Updated: Jul 13, 2022
How to pay for graduate school
With scholarships, loans, and more, you can get a graduate degree while balancing debt. Learn how to pay for graduate school with Discover Student Loans.
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Federal student loans are funded by the government and may be awarded as part of your financial aid package if you completed the Free Application for Federal Student Aid (FAFSA). You may see federal student loans referred to as Direct Loans or Stafford Loans.
There are different types of federal student loans:
Direct Loans were previously known as Stafford Loans and are available to US citizens and eligible noncitizens enrolled at least half-time in an undergraduate or graduate program. No credit check or cosigner is required.
Direct Loans may be subsidized or unsubsidized.
Direct Loans have fixed interest rates and origination fees. There are also limits to how much you can borrow, both annually and in total.
Direct PLUS Loans are available to parents of dependent students and to graduate or professional students to help cover up to the full cost of education, less any other financial aid. A credit check is required for this loan type. But even if you have adverse credit history, you still may be able to receive a PLUS loan if you meet additional requirements.
Once you are in grace or repayment for your federal student loans, you have the option of consolidation. Consolidation allows you to combine multiple federal student loans into one loan so that you have a single monthly payment. Consolidation may affect your current interest rate, repayment period, total cost of the loan, and other loan factors. Visit the federal government’s Direct Consolidation Loan Application for more information.
Annual loan limits for Direct Loans depend on your year in school and whether you are a dependent or independent student. Generally as you continue your education, you are able to borrow more.
Federal students loans have certain features that can be helpful to consider as you make a plan for paying for college. Some considerations include:
All student loans, including private loans, have specific terms unique to them. Reading the fine print, asking questions, and making an informed decision can help you choose the right loan for you.
To determine if you may be eligible for federal student loans, complete the FAFSA each year you are in school. The FAFSA application opens on October 1 each year. Since some aid is first come, first served, it can be a good idea to complete the FAFSA as soon as you can. There is an additional step for PLUS Loans for Parents, so check with your school for their process.
We recommend you maximize grants, scholarships, and other free financial aid before taking student loans. If you need to borrow, compare federal and private student loans options and choose the loans that best fit your needs.
FAFSA® is a registered trademark of the US Department of Education and is not affiliated with Discover® Student Loans.