Upcoming Changes to Federal Student Loans

Harvard is committed to making graduate education affordable and provides substantial financial support to graduate students each year, totaling more than $500 million in fiscal year 2025. This support is intended to help alleviate the cost of education and to make Harvard financially accessible to all degree candidates. In some cases, however, even after institutional aid and other financial resources are applied, a student’s total cost of attendance may not be fully covered. In those situations, some students opt to use student loans to help address remaining educational costs. 

To support students who may be affected by the changes that go into effect on July 1, 2026, Harvard University is developing a University-wide Preferred Lender List for the 2026–27 academic year, modeled after a program that has existed at Harvard Law School for a decade. To develop this list, Harvard is performing an assessment of prospective private lenders and defining lender guidelines consistent with federal rules governing preferred lender arrangements. The rates and terms from lenders on this list are expected to be better for many borrowers than other available lending options.

Private education loans are offered by banks, credit unions, and other private lenders – not the federal government. These loans may be used to help cover eligible educational expenses that remain after institutional and federal student aid and other financial resources have been applied, up to a student’s approved cost of attendance, which varies by Harvard program.

The Preferred Lender List will highlight a limited group of lenders whose loan products have been reviewed by the University and are broadly available to all Harvard graduate students. It will be designed to help graduate students who have reached their federal loan limits identify viable private education loan options.

Harvard will pre-negotiate loan interest rates and specific loan terms with these lenders on behalf of all students. Harvard expects these options will be favorable for many students; nevertheless, students are not required to borrow from any of Harvard’s preferred lenders.

The University is conducting a comprehensive review of potential private lending partners and will establish lender parameters in accordance with federal regulations governing preferred lender arrangements. Lenders will be evaluated based on key criteria and features, including the competitiveness of interest rates and the availability of loans to all students, domestic and international, and regardless of credit scores. 

The Preferred Lender List is being developed in coordination with the University's financial, legal, and compliance teams.

Additional information, including the names of the preferred lenders, School-specific details, and Harvard negotiated loan rates, will be made available soon.

Students are not required to use lenders on the Preferred Lender List. We encourage students to compare the terms offered by other student lenders to identify the option that best suits their circumstances.

Before pursuing a private education loan, students are strongly encouraged to review their eligibility for federal student aid. Federal aid programs generally offer important borrower protections and should be considered before making borrowing decisions.

To apply for federal student aid, students must complete the Free Application for Federal Student Aid (FAFSA) at https://studentaid.gov, where they can also learn more about available federal aid programs