Types of graduate student loans?

What are the types of graduate student loans?

There are basically 2 types of graduate student loans:

1. Direct Stafford graduate loans
   The Direct Stafford Loan has increased borrowing limits for graduates, a fixed interest rate of 6.8% for the 10/11 school year, and some great deferment benefits in case you ever run into financial hardship. Graduate Stafford Loans should always be used before considering private graduate loans. Direct Stafford Loans have an origination fee of 1%.
   Graduate students can now also access the Direct Grad PLUS Loan, which can cover up to the total cost of attendance minus any other aid you have received. The Grad PLUS Loan was designed to be used once you have maximized your Direct Stafford Loan funds. The Grad PLUS Loan has a fixed interest rate of 7.9% and an origination fee of 4%.
2. Private graduate loans
   Private graduate loans can cover your school and living expenses after you have maximized free money (scholarships, grants, tuition reimbursement) and Direct graduate Stafford and Grad PLUS loans. Private graduate loans were built with you in mind – there are little or no payments until you are finished with school or drop below half-time status. In addition, private graduate loans are often less expensive than credit cards or personal loans.

Important Information

Private graduate loans are credit based. Depending on your income and credit history, you may qualify for the loan on your own. In today’s financial environment, don’t be surprised if you are asked to obtain a credit-worthy co-signer. The interest rate on private graduate loans is generally variable. If you currently have a good income and credit history, you can apply for a private graduate loan to see if your rate and fees will be better than the Grad PLUS Loan (7.9% fixed interest rate, origination fee of 4%). If you are not working, or do not have a strong credit history, the Grad PLUS Loan is probably your best option. Direct Stafford, Grad PLUS graduate loans and private graduate loans can be tax deductible.