Published November 2012. Financial aid and student loan rules change often, so some details may be out of date. Ask us about your situation.
The federal Stafford Loan program received several adjustments this year that will change the terms of service for the thousands of students who rely upon this initiative to finance their education.
One of the biggest developments was that as of July, graduate students can no longer take advantage of government-subsidized Stafford packages to pay for an advanced degree. Now, graduate students are only able to borrow unsubsidized Stafford loans with an annual interest accrual rate of 6.8 percent.
What does all that mean for grad students? Basically, once they finish school, grads will have to pay more and begin the repayment process more quickly.
Even though graduate students don't benefit from the government subsidies that undergrads enjoy, many analysts still recommend students at least consider looking into federal loans like these because of the wide array of repayment options available after graduation.
"Those types of options are not guaranteed and are rarely, if ever, offered by private student lenders," Pauline Abernathy, vice president of The Institute for College Access and Success (TICAS), a nonprofit research organization, told U.S. News & World Report.
These benefits include flexibility when it comes to deferral requests as well as potential income-based repayment plans. Post-grads benefit greatly from such options, especially those who are having trouble navigating the jobs market.
While finding a job may not be easy, the financial aid consultants at College Financing Group can make funding your education less of a headache. By helping you figure out the best student loan repayment options, you can focus on more important things, like putting your degree to work for you.