subject: Graduate Student Loans - What Are Your Options? [print this page] You may realize that your education does not have to stop at a bachelor's degree. A master's or doctorate degree can provide more career opportunities. Unfortunately, it will also entail additional educational costs. On average, graduate course work will cost from $27,000 to $114,000. The good news is you may be able to qualify for financial aid such as scholarships, grants, work study programs, fellowships and graduate student loans.
A graduate degree requires a big investment, but you can also count on bigger returns. If you have exhausted all forms of scholarships and grants, you may have to turn to graduate loans to cover all or part of your school expenses. Some student loans available to undergraduates can be tapped into by graduate students. However, there are loans geared towards those who are working on their master's degree. Loans for graduates are being offered with different terms and rates.
Federal Loan Options
A number of options are available for graduate students seeking a federal loan. You should first seek to qualify for the federal Stafford loans and Perkins loans, as these provide the lowest interest rates with the possibility of getting a subsidized loan. After looking into these options, you can also consider Grad PLUS Loans, with a slightly higher interest rate.
Grad PLUS loans are unsubsidized federal graduate student loans that must be repaid with interest. To apply for this loan, you must fill out the FAFSA. In the past, you could apply to lenders such as banks and credit unions that belonged to the FFEL program for FFEL Plus Loans. These days, your loan application must be made directly to the federal government.
Your school will verify your maximum loan eligibility for the year before you apply for a Grad PLUS loan. The maximum amount that you can borrow is equal to the cost of attending graduate school minus any financial aid that you have. Funds go directly to the school for tuition and other fees. If any funds remain, the school will disburse it to you.
To qualify for a Grad PLUS loan, you must be enrolled at least half time as a graduate student. You must also be a U.S. citizen, a permanent resident in the U.S., or an eligible non-resident. A clean credit history is also required otherwise you will need a cosigner with good credit for your graduate student loan.
Private Lenders
A private student loan is an option that you can get if you do not apply for a federal loan. There are many private lenders with excellent programs for graduate loans. Look for loans with low fees and interest rates. Keep in mind that loan rates for private loans are often higher than for federal loans. You should also look into the repayment plans and make sure the terms are affordable.
Repaying a loan for graduate students can be expensive but the education you get will make it all worthwhile.
Graduate Student Loans - What Are Your Options?
By: George Nowling
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