The Ultimate Guide For Managing Your Harvard Student Loans

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Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality and will make a positive impact in your life. We sometimes earn a sales commission or advertising fee when recommending various products and services to you. Similar to when you are being sold any product or service, be sure to read the fine print understand what you are buying, and consult a licensed professional if you have any concerns. Student Loan Hero is not a lender or investment advisor. We are not involved in the loan approval or investment process, nor do we make credit or investment related decisions. The rates and terms listed on our website are estimates and are subject to change at any time. Please do your homework and let us know if you have any questions or concerns.

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Graduating from Harvard University has hopefully opened a lot of doors for your career — but going to one of the most prestigious schools in the country likely came with a steep cost.

A single year at Harvard can cost up to $73,600. Even if you managed to secure scholarships for your education, you may still have graduated with a hefty student loan balance hanging over your head.

Thinking about your Harvard student loans and monthly payments may be overwhelming, but ignoring your debt will only land you in trouble. Here are four steps you need to take now to start managing your loans.

1. Find out what loans you have

Over the course of your college career, you may have taken out multiple student loans to pay for your education. Each loan type has different terms, grace periods, and interest rates, so it can quickly become confusing.

Your first step to managing your debt is identifying the types of loans you have. If you aren’t sure, you have a few options for getting that information:

As a Harvard graduate, you may have one or more of the following loan types:

Federal Perkins Loans

A Federal Perkins Loan has a low fixed interest rate of 5% and borrowers have a nine-month grace period before they have to repay their loans. That means if you graduated in May, you don’t need to make your first student loan payment until February 2018.

As of September, 2017, the Federal Perkins Loan program came to an end. However, if you took out a Perkins Loan previously, the terms of your loan stay the same.

Institutional Loans

Harvard offers different institutional loans based on your major and grade level. These loans have a six-month grace period and the loans are subsidized, which means Harvard covers the interest payments until you graduate.

HPSL/LDS

Depending on your major and personal situation, you may have taken out a Health Professions Student Loan or a Loan for Disadvantaged Students (HPSL/LDS). These loans have an interest rate of 5% and give you a 12-month grace period, which allows you more time to find a job.

Wolfson Loans

Wolfson Loans have variable interest rates, but Harvard caps them at 7%. If you have this type of loan, you have a six-month grace period.

Private student loans

If you exhausted your Harvard loan and federal student loan options, you might have turned to private lenders to fill the gap. Your private loan terms can vary; you may have higher interest rates or less favorable repayment plans.

2. Know your student loan repayment options

If your loans were issued by Harvard University, the federal government, or a private lender, there may be options available to you to make managing your payments easier.

Income-driven repayment plans

Harvard University has one of the highest rates of students securing jobs after graduation. Over 66 percent will enter the workforce, while another 14 percent will go on to graduate school.

However, 31 percent of 2016 Harvard graduates start their careers making less than $50,000, and nearly 10 percent earn less than $30,000. If you’re carrying student loan debt, your payments can consume a good portion of your limited income.

If you’re having trouble making your payments and have federal student loans, you may be eligible for an income-driven repayment (IDR) plan. Under IDR, the government extends your repayment term and caps your payments at a percentage of your income. That approach can dramatically reduce your monthly loan payments.

Loan consolidation

If you’re struggling to manage different student loans and payment due dates, consolidating may be a good option for you. With a Direct Consolidation Loan, you combine your student debt into one loan with just one monthly payment.

Keep in mind, this option doesn’t save you any money. Rather, it simplifies the loan repayment process and is sometimes required to be eligible for other federal repayment and forgiveness programs.

Harvard Institutional Loans are private loans and are not eligible for a Direct Consolidation Loan, but Federal Perkins, HPSL, LDS, and Federal Stafford loans are. To apply for a consolidation loan, you can go directly through the U.S. Department of Education or sign up for our free app and get customized help with your loans.

Deferment

If you need to pause payments on your federal or Harvard-issued loans for a qualifying reason, such as attending graduate or professional school, you can opt to enter your loans into deferment. With deferment, your student loan payments are paused for a set period of time (though interest may continue to accrue, depending on your loan type).

To apply for deferment on Perkins Loans, HPSL/LDS loans, or Harvard loans, complete the school’s request form. To defer federal loans, contact your loan servicer.

If you have private loans, you may still be able to defer your loans if you’re going back to school or are facing serious financial hardship, but rules vary by lender. Contact your loan servicer directly to see if a deferment is an option for you.

