Let's Talk Student Loans
Graduate Student Loans Basics
Understanding Graduate Student Loans
Embarking on graduate school can be an exciting but financially daunting journey. For many, federal student loans offer a crucial lifeline in funding higher education. Understanding the basics of these loans and how they compare to other financial options can significantly ease the burden.
What Are Federal Loans for Graduate Students?
Federal student loans serve as a vital access point for students who cannot cover tuition costs on their own. With the rising costs of education, many graduate students rely on federal loans to fund their studies. These loans are accessible through the FAFSA (Free Application for Federal Student Aid), and students must meet eligibility criteria to apply. Unfortunately, international and undocumented students do not qualify for federal loans, which can affect many prospective graduate students.
Graduate students are typically offered two types of federal loans: Unsubsidized Loans and PLUS Loans. Both types accrue interest immediately upon disbursement, but the PLUS Loan tends to have a higher interest rate and may require a soft credit check (which does not impact your credit score).
Federal Loans vs. Private Loans
Federal loans differ significantly from private loans, especially in terms of repayment options and interest rates. Federal loans are issued by the Department of Education and come with flexible repayment options, including income-driven repayment and loan forgiveness. For example, if you work in public service (such as education or non-profits) for 10 years, you may qualify for loan forgiveness. Federal loan interest rates tend to be lower than those of private loans, and the application process does not involve a credit score check, unlike private loans.
Private loans, offered by banks or credit unions, often come with higher interest rates and fewer repayment options. They also typically require a hard credit check, which can impact your credit score. Additionally, private loans may lack forgiveness options and income-driven repayment plans, making them a less flexible choice for many students.
Key Differences:
Federal loans come from the U.S. Department of Education.
Public service loan forgiveness options available (see below).
Income-driven repayment plans available.
Lower interest rates than private loans.
Private loans do not come from U.S. Government
Come from banks, credit unions, or lenders.
Hard credit check, which affects your credit score.
Higher interest rates (sometimes double or triple the federal loan rate).
Fewer flexible repayment options.
Interest Rates:
Federal loans: Change yearly but are generally lower than private loans.
Private loans: Interest rates are often much higher based on your credit score.
Understanding the Loan Options for Graduate Students
For graduate students, the federal PLUS Loan is available to cover education costs beyond what is covered by other loans. This loan, unlike undergraduate loans, cannot be taken out by parents but is directly available to the student. The interest rate for PLUS Loans is generally higher than that for unsubsidized loans.
Another key difference is that undergraduate students can sometimes receive subsidized loans, where the government covers interest while the student is enrolled. Unfortunately, such loans are not available to graduate students.
Undergrad vs. Grad Federal Loans
Undergrad loans:
Subsidized loans: Interest doesn’t accrue while you’re in school.
PLUS loans: Available to parents for undergrad students.
Graduate loans:
No subsidized loans.
PLUS loans are available directly to grad students, not parents.
Higher interest rates than undergrad loans.
For More information about loans watch this video I made with Sara Potter-Gittelson, the founder of @FirstAtFinances and the Inaugural Director of UCLA Financial Wellness program, to really discuss some Federal Student Loans frequently asked questions (FAQ).
Fellowships & Grants
Here are some featured Fellowships due in the next 6 to 8 weeks!
Humane Studies Fellowships - Due Feb. 10, 2025
The Humane Studies Fellowship is a renewable, non-residency award of up to $15,000 per year to support current or future students enrolled in full-time PhD programs. Intended for students interested in developing, teaching, and applying classical liberal ideas and the principles of a free society, this program supports research and teaching in both the social sciences and the humanities.
More Info HereMinority Fellowship Program for Master’s/PhD Students
Council on Social Work Education (CSWE) offers diverse PhD scholars studying social work up to 13 fellowships to help lead behavioral health for up to 3 years.
More Info HereJon B. Lovelace Fellowship for the Study of the Alan Lomax Collection - Due Mar. 1, 2025
The John W. Kluge Center at the Library of Congress in Washington DC awards postgraduates with an 8-month fellowship to research cultural traditions.
More Info HereCreative Writing Fellowships - Due Date Varies
The National Endowment for the Arts (NEA) offers funding for talented published creative writers to research, write, travel, and further their career.
Fulbright-Hays Doctoral Dissertation Research Abroad Program - Due Mar. 31, 2025
This program provides grants to colleges and universities to fund individual doctoral students who conduct research in other countries, in modern foreign languages and area studies, for periods of six to 12 months. Projects should deepen research knowledge on and help the nation develop capability in areas of the world not generally included in U.S. curricula. Projects focusing only on Western Europe are not supported. More Info Here
Featured Student Discounts & Affiliate Links
These links are items I use and love or resources that might make grad school easier for you! If you use these affiliate links, you get the products you need (sometimes at a discount!) and I get a small commission that will help support these free resources!
Join Samsung's Education Discount Program and get 30% off storewide!
Simplify your Meal Prep Process with 30% off Hungryroot (Valid until 2028)
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