2 Types Of Graduate Loans
Generally, graduate students pay higher tuition fees than undergraduates. Therefore, the main purpose of graduate loans is to help them finance their education. There are two places graduate students can obtain graduate loans: public and private institutions, (which offer alternative bachelor loans).
Government Graduate Loans
This type of loan is similar to a graduate loan. The only difference is in the name. Like graduates, graduates have the opportunity to obtain a Stafford or Perkins loan from the government.
Stafford graduate loans are unit obtainable to any collegian, notwithstanding their monetary state of affairs. 2 varieties of Stafford graduate loans exist: sponsored and non-subsidized. The distinction between the 2 is UN agency pays the interest. For subsidized Stafford graduate loans, the government pays interest. Students pay interest on subsidized Stafford graduate loans, although there are options for not paying until graduation.
A Perkins graduate loan is available to students who demonstrate financial distress. It has an interest rate of only 5 percent and can finance up to $4,000 for graduate student education. For graduate students who are financially unfavorable, Parkinson’s loans are not a bad option. However, one must note that the payment is still expected to be received promptly and permanently. In extreme cases, it is possible to request a deferment in loan payments until one is able to play normally.
To apply for a Perkins or Stafford graduate loan, a FAFSA form must be submitted to the government. When the form is processed, the government will send a SAR (Student Aid Report) which will give further instructions on how to apply for these loans.
Optional Graduate Loans
These loans, also known as private graduate loans, are loans financed by private companies. These lenders can be banks, credit card agencies, or any other initiative interested in helping graduate students secure student loans. Education Resource Institute (TERI) is an example of such a lending company. It’s called the ACT Graduate Student Loan Program. The application can be filled out online. The decision was taken within 15 minutes.
You can try to visit the websites of all the major banks first as many provide student loan services. Or you can use a search engine by entering the name of a bank you know. Some banks will also provide graduate loan comparison charts to help their customers see how their loans stack up against competitors. These charts can serve as a further aid in graduate loan research.