Graduate Financial Aid

For many years a bachelor’s degree served as the key to a middle class life, but that was then. This isn’t your Daddy’s job market. Competition today is at an all-time high which is diluting the potency of a bachelor’s degree in today’s market.

To understand why a bachelor’s degree holds less weight today we can look inside the numbers and use some basic deductive reasoning.

First off the current U.S. population stands at 305 million. When my Dad entered the job market in 1959 the U.S. population was 177 million including Alaska and Hawaii which had just became the 49th and 50th U.S. States respectively that year.

In addition, skilled immigrants entering the U.S over the past fifty years, a number which grew very rapidly starting in the 1990’s at approximately 1.1 million migrants per year, has also added to the ever increasing population. Given these variables the supply of labor has outpaced marketplace demand. About the only parallel I can draw between 1959 and 2008 is the Boston Celtics defeated the Lakers to claim the championship that year too.

It is true that industry has expanded over the past 50 years but not nearly to the level of our increasing population. Also, we are losing many jobs overseas which compound’s the problem.

So what does all this mean? It basically means that today’s Master’s Degree is equivalent to yesterday’s bachelor’s degrees. A Masters provides your best chance at a middle class life in’08. By the time I’m looking at colleges with my son I’m sure a Ph.D will be the status quo.

My suggestion is to exercise that mind for as long as you can. It will literally pay off for you down the road.

To apply for a Federal Graduate Plus Loan (click here)

To apply for a private Graduate Loan (click here).

Unless you’ve been wedged under a rock for the past several months you are well aware that the world economy has been in turmoil. And as a byproduct of the economic downturn many are taking refuge in the classroom.

New York University’s Stern School of Business reported a 30% increase in attendance in off-site informational sessions. Northwestern University’s Kellogg School of Management has had a 22% increase in applications so far in ‘08 according to the Personal Journal. In fact, since June the amount of registered applicants taking the Graduate Management Admission Test (GMAT) has gone up by nearly 50%.

The problem is with all these students flooding the grad school market it is making it more difficult to get a seat. Schools, for the most part, are NOT increasing the amount of students they are accepting into their graduate programs. That means you quite literally need to come with your “A-game” to get into most of these programs. However, it’s not strictly based on GPA. Recommendation letters from professors, job experience, and extracurricular activities all factor in as well.

My recommendation is to apply to as many schools as possible. Strength in numbers is the way to go. Don’t limit yourself to just one state either. You may need to make some sacrifices, but it is well worth it. According to the U.S. Census Bureau those who hold a master’s degree make on average 21% more per year than those with only a bachelor’s degree.

If you are considering graduate school and need a grad plus loan (click here). For a private graduate loan (click here).

Obtaining an MBA is an investment in you. It’s hard work, but can pay off in the long run.

I’m sure most of you have no idea if your school is a Direct or FFELP school. If you do, give yourself a big pat on the back. If you don’t, no worries, you’re not alone. In fact, before this moment I’m sure many of you had never even heard those terms before. It’s important to know which bucket you fall in, but not pivotal. Usually the FAO will steer you in the right direction, but that is not always the case.

Here’s the difference. Direct Loan Schools use the Department of Education as the lender for their students. That means if you want a Stafford loan of a Plus loan (Parent or Grad) there is only once place you can go to sign your Master Promissory Note. These are referred to as direct subsidized, unsubsidized, or plus loans.

Now if your attending a FFELP school the options are wide open to you. You can go anywhere that services Stafford loans or Graduate Plus loans. Granted, in this market many private institutions are not funding federal loans, but we are.

Current rate for Graduate Plus loans is 8.5%. To apply for a graduate plus loan (click here).