Student Loans for Graduate & Professional Students

There are two main types of student loans for graduate students – federal loans and private loans. Federal loans are either federally funded or federally backed (or insured) student loans.

Federal Perkins Loans:

• Fixed 5% interest rate.
• Maximum award of $6,000 per graduate year that cannot exceed $40,000 total when combined with undergraduate Perkins borrowing.
• School-awarded.
• Very limited availability.

• Are usually borrowed through private lenders.
• You must be enrolled at least half-time.
• Maximum award of $20,500 per graduate year that cannot exceed $65,500 when combined with undergraduate Stafford borrowing. (Higher limits are available for certain medical programs – ask your financial aid office for details).
• Interest rate is fixed at 6.8%.
• Repayment normally starts six months after leaving school (or attending less than half-time).
• There are two types of Stafford Loans - subsidized (for which you must demonstrate financial need and the interest is paid by the federal government while you are in school) and unsubsidized (which is not based on need, but you are responsible for all the interest that accrues).

• A light credit check is required.
• You do not have to show financial need to qualify.
• You may borrow up to your total cost of attendance, minus any other aid you receive.
• The loan is not subsidized (the government pays no interest).
• Repayment is deferred while you are enrolled at least half-time.
• Usually borrowed through private lenders.

• Are borrowed through private entities, banks, credit unions or lending companies
• Interest rates can vary
• Can borrow up to the total cost of attendance, less other financial aid
• Interest can be capitalized (adde to the loan principal) more often, increasing the amount of money you ultimately are charged for borrowing.
• Approval and terms for private loans are based on credit history. If your rating is bad or non-existent, you might need a co-signer to qualify. Poor or minimal credit may also result in a higher interest rate on your loan.

Many lenders have loans for specific programs of study, such as MBA programs, Medical School, Dental School, Law School, and more. You can compare options for financing your preparation for the bar examination and for your medical residency expenses. Begin your search. Speak to the financial aid administrator at your school for more details.

For federal student loans, such as Perkins or Stafford, you do not need a co-signer. For private student loans, you should apply with a credit-worthy co-signer to increase your chances of approval and possibly improve the rate and fees you are offered. Some lenders require you to apply with a co-signer regardless of your income or credit rating. You'll need to look at each loan program for these requirements. Applying with a co-signer may also help you receive a lower interest rate and better terms on your loan offer.

Most lenders will require a borrower to have a strong credit score (good to excellent) in addition to other criteria such as no negative credit history (such as missed payments), debt-to-income ratio (amount of debt vs. your current income) and even proof of current employment and income.

So, if you are an undergraduate student without sufficient personal income or credit history, you'll almost certainly need to apply for a private student loan with a credit-worthy co-signer.

Use the student loan comparison tools on SimpleTuition to shop around for the loan that’s right for you. Compare rates, monthly payment, total cost of loan, borrower benefits and more. When you have decided on a loan, either click on “apply” to be taken to the online application, or click on “call” to see a phone number where you can call to apply over the phone. The approval and processing of applications varies greatly from lender to lender, so it is difficult to say how long it will take. Some lenders offer e-signature, which will allow you to complete the process online and receive your funds faster. In order to complete an application for a student loan with most lenders, you will need the following information:

• Your full name, social security number and date of birth
• Your permanent address and the number of years you have lived there (no P.O. boxes)
• The amount of your monthly rent or house payment
• Your home phone number
• Your current occupation and position
• The name of your employer and how long you have been employed by them
• The business phone number of your employer
• Your gross annual income
• The contact information for a reference (name, address, home/business phone number)
• The name of your school (or the school the student for whom the loan is for is attending)
• The social security number, contact information and employment information for your co-signer (if applicable)

Some banks will send or express mail the necessary documents to you to complete the loan. As with federal student loans, you will be required to sign (or e-sign) a promissory note whereby you agree to accept the terms of the loan (rates, fees, APR, and repayment) and then repay it.

Yes. Federal student loans, such as the Stafford Loan, and many private student loans are available for students enrolled half-time at qualified institutions. If you are enrolled less than half-time, you may be eligible for a continuing education loan or other financial aid programs from your college or university. Talk with your financial aid administrator to learn about more options.