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Federal Loan FAQs

This page contains answers to frequently asked questions about the federal loan programs at Princeton. They are intended as guidelines to help you with the application process; but since we review each application individually, we encourage you to contact us directly for more information.

When do I apply for federal loans?
Most students complete their application over the summer so their first disbursement can be applied to their account early in the fall semester. However, you may apply at any time during the academic year (through April 30, to allow time for processing).

Are these loans for my entire graduate education or just for this year? Do I need to reapply every year?
Federal eligibility is based on your income, assets and funding; since these factors change, we must re-evaluate your eligibility for federal loans every year. Therefore the loans you are awarded now will be for the current academic year; should you wish to borrow next year or at any time during your subsequent years at Princeton, you will need to file a new application.

I'm thinking of applying to Princeton/I've applied but haven't received a decision yet. Can you give me an idea of how much I might be eligible to borrow?
Unfortunately, no. Your federal loan eligibility is based on your cost of attendance minus the financial aid package you receive from Princeton or outside sources and your expected family contribution. Until you know how much support you'll receive from all of these sources, it’s impossible to even estimate how much you might be eligible to borrow through the federal loan program.

I've been accepted to Princeton/I'm a current graduate student. Can you give me an idea of how much I might be eligible to borrow?
Yes: it will be a rough estimate at best, but we can at least tell you if you won’t qualify before you invest time in completing the application. Please contact Donald Snook in the Office of Graduate Student Life: 609-258-3168.

I'm an un-enrolled graduate student. May I still borrow a federal loan?
Unfortunately, only enrolled graduate students may borrow an educational or federal loan. If your enrollment has terminated but you still find yourself short of funds, you may wish to consider a personal line of credit through the Princeton University Credit Union.

I'm pursuing a Master's degree part-time. Can I still borrow a federal loan?
Federal regulations stipulate that only students enrolled at least half-time (2 graduate courses each semester) may borrow through the federal loan programs.

I'm not a U.S. citizen or a U.S. permanent resident. Can I still borrow?
International students are not eligible to borrow through the federal loan programs, but some options do exist. Canadian citizens may borrow Canadian Student Loans through their provincial government. Many private banks offer student loans to international graduate students who can provide a co-signer who is a U.S. citizen and has good credit. Enrolled graduate students may also apply for personal lines of credit through the Princeton University Credit Union.

The Graduate School Office also offers short-term contingency loans to help students with immediate expenses and special grants to assist with unreimbursed medical expenses. Please visit our website for more information about these programs.

If I want to borrow a Perkins loan instead of a Stafford loan, do I still need to complete a Master Promissory Note (MPN)?
The short answer is: Yes.

Graduate students don’t apply for one specific loan; instead, you apply for federal loans in general, and if you demonstrate financial need then the Graduate School decides which loans to award you. We give out the Perkins loan first since it has the most favorable terms, but Perkins funds are limited (one good reason for completing your application early.)

Completing an MPN does not commit you to borrowing a Stafford Loan, but it does make it faster and easier to process your application should you choose to do so. The completed MPN will remain on file in our office and will only be submitted to your lender if you choose to borrow a Stafford loan.

I can't find a copy of my federal income tax return. What can I do?
If you filed a return, you can simply call the IRS and ask them to mail you a computer printout of your return. The number is 1-800-TAX-1040 (1-800-829-1040).

How do I choose a Stafford loan lender?
The Stafford loan originates with the federal government but is disbursed through private banks. Therefore the terms of the loan remain essentially consistent regardless of the lender you choose.

If you have outstanding Stafford loans from your undergraduate or previous graduate work, we suggest you borrow again through the same lender. Consequently when you complete your education and enter repayment, you will only make payments to one bank and will not have to consolidate your Stafford loans. This also makes it easier for you to keep track of your total indebtedness.

Does Princeton offer Direct Student Loans?
No, Princeton does not participate in this program. If your previous Stafford loans were part of the Direct Student Loan program, you will need to choose a new lender for the Stafford loans you may borrow at Princeton.

Once I'm approved for a loan, how do I get my money?
Your federal loan disbursements will be applied to your PU student account. Any charges on your student account will be deducted from the disbursement; if the remainder creates a credit balance, you may ask the Student Accounts Office to issue you a refund check, or to directly deposit the funds into your personal bank account.

