Yes, graduate students can get unsubsidized loans. Unsubsidized loans are available to graduate and professional degree students who need financial assistance to cover educational expenses.
Unlike subsidized loans, unsubsidized loans accrue interest while the student is in school and must be repaid in full. There are limits to the amount of unsubsidized loans a student can receive each year, and interest rates may vary depending on the loan provider.
Graduate students should consult with their financial aid office to determine their eligibility and to learn more about the terms and conditions of unsubsidized loans.
Types Of Federal Student Loans
The types of federal student loans include subsidized and unsubsidized loans. Subsidized loans are available to undergraduate students with a financial need. The federal government pays the interest on subsidized loans while the student is in school, during grace periods, and deferment periods. Unsubsidized loans are also available to students, but the federal government does not pay the interest. These loans are available to both undergraduate and graduate students. Graduate students are not eligible for subsidized loans, but they can receive unsubsidized loans. Interest rates for unsubsidized loans are higher than subsidized loans and accrue during all periods. However, unsubsidized loans have lower eligibility requirements than other types of loans, and they can be used for tuition, room and board, and other educational expenses.
Eligibility For Unsubsidized Loans
Graduate students are eligible to receive unsubsidized government loans. These loans have to be paid back at an interest rate of 4.30%. However, graduate students can borrow up to $20,500 per year, which is more than the amount available to undergraduate students.
You can also receive unsubsidized loans from the government as an undergraduate student, but the amount is limited to $12,500 per year. It is important to note that in both cases, your school must determine the amount you are eligible to receive based on your cost of attendance and financial need.
| Student Type | Loan Amount |
| Graduate Students | Up to $20,500 per year |
| Undergraduate Students | Up to $12,500 per year |
It is important to understand that unlike subsidized loans, which are available to students with financial need, unsubsidized loans are available to all students who qualify. This means that interest will start accruing on the loan as soon as it is disbursed. Therefore, it is recommended that students make payments towards the interest while in school to avoid a higher overall cost of the loan.
Overall, both undergraduate and graduate students are eligible to receive unsubsidized loans from the government, which can be helpful in covering their cost of attendance. It is important to understand the terms and conditions of the loan before applying for it.
Maximum Loan Amounts For Unsubsidized Loans
Unsubsidized loans are a type of federal student loan that starts accruing interest as soon as the loan is disbursed. To be eligible for an unsubsidized loan, you do not need to demonstrate financial need. Here are the maximum loan amounts for unsubsidized loans:
| Dependent Undergraduate Students | Independent Undergraduate Students | Graduate and Professional Students | |
| Freshman | $5,500 | $9,500 | $20,500 |
| Sophomore | $6,500 | $10,500 | $20,500 |
| Junior/Senior | $7,500 | $12,500 | $20,500 |
| Graduate/Professional | N/A | N/A | $20,500 (subsidized and unsubsidized combined) |
Remember, these are the maximum loan amounts. You do not have to borrow the full amount. It is recommended that you only borrow what you need to cover your educational expenses. Additionally, interest rates for unsubsidized loans are higher than subsidized loans, so it is important to carefully consider your options before taking out a loan.
Interest Rates For Unsubsidized Loans
Graduate students have the option to take out unsubsidized student loans to help cover the cost of tuition and other educational expenses. These loans typically have higher interest rates than subsidized loans.
Fixed interest rates for unsubsidized loans mean that the interest rate is set at a specific rate that remains the same throughout the loan’s life. However, these rates may change depending on the year in which the loan is disbursed.
On the other hand, variable interest rates for unsubsidized loans mean that the interest rate may change over time. These rates are typically based on an index plus a margin set by the lender.
When considering student loan options, graduate students should carefully review the interest rates and terms of each loan to determine which is best for their financial needs.
Loan Fees For Unsubsidized Loans
Graduate students who need financial assistance can apply for unsubsidized loans through the U.S. Department of Education. Unlike subsidized loans, the interest for unsubsidized loans accrues while the student is still in school. In addition, there are fees associated with taking out these loans. These fees include:
| Fees | Percentage of Loan Amount |
| Origination Fees | 1.057% |
| Default Fees | Up to 25% of the loan amount if the loan goes into default |
While these fees may seem small, they can add up over time and increase the total cost of the loan. It’s important for graduate students to carefully consider their options and calculate the long-term costs of taking out an unsubsidized loan before making a decision.
Repayment Options For Unsubsidized Loans
Graduate students are eligible to receive unsubsidized loans, which means they are responsible for paying the accrued interest. Repayment options for unsubsidized loans include standard, extended, graduated, and income-driven plans, which vary in duration, interest rates, and monthly payments.
Unsubsidized loans are available for graduate students who need financial assistance but do not qualify for need-based aid. Students have several repayment options. One option is the Standard Repayment Plan, where payments are fixed and made over a period of 10 years. Another option is the Graduated Repayment Plan, where payments start low and gradually increase over ten years. The Extended Repayment Plan allows you to extend the repayment period up to 25 years but with higher interest costs.
Additionally, there are income-driven repayment plans, which include income-based repayment, Pay-as-you-earn, and income-continent repayment. These repayment plans are designed for borrowers who are having difficulty making their monthly payments and adjust to the borrower’s income and family size. Regardless of the repayment plan you choose, make sure to stay on top of your payments and consider options for student loan forgiveness if you qualify.
Loan Forgiveness And Discharge Options For Unsubsidized Loans
Graduate students are eligible for unsubsidized loans provided they are enrolled in an accredited institution. Unlike subsidized loans, interest payments on unsubsidized loans start accruing from the date of disbursement.
