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   Federal Loans for Nursing StudentsGraduate federal student loans supply financial help for graduate students enrolled at a school that participates in federal aid programs. These loans are offered by private organizations under accordance from the U.S. Department of Education through the Federal Family Education Loan Program (FFELP) and the Federal Direct Student Loan Program (FDLP). Graduate federal student loans generally cover school expenses, including tuition and fees, room and board, books and school supplies, as well as any transportation. Loans can also help pay for technology needs (i.e., a computer) and for necessary dependent care. The following explains the various graduate federal loan options.Graduate Stafford LoansStafford Loans for graduate students are federal student loans used to supplement personal and family resources, scholarships, grants, and work-study. They may be subsidized by the U.S. Government or may be unsubsidized depending on the student's financial need. Both subsidized and unsubsidized loans are guaranteed by the U.S. Department of Education either directly or through guarantee agencies. Nearly all students are eligible to receive them (regardless of credit score or other financial issues). Both types offer a grace period of six months, which means that no payments are due until six months after graduation or three months after the borrower becomes a less-than-full-time student without graduating. Subsidized graduate federal student loans are offered to students with a demonstrated financial need: generally requiring a lower family income. For these loans, the federal government makes interest payments while the student is in college. For example, those who borrow $10,000 during college will owe $10,000 upon graduation. Unsubsidized graduate federal student loans are also guaranteed by the U.S. Government, but the government does not pay interest for the student, rather the interest accrues during college. Those who borrow $10,000 during college will owe $10,000 plus interest upon graduation. For example, those who have borrowed $10,000 and had $2,000 accrue in interest will owe $12,000. Upon graduation, interest will begin accruing on the $12,000. The accrued interest will be "capitalized" into the loan amount, and the borrower will begin making payments on the accumulated total. Students can choose to pay the interest while still in college.
Graduate PLUS LoanThis loan, sometimes called the GradPLUS, is offered to parents of graduate students enrolled at least half-time in a program included within a formal list of participating post-secondary institutions. PLUS Loans are also available for graduate and professional students. PLUS Loans differ from Stafford Loans in that it can cover a larger amount of the cost of education, has a higher interest rate and the commitment is undertaken by the parent, rather than the student. It does, however, have the same federal loan deferment and forbearance options as the Stafford Loan, so graduate and professional students can postpone repayment of their federal student loans while enrolled at least half-time in a degree or certificate program.
Graduate Student Loan ConsolidationIf a student has a series of loans, through the Graduate Stafford or PLUS, they have the option to consolidate their graduate student loans into one single debt. This results in reduced monthly repayments and a longer term for the loan, at a fixed interest rate. The term of the loan can be between 10-30 years. Although the monthly repayments are lower, the total amount paid over the term of the loan is higher than would be paid with other loans. The calculated fixed interest rate is based on the average rate of the loans being consolidated. These rates are weighted and based on the amounts borrowed.
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