Graduate School Financial Aid

In order to attend graduate school, students must have an undergraduate degree and most programs require work experience in the field. Because they have been part of the labor force, many students entering graduate school think that there are no sources of financial aid available to them. This is not the case as there is graduate school financial aid available in the form of student loans and scholarships.

The private student loans for graduate school students are called the GradPlus loans. The amount you can borrow in this type of loan is limited to the cost of the tuition. If you receive other financial aid, such as scholarships, then these amounts will be deducted and you will only be permitted to borrow the amounts that are outstanding. There is a set interest rate on this loan and the interest starts accruing from the time you receive the first disbursement of money.

The Graduate Stafford Loan is another option for financial aid. There are two forms of this financial aid – subsidized and unsubsidized. The subsidized loans are awarded based on the financial need of the student and you must meet certain eligibility requirements. The unsubsidized loans are available to all students who apply. The difference between the two is that with the unsubsidized loans, the federal government pays the interest while you are in school and in the unsubsidized loans, the interest accrues and is your responsibility. The annual limit of the Graduate Stafford Loan is $18,500 per year, $10,000 of which is subsidized by the federal government.

Scholarships are basically free money for students attending graduate school. Financial aid in this case usually depends on the students’ grades in their undergraduate programs.

It is quite possible to receive a scholarship with average grades because students are not aware they exist and therefore do not apply for them.