Federal Direct Loans and Graduate School | 06.17.10

Posted in FAFSA, Graduate Loans By Evan Jacobs

On July 1, 2010, the world as you know it is about to change. Okay, that’s not true. But student loans will be handled in a different fashion than in previous years. As a prospective graduate student, you might be wondering how the changes affect you.

Graduate Stafford: You can still receive a Graduate Stafford loan, however this loan will be originated by the federal government, and not a Federal Family Education Loan (FFEL) bank. You will still apply by filling out your FAFSA. You can receive subsidized or unsubsidized Stafford Loans for graduate school, the primary differences being that unsubsidized Stafford loans will being accruing interest immediately and are not based on need.

Graduate PLUS: When Stafford loans aren’t enough, you should look into a graduate PLUS loan, a federally originated loan that allows you to borrow up to the cost of attendance. The Graduate PLUS loan is based on credit, not need, and carries a fixed interest rate of 7.9 percent.

Remember, to receive federal direct loans, you need to fill out your FAFSA. If federal aid isn’t enough, consider an alternative student loan.


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