If you are thinking about going to graduate
school but are worried about how to pay, or
you are confused by all the funding options
that are available, you should familiarize
yourself with the different options available.
There are a variety of financial resources
available to graduate and professional school
students, including scholarships, grants,
fellowships, assistantships, and loans.
These resources can all be classified as institutional,
federal, or private funding.
To apply for a Federal Stafford Loan, you
should contact your financial aid office to
find out their preferred source. Some schools
participate in the Federal Direct
Loan program. If this is the case, the
federal government will serve as your lender.
Other schools will direct you to their preferred
lenders, a group consisting of banks, lending
agencies, and nonprofit student lending organizations
such as Access Group. Your school itself may
also serve as the lender.
The U.S. Department of Education and the Department
of Health and Human Services oversee financial
assistance programs for students attending
eligible schools. To be eligible for federal
funding, you must be a U.S. citizen or permanent
resident, enrolled at least half time, pursuing
a degree or certificate. Federal student loans
have low
interest rates and do not require credit
checks or collateral; however, there are limits
on how much you can borrow per academic year.
If you want to apply for federal student aid,
you must fill out the Free Application for
Federal Student Aid (FAFSA) or the Renewal
FAFSA.
These funds are provided by schools in the
form of scholarships, grants, loans, and part-time
employment. They may be available through
your school and you may have to demonstrate
financial need to be eligible for them. Talk
to the financial aid staff to learn about
the availability of and requirements for financial
assistance offered by the schools you are
considering. Several graduate students are
offered teaching or research assistantships
by their academic department to help pay for
their education. A typical assistantship requires
a half-time commitment and may offer additional
benefits such as tuition discounts as well
as worthwhile experience in the field of study.
Paid internships also enable students to receive
financial support while gaining practical
work experience.
The most commonly used federal student loan
is the Federal Stafford Loan. Some of the
benefits of the Federal Stafford Loan over
other types of loans include lower interest
rates than on most student loans or other
kinds of consumer loans. Flexible repayment
options to help borrowers more easily afford
their monthly payments. Repayment is delayed
until after you leave school, and offers a
grace period. No credit check is required
and interest may be deductible, up to a certain
income level. Unsubsidized loans do not require
you to demonstrate financial need. In addition,
options for postponing repayment of your loan
are available for certain circumstances.
Federal Stafford Loans are either subsidized
or unsubsidized. The government pays the interest
that accrues on the subsidized Federal Stafford
Loans while you are in school, during the
grace period, and during approved deferment
periods. With unsubsidized loans, you are
responsible for paying all interest.
