FAQs

MIT Educational Line-of-Credit Domestic & International

Application and Funding Questions

How do I apply?

Apply now quickly and easily to receive instant line of credit approval. Or, call 866-514-7550 (dial 734-556-1789 from outside the United States) to apply by phone. Representatives are available 24 hours a day, 7 days a week to accept applications and answer your questions. 

What is the "certification" process and how does it affect me?

All requested draw amounts are certified by your school. During the certification process, the MIT Student Financial Services Office (MIT SFSO) will:

  • Verify your enrollment
  • Ensure that the amount you have requested meets your financial need based on the school's cost of attendance and the other financial aid you've received
  • Indicate when the loan funds should be disbursed

After the loan has been certified, the funds will be disbursed directly to MIT in the amount and on the date they indicate. Any excess funds that may remain after your direct school-related costs are paid will be deposited into your student account. 

Do I need to be an MITFCU member to be eligible for a Private Student Loan?

Yes, in order to fund the loan, you need to be a credit union member. If you have a co-borrower, that person would become a joint owner on your primary credit union account. If you are not already member(s), you can join at one of our three branch locations or online. 

How do I apply for a Private Student Loan?

You can apply 24/7 at mitsloan.studentchoice.org or by calling toll-free 866-514-7550. Instant approval is possible.

What happens after I've been approved?

After you've received your conditional approval letter, you will need to visit one of our branches to sign your loan paperwork and open a credit union account if you haven't already. You will need to bring one of the following sets of documentation to the credit union:

  • F-1 visa, passport, I-94 and School Certified I-20
  • J-1 visa, passport, I-94 and School Certified DS-2019
  • H-1B visa, passport, I-94 and letter from employer
  • L-1 visa, passport, I-94 and letter from employer

Once all the paperwork is signed, the loan is sent to the MIT SFSO for certification (MIT will only certify loan requests that are within your budget value). After certification is complete, the funds are released to MIT and will be disbursed on the dates that MIT has assigned for your program. If you need additional funds in excess of your planned budget or if you want to know your disbursement dates, you should speak with the MIT SFSO.

How can I request additional funds?

To request additional funds from your existing line of credit, follow these steps:

  • Visit mitsloan.studentchoice.org and select "International Grad Student"
  • Click the "Apply Now/Request Funds" button
  • Select "Returning Borrower" - do not create a new username
  • Complete the "Draw Request Form"
  • Click "Submit" and the draw request will be added to the "Draw Request History" table - you will see a message stating that your request has been processed

Please note that the option to request more funds is only available for those students who have not already borrowed the maximum amount permitted per academic year.

How do I determine the amount of my private student loan?

The amount of your private student loan should be based on the cost of attendance. Please refer to your budget sheet provided by MIT SFSO. 

How quickly can I get the funds?

The exact timeline for disbursing funds will be set by the MIT SFSO in coordination with the Private Student Loan provider. 

Who is eligible?

Domestic: MIT Sloan students enrolled or enrolling in the following programs: Master of Business Administration, Leaders for Global Operations, Sloan Fellows, Master of Science in Management Studies, Master of Finance, and Executive MBA. Students must meet MITFCU underwriting requirements as well as minimum credit score criteria to be approved for a loan.

International: MIT Sloan students enrolled or enrolling in the following programs: Master of Business Administration, Leaders for Global Operations, Sloan Fellows, Master of Science in Management Studies, and Master of Finance. Students must meet MITFCU underwriting requirements as well as minimum credit score criteria to be approved for a loan. Necessary documentation may include one of the following:

International Student: A student who is not a U.S. citizen or U.S. permanent resident, and requires a visa for entry to the United States. Necessary documentation may include one of the following:

  • F-1 Visa, valid unexpired Passport, I-94 and I-20
  • J-1 Visa, valid unexpired Passport, I-94 and DS-2019
  • H-1B Visa, valid unexpired Passport, I-94 and Employer Letter
  • L-1 Visa, valid unexpired Passport, I-94, Letter of Acceptance, and Letter from Employer stating that the borrower remains employed full-time

Line of Credit Questions

How is a line of credit different than a traditional loan?

A line of credit allows you to apply once and then make multiple draws throughout your college career. 

How is the interest rate on the loan determined?

The rate is indexed to the Prime Rate and is variable, meaning it can adjust on a quarterly basis depending on the Prime Rate plus a margin.

Why are Credit Union Private Student Loans better than those from other lenders?

Unlike for-profit lenders, your credit union exists only to serve the best interests of its members. This allows us to offer lower loan rates and fees than other, more traditional "private" lenders. The most important differences for you are zero origination fees, more flexible repayment terms, and lower overall loan rates. The bottom line is that Credit Union Student Choice Loans were created with one goal in mind - helping you finance a higher education without a higher price tag. 

What is the interest rate on my line-of-credit and how is it determined?

Please visit our rates page for up-to-date rate information.

You can reduce your rate by 0.25% by making automatic electronic payments during your repayment period. If your line of credit is subject to a floor rate (also known as a minimum interest rate) as specified in your promissory note, your rate will never be less than the floor rate. 

What is a private student loan?

A private student loan offered by MIT Federal Credit Union is a line of credit for graduate student education in the MIT Sloan School of Management. 

Is there any way to reduce the interest rate?

Applying with a co-borrower who is a United States citizen with income and credit history may help you qualify for a lower rate, however, a co-borrower is not required to apply. Also, by choosing automated payment during your repayment period, you will receive a 0.25% discount on your interest rate.

What expenses are covered by this loan?

A private student loan is meant to cover costs included in your school's Cost of Attendance estimates. This typically includes tuition, fees, books, room and board, and other related expenses. 

Repayment and Servicing Questions

What are the repayment terms?

You may choose full deferment while in school, elect to make interest only payments while in school, or choose full principal and interest payments. Once you complete school and your six month grace period ends, you can choose a) straight repayment over the term - 20 or 25 years principal balance when you enter repayment, or b) graduated repayment for two years. The graduated repayment option amortizes the first 2 years over a 40-year period and then over either 18 or 23 years for the remainder of the loan. This means monthly loan payments will be lower in the first two years after starting repayment - which may be a valuable benefit if you are just beginning a new career and managing a tight budget. 

Are there any fees?

The only fees associated with a Private Student Loan are a non-sufficient fund fee and a late payment fee. There is no loan origination fee. 

What are the repayment terms of the loan?

While in school, your options include:

  • Full deferment of principal and interest*
  • Interest-only monthly payments
  • Principal and interest monthly payments

*During deferment, interest on the loan will accrue. Mandatory repayment begins six months after the student graduates or separates from the school. Please note that for loans paid in full deferment during college, unpaid interest will be capitalized at the end of the 6-month grace period and added to the original principal balance. Monthly payment is based on final loan balance and repayment choices.

As repayment begins, your options include:

Straight repayment over 20 or 25 years. If the loan balance is less than or equal to $40,000, the loan repayment period is 20 years. If the loan balance is above $40,000, the loan repayment period is 25 years.

OR

Graduated repayment for two years. The graduated repayment option temporarily lowers monthly payments by amortizing the first two repayment years over a 40 year period and then over either 18 or 23 years for the remainder of the loan, depending on the loan balance as described above.