For the 2007-08 School Year, the interest rate on a new Graduate Stafford loan is fixed at 6.8%. As of July 2006, all new Federal Stafford Loans will have fixed interest rates. Please note, that interest rates on Federal Stafford Subsidized and Unsubsidized Loans change yearly but will never exceed 8.25%.

How much can I borrow with a GradPLUS loan?

The yearly limit on a Graduate PLUS Loan is equal to your cost of attendance minus any other financial aid you receive. For example, if your cost of attendance is $6,000 and you receive $4,000 in other financial aid, you could borrow up to but no more than $2,000.

What's the interest rate on GradPLUS Loans?

GradPLUS Loan rates are fixed at 8.5%. Interest is charged on the loan from the date the first disbursement is made until the loan is paid in full.

What are the benefits of a private graduate loan?

You can use a grad school loan to cover any education related expenses, including, computers, books and room and board. Additional Benefits include:

Fast online approvals, high approval rating
Low interest rates, high annual maximums
No application fee or out-of-pocket expenses
Full deferment until you leave school with a variety of repayment options
6 month grace period before repayment begins

How do I qualify for the graduate private loan?

You must be a U.S. citizen or permanent resident with a valid permanent-resident card or an international student applying with a U.S. citizen or permanent resident co-borrower;

Be at least 18 years old, or the age of majority in your state.
Be enrolled at least half time at an eligible college or university.
Meet our criteria for creditworthiness. If you do not meet our criteria, please consider applying with a creditworthy co-borrower.

How much can I borrow with a private graduate student loan?

You must be a U.S. citizen or permanent resident with a valid permanent-resident card or an international student applying with a U.S. citizen or permanent resident co-borrower;

Annual minimum of $1,500
Annual maximum of the lesser of $50,000 or cost of attendance minus other aid
Annual maximum of the lesser of $70,000 or cost of attendance minus other aid for Dental, Law, Medical, Osteopathic and MBA Loans

What is the interest rate for a graduate private loan?

In school interest rates range: LIBOR + 4.95% - 7.75%, depending on the credit of you/ your co-signer and the repayment option selected. Repayment rates range: LIBOR + 5.5% - 7.75%, depending on the credit of you/ your co-signer and the repayment option selected. Remember, most students need a co-signer. And adding a qualified co-signer usually helps your chances of being approved and receiving the best interest rate.

How do I pay for graduate school?

There are a variety of options for paying for graduate school, and a few differences from undergraduate programs, such as the non-availability of the PLUS Loan Program. In order of lowest cost to highest cost, here are the most well known options:

Scholarships - essentially free money.
The Graduate Stafford Loan - up to $18,500 per year, $8,500 subsidized, $10,000 unsubsidized.
The Private Graduate Student Loan - Annual maximum of the lesser of $50,000 or cost of attendance minus other aid.
Home equity/refinancing - leveraging your mortgage equity
Private consumer loans - credit cards and personal lines of credit

How do I apply for these various financing options?

In the following order:

Scholarships need to be researched and applied for individually. You can search online for free using popular search engines such as Google or Yahoo, or use a premium search service such as StudentScholarshipSearch.com to help you locate funds.
Apply for the Graduate Stafford Loan using our online application.
Apply for the GradLoans Private Student Loan using our online application.
Contact your bank or credit union for home equity.
Private consumer loans can be obtained through banks or from StudentPlatinum.com.

After accounting for all of the financial aid that does not require repayment, like grants and scholarships, how should I prioritize the various educational financing options that are available?

The good news is there are many options. You should first consider options that require the least amount of interest, finance or other charges. At the same time, you relate the amount of these options to your financial circumstances and understand that the options with lower/lowest charges often have more demanding payment schedules.

Another thing to keep in mind is how easily you will be able to manage the debt once you're out of school – does the program offer deferment and/or forbearance, etc.?

Which loan programs are best?

While there are no absolute ways to determine which loan programs are best, there are some general guidelines and areas that will help to help you choose the most affordable loan option.

Interest Subsidy – Subsidized loans (in which the government or other agency) are far better than unsubsidized loans (in which interest must be paid by the borrower from the loan's disbursement).

Lowest Cost – The loan's interest rates and fee structure determine the amount of a loan's finance charges. Some loans (like mortgages) allow you to pay up-front fees in exchange for a lower interest rate. You should consider this feature in relation to how long you plan to repay the loan. The loans with a longer repayment period are often less expensive with lower interest charges and a slightly higher up-front fee.