3. Research forgiveness and repayment assistance programs

Teacher Cancellation

Each year, over 900 students graduate from Harvard’s Graduate School of Education. Many of those students go on to teach in urban schools or high-need areas.

Eligible teachers could have a percentage of their Perkins Loans discharged after one year of service. To qualify, submit the teacher cancellation form to the Harvard Student Loan Office. The school gives extra consideration to special education teachers and those who teach in low-income schools.

Teachers with other types of federal loans may also have a portion of their debt forgiven after teaching for five years.

Public Service Loan Forgiveness

If you have a Perkins Loan, you might be able to get a percentage of your student loans forgiven if you complete at least one year of qualifying public service. Eligible professions include nurse, medical technician, child or family service professional, law enforcement, lawyer, firefighter, or librarian.

To qualify, you must submit a public service cancellation form to the Harvard Student Loan Office and be current on your payments. At the end of your service year, you must submit another form stating that you completed your service term.

Harvard grads with other types of federal loans may also be eligible for forgiveness if they work in a public service job for 10 years.

Harvard Kennedy School Loan Repayment Assistance Program

For graduates who are dedicating their careers to public service, Harvard provides its own form of aid.

If you work for a non-profit with a mission consistent with the goals of the Kennedy School, Harvard may pay a portion of your student loan payments for up to five years. To be eligible, you must make under $70,000 if you’re single or $90,000 if married.

Harvard Law School’s Low Income Protection Plan

Getting a law degree from Harvard can be prohibitively expensive, but the school’s Low Income Protection Plan offers some relief for law graduates with student loans.

If you work for the government, a non-profit, a private firm, or as an academic, you could be eligible. Under the Low Income Protection Plan, the school sets your loan payments at a fraction of your income (Harvard covers the rest of your bill).

4. Consider refinancing your loans

Graduating from Harvard has plenty of advantages. Nationally, 2016 graduates make an average salary of $50,566. Harvard graduates make much more — 53 percent of the 2016 class makes over $70,000, with many earning incomes in the six-figures. That means you’re likely an ideal candidate for refinancing both federal and private loans.

If other repayment options aren’t useful to you, refinancing your student loans can be a smart move. When you refinance, you work with a private lender to take out a new loan that pays off your current student debt. Your new loan may have a lower interest rate, smaller monthly payment, or different repayment term.

Refinancing can help you save money over the life of the loan. With a lower interest rate, more of your payments go towards the principal rather than interest. If you need breathing room in your budget, extending your repayment term can lower your monthly payment but you may pay more in interest over the length of the loans term.

However, refinancing isn’t a good idea for everyone. Be sure you weigh the drawbacks of student loan refinancing, too.

Tackling your Harvard student loans

Attending and graduating from Harvard is a tremendous achievement, but leaving school with student loan debt can inhibit your future plans.

Harvard offers many repayment options and cancellation programs to help you manage your debt more effectively. To find out what options are available for your specific needs, contact the Harvard financial aid office.

Interested in refinancing student loans?

Here are the top 6 lenders of 2018!
LenderVariable APREligible Degrees 
Check out the testimonials and our in-depth reviews!
1 Important Disclosures for Earnest.

Earnest Disclosures

To qualify, you must be a U.S. citizen or possess a 10-year (non-conditional) Permanent Resident Card, reside in a state Earnest lends in, and satisfy our minimum eligibility criteria. You may find more information on loan eligibility here: https://www.earnest.com/eligibility. Not all applicants will be approved for a loan, and not all applicants will qualify for the lowest rate. Approval and interest rate depend on the review of a complete application.

Earnest fixed rate loan rates range from 3.89% APR (with Auto Pay) to 7.89% APR (with Auto Pay). Variable rate loan rates range from 2.47% APR (with Auto Pay) to 6.97% APR (with Auto Pay). For variable rate loans, although the interest rate will vary after you are approved, the interest rate will never exceed 8.95% for loan terms 10 years or less. For loan terms of 10 years to 15 years, the interest rate will never exceed 9.95%. For loan terms over 15 years, the interest rate will never exceed 11.95% (the maximum rates for these loans). Earnest variable interest rate loans are based on a publicly available index, the one month London Interbank Offered Rate (LIBOR). Your rate will be calculated each month by adding a margin between 1.82% and 5.50% to the one month LIBOR. The rate will not increase more than once per month. Earnest rate ranges are current as of Month/Day/Year, and are subject to change based on market conditions and borrower eligibility.

