Loans

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

Federal loan changes for the 2026–27 academic year
Changes to the federal loan programs under the One Big Beautiful Bill Act (OBBBA) took effect July 1, 2026, and include changes to: Parent PLUS Loan limits for new borrowers, loan proration for less-than-full-time enrollment, a new lifetime maximum limit on all Direct Student Loans, and limited exceptions for continuing borrowers.

Please review our Federal Loan Changes Under OBBBA page to see what applies to you.

We calculate your financial aid offer such that we believe you shouldn’t need to take out any loans to afford MIT; 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 you’re considering a loan…

  1. Begin by applying for financial aid, since often the most affordable loans are student loans based on need.
  2. Learn more about the different types of loans on this page.
    Contact us at getaloan@mit.edu if you have any questions about:

    1. Loan eligibility
    2. Loan limits
    3. Repayment options, including loan exit counseling (required if you borrow an MIT or federal loan and graduate, enroll less than half-time, take a Leave of Absence, or withdraw)
    4. How changes under OBBBA might impact you
  3. To apply for a loan, fill out the Loan Request Form.

Federal Direct Loans

Federal loans are available to U.S. citizens and permanent residents only who are enrolled at least half-time. There is a lifetime maximum limit on all combined Federal Direct Student Loans of $257,500.

Note: Your federal loan amount will be reduced if you enroll less than full-time, and continuing borrowers under the limited exception may be impacted by changes to enrollment status.

See Federal Loan Changes Under OBBBA for details, and contact getaloan@mit.edu before reducing your course load, withdrawing, or changing programs to understand how your loan eligibility may be impacted.

Direct Subsidized Loans

  • Need-based student loan with no interest until repayment begins six months after you graduate, leave school, or drop below half-time.
  • Students enrolled full-time (36+ units per term) may borrow up to annual limits of $3,500 the first year, $4,500 sophomore year, and $5,500 junior and senior years, with an aggregate limit of $23,000.
  • Visit the Federal Student Aid site for more information about Direct Student Loan limits, interest rates, and repayment options.

Direct Unsubsidized Loans

  • Non-need-based student loan with interest accruing from disbursement. Interest can be paid quarterly while you’re in school, which we recommend. Otherwise, unpaid interest is capitalized (added) to your balance when repayment begins six months after you graduate, leave school, or drop below half-time
  • Dependent students enrolled full-time may borrow up to annual limits of $5,500 the first year, $6,500 sophomore year, and $7,500 junior and senior years, with an aggregate limit of $31,000.
  • Independent students⁠01 And dependent students, if your parent is unable to obtain a Direct PLUS Loan due to adverse credit. An <strong>independent student</strong> is defined as one of the following: at least 24 years old, married, a graduate student, a veteran, a member of the armed forces, an orphan, a ward of the court, someone with legal dependents other than a spouse, or an emancipated minor or someone who is homeless or at risk of becoming homeless.   enrolled full-time 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.
  • Visit the Federal Student Aid site for more information about Direct Student Loan limits, interest rates, and repayment options.

Direct Parent PLUS Loans

  • New parent borrowers (with loans first disbursed after July 1, 2026) can borrow up to $20,000 per year per eligible dependent undergraduate student, with an aggregate limit of $65,000 per student.
  • Continuing borrowers (with loans disbursed before July 1, 2026 and under the limited exception; see Federal Loan Changes Under OBBBA) may keep prior limits of the cost of attendance minus other aid, with no aggregate limit.
  • Visit the Federal Student Aid site for more information about Parent PLUS Loan limits, interest rates, and repayment options.

MIT Technology Loan

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

Private Loans

Private loans come from third-party lenders, can be taken out by you or your family, and are not limited by citizenship.

Be mindful that the terms, conditions, and interest rates are often less favorable than federal loans. Before we certify any private loan, one of our loan counselors will connect with you to discuss the terms.

Additional resources

  • MIT Private Loan Guide: Answers many common questions about whether private loans are right for you.
  • ELMSelect: A free tool to explore private lenders that eight or more MIT students have borrowed from since 2021. MIT does not endorse any lender on ELMSelect and cannot recommend specific lenders, and you may borrow from a lender not on the list.
  1. And dependent students, if your parent is unable to obtain a Direct PLUS Loan due to adverse credit. An independent student is defined as one of the following: at least 24 years old, married, a graduate student, a veteran, a member of the armed forces, an orphan, a ward of the court, someone with legal dependents other than a spouse, or an emancipated minor or someone who is homeless or at risk of becoming homeless.⁠ ↑