Graduate Student Loan

Graduate student loans are educational loans used for the purpose of graduate study, such as when pursuing a masters or doctorate degree. Many types of these options exist, and the process of obtaining them is very similar to the process undergraduate students go through to get their financing packages. A graduate student loan is usually readily available and easily obtained. The college financial aid office and many other lending institutions are excellent places to start the search. 

One type of graduate student loan is called the Stafford. These are available in both a subsidized and an unsubsidized form. Subsidized means that the government pays for the interest of the loan, and unsubsidized means that the students pay for the interest themselves. A person must show financial need to get an unsubsidized Stafford, but anyone can qualify for an unsubsidized Stafford (provided they have not previously defaulted on one). "Dishonest money dwindles away, but he who gathers money little by little makes it grow," (Proverbs 13:11). This is probably the easiest of the graduate student loans to come by, and the borrowers can usually get more money than they did as undergraduates. To apply for the Stafford, students must fill out the FAFSA, the government form for educational financial aid. These forms can be found in the college administration offices and online. 

The federal Perkins program is another type of financial aid through which one can borrow up to $6000 per year of study. This is one of the best types of graduate student loans, because it has a fixed rate of 5% and a 10-year repayment period. It is also paid for by the government through the school one chooses to attend and, therefore, is considered subsidized. The Perkins usually has better repayment and deferment benefits than would a Stafford. 

If all this money is still not enough, and more funding is required to pursue the degree, individuals can apply to receive private alternative graduate student loans. Interest rates, fees, and repayment structures will vary, but there are advantages to this type of borrowing. The rates may be competitive and the money is sent directly to the borrower. Other types of a graduate student loan are available for particular fields of study. Whether an individual is going to medical, dental, law, or business school, these specialized programs often have individual and private funding options available. 

Getting a graduate student loan is not hard, especially if the borrower has taken the steps as an undergraduate. First fill out the FAFSA then ask professionals for their opinions about which options are appropriate in both the short- and long-term. A master's degree or doctorate will then be right around the corner!