Am I Eligible For A Federal Stafford Graduate Student Loan

To be eligible for a Federal Stafford Graduate Student Loan the government requires that the college student be enrolled at least as a part time student in a program of study. In order to apply for the Federal Stafford Graduate Student Loan you must first complete a FAFSA at www.fafsa.ed.gov. After you have completed your Free Application for Federal Student Aid (FAFSA) your college will notify you regarding your eligibility for a Federal Stafford Graduate Student Loan. Once your eligibility is confirmed you are going to have to complete what is called a "Master Promissory Note", plus any other documents your particular school requires. After your eligibility for your Federal Stafford Graduate Student Loan has been confirmed by your school, it is best to contact your schools Financial Aid Department so you can find out your schools exact requirements for the completion of your Federal Stafford Graduate Student Loan.

What Are Graduate PLUS Student Loans

Federal Graduate PLUS Student Loans are an option for graduate students, when their Federal Stafford Graduate Student Loans do not cover all of their education expenses. Graduate PLUS loans are federally sponsored student loans, however unlike other federal student loan programs, borrowers will be required to pass a credit check for these type of loans. Graduate students are eligible for a Federal Graduate PLUS Student Loans if they comply with the following:

1. Are enrolled in a college as at least a part time student
2. Will submit to a credit check
3. Are a U.S. citizen or national, a U.S. permanent resident, or an eligible non-citizen.
4. Fill out and submit a FAFSA application

What Are Graduate Student Loans For Specific Fields Of Study

Graduate Student Loans for Specific Fields of Study are graduate student loans that are tailored to meeting the specific needs of the graduate program the student is entering. Some examples of Graduate Student Loans for Specific Fields of Study are MBA Loan Programs, Dental School Loans, Medical School Loans, Business School Loans, Law School Loans, and Nursing School Loans.

What Are Graduate Stafford Student Loans

Much like undergraduate Stafford student loans, Graduate Stafford student loans are Federal student loans, the difference being that for a graduate student the borrowing limits for the Stafford student loan are going to be higher to compete with the inflated cost of graduate school. Since Graduate Stafford student loans are federally regulated student loans, most students choose to exhaust the amount they can get from these student loans before they apply for private student loans. Graduate Stafford student loans come in two different types, subsidized and unsubsidized.

Difference Between Subsidized And Unsubsidized Stafford Graduate Loans

The main difference between a subsidized Federal Stafford Graduate Student Loan and an unsubsidized Federal Stafford Graduate Student Loan is who pays the interest on the loan while you are attend college. With unsubsidized Federal Stafford Student loans the borrower is responsible for all of the interest that accrues on the loan while you are in school. Once you graduate, all of the deferred interest that has been accruing while you were attending school will then be added to the principle of the loan. For subsidized Federal Stafford Graduate Student Loans, the federal government will pay the interest on the loan while you attend college, and during the deferment period(s).

What Are The Interest Rates On Private Student Loans

The interest rates for private student loans will typically be variable interest rates, that depend on the loan type, lender, and the borrowers credit score. Generally the higher your FICO score, the better off you are in terms of private student loans and their corresponding interest rates.

Am I Eligible For Private Student Loans

Private student loans are largely based on the borrowers credit score. Individuals with bad credit or little credit history may have a difficult time qualifying for private student loans without the help of a creditworthy cosigner. Even if you (the college student) have good credit, and qualify for a private student loan on your own, some private student loan lenders may offer a lower interest rate for applying with a creditworthy cosigner.

What Are My Options For Graduate Student Loans

With graduate student loans, your student loan options are similar to those of undergraduate student loans, the difference being that graduate student loans often have higher loan amount limits. There are three main sources for graduate student loans: federal graduate student loans, private graduate student loans, and graduate student loans that are specific to the program of study.

Who Needs Private Student Loans

Many college students need to apply for private student loans, because federal student loans often do not cover the full amount of a students college education expenses. Private student loans are needed by both graduate and undergraduate college students. Students should always exhaust all other college financial aid options before applying for a private student loan.

Are There Different Types Of Private Student Loans

There are different types of private student loans, and private student loans can vary with each lender. For example, some private student loan lenders will offer non-school-certified private student loans, and/or different private student loans depending on the college student's level of study. It's important that before applying for private student loans, you determine your needs, and then compare your options. There are many private student loan lenders out there, so be sure and find the one that can best fit your needs.

FAFSA And Transferring To A New College

Q: If I have decided to transfer to a new college, but have already filed my FAFSA with the information for my current college, will my FAFSA money automatically transfer with me to my new college?

A: FAFSA will not automatically transfer a student’s financial aid to a new or different school. Students financial aid eligibility is calculated on a number of different factors, including factors that are specific to the school a student is attending. While some types of financial aid, such as Federal Stafford Loans, are typically transferable from one school to another, other types of financial aid, such as Federal Work-Study, certain state-based grants, campus-based aid, and Federal Perkins Loans, are often not transferable to another school.

When a student transfers to a new school, that school will need to recalculate the students financial aid eligibility. Since each schools cost of attendance, available financial aid funds, and financial aid criteria/policies are different, the student may not qualify for the same types of financial aid, or receive the same amounts from each type of financial as they did at their previous school. For students who are transferring schools, you will need to contact the financial aid office at your current school and inform them of your intended transfer to the new college or university. Your current schools financial aid department will be able to inform you about any money currently owed, or any federal student aid refund you may be eligible for. Next, students will want to login to fafsa.ed.gov and add their new schools information. This will allow the new school to have access to the students federal financial aid information. Your new school should then send you a Student Aid Report within a few weeks, detailing what federal financial aid programs you qualify for and what amounts you are eligible for at the new college or university. For any questions regarding financial aid at the new college or university, contact that college or university’s financial aid office.

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What Makes Federal Student Loans Different From Private Student Loans

The largest differences between federal student loans for college and private student loans for college, are that federal student loans have lower interest rates, do not require credit checks, and often times provide a wider variety of deferment options and extended repayment terms. It is because of the differences listed above that college students are advised to exhaust their federal student loan options (and other "free money for college" options such as scholarships and grants) first, and then supplement what the federal student loans will not cover with private student loans.

Many college students find that federal student loans do not cover the full costs of their college expenses. When considering a private student loan it is important to do your research. Compare different private student loans from different lenders to make certain you are getting the best deal and carefully read and understand your rates, terms and repayment options. Private student loans can help bridge the gap from what you receive in federal financial aid and what your full college expenses are, but be careful to not borrow more than you absolutely need.
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What Are Federal Student Loans

Federal student loans for college are student loans facilitated by the US Federal Government. Federal student loans are among the most popular and most sought after student loans for college. Most financial aid experts recommend that a federal student loan should be the first type of loan a college student applies for. Prior to July 1st of 2010, banks and financial institutions could provide federal student loans that were guaranteed against default by the US Department of Education through the federally-guaranteed student loan program. After July 1st of 2010 all federal student loans are provided through the Direct Loan Program, where the funding comes directly from the federal government.

Applying for federal student loans is done by filing a FAFSA (Free Application for Federal Student Aid). Filing a FAFSA is free and only needs to be done once per academic year. Once you have filed your FAFSA, you will receive a SAR (Student Aid Report) which will outline the federal student loans you qualified for and at what amounts. There are three main types of federal student loans: Federal Stafford Loans, Federal Perkins Loans, and Federal PLUS Loans. You can read more about each specific federal student loan by clicking on the each loan type. Read More...