What Graduate Student Loans Can you Apply for?

Going to Graduate School Ain’t Cheap! The cost of getting one after you have gained your bachelor’s degree may reach the summit of your impossible dreams. For this, graduate student loans come to the rescue. You might wonder why there are people who want to have a higher education after college. Does a college diploma not enough? Will you get a better-paying job if you attend graduate school? Competition has been really tough these days and getting into graduate school can get you ahead of the rest. Keep in mind that it comes with a high price.

Types of Graduate Student Loans

If you haven’t qualified for scholarships and grants, you can always look for graduate student loans to help you fund your way to graduate school. You may first check if your school can provide you some form of financial assistance, before you choose from:

1. Federal Perkins Loans

This is one of the top choice of many who want to go to graduate school, since it is the cheapest loan to take. You can get up to $8,000 loan a year, where interest rates go for only five percent. You don’t have to pay for the interest rate while you are in school, and you get to have a maximum lifetime loan limit of up to $40,000.

2. Subsidized Stafford Loans

This is the second choice among students, specially those in great financial need. Interest rate can reach 6.8 percent and you won’t get to pay more than two percent in upfront fees. Some lenders will even give you a discount if you pay on time. Great thing is that the U.S. Department of Education pays the interest while you are attending school, even half-time. Interest rate is also fixed for new borrowers and you can borrow between $3,500 – $8,000, depending on your grade level.

3. Unsubsidized Stafford Loans

Regardless of how much you earn, you can apply for this loan. Same thing with a Subsidized Stafford Loan where interest rates can reach 6.8%, lenders can’t charge you more than two percent in upfront fees. Unlike subsidized loan, your interest keeps building while you’re in school, where your total loan amount increases after you graduation. You may not pay the interest while you’re attending school, even half-time, and you may borrow between $5,500 – $20,500 in student loans.

4. PLUS Loans

If your Perkins and Stafford loans are not good enough, you may borrow the remaining amount from a PLUS program to help you cover the cost of attending school. This can help you pay for your basic living costs like transportation, board, etc. Your lender can charge you up to 8.5 % interest a year, plus, up to 4% charge in upfront fees. You may get discounts anyway, just pay your bills on time.

5. Sallie Mae Smart Option Student Loan

Like your other private student loans, this choice helps you save money, build a good credit history, and lets you pay your loans faster. It’s a perfect backup for your grants or federal loans, specially when those two can give you a limited loan amount. You can borrow a minimum of $1,000 and get lower interest rates if you have a credit-worthy cosigner. You may even get a 0.25% discount if you pay your loan on time.

Whether you are attending a graduate business, medical, law, or dental graduate school, know that you have plenty of options to choose from. Your dreams can truly come true if you plan your steps carefully and have the perseverance to face the challenges in your quest. On a side note, getting a federal loan comes with a free insurance, which means it will be forgiven if you’re disabled or killed — or when you go into public service. Be Wise and Bargain Well!

READINGS:

http://www.usnews.com/education/paying-for-college/articles/2008/03/21/best-federal-loans-for-graduate-students.html

http://www.educationplanner.org/education_planner/paying_article.asp?sponsor=2859&articleName=Paying_for_Graduate_School

http://www.gradloans.com/graduate-financial-aid/

http://www.salliemae.com/get_student_loan/find_student_loan/grad/understanding/