Financing Grad School
Most graduate students are funded by loans and scholarships. The following information about loans and scholarship searches will be most beneficial.
Check the following terms related to your loan:
- Cost of the guarantee fee-(insurance against your default)
- Cost of the origination fee-“Administrative Fee”
- Rate/time frame for loan capitalization
- Fixed vs. non-fixed interest rates
- Time frame for first payment/guidelines- Can increased principal be paid monthly?
- Possible interest rate deduction if set-up for direct payment?
- Payment required on a monthly basis?
Here are a couple of websites that talk in detail about financial aid:
Financial Aid Help for Students
***Key Point***Experts recommend 8-15% of projected income should not be exceeded when borrowing for school.
Perkins Loans
May be unavailable at some schools for graduate school.
Stafford Loans
Subsidized vs. unsubsidized. If exceptional need cannot be proven then a graduate student may be eligible only for the unsubsidized Stafford loans. Consequently, the student would have to cover the interest accruing on the loan once the loan is distributed.
Loans for Medical School
AAMC MedLoans- Alternative Loan Program
MedSHARE-Nellie Mae
Medical Access Loans- Access Group
Loans for Business School
MBASHARE-New England Loan Marketing Association-Nellie Mae
M.B.A. Loans/Tuition Loan Plan
Business Access Loan Program-Access Group
Loans for Law School
LawLoans-Bar Study Loan, Law Student Loan, Federal Stafford Loans
Law Access Loan-Access Group
Law SHARE-Nellie Mae
Private Student Loans
Signature Student Loan- Sallie Mae
Graduate Access Loan-Access Group
EXCEL Loan-Nellie Mae-cosigner required
CollegeReserve Loan-USA Group
American Express Alternative Loan- American Express/California Higher Education Loan Authority
Financial Key Points
- Separate yourself from your parent’s assets to qualify for more financial aid
- Have limited funds in your checking and savings account at the time of your application
- Have your parents transfer their money away from their checking and savings accounts
- Don’t be claimed on your parents income tax forms prior to application for at least a year
- If a parent is going to sell an investment to support graduate school, they should sell during the junior year of undergraduate prior to January due to capital gain taxes
- Parent’s should contribute more money into home equity, because this is not under consideration when calculating financial aid in most cases