The intention of providing graduate student loan is to aid the students who are not able to afford the expenses for their graduation. A number of financial institutions and banks are now offering these loans with flexible options and reasonable interest rates.Graduate student loans- What determines the eligibility
Any student who is interested to undergo a graduation can avail a graduate student loan. Generally bad credit history or bankruptcy of the student who applies for such a loan will not be considered by the bank while approving such a loan. Likewise no credit or the slow credit of the student will prevent him from getting a graduate loan from the financial institutions.
Different types of graduate loans
A student who is thinking of availing one should be aware of different types of such loans available to him. If he is capable of affording the other expenses of graduation excluding the direct expenses of graduation, he can avail a loan only for the purpose of making payments to the direct expenses of graduation.
Most of the banking institutions offer up to $40,500 to a student. The amount of loan sanctioned depends upon the programme of study. A student who has availed this type loan will normally be given six months grace period after the completion of his graduation to start repayment of the loan amount. Normal interest rate of this loan will be 6.8% fixed and involves no origination fees.
Graduation loans that cover all expenses connected with graduation is the other option available for a student who likes to avail a loan. These types of loans will include all incidental expenses of graduation. Though you have an option to request for a six months grace period to start the repayment, normally it will begin with the completion of graduation. When compared to the interest rate of the other student loans, a person availing this type will have to pay 8.5% fixed as the interest for the loan amount along with the 3% origination fee.
By Bikash Kalita
Check Out the Related Article : Everything You Need to Know About Student Loans
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