Auto Pay discount: If you make monthly principal and interest payments by an automatic, monthly deduction from a savings or checking account, your rate will be reduced by one quarter of one percent (0.25%) for so long as you continue to make automatic, electronic monthly payments. This benefit is suspended during periods of deferment and forbearance.

The information provided on this page is updated as of 08/21/18. Earnest reserves the right to change, pause, or terminate product offerings at any time without notice. Earnest loans are originated by Earnest Operations LLC. California Finance Lender License 6054788. NMLS # 1204917. Earnest Operations LLC is located at 302 2nd Street, Suite 401N, San Francisco, CA 94107. Terms and Conditions apply. Visit https://www.earnest.com/terms-of-service, email us at hello@earnest.com, or call 888-601-2801 for more information on ourstudent loan refinance product.

© 2018 Earnest LLC. All rights reserved. Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by or agencies of the United States of America.


2 Important Disclosures for Laurel Road.

Laurel Road Disclosures

APR stands for “Annual Percentage Rate.” Rates listed include a 0.25% EFT discount, for automatic payments made from a checking or savings account. Interest rates as of 11/8/2018. Rates subject to change.

Variable rate options consist of a range from 3.27% per year to 6.09% per year for a 5-year term, 4.64% per year to 6.14% per year for a 7-year term, 4.69% per year to 6.19% per year for a 10-year term, 4.94% per year to 6.44% per year for a 15-year term, or 5.19% per year to 6.69% per year for a 20-year term, with no origination fees. APR is subject to increase after consummation. The variable interest rate will change on the first day of every month (“Change Date”) if the Current Index changes. The variable interest rates are based on a Current Index, which is the 1-month London Interbank Offered Rate (LIBOR) (currency in US dollars), as published on The Wall Street Journal’s website. The variable interest rates and Annual Percentage Rate (APR) will increase or decrease when the 1-month LIBOR index changes. The variable interest rates are calculated by adding a margin ranging from 0.98% to 3.80% for the 5-year term loan, 2.35% to 3.85% for the 7-year term loan, 2.40% to 3.90% for the 10-year term loan, 2.65% to 4.15% for the 15-year term loan, and 2.90% to 4.40% for the 20-year term loan, respectively, to the 1-month LIBOR index published on the 25th day of each month immediately preceding each “Change Date,” as defined above, rounded to two decimal places, with no origination fees. If the 25th day of the month is not a business day or is a US federal holiday, the reference date will be the most recent date preceding the 25th day of the month that is a business day. The monthly payment for a sample $10,000 loan at a range of 3.27% per year to 6.09% per year for a 5-year term would be from $180.89 to $193.75. The monthly payment for a sample $10,000 loan at a range of 4.64% per year to 6.14% per year for a 7-year term would be from $139.65 to $146.76. The monthly payment for a sample $10,000 loan at a range of 4.69% per year to 6.19% per year for a 10-year term would be from $104.56 to $111.98. The monthly payment for a sample $10,000 loan at a range of 4.94% per year to 6.44% per year for a 15-year term would be from $78.77 to $86.78. The monthly payment for a sample $10,000 loan at a range of 5.19% per year to 6.69% per year for a 20-year term would be from $67.05 to $75.68.

However, if the borrower chooses to make monthly payments automatically by electronic funds transfer (EFT) from a bank account, the variable rate will decrease by 0.25%, and will increase back up to the regular variable interest rate described in the preceding paragraph if the borrower stops making (or we stop accepting) monthly payments automatically by EFT from the designated borrower’s bank account.


