What Loans are Available for Graduate Students Know With scholarshiptip.com

Federal Student Loans

As graduate students, we have access to various federal student loan programs. These loans are typically easier to qualify for, have more flexible repayment options, and can come with lower interest rates than private loans. In this section, we will discuss the three types of federal student loans available to graduate students.

Direct Unsubsidized Loans

Direct Unsubsidized Loans are available to both undergraduate and graduate students. As a graduate student, we can borrow up to $20,500 per year in Direct Unsubsidized Loans. The interest rate for these loans is fixed at 5.28% for the 2021-2022 academic year.

One important thing to note is that interest on Direct Unsubsidized Loans begins to accrue as soon as the loan is disbursed. This means that we are responsible for paying the interest on these loans while we are in school, during our grace period, and during any deferment periods.

Graduate PLUS Loans

Graduate PLUS Loans are available to graduate and professional students who need to borrow more than the maximum amount available through Direct Unsubsidized Loans. The maximum amount we can borrow through Graduate PLUS Loans is the cost of attendance minus any other financial aid we receive.

The interest rate for Graduate PLUS Loans is fixed at 6.28% for the 2021-2022 academic year. In addition, there is a loan fee of 4.228% that is deducted from each disbursement.

Federal Perkins Loan

The Federal Perkins Loan program expired on September 30, 2017. Therefore, we are no longer able to receive new loans under this program. However, if we received a Federal Perkins Loan before this date, we are still responsible for repaying the loan according to the terms of our promissory note.

Overall, federal student loans are a great option for graduate students who need to borrow money to pay for their education. We encourage you to research each loan program carefully and to borrow only what you need to cover your educational expenses.

Private Student Loans

Private student loans are offered by banks, credit unions, and online lenders. These loans are not backed by the government, so they may have higher interest rates and fewer repayment options than federal loans. However, they can be a good option for graduate students who need to borrow more than the federal loan limits or who need funds for expenses that are not covered by federal loans.

Bank Loans

Many banks offer private student loans for graduate students. These loans may have fixed or variable interest rates, and borrowers may be required to make payments while they are in school. Some banks also offer discounts for automatic payments or for borrowers who have a co-signer.

Credit Union Loans

Credit unions also offer private student loans for graduate students. These loans may have lower interest rates than bank loans, and some credit unions offer flexible repayment options. However, borrowers may need to be a member of the credit union to qualify for a loan.

Online Lender Loans

Online lenders are another option for private student loans. These lenders may offer lower interest rates than banks or credit unions, and some lenders offer flexible repayment options. However, borrowers should be careful when choosing an online lender and should make sure to read the terms and conditions carefully before applying for a loan.

In summary, private student loans can be a good option for graduate students who need to borrow more than the federal loan limits or who need funds for expenses that are not covered by federal loans. Banks, credit unions, and online lenders all offer private student loans, so borrowers should shop around to find the best rates and terms.

Loan Repayment Options

As a graduate student, you have several options for repaying your loans. Each option comes with its own advantages and disadvantages, so it’s important to understand each one before making a decision.

Standard Repayment Plan

The standard repayment plan is the most common option for repaying federal student loans. Under this plan, you’ll make fixed monthly payments over a period of 10 years. Your monthly payment amount will depend on the amount you borrowed, and the interest rate on your loan.

Income-Driven Repayment Plans

If you’re having trouble making your monthly payments, an income-driven repayment plan may be a good option for you. These plans adjust your monthly payments based on your income, so if you’re earning less, you’ll pay less. There are several different income-driven repayment plans available, including Income-Based Repayment (IBR), Pay As You Earn (PAYE), and Revised Pay As You Earn (REPAYE).

Loan Forgiveness Programs

If you’re working in a public service field or for a non-profit organization, you may be eligible for loan forgiveness after a certain number of years. The Public Service Loan Forgiveness program, for example, forgives the remaining balance on your loans after you’ve made 120 qualifying payments while working full-time for a qualifying employer.

It’s important to note that not all loans are eligible for forgiveness, and there are specific requirements you must meet in order to qualify. Be sure to research your options and speak with your loan servicer to determine which repayment plan is best for you.

Frequently Asked Questions

What types of federal student loans are available for graduate students?

Graduate students can apply for two types of federal student loans: Direct Unsubsidized Loans and Grad PLUS loans. Direct Unsubsidized Loans have a fixed interest rate and do not require a credit check. Grad PLUS loans have a higher interest rate and require a credit check, but they offer higher borrowing limits.

How do graduate students apply for federal student loans?

To apply for federal student loans, graduate students must complete the Free Application for Federal Student Aid (FAFSA). The FAFSA is available online and can be completed in as little as 30 minutes. Once the FAFSA is submitted, the student will receive a financial aid offer from their school, which will include information about the federal student loans they are eligible for.

What are the borrowing limits for Grad PLUS loans?

Grad PLUS loans have a higher borrowing limit than Direct Unsubsidized Loans. Graduate students can borrow up to the full cost of attendance, minus any other financial aid they receive. However, they must pass a credit check to be eligible for Grad PLUS loans.

Are there specific student loans that cover graduate school living expenses?

Yes, some private lenders offer student loans specifically designed to cover graduate school living expenses, such as rent, food, and transportation. However, these loans often have higher interest rates and fees than federal student loans. It’s important to carefully consider all options before taking out a loan to cover living expenses.

How does student loan forgiveness work for graduate students?

There are several programs that offer loan forgiveness for graduate students, including the Public Service Loan Forgiveness (PSLF) program and the Teacher Loan Forgiveness program. These programs have specific eligibility requirements and may require a certain number of years of service in a qualifying job. It’s important to carefully review the requirements of each program to determine eligibility.

What are the best options for financing a graduate degree?

The best option for financing a graduate degree will depend on a variety of factors, including the student’s financial situation, the cost of the program, and the student’s career goals. In general, federal student loans are a good option because they offer lower interest rates and more flexible repayment options than private loans. However, it’s important to carefully consider all options and to only borrow what is necessary to cover the cost of attendance.

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