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How To Obtain Graduate Loans
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:
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.
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.'
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