Why Graduate Loans?

If you wish to pursue higher studies but do not have the appropriate means for it, you could do worse than become a graduate loan student at a US university.

The Need-based Graduate Loan Student

Loans given to a graduate loan student directly has a lower ceiling than the other types, and may not cover the whole cost of education. It is a need-based loan, which means that your actual education costs shall be assessed by the disbursing authority, and a part of that will be finally paid to you. However, its interest rate is also much lower than the going market rates. Another advantage is that you need to start repayment only six months after you complete the course.

The Demand-based Graduate Loan Student

The main graduate student loan program that issues loans to parents is known as PLUS, which stands for Parent Loans for Undergraduate Students. Recent legislations have created a new category of PLUS, known as graduate PLUS loans. These are given directly to the graduate student, but they are based on demand, not on need as in the case of Stafford loans. If you are a graduate loan student receiving a grad PLUS loan, you can actually get the whole cost of your education from it, including food, board and other expenses.
The interest rates on the grad PLUS are much higher, however. As of July 1 2006, it stood at 8.5% per annum. The granting of a grad PLUS depends on your credit rating, rather than your actual educational needs.

Private Graduate Loan Student Programs

In case your needs outstrip the amount you could get from federal grants or loans, consider applying for more from private loan authorities that have graduate loan student programs. But these are fully commercial aids, so expect these to be at par with market rates.