For many students, the grants and/or scholarships that they
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For many students, the grants and/or scholarships that they have been awarded may not be enough to cover tuition and other expenses of returning to school in order to earn a Master's degree. Another option that is available to the graduate student is to apply for a student loan. There are a variety of loans that you should investigate, plus setting up a meeting with your financial adviser will provide you with important information for your financial well-being.
In general, there are four federally funded graduate student loans that are the cheapest and easiest for you to consider, as long as you meet their qualifications. The most important criteria is that you are not in default on an outstanding student loan that you received for your undergraduate degree. You must also be a citizen and enrolled into an institution that is accredited by a federal agency.
It is also required that you fill out the FAFSA (Free Application for Federal Student Aid), form which is sent to the U.S. Department of Education for evaluation of your financial need. This new arrangement between the Department of Education and students' financial advisers has eliminated the "middlemen" of private lenders, banks, and credit unions. Students can then choose from the four federal education loans that are available for graduate degrees.
Graduate students with low incomes and/or bad credit can apply for a Perkins loan. This is the cheapest of the federally backed educational loans with an interest rate of only 5 percent. The total amount that a student can get is $8,000 a year; however, the school may not have many "Perkins dollars" to lend or even none at all.
Next in line, is the "subsidized" Stafford loan; this means that with this loan, there is no interest charged while the student is in school. There is a limit of $8,500 annually that can be applied for, and the interest rate cannot exceed 6.8 percent with a one percent fee. This loan is made directly by the federal government so students do not need to worry whether or not their schools have funds available. The Stafford loan also has an "unsubsidized" version with the same interest rate and fee, but this does accrue while the student is in school, which can increase their debt substantially.
Finally, if a student has maxed out the available funds provided by the Perkins and Stafford loans, they can apply to the "Grad PLUS" program. This loan charges an interest rate of 7.9 percent with a 4 percent fee, which totals the APR in the range of 8.8 percent. The federal government directly funds this loan as with the Stafford loan, so the student is assured to receive the amount that they qualify for.
Although applying for loans to fund your Master's degree is not what you really want to do, it may be a necessary "evil." However, students do get a tax break by being able to deduct the interest paid on these loans when filing their annual taxes. Other private loans may not qualify for this tax deduction, so ask before you sign on the dotted line. |
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Author Resource:-
konut kredisi
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By :
mercedes bartuccib
Submitted
2011-11-18 02:59:50 |
Article From Article Mayhem
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