By Dr. Drew Henry
Normally, graduate students pay for tuition fee more than
undergraduate. Therefore, the main purpose of graduate loans
to help fund their education. There are two venues in which
graduate students can obtain graduate loans: the government
private entities, (who provide alternative graduate loans).
of these is discussed in more detail below.
1. Government Graduate Loans
This type of loan is the same as undergraduate loan. The only
difference is name. Like undergraduates, graduates have the
opportunity to get a Stafford or Perkins loan from the
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.
A Perkins graduate loan is available to students who
demonstrate financial hardship. It has an interest rate of
5 percent and can finance up to $4,000 of the graduate
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.
To apply for either the Perkins or Stafford graduate loans,
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.
2. Alternate Graduate Loans
This loan has also been 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.
You can first try to visit websites of all the major banks
because many do offer student loans services. Or you can use a
search engine by typing the name of banks you know. Some banks
will even offer graduate loan comparison charts to help their
customers see how their loans stack up against the
These charts can serve as a further aide in researching
About The Author: Dr. Drew Henry maintains a number of
about Loans, including www.autoloansecrets.info,
www.badcreditautoloansecrets.info. Please visit his
websites for more detail.