3 Important Disclosures for SoFi.

SoFi Disclosures

  1. Student loan Refinance:
    Fixed rates from 3.899% APR to 7.979% APR (with AutoPay). Variable rates from 2.470% APR to 6.990% APR (with AutoPay). Interest rates on variable rate loans are capped at either 8.95% or 9.95% depending on term of loan. See APR examples and terms. Lowest variable rate of 2.470% APR assumes current 1 month LIBOR rate of 2.30% plus 0.91% margin minus 0.25% ACH discount. Not all borrowers receive the lowest rate. If approved for a loan, the fixed or variable interest rate offered will depend on your creditworthiness, and the term of the loan and other factors, and will be within the ranges of rates listed above. For the SoFi variable rate loan, the 1-month LIBOR index will adjust monthly and the loan payment will be re-amortized and may change monthly. APRs for variable rate loans may increase after origination if the LIBOR index increases. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. *To check the rates and terms you qualify for, SoFi conducts a soft credit inquiry. Unlike hard credit inquiries, soft credit inquiries (or soft credit pulls) do not impact your credit score. Soft credit inquiries allow SoFi to show you what rates and terms SoFi can offer you up front. After seeing your rates, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit inquiry. Hard credit inquiries (or hard credit pulls) are required for SoFi to be able to issue you a loan. In addition to requiring your explicit permission, these credit pulls may impact your credit score.
  2. Terms and Conditions Apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet SoFi’s underwriting requirements. Not all borrowers receive the lowest rate. To qualify for the lowest rate, you must have a responsible financial history and meet other conditions. If approved, your actual rate will be within the range of rates listed above and will depend on a variety of factors, including term of loan, a responsible financial history, years of experience, income and other factors. Rates and Terms are subject to change at anytime without notice and are subject to state restrictions. SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income Based Repayment or Income Contingent Repayment or PAYE. Licensed by the Department of Business Oversight under the California Financing Law License No. 6054612. SoFi loans are originated by SoFi Lending Corp., NMLS # 1121636. (www.nmlsconsumeraccess.org)

4 Important Disclosures for LendKey.

LendKey Disclosures

Refinancing via LendKey.com is only available for applicants with qualified private education loans from an eligible institution. Loans that were used for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not eligible for refinancing with a lender via LendKey.com. If you currently have any of these exam preparation loans, you should not include them in an application to refinance your student loans on this website. Applicants must be either U.S. citizens or Permanent Residents in an eligible state to qualify for a loan. Certain membership requirements (including the opening of a share account and any applicable association fees in connection with membership) may apply in the event that an applicant wishes to accept a loan offer from a credit union lender. Lenders participating on LendKey.com reserve the right to modify or discontinue the products, terms, and benefits offered on this website at any time without notice. LendKey Technologies, Inc. is not affiliated with, nor does it endorse, any educational institution.


5 Important Disclosures for CommonBond.

CommonBond Disclosures

Offered terms are subject to change. Loans are offered by CommonBond Lending, LLC (NMLS # 1175900). If you are approved for a loan, the interest rate offered will depend on your credit profile, your application, the loan term selected and will be within the ranges of rates shown.

All Annual Percentage Rates (APRs) displayed assume borrowers enroll in auto pay and account for the 0.25% reduction in interest rate. All variable rates are based on a 1-month LIBOR assumption of 2.28% effective October 10, 2018.


