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Finding Funds for Graduate School

You have the aspiration and the ambition to earn a graduate degree. Now, it's just a matter of finding the funds to meet your financial situation. Luckily, there are numerous options, and understanding each of them allows you to continue making smart and informed decisions about the future.

First, the federal government offers several sources. Stafford Loans come in two different forms, subsidized and unsubsidized. The awards of subsidized loans are based on financial need. Until you begin repayment, there is no interest charge. With unsubsidized loans, the opposite occurs; any eligible student can take out the loan, but interest begins at the time of disbursement and accrues until full repayment. For the first through the fourth year, a graduate student can borrow an annual total of $18, 500—with a maximum of $8, 500 in subsidized loans.

Eligibility for a Stafford Loan requires you to be enrolled at least half-time in a qualified program. In order to apply, complete the Free Application for Federal Student Aid (FAFSA). Then, you'll be asked to sign a promissory note, ensuring that you intend to repay your borrowed amount plus interest. Stafford Loans have fixed interest rates of 6.8% for all loans disbursed after July 1, 2006.

Graduate PLUS Loans are a low interest, federally backed student loan—guaranteed by the US Government. It can be used to pay the total cost of education; less any other aid you might have been awarded. Unlike the Stafford Loan, which is based on financial need, the Graduate PLUS Loan is determined by the credit rating of the borrower. Benefits of this type of loan include a locked interest rate of 8.5 % and deferment while attending school. Graduate Federal Perkins Loans offer a borrower $6,000 for each year of study with a low-interest rate of 5%. To be considered eligible for a Perkins Loan, you must fill out a FAFSA application.

An additional form of funding is departmental. Be sure to research the funding at your chosen university in your specified concentration. Many departments allocate funds to devote specifically to accepted graduate students. A department awards this budget to their graduate students via fellowships, teaching assistantships, and research assistantships. Typically, fellowships waive tuition and fees, while also providing a cost of living stipend. Teaching assistantships and research assistantships generally offer the same in exchange for the service indicated in the title. However, for individual institutions the dollar amounts vary from full-rides to partial funding, and it's best to contact the university directly to see what your selected program can offer.

Lastly, there is the option to pursue a private loan. Again, make informative decisions about responsible borrowing. Private lenders are entitled to their own regulations, whereas federal loans are openly operated by set government standards. This can affect interest rate fluctuation and borrower's fees. Before you make the decision to borrow, weigh every option and research plural lenders.

So, you've made the commitment to go above and beyond when it comes to your education, and are prepared with the information on financial support. Let nothing get in the way of your success.

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Graduate Student Loan Funding

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