Fortunately, there are several loan forgiveness and discharge options that graduate students can explore:
| Loan Forgiveness/Discharge Options | Description |
| Public Service Loan Forgiveness | This program forgives the remaining balance of your loan balance after 120 qualifying payments while working full-time in a qualifying public service organization. |
| Teacher Loan Forgiveness | If you work in a low-income school as a teacher for five consecutive years, you may be eligible for up to $17,500 in loan forgiveness. |
| Death and Disability Discharge | If you pass away or become permanently disabled, your federal student loans can be discharged. |
| Bankruptcy Discharge | Although it is difficult, a bankruptcy may discharge student loans if the borrower can prove that paying back the loan would cause undue hardship. |
It’s important to note that these options have specific eligibility requirements and may not apply to all borrowers. Before applying, you should carefully review the terms and conditions of each option.
Private Student Loans
Private student loans are a viable option for graduate students who require additional funding, particularly since federal loan limits may not be sufficient. These loans are credit-based and may have more appealing interest rates than some federally backed loans. However, several disadvantages may make them less attractive. For example, private student loans typically have higher interest rates and require a co-signer or a good credit score to acquire. Furthermore, private student loans do not offer the same level of benefits and protections as federal loans, such as income-driven repayment plans or loan forgiveness programs. Therefore, before deciding on private student loans, understanding the comparison with federal student loans and weighing the pros and cons is critical.
| Pros | Cons |
| Lower interest rates than some federally backed loans | Higher interest rates than some federally backed loans |
| No borrowing limits | Require co-signer or excellent credit rating |
| Flexible repayment options | No income-driven repayment plans or loan forgiveness programs |
Applying For Unsubsidized Loans
Graduate students are eligible for unsubsidized loans as long as they submit a FAFSA (Free Application for Federal Student Aid). The FAFSA determines the student’s eligibility for federal student aid, including loans.
Once the FAFSA is complete, students can apply for unsubsidized loans through their school’s financial aid office. Before receiving the loan, students must complete entrance counseling, which helps them understand their loan responsibilities.
The student must also sign a Master Promissory Note, agreeing to the loan terms, which include interest rates, repayment options, and the consequences of default.
Unsubsidized loans accrue interest from the time they are disbursed until they are paid in full. Graduate students can borrow up to $20,500 per year in unsubsidized loans, depending on their financial needs and the cost of attending their school.
Tips For Managing Unsubsidized Loans
Unsubsidized loans are a viable option for graduate students to finance their education. Unlike subsidized loans, they begin accruing interest from the time they are disbursed, which means that you’ll have to pay back more than you borrowed. To prevent yourself from defaulting, it’s essential to manage your loans efficiently. One way to do this is by budgeting to ensure that you spend your loan money on necessities. Keep track of your loans and payments by setting up a payment plan, and never miss a payment. Avoid default by staying in communication with your loan servicer and seeking deferment or forbearance if you can’t make your payments.
Budgeting
Budgeting can help you manage your unsubsidized loans during and after graduate school. Determine your monthly expenses and plan how much loan money you’ll need to cover them. Avoid overspending on non-essentials like eating out and shopping. Instead, consider cutting costs by cooking at home or purchasing used textbooks.
Keeping Track Of Loans And Payments
It’s essential to keep track of your loans and payments to avoid default and late fees. Set up a payment plan with your loan servicer and consider setting up automatic payments to ensure you never miss a payment. Monitor your student loan account regularly through your loan servicer’s website.
Avoiding Default
If you can’t make your loan payments, it’s essential to communicate with your loan servicer. They can help you explore options for deferment or forbearance to temporarily suspend your loan payments. If you default on your loans, it can negatively impact your credit score and make it challenging to obtain credit in the future.
Conclusion
Graduate students looking for financial assistance have different loan options. One option is unsubsidized loans, where interest starts accumulating from the time of disbursement. These loans can be helpful when more than other sources of funding are needed to meet the academic costs.
Students can borrow up to the cost of attendance minus other financial aid received. However, it is crucial to understand the terms and conditions of these loans, including interest rates, repayment plans, and eligibility criteria. Overall, unsubsidized loans can be a viable option for graduate students who need financial aid to pursue their academic goals.
Frequently Asked Questions
How Much Can I Get an Unsubsidized Loan for Graduate School?
The maximum unsubsidized loan amount for graduate school is $20,500 per academic year. However, this amount varies depending on the school’s cost of attendance and each student’s financial need. Students may also be eligible for additional loans or alternative financing options to cover educational expenses.
Who Is Eligible For An Unsubsidized Loan?
Students who are enrolled in an eligible college or university and demonstrate financial need as determined by the Free Application for Federal Student Aid (FAFSA) are eligible for unsubsidized loans. Unlike subsidized loans, interest on unsubsidized loans accrues while the student is in school.
Can Graduate Students Get Federal Financial Aid?
Yes, graduate students can get federal financial aid in the form of grants, work-study programs, and loans. They must fill out the Free Application for Federal Student Aid (FAFSA) to determine their eligibility, and the aid amount will depend on their financial need, the school’s cost of attendance, and the type of aid they qualify for.
Can you get a Grad Plus Loan and be unsubsidized?
Yes, you can receive both Grad PLUS loans and unsubsidized loans. However, eligibility and maximum loan amounts for each type of loan may vary based on individual circumstances. Contact your school’s financial aid office to learn more.
