Graduate Loans
In terms of paying a large tuition bill, graduate students are no
different than undergraduates. Their situation might even be worse
because grad schools are sometimes pricier than other types of
institutions. Fortunately, however, graduate students can utilize
graduate loans to help fund their education.
There are two venues in which graduate students can obtain graduate
loans: the government and private entities, (who provide alternative
graduate loans). Each of these are discussed in more detail below:
GOVERNMENT GRADUATE LOANS
Government graduate loans differ from 'regular' undergraduate loans
really in name only. So just like undergraduates, graduates have the
opportunity to get a Perkins or Stafford loan from the government.
1) Perkins Graduate loan
A Perkins graduate loan is available to students who demonstrate
financial hardship. It has an interest rate of only 5 percent and can
finance up to $4,000 of the graduate student's education. For graduate
students who are adversely limited economically, the Perkins loan is
not a bad option. However, one must keep in mind that payments are
still expected to be received promptly and perpetually. In extreme
circumstances it is possible to request a deferment on loan payments
until one is able to pay normally.
2) Stafford Graduate Loan
Stafford graduate loans are available to any graduate student
regardless of their financial situation. Two types of Stafford graduate
loans exist: subsidized and unsubsidized. The difference in the two
lies in who pays the interest. For subsidized Stafford graduate loans,
the government pays the interest. Students pay for the interest in
unsubsidized Stafford graduate loans, though there is the option of not
having to make payments until after graduation.
To apply for either the Perkins or Stafford graduate loans, one must
submit a FAFSA form to the government. When the form has been processed
the government will send a SAR (Student Aide Report) which will give
further instructions on how to apply for these loans.
ALTERNATIVE GRADUATE LOANS
Alternative graduate loans, also known as private graduate loans, are
loans funded by non-governmental entities. Companies offering these
loans could be banks, credit card agencies or any other enterprise
interested in helping graduate students secure student loans. The
Education Resources Institute (TERI) is an example of a company
offering this type of loan. It is called the Act Graduate Student loan
program. The application can be filled out online at gradloans.com.
Decisions are received in as little as 15 minutes.
Another company that is known for offering a wealth of graduate loans
is Wells Fargo. In total they have five available: the Wells Fargo
Graduate Loan, the Wells Fargo Collegiate loan, the Wells Fargo Advance
Loan, the Wells Fargo Education Connection Loan and the Wells Fargo
Education Career Loan. Additional information can be found at
wellsfargo.com
If you would like to research additional alternative graduate loans,
look no further than your favorite search engine. To make the search a
little easier, first try all the major banks you know of since many do
offer student loans services to their customers. So for example, if
your favorite bank is Bank of America, try entering 'Bank of America
graduate loan' into the search engine. This will allow for a more
specific response to come up. Some banks will even offer graduate loan
comparison charts to help their customers see how their loans stack up
against the competitors. These charts can serve as a further aide in
researching graduate loans. To find one yourself, simply type 'graduate
loan comparison chart.'