Stafford Loans From NextStudent Provide Graduate Students With up to $20,500 a Year for Graduate Study

Stafford loans are low-interest, federally guaranteed student loans available to both graduate and undergraduate students for tuition, program fees and other education-related expenses. Stafford loans can be either need-based or non–need-based.

The standard repayment period for a Federal Stafford Loan is 10 years (although borrowers can extend their repayment term by consolidating their Stafford loans). Stafford borrowers can choose from different repayment plans—extended, graduated, income-sensitive—that can help make monthly payments more affordable once repayment begins.

What’s the Difference Between a Subsidized and an Unsubsidized Stafford Loan?

Subsidized Stafford loans are awarded on the basis of financial need. With a subsidized loan, any interest that accrues while the borrower is in school, in deferment, or in a grace period, is paid by the government.

Unsubsidized Stafford loans are non–need-based, so eligible graduate students can qualify for unsubsidized Stafford aid regardless of their income or assets. With an unsubsidized Stafford loan, even when a borrower isn’t making payments (while (s)he is in school, in deferment, or in a grace period), interest is accruing, and the borrower will be responsible for paying that interest once repayment begins.

What Are the Advantages of a Graduate Stafford Loan?

Federal Stafford Loans feature several benefits for graduate student borrowers:

• No credit checks: Borrowers only need to meet the eligibility requirements
• No prepayment penalties: Borrowers may pay off a Stafford loan early without being assessed any additional charges.
• Fixed interest rate: Stafford loans taken out after July 1, 2006, have a fixed interest rate of 6.8%.
• No payments while in school: Graduate students holding Federal Stafford Loans may choose to defer making payments until they’ve left school or dropped below half-time enrollment.
• Forbearance and hardship deferment benefits: If they’re having trouble making their monthly payments, Stafford borrowers may request to temporarily postpone making payments without affecting their credit rating.
• Grace period before repayment: Stafford borrowers who have completed a graduate or professional program or have dropped below half-time enrollment have a six-month grace period before they need to begin making payments.
• Student Loan Consolidation benefits: Once they’ve left school or dropped below half-time status, graduate students may consolidate their Stafford loan(s) and take advantage of all the features of federal student loan consolidation, which include longer terms that give borrowers more time to repay.

Who Is Eligible for an Graduate Stafford Loan From NextStudent?

To qualify for a Federal Stafford Loan from NextStudent, graduate students:

• Must file a FAFSA (Free Application for Federal Student Aid)
• Must be enrolled or accepted as at least a half-time student in an eligible graduate or professional degree program
• Must maintain satisfactory academic progress, as determined by their school
• Must be a U.S. citizen or permanent resident
• May not be in default on any federal student loan
• Must be registered with the Selective Service if male and between the ages of 18 and 25

How Much Money Is Available From Graduate Stafford Loans?

Graduate students taking out a Federal Stafford Loan can borrow up to $20,500 a year, up to a maximum of $138,500 in cumulative Stafford loan debt (including any undergraduate Stafford loans they may have received).

With repayment postponed while a borrower is enrolled at least half-time, graduate Stafford loans from NextStudent offer eligible graduate and professional degree students a flexible, non–credit-based financing option that allows them to cover their educational expenses without having to worry about making payments while they’re still in school. And because they’re awarded both with and without consideration of financial need, Federal Stafford Loans can help a wide range of students searching for low-interest ways to pay for their graduate studies.

NextStudent believes that getting an education is the best investment you can make, and we’re dedicated to helping you pursue your education dreams by making college funding simple. Learn more about Student Loans, Private Student Loans and Student Loan Consolidation at www.nextstudent.com.

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