Graduate education is expensive

Education becomes more and more expensive with each advanced degree you pursue. Because this is the case, many graduate students need another educational loan after they graduate with their first degree. Just like when they were an undergraduate, they can continue to rely on a Stafford loan to help them out. However, the rules change a little bit.

Stafford loans don’t offer adequate financial aid

First of all, there is a limit to how much money a graduate student can borrow through a Stafford loan, so for students who are going on to law school or medical school, a private loan may be needed to supplement the money that a Stafford loan can't provide. For most other people, a Stafford loan is usually enough to cover the extra expenses of graduate school. The full amount that any student can borrow is $138,000, and this includes what may have been borrowed as an undergraduate student. Keep this in mind when applying for more money.

Graduate loan eligibility same as undergraduate eligibility

The same eligibility applies for graduate students as it does for undergrads. You have to be enrolled in school at least part time in an approved study program and you'll have to go through the hassle of filling out another FAFSA form and Master Promissory Note. In addition, the school you attend may have additional forms.

Interest rate on Stafford loan is variable

The interest rate on a graduate Stafford loan is a variable rate. If you have a subsidized loan then you won't have to worry about interest accruing until after the deferment period has passed (generally six months after you graduate). However, most graduate students also need an unsubsidized loan. The interest on this type of loan begins to accrue on the day of the first disbursement and until the loan is paid in full. The interest rate is variable on both types of Stafford loans; however, by law the rate cannot exceed 8.25%.

Graduate Stafford loan can improve your life

A Stafford loan is a great way for financing graduates the way it is for financing undergraduates. Aside for the interest rate, the terms are nearly identical. There is no reason why you shouldn't take advantage of this option. The quality of life you achieve through higher learning will more than help offset the cost of repaying a Stafford loan.