6 Important Disclosures for Citizens Bank.

Citizens Bank Disclosures

  1. Education Refinance Loan Rate Disclosure: Variable rate, based on the one-month London Interbank Offered Rate (“LIBOR”) published in The Wall Street Journal on the twenty-fifth day, or the next business day, of the preceding calendar month. As of November 1, 2018, the one-month LIBOR rate is 2.29%. Variable interest rates range from 2.79%-8.39% (2.79%-8.39% APR) and will fluctuate over the term of the borrower’s loan with changes in the LIBOR rate, and will vary based on applicable terms, level of degree earned and presence of a cosigner. Fixed interest rates range from 3.75%-8.69% (3.75%-8.69% APR) based on applicable terms, level of degree earned and presence of a cosigner. Lowest rates shown require application with a cosigner, are for eligible, creditworthy applicants with a graduate level degree, require a 5-year repayment term and include our Loyalty discount and Automatic Payment discounts of 0.25 percentage points each, as outlined in the Loyalty and Automatic Payment Discount disclosures. The maximum variable rate on the Education Refinance Loan is the greater of 21.00% or Prime Rate plus 9.00%. Subject to additional terms and conditions, and rates are subject to change at any time without notice. Such changes will only apply to applications taken after the effective date of change. Please note: Due to federal regulations, Citizens Bank is required to provide every potential borrower with disclosure information before they apply for a private student loan. The borrower will be presented with an Application Disclosure and an Approval Disclosure within the application process before they accept the terms and conditions of their loan.
  2. Federal Loan vs. Private Loan Benefits: Some federal student loans include unique benefits that the borrower may not receive with a private student loan, some of which we do not offer with the Education Refinance Loan. Borrowers should carefully review their current benefits, especially if they work in public service, are in the military, are currently on or considering income based repayment options or are concerned about a steady source of future income and would want to lower their payments at some time in the future. When the borrower refinances, they waive any current and potential future benefits of their federal loans and replace those with the benefits of the Education Refinance Loan. For more information about federal student loan benefits and federal loan consolidation, visit http://studentaid.ed.gov/. We also have several resources available to help the borrower make a decision at http://www.citizensbank.com/EdRefinance, including Should I Refinance My Student Loans? and our FAQs. Should I Refinance My Student Loans? includes a comparison of federal and private student loan benefits that we encourage the borrower to review.
  3. Citizens Bank Education Refinance Loan Eligibility: Eligible applicants may not be currently enrolled. Applicants with an Associate’s degree or with no degree must have made at least 12 qualifying payments after leaving school. Qualifying payments are the most recent on time and consecutive payments of principal and interest on the loans being refinanced. Primary borrowers must be a U.S. citizen, permanent resident or resident alien with a valid U.S. Social Security Number residing in the United States. Resident aliens must apply with a cosigner who is a U.S. citizen or permanent resident. The cosigner (if applicable) must be a U.S. citizen or permanent resident with a valid U.S. Social Security Number residing in the United States. For applicants who have not attained the age of majority in their state of residence, a cosigner will be required. Citizens Bank reserves the right to modify eligibility criteria at anytime. Interest rate ranges subject to change. Education Refinance Loans are subject to credit qualification, completion of a loan application/consumer credit agreement, verification of application information, certification of borrower’s student loan amount(s) and highest degree earned.
  4. Loyalty Discount Disclosure: The borrower will be eligible for a 0.25 percentage point interest rate reduction on their loan if the borrower or their co-signer (if applicable) has a qualifying account in existence with us at the time the borrower and their co-signer (if applicable) have submitted a completed application authorizing us to review their credit request for the loan. The following are qualifying accounts: any checking account, savings account, money market account, certificate of deposit, automobile loan, home equity loan, home equity line of credit, mortgage, credit card account, or other student loans owned by Citizens Bank, N.A. Please note, our checking and savings account options are only available in the following states: CT, DE, MA, MI, NH, NJ, NY, OH, PA, RI, and VT and some products may have an associated cost. This discount will be reflected in the interest rate disclosed in the Loan Approval Disclosure that will be provided to the borrower once the loan is approved. Limit of one Loyalty Discount per loan and discount will not be applied to prior loans. The Loyalty Discount will remain in effect for the life of the loan.
  5. Automatic Payment Discount Disclosure: Borrowers will be eligible to receive a 0.25 percentage point interest rate reduction on their student loans owned by Citizens Bank, N.A. during such time as payments are required to be made and our loan servicer is authorized to automatically deduct payments each month from any bank account the borrower designates. Discount is not available when payments are not due, such as during forbearance. If our loan servicer is unable to successfully withdraw the automatic deductions from the designated account three or more times within any 12-month period, the borrower will no longer be eligible for this discount.
  6. Co-signer Release: Borrowers may apply for co-signer release after making 36 consecutive on-time payments of principal and interest. For the purpose of the application for co-signer release, on-time payments are defined as payments received within 15 days of the due date. Interest only payments do not qualify. The borrower must meet certain credit and eligibility guidelines when applying for the co-signer release. Borrowers must complete an application for release and provide income verification documents as part of the review. Borrowers who use deferment or forbearance will need to make 36 consecutive on-time payments after reentering repayment to qualify for release. The borrower applying for co-signer release must be a U.S. citizen or permanent resident. If an application for co-signer release is denied, the borrower may not reapply for co-signer release until at least one year from the date the application for co-signer release was received. Terms and conditions apply.

2.47% – 6.99%3Undergrad
& Graduate

Visit SoFi

2.46% – 6.97%1Undergrad
& Graduate

Visit Earnest

2.57% – 8.44%4Undergrad
& Graduate

Visit Lendkey

3.05% – 6.47%2Undergrad
& Graduate

Visit Laurel Road

2.50% – 7.24%5Undergrad
& Graduate

Visit CommonBond

2.79% – 8.39%6Undergrad
& Graduate

Visit Citizens

Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality and will make a positive impact in your life. We sometimes earn a sales commission or advertising fee when recommending various products and services to you. Similar to when you are being sold any product or service, be sure to read the fine print understand what you are buying, and consult a licensed professional if you have any concerns. Student Loan Hero is not a lender or investment advisor. We are not involved in the loan approval or investment process, nor do we make credit or investment related decisions. The rates and terms listed on our website are estimates and are subject to change at any time. Please do your homework and let us know if you have any questions or concerns.