Financial Aid
Loan Programs
An endeavor for a Master of Business Administration degree is an investment that, like any other major investment, should be evaluated carefully. Education loans represent a serious debt obligation and the monthly payments that will be encountered upon graduation should be considered. Manageable education loan repayments represent 6.5 to 12% of after-tax income or 5 to 9.5% of gross starting salary. Please note that you will incur a heavy amount of debt if you choose to finance your education entirely with loans.
Student Loan Application Process - for US citizens and permanent residents
For US citizens and permanent residents, we will determine your student loan eligibility after you have filed the 2010-2011 Free Application for Federal Student Aid (FAFSA). We will create a student loan package for all ACCEPTED students who have completed the FAFSA. This initial notification will be tentative until you submit a signed copy of your 2009 Federal Income Tax Return. Our office will notify you if additional documents are required to complete your file.
Please follow the steps listed below to be considered for student loans from the Johnson School:
- Complete the 2010-11 FAFSA form soon after January 1. This can be done via the web at http://www.fafsa.ed.gov/. The federal code for Cornell University is 002711.
- When you file the FAFSA, you will receive a Personal Identification Number (PIN). It is very important that you keep your PIN in a secure place and do not share your PIN with anyone. You will need this PIN to access your federal loan information and to apply for federal student loans again next year.
- If you are applying to our one-year Accelerated MBA program (AMBA), you will need to apply separately for summer aid. The steps are similar to the academic year except you will also need to complete the 2009-10 FAFSA and submit a signed copy of your 2008 federal income tax return. This process can begin now.
- Email the Financial Aid Office at FinancialAid@johnson.cornell.edu once you have filed the FAFSA on-line. This will alert our office that you have applied for federal student loans.
- Send a signed copy of your 2009 Federal Tax Return (AMBA's also submit 2008 for summer aid) to the Johnson School Financial Aid Office. Electronic copies are acceptable.
You will want to file the FAFSA soon after January 1 as possible. Priority filing deadline is February 1. After we have reviewed your Student Aid Report (SAR) and determined your eligibility, a student loan award notification letter is emailed to you. This notification outlines the educational budget, the federal and institutional loans you qualify for, and your unmet need. You may have to use your savings or other personal resources to cover your unmet need. Students can borrow through alternative federal and private educational loan programs to cover the expected contribution or the unmet need portion of their aid package.
All financial aid sources will be applied first to your university tuition bill. If any of these funds result in a credit balance to your account, the credit will be refunded to you after university registration.
Please note: because a significant amount of your student aid will be in the form of student loans, it is imperative that you establish and maintain a clean credit record. If you have had credit problems in the past, it is important to take steps to improve your record. All aid applicants should request a free credit report annually. Information on ordering a copy of your credit report is outlined in the Financial Planning section.
Loan Program Information
Federal Direct Loan Program
Cornell University participates in the Direct Loan (DL) program. The DL program offers three low-interest loans to graduate and professional students. The lender is the U.S. Department of Education rather than a bank or other financial institutions.
Direct Subsidized/Unsubsidized loan limit is $20,500 per academic year; up to $8,500 may be interest free while in school depending on the applicant's financial need as reflected on the SAR. (Financial need is your cost of attendance minus your estimated financial assistance and your Estimated Family Contribution, or EFC.)
As a direct lender, for both Subsidized and Unsubsidized loan programs, we will use the information you provide on your FAFSA to calculate your eligibility. No additional loan application is necessary. Cornell University uses an online Master Promissory Note (MPN) and our office will notify you once available for your signature. The standard repayment term is 10 years and can be extended up to 30 years based on the amount borrowed. Repayment is deferred until six months after graduation (or cease at least half-time enrollment). and carries a fixed rate of 6.8%.
Direct Grad PLUS loan program can be made to graduate or professional students who need to borrow more than the maximum Subsidized and Unsubsidized loan amounts to meet educational costs that are not covered by other financial aid. In addition to the FAFSA, this program requires a separate application and approval is based upon a review of your credit history - an applicant must have no adverse credit. The rate on the Grad PLUS is a 7.9 percent fixed interest rate. There is a 4% loan fee on the amount borrowed; however offers an upfront 1.5% rebate. Once in repayment you must make 12 required monthly payments on time or the rebate amount will be added back to the principal balance on your loan. Interest will begin to accrue once the loan is disbursed. Repayment begins 60 days after the last disbursement, however, a student enrolled at least half-time is eligible for in-school deferment. Standard repayment term is ten years; can be extended up to 25 years based on amount borrowed. Our office will begin to accept applications for the 2010-2011 academic year after May 1.
Johnson School and Institutional Loans
Institutional loans are loans funded by Cornell University. We have different loan programs which have different terms and conditions. Eligibility for each of these loans is limited to U.S. citizens and permanent residents, based on financial need and is awarded at the discretion of the financial aid office. No additional loan application is necessary. Some institutional loan programs are quite limited and if you don't borrow the federal loans to the maximum amount of your eligibility, your institutional loans may be canceled.
Private Education Loans
We recommend that you review borrowing options through the federal loan programs first and then evaluate the private loan options as an alternative.
Private loans may be borrowed in place of the Grad PLUS loan program. Private education loans are funded by private lending institutions and require a separate loan application. Most lenders allow you to apply and sign online. Private loans have variable interest rates based on a borrower's credit history and begin to accrue interest immediately and some lenders may require interest payments while enrolled. Loan amounts are limited to the published total cost of education as determined by the educational institution, less any loans or financial assistance you receive. There are also cumulative borrowing limits which may affect the amount you qualify to borrow.
Private educational loans are available to students through various lenders. We have a neutral lender list which students from Cornell have previously borrowed through. Students may choose any lender, including one not on our list:
Chase Select http://chaseselectloans.com/
Citibank CitiAssist http://studentloan.citibank.com
Discover Student Loans http://www.discoverstudentloans.com/student/grad-student.aspx
Sallie Mae Loans http://www.salliemae.com