Interest rate options – Programs offer different interest rate options. Some are fixed and stay the same over the life of the loan. Some are variable and tied to the Prime interest rate (or other index). When the interest rate changes also varies among programs. Some change annually, some quarterly and some as often as monthly.

Flexibility – Consider the repayment options offered. Are payments required during repayment? Can the principal be deferred? Are alternative repayment programs (graduate repayment or income sensitive, for example) offered?

How to choose an private student loan program?

There are many ways to compare private student loan programs. And oftentimes, a student's and family's unique circumstances will determine what loan program makes the most sense.

Private student loan programs differ in who the borrower is (the student, parent or other co-applicant). You should refer to the Private Loan page see: Private Loans for more information.

How come the amount of my student disbursements was less than I was awarded by the school?

Lenders are allowed to retain a percentage of the amount you borrow in "guarantee fees" and/or "origination fees". Guarantee fees are used by the lender in creating a reserve to protect the loan program in instances when borrowers default on their loans. Origination fees are a processing fee retained by lenders.

The Department of Education determines the maximum percentage for guarantee and origination fees for Federal Stafford, PLUS and Direct loans. The maximum origination fee in these programs is 3%, the maximum guarantee fee is 1%. Lenders and guarantee agencies are not required to charge this fee, and some have recently have developed 0% guarantee fee programs.

For private student loans programs, there is generally no maximum fee rate. Fees for private student loans can range from 0% to 10% or more depending on the credit worthiness of the borrower and risk associated with the loan.

How is my EFC Calculated?

The federal government proscribes an official federal EFC calculation. This calculation determines family resources available from a family's income (less allowances for taxes and living expenses) and assets (less allowances for retirement). A percentage of these available amounts are earmarked as EFC. The EFC is published yearly and is approximately 35 pages long. If you have experience in accounting and would like to learn more about it, you can obtain a copy from the Department of Education. Call 1-800-4-FED-AID to request a copy by mail.

Why do some schools use an EFC that differs from what my Federal EFC (on my SAR) says?

Some schools use an Institutional EFC calculation to determine eligibility for non-Federal sources of financial aid. This calculation usually considers additional family resources, like home equity, that are not part of the Federal EFC calculation. Click here to learn all about the financial aid award process.

How do I manage the difference between the school's cost and the amount of financial aid I was awarded?

There are three main options available to students and families:

Contributions from Savings – a family might consider using savings or investments to meet educational costs. Families with assets that can be liquidated for educational expenses generally have less reliance on financial aid and pay less in fees and interest expenses
Contributions from Income – some families might be able to meet educational expenses by allocating funds from their current budget. This options requires a family to closely analyze their income and expenses and determine an amount that they can pay on an ongoing basis. Adjustments may have to be made to existing household expenses to afford an amount to allocate from Income.
Contributions from private student loans – some families must consider private student loans as a means to meet educational costs. While these options typically require the lowest monthly payments, but also require the student and family to pay interest and/or finance charges in addition to the amount borrowed.

What should I do if my family circumstances changed since submitting my financial aid applications?

Financial aid officers have some latitude in determining what data is used to calculate a family's EFC. You should contact your school's financial aid office with any circumstance that affect your family's income or expenses.

If you are able to document such circumstances (for example the unemployment of a family member or medical expenses that the family has incurred), the financial aid officer might be able to incorporate these circumstances and recalculate your EFC.

How do I choose a College?

While a very broad question, there is some basic information that you can consider and many Internet resources that can help you.

You should obviously consider each college's academic offerings. Are the programs broad enough (if you do not have a major in mind) or focused enough (if you have a major in mind)? Is the college accredited? What is the graduation rate for students at the school? Does a particular school offer the program you're interested in studying.

Are you interested in a large or small institution. Large institutions may offer less personal interaction with professors or a higher student to faculty ratio. Smaller schools may offer a more intimate academic setting and more personalized services.

Are you interested in on-campus living or will you commute. This will obviously determine if you look for schools nationally, or close to home.

Is cost and financial aid a factor? If so use the Internet to learn about the college's cost and information about the financial aid process and applications the school requires. Most schools also provide averages and statistics about financial aid awards made to students.

Do you require special services? The links and searches below will help you identify the specific offerings of schools.

You should also consider the student life issues of the schools you research and relate those offerings to your interests. Are you interested in an active, vibrant social life? Or are you interested in a more academically focused environment.

Grad Resources

Graduate Loans

Graduate School Search

Grad Health Insurance

Graduate Loan Blog

Financial Aid Newsletter

Graduate Financial Aid FAQ

What is the Graduate Stafford Loan interest rate?