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Whether you have just graduated from college, or you are a seasoned work-place professional, the cost of graduate school can be daunting. Most college graduates already have student loan debt from their undergraduate education, and have not yet had time to save up to pay for graduate school. Even if you are a working professional, graduate school can be extremely time consuming, and you may have to cut back on your current job while you are taking classes. If you have chosen a graduate school in another state or location, you might have to quit your job altogether to attend school.
You may also find that there is less scholarship and federal grant money available to help graduate students with financial aid, compared with undergraduates. If you are unable to secure a graduate fellowship or scholarship money to pay for graduate school, you may have to take out graduate student loans.
Keep in mind that taking out graduate student loans will add to your overall student loan debt. You don’t want to get into graduate school debt lightly; make sure you have weighed all of your professional options and that graduate school is the right choice for you.
Don’t forget to ask your current employer about tuition reimbursement programs offered at your workplace. If you are planning to attend graduate school in the future, you might want to consider looking at companies who offer tuition reimbursement programs as an employee benefit.
Federal student loans, like the Direct Stafford Loan, are a great way to help you cover graduate school costs. The Direct Stafford Loan has increased loan limits for graduate and medical students, which go a long way towards covering your graduate school costs. Also, graduate/professional students are considered to be independent students, which means that, in evaluating their eligibility for Stafford loans, the income and assets of their parents are not considered.
Graduate students can also access the Direct Grad PLUS Loan, which was designed to be used once you have maximized your Direct Stafford Loan funds. The Direct Grad PLUS Loan has a fixed interest rate of 7.9% and an origination fee of 4%. You will need to pass a credit check in order to receive Direct Grad PLUS Loan funds.
Check out our Student Loan Guide for specific information about each loan type, including interest rates and how to apply.
Once you have maximized your Direct Stafford Loan funds, you may want to research private graduate loans. Private loans for graduates are credit-based loans taken out in your name to pay for education expenses. If you have sufficient income and credit history, you may be able to qualify for private graduate loans on your own, without the help of a co-signer. If you have good credit, or a co-signer with good credit, you may want to compare your interest rates and fees to that of a Direct Grad PLUS Loan to see if they are more competitive. Just remember that the interest rate on private graduate loans is predominantly variable, and can change over time.
Get more information on private graduate loans:
While you are in graduate school, you may find that you need to reevaluate your monthly budget. Your education expenses, like tuition, books and travel expenses, have probably increased and you may need to cut back in other places. Use our Monthly Budget Calculator to help you plan your expenses while in school.