2 Types Of Graduate Loans

Typically, graduate students incur higher tuition fees compared to undergraduates. Consequently, graduate loans primarily serve the purpose of financing their education. There are two primary avenues for obtaining graduate loans: government-funded loans and loans provided by private entities specializing in graduate financing. We will now delve into each of these options in greater डिटेल। 2 Types Of Graduate Loans

  1. Government Graduate Loans This category of loans closely resembles undergraduate loans, with only a difference in nomenclature. Much like undergraduates, graduate students have the opportunity to avail themselves of Stafford or Perkins loans from the government.

Stafford graduate loans are accessible to all graduate students, irrespective of their financial situation. There exist two types of Stafford graduate loans: subsidized and unsubsidized. The distinction between the two lies in the party responsible for paying the interest. In the case of subsidized Stafford graduate loans, the government covers the interest payments. However, with unsubsidized Stafford graduate loans, students are accountable for the interest, although they have the option to defer payments until after graduation.

A Perkins graduate loan caters to students facing financial hardships. It carries an interest rate of merely 5 percent and can fund up to $4,000 of a graduate student’s education. For economically disadvantaged graduate students, the Perkins loan presents a viable option. However, it’s important to note that prompt and continuous repayment is expected. In exceptional circumstances, borrowers can request a deferment on loan payments until they regain financial stability.

To apply for either Perkins or Stafford graduate loans, applicants must complete the FAFSA (Free Application for Federal Student Aid) form, which is submitted to the government. Once the form has been processed, the government will issue a SAR (Student Aid Report), providing further instructions on how to proceed with the loan application.

  1. Alternative Graduate Loans These loans, also referred to as private graduate loans, are funded by non-governmental entities. Various organizations, such as banks, credit card agencies, and other enterprises interested in assisting graduate students with their educational financing, offer these loans. An example of such a company is the Education Resources Institute (TERI), which operates the Act Graduate Student loan program. The application for this program can be conveniently completed online at , and applicants can receive decisions in as little as 15 minutes.

You may begin your search by visiting the websites of major banks, as many of them offer student loan services. Alternatively, you can utilize search engines by entering the names of banks you are familiar with. Some banks even provide comparison charts for graduate loans, enabling customers to evaluate how their offerings compare to those of their competitors. These charts serve as valuable resources for researching graduate loans

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