Best Types of Graduate Student Loans

When it comes to graduate student loans, the rulesLoan, also from the government, you can borrow up
for graduate school are similar to the ones forto $20,500 a year, but only $8,500 of that can be
college. Federal loans are your best option becausesubsidized, meaning the government pays your
you will get a better rate than you would withinterest until you graduate and six months afterward.
private loans. Here are the steps you need to takePLUS loans for graduate students are also an option.
to get the best graduate school financial aid packageLook into private loans to make up the difference:
possible:Private loans might offer good rates to match good
Fill out the Free Application for Federal Student Aidcredit. They are not government-backed, but you
(FAFSA): Send off the form at the beginning of thecan turn to them if a Stafford or Perkins loan won't
year when you plan to attend school. Even if yourhelp you meet all your expenses. However, they will
taxes are incomplete, fill the FAFSA out based onbe more expensive over the long run.
estimates because loans are given on a first-come,Furthermore, if you are looking at private loans, start
first-serve basis, and competition for graduate schoolthinking about the potential return on your
funding is tighter than for undergrad programs,investment following graduate school. If your
especially when economic times are tough.graduate program will make you a better job
Consider your federal loan options: You may becandidate and enable you to earn a higher salary,
eligible for a government-sponsored Perkins Loan, inthen a private loan might be worth it. But it might not
which you can borrow up to $8,000 a year at 5be worth it if you are going to graduate school for in
percent interest. If you are eligible for a Staffordfields that don't pay as much, such as the humanities.