan counseling
  • Loan funds are issued in two disbursements each year, typically timed to coincide with the start of each semester. Students are notified via e-mail each time Federal Direct Loan funds are credited to their account

Federal Direct Graduate PLUS Loan Program

  • For graduate students who wish to borrow through the Federal Direct Graduate PLUS Loan, please complete the application, Master Promissory Note, and entrance counseling
  • The Federal Graduate PLUS Loan interest rate is 6.41 percent and there is a 4.204% origination fee deducted at disbursement for the 13-14 academic year. 
  • Students can request to borrow up to their full cost of attendance, less any financial aid awarded

Federal Perkins Loan Program

  • Awarded to full-time students at Babson with exceptional financial need
  • Limited funds are available
  • Annual awards range from $1,000 to $8,000. Interest rate is fixed at 5 percent
  • No fees
  • Interest starts accruing and repayment begins nine months after you leave school

For students who need financing beyond what is available through the federal student loan programs, we offer a list of recommended loans and lenders:

 

Graduate Student Alternative Loan Options

Another resource is the Student Loan Market Place where you can submit information to determine whether you qualify and for what pricing terms for loans available through the Student Loan Market Place participating lenders.

Student Loan Marketplace and Truth in Lending Disclosure

A co-signer with a strong credit history will increase your chances of being approved for an alternative/supplemental loan.

We use the following criteria in developing our list of recommended loans and lenders:

  • Loan terms and cost to borrower
  • Borrower benefits
  • Differentiated options (fixed rate versus variable rate loans, for-profit versus nonprofit organizations, regional versus national lenders)
 
You are in no way limited to loans/lenders on our list of options. Babson will process a loan from any lender, and it is your right to apply for loans through the lender of your choice.