Most of the time, graduate students pay more for tuition than undergraduate students. So, graduate loans are mostly used to help pay for their education. There are two places for graduate students to get loans: the government and private companies (who provide alternative graduate loans). We'll talk about each of these in more depth below.
- Student loans from the government
This kind of loan is the same as a loan for undergrads. Only the name is different. Graduates can get Stafford or Perkins loans from the government, just like undergraduates.
Any graduate student, no matter how much money they have, can get a Stafford graduate loan. There are two types of Stafford graduate loans: those that are subsidised and those that are not. Who pays the interest is the difference between the two. The government pays the interest on Stafford loans for graduate school that are subsidised. Students pay the interest on unsubsidized Stafford graduate loans, but they can wait to pay until after they graduate if they want to.
Students who have trouble paying their bills can get a Perkins graduate loan. It has an interest rate of only 5% and can pay for a graduate student's education up to $4,000. The Perkins loan is a good choice for graduate students who have trouble making ends meet. But it's important to remember that payments are still expected to be made on time and always. In very bad situations, it is possible to ask to put off loan payments until you can pay them normally.
For either the Perkins or the Stafford graduate loans, you need to send the government an FAFSA form. Once the form has been processed, the government will send a SAR (Student Aide Report) with more information on how to apply for these loans.
- Alternate Graduate Loans
This loan has also been called "private graduate loans." It is a loan that is paid for by someone or something other than the government. These loans could be offered by banks, credit card companies, or any other business that wants to help graduate students get student loans. One company that gives out this kind of loan is the Education Resources Institute (TERI). The Act Graduate Student Loan Program is what it is called. You can fill out the form online at http://gradloans.com. In as little as 15 minutes, a decision is made.
You can start by looking at the websites of all the big banks, since many of them have services for student loans. You can also type the names of banks you know into a search engine. Some banks even give their customers graduate loan comparison charts so they can see how their loans compare to those of other banks. These charts can help you find out more about graduate loans.