What if I choose not to borrow my full eligibility right now?
Since you've already completed the application process, you may opt to borrow some of your eligibility now and the rest at any time during the academic year (through June 1). Simply contact Donald Snook in the Graduate School Office if/when you want to increase your loan.

Is there a limit to how much I can borrow?
Yes, students are limited by both the federal eligibility formula and annual and lifetime limits for each loan.

The federal eligibility formula calculates the difference between a student’s cost of attendance and aid from other sources. A student may not borrow more than their eligibility according to this formula. Depending on their particular eligibility, graduate students may borrow up to $8,500 Subsidized Stafford, $10,000 Unsubsidized Stafford and $6,000 Perkins loan per year.

In addition, the U.S. Department of Education has set maximum limits that students may not exceed during their educational career. For graduate and professional students, those limits are $138,500 ($65,500 of which may be Subsidized), not including undergraduate loans, and $40,000 Perkins, including undergraduate Perkins loans.

I'm not sure how much I want to borrow right now. Can I change my mind later?
Sure. Estimate how much you think you’ll need for the academic year (bearing in mind that you’ll receive half your loan disbursement each semester, less about 4% in origination fees.) If you have additional eligibility, you can borrow more at any time during the academic year (through June 1) simply by contacting Donald Snook in the Graduate School Office: 609-258-3028. If you decide during the year that you don’t need as much as you thought you would, we can cancel, decrease or refund your spring semester disbursement.

Can I borrow a federal loan to cover the cost of a computer?
We can consider adding the cost of a computer to your cost of education once during your academic career. If you have not yet taken advantage of this program, follow the standard steps to apply for a federal loan. In addition, submit a receipt for the computer you purchased and a letter from your academic advisor stating why this computer purchase is vital to your studies (i.e., in addition to the computing facilities provided on campus and in the residential/apartment areas.) Note that the federal loan serves as a reimbursement for the computer, so you must purchase it first and submit the paid receipt with your application.

Princeton's Student Computer Initiative website offers more payment options for students who purchase a computer through the University.

My enrollment has terminated but I'm still at Princeton working on my thesis. My lender wants me to start repaying my loan but I don’t have a job. What do I do?

Deferment of federal loans is tied to enrollment status, in other words, only students enrolled at least half-time qualify to have their loan payments deferred.

If you are no longer enrolled but still pursuing your degree full-time, you may contact your lender directly to discuss income-sensitive payment plans and hardship waivers. Interest on your loans will accrue, but you can request to have your payments waived since you have no source of income. You will need a letter from your Director of Graduate Studies (confirming that you are still pursuing your studies full-time) to support your request.

I'm planning to get married. How will this affect my eligibility for federal loans?
Marital status is part of the federal eligibility formula, since your household will now contain two people, your Cost of Attendance Allowance (pdf) and therefore your borrowing eligibility will increase. On the other hand, the formula will now take into account the income and assets for both you and your spouse.

Please note that the formula requires us to consider your marital status as of the date when you file the FAFSA. If you marry during an academic year but filed the FAFSA while you were still single, we must consider your eligibility as a single student for the current year and as a married student during subsequent years. If you file the FAFSA after your wedding date, we will require your spouse’s federal income tax return even if you were not married during the period covered by that document.

I am/my spouse is expecting a child. How will this affect my eligibility for federal loans?
Number of dependents is another part of the federal eligibility formula, since your household will now contain another person, your Cost of Attendance Allowance (pdf) and therefore your borrowing eligibility will increase.

Please note that, unlike marital status, you may include your unborn child in your household when you file the FAFSA as long as he/she will be born before the end of the academic year (June 30).

I'm not married, but I live with a domestic partner. Can he/she be taken into account?
Generally, no. Federal regulations clearly stipulate that only spouses and legal dependents (for which you provide more than half support) may be considered part of your household when determining eligibility for loans.

My federal eligibility isn’t enough to cover my expenses. What other options do I have?

If you have eligibility over the maximum amount of federal loans you may borrow each year ($24,500), you may be eligible to borrow alternative loans through private lenders.