Graduate Student Loans
What Are My Options For Graduate Student Loans?
When it comes to graduate student loans, your student loan options are similar to those of undergraduate student loans, the difference being that graduate student loans often have higher loan amount limits. There are three main sources for graduate student loans and those are federal graduate student loans, private or alternative graduate student loans, and graduate student loans that are specific to the program of study.What Are Graduate Stafford Student Loans?
Much like undergraduate Stafford student loans, Graduate Stafford student loans are Federal student loans, the difference being that for a graduate student the borrowing limits for the Stafford student loan are going to be higher to compete with the inflated cost of graduate school vs. undergraduate college. Since Graduate Stafford student loans are federally regulated (low interest rate) student loans, many students choose to exhaust the amount they can get from these student loans before they apply for private or alternative graduate student loans. Graduate Stafford student loans come in two different types, subsidized and unsubsidized.Difference Between Subsidized And Unsubsidized Stafford Graduate Student Loan?
The main difference between a subsidized Federal Stafford Graduate Student Loan and an unsubsidized Federal Stafford Graduate Student Loan simply comes down to who is responsible for paying the Student Loan interest that accrues while you are attending college. With unsubsidized Federal Stafford Student loans you (the borrower) are responsible for all of the interest that accrues on your unsubsidized Stafford loan while you are in school, but the interest is still deferred (meaning you don’t have to pay on it) while you are attending college.However when you graduate college all the deferred interest that has been accruing while you were attending school will then be added to the principle of the loan (amount of the Federal Graduate Student Loan), thus increasing the amount of the loans principle that you will have to pay back.
In the case of subsidized Federal Stafford Graduate Student Loans, the federal government will pay off the interest on subsidized Stafford loans while you attend college, and during the deferment period(s). Many college students who meet the eligibility requirements for a subsidized Federal Stafford Graduate Student Loan, will apply for this type of student loan.
Am I Eligible For A Federal Stafford Graduate Student Loan?
To be eligible for a Federal Stafford Graduate Student Loan the government requires that the college student be enrolled at least as a part time student in a program of study. In order to apply for the Federal Stafford Graduate Student Loan you must first complete a FAFSA form OR a renewal FAFSA (if applicable to the college student), which you can get at www.fafsa.ed.gov.After you have completed your Free Application for Federal Student Aid (FAFSA) your college will notify you regarding your eligibility for a Federal Stafford Graduate Student Loan. Once your eligibility is confirmed you are going to have to complete what is called a "Master Promissory Note", plus any other documents your particular school requires. After your eligibility for your Federal Stafford Graduate Student Loan has been confirmed by your school, it is best to contact your schools Financial Aid Department so you can find out your schools exact requirements for the completion of your Federal Stafford Graduate Student Loan.
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