Graduate Student Financing

Graduate students use student loans to finance their education.  Federal Stafford Loans, Federal Grad Plus Loans, and private educational loans are available

Federal Stafford Loan

A Stafford Loan is a federally guaranteed loan. There are two types of Stafford Loan:  Subsidized and Unsubsidized.  A subsidized loan is a loan in which the government waives the interest accrual while the student is enrolled at least half-time.  An unsubsidized loan is a loan in which the government does not waive the interest and it does accrue while the student is in school.  You will have the option to pay this interest or to have it capitalized.  For both loan types, the principle loan payments are deferred while a student is enrolled at least half-time and repayment on the loans does not start until 6 months after the student drops below half-time enrollment, graduates or withdraws.

A graduate level student may be eligible for up to $8500 in the Subsidized programs and $12000 in the Unsubsidized program per academic year.

The current interest rate on a Stafford Loan is fixed at 6.8%.

To qualify for this loan, you must file a FAFSA.  The Subsidized portion of the loan will depend on the need that is determined from your FAFSA information.  If you have no need or low need, you will receive the Unsubsidized portion instead.  Either way, you will qualify for a Federal Stafford Loan regardless of your need.  This loan will be listed on your award letter.  To complete the application process as a first time borrower, you will need to complete a Stafford Master Promissory Note and Stafford Loan Entrance Counseling.  Visit our Stafford Loan page for more information.

Federal Grad Plus Loan

The Federal Grad Plus Loan is a federal loan with a fixed interest rate of 8.5%.  You must file a FAFSA and borrow the maximum amount of loan through the Stafford Loan program before you will be eligible for a Grad Plus.  This loan is also based on your credit history, so it is possible that you may be required to have a co-borrower.

Payments on this loan may be deferred while you are in school and enrolled at least half-time in a graduate program (5 hours per semester during Fall and Spring terms and 3 hours during the summer term).  Interest does accrue on this loan during the deferment period.  There is no grace period for the Grad Plus loan.  It will go into repayment as soon as you drop below half-time enrollment, graduate, or withdraw from school.

The maximum a student may borrow in this program is your cost of attendance minus other financial aid you have received.  If you are unsure of the amount you are eligible for, contact our office for help.

To apply for a Federal Grad Plus Loan you will need to complete a Master Plus Promissory Note - although this is the Parent PLUS Loan application, you will enter your information in both the Borrower and Student sections - no parent information is needed. You will also need to complete a  Grad Plus Request Form and Grad Plus Entrance Loan Counseling.

For more information on any of these types of loans, email the Financial Aid Office at finaid@sau.edu, or call us at 563/333-6314.

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