Here’s what you need to know before taking loans to students.

1. Federal student loan rates are higher.
Recently there have been many changes in student loan costs, as well as several other news awaiting changes. But one thing is certain: graduate students pay higher interest rates than students.

Student loan rates are set by Congress, and for the 2013-2014 academic year, they are tied to notes of the Federal Treasury. Currently, interest rates are 4.66% for student student loans and 6.21% for graduate students. Perhaps these rates may change next year. The good news is that the current rate is lower than in previous years, it was only recently – 6.8%.

Related : The Top Student Loan Forgiveness Programs

2. Without subsidized student loans
As a student with subsidized student loans, you will not be charged a percentage on your loans while you are still a full-time student. This does not apply to graduate students; instead, your student loans immediately start charging interest, regardless of whether you are a student or not.

The longer you take to complete graduate school, the more interest there will be in your basic balance of your credits to the master’s program. For example, if you earn $ 10,000 when you start school, the balance will increase to about $ 11,300 in two years. This is $ 1,300 more than you owe, than if you were a sub-loan with a subsidized loan.

3. You can take more
As you have probably heard, balances at the undergraduate level and graduates can be difficult. But it is easier to get a loan debt for graduate students because of the higher maximum credit limits. The current limits are $ 20,500 per year and $ 138,500 for graduates or professional students. The total amount ($ 138,500) includes any undergraduate loans that you already have that cannot be exceeded.

Students may take even more for medical school. The student loan limit is limited to $ 40,500 per year and $ 224,000 for these medical school students.

While borrowing is more like good news, because it gives students more opportunities, it can translate into trouble. It is tempting for students to take out more than they need, because graduate student loans can be used to cover living expenses. Student loan loans are not tracked or tracked, so it is easy for students to misuse and use the money for non-essential expenses.

Too much student debt can lead to a nightmare of debt.

Related :Student Loan Default: The Dangers & How To Get Out

4. Parents are not required.
One change that facilitates the process is that you do not need to include your parents’ financial information in the form of FAFSA. You are considered independent in graduate school, which means that you fill out a form for yourself to get access to the necessary student loans. FAFSA says you need less than an hour to complete an online form, so do not delay!

5. Less needy help
Despite the fact that you do not need to calculate the income and assets of your parents, there is probably not much help based on needs. According to the US Department of Education, Pella grants are usually available only to student-students. Even if you are eligible for a bachelor’s degree, you probably won’t be eligible for graduation unless you are satisfied with some very limited exceptions.

Other need-based grants and assistance may also be more difficult to find. Instead, you may have more luck in scholarships. Yes, the search for scholarships can be difficult and competitive, but if you are creative and systematic in your approach, you can dig out more free money than you imagined.

Related : Strategies to Lower Student Loans

6. Postpone student loans
As a full-time graduate student, you can defer student loan payments. This is not automatic (for example, while you are junior), but it is a fairly simple query. Just be careful: interest will continue with a delay. If possible, you can continue to pay interest on graduate loans while you are at school, if you work. If not, your score will continue to grow.

There is good news: if you have subsidized student loans from undergrad, you will not be charged more interest until they are deferred. You can find out how much interest will be charged using our student loan deferment calculator.

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