What are the Graduate Student Loans?

Graduate studentGraduate school student loans are financial aid provided by the banks, financial institutions, and the federal government to help graduate students with their monetary problems. There are federal as well as private graduate student loan programs. These loans pay for your tuition, study materials, and living expenses.

What are the common features?

Most of the federal graduate student loans have a consolidation option where you can combine all of your existing student loans into one. This helps you in possibly getting a lower Annual Percentage Rate (APR), a single convenient payment, and a much longer repayment time. This does offer more repayment time but you end up paying much more by the end of the program.

On the contrary, graduate private student loans have minimal APR and often end in 5 to 15 years, making you pay less towards the interest. Banks such as Sallie Mae and SunTrust offer deferment options where you can halt your repayments for a specific period of time provided you have a valid reason. You may not need to repay the loan while you are in school, but there is a option.

What is the graduate student loans policy?

The requirements for getting a student loan do vary. You have to be a U.S. citizen, with a valid SSN, to qualify for a loan. There are programs for those who are not from the U.S., but they must provide an American cosigner with a good FICO credit score. Having a cosigner also reduces the APR.. If you have a bad credit score you may still, in rare cases, be eligible for a graduate student loans program, however, the terms and conditions will be much more stringent. A cosigner with a good credit history will help in loan approval.

Final Words

Since the graduation degree programs are usually tough on the finances, getting graduate student loans provides you some breathing space and a lifeline to your future endeavors. It’s a great way to earn a degree while keeping your funds well in shape.

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Types of Student Loans