Graduate students typically pay more for tuition fees than undergraduates. These Graduate loans are intended to finance their education. Graduate students have two options for obtaining graduate loans. They can go to the government or private entities (who offer alternative loans). Below is a detailed discussion of each one.
Types of Graduate Loans
1. Government Graduate Loans
This loan type is identical to an undergraduate loan. Only the name is different. Graduates have the same opportunity as undergraduates to receive a Perkins or Stafford loan from the government.
No matter what financial situation, bachelor students can get Stafford graduate loans. There are two types of Stafford bachelor loans:-
The difference lies in who pays the interest.
The government pays the interest on subsidized Stafford bachelor loans. Unsubsidized Stafford graduate loans are unsubsidized and students pay the interest. However, they have the option to stop making payments after graduation.
Students who are in financial hardship can apply for a Perkins graduate loan. The interest rate is only 5 percent, and it can finance as much as $4,000 for graduate students.
Perkins loans are a good option for bachelor students with limited incomes. It is important to remember that Perkins loans are expected to be paid promptly and continuously. It is possible to ask for a deferment of loan payments in extreme cases until you are able to repay normally.
A FAFSA form must be submitted to the government in order to apply for Perkins or Stafford bachelor loans. Once the form is processed, the government will send you a Student Aid Report (SAR) that will provide further instructions about how to apply.
2. Alternative Graduate Loans
Private graduate loans are loans that are not funded by government entities. These loans can be offered by banks, credit card agencies, or any other company that is interested in helping students obtain student loans. This type of loan is offered by the Education Resources Institute (TERI).
This program is known as the Act Graduate Student Loan Program. The application can be filled out online at http://gradloans.com. In as little as 15 minutes, decisions are made.
First, you can visit the websites of all major banks. Many offer student loan services. You can also use a search engine to type the names of banks you are familiar with. To help customers compare their loans with others, some banks offer bachelor loan comparison tables. These charts can be a great aid in researching graduate loans.