Please note: SFS will be closed on Monday, May 25 in observance of Memorial Day. Due to a staff training, our office will reopen on Tuesday, May 26 at 12 PM.

Loans

Loans are borrowed funds that you have to repay, usually after you graduate. There are different programs for students and parents.

We calculate your financial aid offer such that we believe you shouldn’t need to take out any loans to afford MIT; and indeed, 88% of MIT students graduate debt-free. However, some MIT families choose to take out loans for a variety of reasons (for example, to advantageously manage other assets, shift when and how you want to work, and so on).

If your family is considering an educational loan, you should begin by applying for financial aid, since often the most affordable loans are student loans based on need.

We talk more about the kinds of loans below, but some important things to know are:

  • Federal loans are restricted to U.S. citizens or permanent residents, but other loan programs are not.
  • Some loans, referred to as subsidized loans, do not accrue interest while you are in school.
  • Meanwhile, unsubsidized loans do accrue interest that may be paid while you are in school, or added to your principal balance when you graduate.

Learn more about loans from the U.S. Department of Education. To apply for a loan, fill out the Loan Request Form. If you have any questions about your specific loan eligibility, please contact us at getaloan@mit.edu.

Federal Direct Loans

Dependent undergraduates enrolled full-time may borrow up to a federally-set annual limit for a subsidized and/or unsubsidized loan: $5,500 the first year, $6,500 sophomore year, and $7,500 junior and senior years.

Effective July 1, 2026, MIT is required to reduce the annual loan amount for students enrolled less than full-time.  This reduction may take place after your loan has been disbursed and may result in a balance owed to MIT.   If you borrow a federal student loan, and later consider a course load reduction, contact getaloan@mit.edu before you initiate the course reduction.  A counselor can estimate any required loan reduction and the balance you may owe to MIT.

For information about interest rates and loan limit charts, visit studentaid.gov.

Direct Subsidized Loan (for U.S. students)

  • Loan amount is based on financial need.
  • No interest until six months after you graduate, leave school, or your enrollment drops below half-time.
  • Loan amount will be prorated if you enroll less than full-time.

Direct Unsubsidized Loan (for U.S. students)

  • Loan amount is not based on financial need.
  • Interest accrues on this loan while you are in school and repayment is not required until six months after you graduate, leave school, or your enrollment drops below half-time.
  • We advise you to make interest payments, if possible, while in school. If you choose not to, your interest will be added or capitalized⁠01 The addition of unpaid interest to the principal balance of a loan.   to your balance when you begin to repay it.
  • Full-time enrolled students who are considered federally independent or whose parents are declined a Direct Parent PLUS Loan (see below) may borrow an additional $4,000 per year for their first and second years and $5,000 per year for their third and fourth years. Your loan amount will be reduced if you enroll less than full-time.

Direct Parent PLUS Loan (U.S. domestic parents only)

Beginning July 1, 2026, changes to the law as a result of the One Big Beautiful Bill Act (OBBBA) affect how much parents can borrow from the Parent PLUS Loan program

The new limit is up to $20,000 per year, with a $65,000 aggregate limit.  Unlike the federal student loan programs, the Parent PLUS loan program does not require loan reduction for less-than full-time enrollment.

The law allows for a time-limited exception to the new loan limits for currently-enrolled students who meet certain conditions.  Your parent may continue to borrow up to the cost of attendance, minus your estimated financial aid, with no aggregate limit if you:

  • Remain continuously enrolled in an undergraduate program at MIT as of June 30, 2026, AND
  • Had a Parent PLUS Loan disbursed for the MIT undergraduate program before July 1, 2026, OR
  • Had a Subsidized or Unsubsidized Direct Loan disbursed for the MIT undergraduate program before July 1, 2026.

If the above requirements are met, the new Parent PLUS Loan limits do not apply while you are completing your program, for up to 3 years, provided you remain continuously enrolled.   (i.e., do not withdraw or otherwise cease enrollment outside of an official, approved leave of absence).

After three academic years, (or earlier if you withdraw, cease enrollment, or complete your program of study,) your Parent PLUS Loan eligibility becomes subject to the new $20,000 annual and $65,000 aggregate loan limits.

If you have any questions about your Parent PLUS loan eligibility, please contact us at getaloan@mit.edu.

MIT Technology Loan (international undergrads only)

  • Can borrow up to $3,400 without a cosigner. An additional $2,000 may be available, but requires a creditworthy cosigner.
  • You must have been awarded an MIT Scholarship, be enrolled at least half-time, and not defaulted on any prior education loans.
  • No interest until repayment begins nine months after graduation or withdrawal (can be deferred for grad or professional school), 7% interest afterward.
  • Minimum monthly repayment is $50; loan must be repaid in 10 years.

Private loans

Private loans come from third-party lenders and can be taken out by you or your family. Please be mindful when considering private loans as the terms, conditions, and interest rates of these loans are often less favorable than federal loans. Before certifying any private loan that you may take out, our loan counselors will connect with you directly to discuss the implications and terms of the loan.

If you have questions about your eligibility, email us and we’ll be happy to help!

Additional resources

Private Loan Guide: Our loan guide answers many of the questions that students and families have. It contains basic information that may be helpful as you consider whether private loans are right for you.

ELMSelect: Explore the private lenders that eight or more MIT students have borrowed from since 2021, using ELMSelect. ELMSelect is a third-party service that MIT partners with so that we can share the private loan options other students have chosen. You will be able to search for rates and terms to compare loans—it’s free and there is no registration.

Please note: MIT does not endorse any lender on ELMSelect and cannot recommend specific lenders. Students may also choose to borrow from a private lender that does not appear on the list.

  1. The addition of unpaid interest to the principal balance of a loan.⁠ ↑