Federal Aid Programs
One of the largest federal aid programs is the William D. Ford Federal Direct Lending Program, which is comprised of loans such as the Federal Direct Unsubsidized and Direct Graduate PLUS Loans. The Federal Direct Lending program is funded by the US federal government, supported by the US Treasury.
Federal Direct Unsubsidized Loan
US citizens and permanent residents may apply for up to $20,500/year through the fixed rate Federal Direct Unsubsidized Loan.
Fixed Rate Federal Graduate PLUS Loans
Domestic students may be able to meet the remaining amount in their financial aid budget through a fixed rate Federal loan, called the Federal Direct Graduate PLUS Loan. Applicants should wait to apply for loans until they have been admitted.
The following chart illustrates the terms of the Federal Direct Unsubsidized and Federal Direct Graduate PLUS loan. Interest rates published are effective for loans disbursed between July 1, 2024 and June 30, 2025. All of the loans are set up with a 10 year repayment unless otherwise requested.
2024-2025 William D. Ford Federal Direct Loans
| Properties | Federal Direct Unsubsidized Stafford Loan | Federal Direct Graduate Plus Loan |
|---|---|---|
| Interest Rate | 8.083% fixed* | 9.083% fixed** |
| Origination Fee | 1.057% for loans first disbursed on or after October 1, 2020. | 4.228% for loans first disbursed on or after October 1, 2020. |
| Eligibility | Not need-based, however, FAFSA form needed to qualify. No credit check. | FAFSA form required, must borrow full Unsubsidized Loan first; loan approval based on a credit check. |
| In-School Interest | Interest accrues from disbursement and is deferred with principal. Unpaid interest may be capitalized when repayment begins. | Interest accrues from disbursement and is deferred with principal. Unpaid interest may be capitalized when repayment begins. |
| Maximum Borrowing Amount | Maximum of $20,500 per academic year ($10,250 per semester) | Up to the full financial aid budget, less the amount of other financial aid received. |
* Based on 10-year Treasury bond yield plus 3.60%.
** Based on 10-year Treasury bond yield plus 4.60%.
Please note: As of July 2012, Federal Direct Subsidized Loans are no longer offered to graduate students - only Federal Direct Unsubsidized Loans.
Eligibility
Eligibility Criteria
For a full listing of eligibility criteria, please visit the University Financial Aid Office's page.
The requirements include but are not limited to:
- Be a US citizen or permanent resident (with a green card).
- Have a valid Social Security Number.
- File a FAFSA (Free Application for Federal Student Aid) each academic year.
- Be enrolled at least half time (a minimum of six credits per semester) at the time of disbursement and those credits must be required to complete your degree. Additionally,
- If you drop below six credits, any previous loans you borrowed will be placed into their grace period.
- Free credits in the EMBA program, and credits in excess of the required 60 in MBA program will not count towards Federal Loan eligibility. Therefore, please ensure your cumulative credits at the end of the penultimate semester do not exceed 54 if you would like to retain eligibility for your final semester's federal loans.
- Be below the aggregate borrowing limit of $138,500 for any prior subsidized or unsubsidized loans.
- Meet satisfactory academic progress as defined in the Policies section of our site.
- Must not be in default on a federal student loan.
- For the Direct Graduate PLUS loan, you must also pass a credit check by submitting our Graduate PLUS Credit Authorization. If there is any incorrect information on your credit report, be sure to rectify the issue(s).
- If you have a credit freeze on your credit information, please contact all three credit bureau(s) to temporarily lift or remove the hold. Credit decisions are valid for 180 days.
Application Procedures for Domestic Students
Before receiving an email award letter notification from our office
- Create an FSA ID, as it will be required for access to any Department of Education websites
- Complete the FAFSA with Columbia University's Title IV school code: 002707. Columbia Business School does not have a different code. After we receive the results, we will set up a financial aid package and our office will send you an email when it is ready to be viewed.
- A new FAFSA is needed to renew your loans for each academic year
- Complete Entrance Counseling and a Direct Loan Master Promissory Note (for unsubsidized loan)
- Complete a Graduate PLUS Master Promissory Note (MPN for Direct PLUS)
- You will not be asked for a dollar amount in this application
- Complete and submit a Graduate PLUS Credit Authorization Form
- Request a Graduate PLUS dollar amount on this form. The maximum amount will be listed on your award letter in the Messages section
- Private loans can be borrowed in lieu of the Graduate PLUS Loan. Applications are already available online with your lender of choice if you are interested in this loan type
- Review the Loan Choice page to compare Graduate PLUS Loans vs. Private Loans; this page details key considerations in deciding between these loan types
Students who wish to borrow both a Federal Direct Unsubsidized Loan and a Federal Graduate PLUS Loan must complete separate Master Promissory Notes for each loan program. There is however, a combined entrance counseling process for both loan types.
After receiving the notification
- Log onto Net Partner. To log in you will need to locate your Student ID (PID). This can be found on the emailed award letter notification from our office or by logging on to SSOL with your UNI.
- Click on Menu and the Accept Awards tab at the top of the page and accept the portion of the Direct Unsubsidized Loan you wish to receive. The maximum eligibility is $20,500 per academic year.
- If you also applied for a PLUS loan, follow the steps above to accept.
- Click on the Documents tab at the top of the page to check for any remaining documents as well as the Messages tab to learn more about the various types of aid offered to you.
To secure federal loan funds, you need to both accept the aid on our Net Partner system and complete all of the necessary applications listed above.