Loans For Graduate Students
Updated on October 28, 2019
While many undergraduate students seek loans, not as many do for graduate school. However, for those who need it, grad school student loans are not unheard of. There are two variations of it; private and federal.
Private Grad School Student Loans
Credit unions and banks offer private loans to grad school students. To get one of these loans, students must have good credit or a co-signer with good credit. Private loans usually have a higher interest rate than federal loans do. There are certain degrees of loans, as some are designed for full-time students and others are designed for part-time students.
A private loan is considered to be an unsecured debt. Students are expected to make fixed monthly payments until the loan is paid off. However, it can be used for more than just paying tuition. Private loans for grad students can be used for other expenses while they are in school. This includes needed equipment, as well as expenses like childcare.
It can also be used by those who need to refinance past student loans. In general, this is done to secure a lower interest rate. With so many options available, student loans are extremely flexible.
Federal Grad School Student Loans
Federal loans for grad school students are available in two forms; federal direct, and direct graduate. Part-time students may qualify for a federal direct loan. This type of loan is not granted based on a student’s financial situation. They are required to pay any interest that accumulates on the loan.
Direct graduate loans are lent to students courtesy of the U.S. Department of Education. Students with a negative credit history can’t get a direct graduate loan, but they can often get something called the PLUS loan. This loan pays for the amount of money a student spends on attendance at their school of choice. It can be used in conjunction with other forms of financial aid.
Obtaining a student loan is often a smart idea for grad school students. It gives students the chance to continue their education while paying it off when they can afford to do so.