“With this new loan program, coming to the School of Public Health is for the first time a realistic possibility for large numbers of students from developing countries,” Barry R. Bloom, the dean of the School of Public Health, said in a press release.

The new aid program will be a long-awaited boost to students in the University’s graduate and professional schools, who currently borrow approximately $45 million per year from non-federal sources to help pay for tuition, fees and living expenses.

With the increased aid, students borrowing $40,000 over two years are estimated to save roughly $2500.

Along with the new scholarship and loan programs, Summers promoted yesterday the recently-created University Graduate Student Aid Fund, which was designed to solicit donations for graduate student financial aid.

Raising money for the fund will likely play a role in the next University-wide capital campaign, Summers said. But in the meantime, University officials will use the fund to put more money earmarked for graduate student financial aid in the University’s coffers.

Over the last few months, Harvard’s schools have submitted proposals to the central administration outlining potential use of the funds, though University officials declined to comment on specific allocations yesterday.

Schools will be notified of official award amounts later this week.

Officials and students alike said yesterday that the financial aid initiative’s timing was right.

“The world situation demands the best minds attacking complex issues with expertise and sound judgment , and these programs will help us to attract top talents,” Kennedy School Dean Joseph S. Nye said in a press release.

Graduate Student Council President Rebecca Spencer said she’s happy to hear that fewer students will have heavy loans hanging over their heads.

“I think it’s great. Any extra financial support that graduate students can get is helpful,” she said.

—Staff writer Catherine E. Shoichet can be reached at shoichet@fas.harvard.edu.