Everyone knows that a college education can be prohibitively expensive, but when it comes to paying for graduate school the gloves come off and the cost will nearly knock you off your feet.  That is why, when it comes to graduate school, finding grants and loans are even more important than in undergraduate school.  But what sorts of scholastic aid is available for graduate students?

Grants for Graduate School

Grants as you know are money that you don’t have to repay.  They are a gift; free money for you to use to finance your education.  Grants come in two basic kinds; Government grants and private grants.

Government grants for graduate students come either as grants from your state, or grants from the Federal Government.  The two most popular programs are the Federal Supplemental Opportunity Grants (FSEOG) and the State Student Incentive Grant (SSIG).

The Federal Supplemental Opportunity Grant is a needs based grant second only in size to the Pell Grants available for undergraduate students.  Not all students who apply for a FSEOG are going to receive it, however, for funding is very limited and not only do students have to qualify, but they have to be first in line at participating colleges in order to receive the funds.

A State Student Incentive Grant, on the other hand, is awarded by the student’s state.  The student has to be a resident, and many times the states require that the student also be attending an in-state college or university.

If a graduate student is interested in applying for a grant from a private institution or foundation they will need to apply to that foundation or institution individually and convince them that they should be awarded the grant money.  Each state or regional area has organizations that provide grant monies for graduate students depending on their needs and the specifications of the individual organizations.

Loans for Graduate School

It is actually much easier to get a loan for graduate school than it is to get a grant for graduate school.  Loans DO have to be repaid, and while payment and finance charges are usually deferred until the student is out of school, the total amount that a student will owe after they complete their education can sometimes be quite astounding.

One loan that is backed by the Federal Government and is designed specifically for graduate students is called a secure Stafford Student Loan.  These loans are available to all students and being a federal loan will be deferred until the student has completed college.

The Graduate PLUS student loan is a loan program put together by the U.S. department of Education’s Federal Direct Loan Program (FDLP).  This is considered to be a supplement to the Stafford and/or Perkins federal student loans and allow students to borrow the remainder of their educational expenses.  These are not need based loans, so you can’t be penalized for borrowing too much or too little, you simply have to pay it back eventually.

Then of course there are private loans.  Private loans are taken out through private banking institutions and are subject to that institution’s regulations and policies regarding repayment and finance charges.  These can be decidedly more expensive overall than government funded loans and should only be used if all other avenues of payment have been explored.