For this author, this article is not only to potentially help you in your pursuit of your graduate or doctorate degree, but it may also help me in how I proceed toward my doctorate.

I, too, have been looking at different doctoral options for a couple of years (stop me if you have heard this before), and if I can get the money right, I will likely get my doctorate degree.

A typical Ed. D. program requires 60-66 credits. This gives us an average range of roughly $21,000 to $55,000, depending on where we go to get the degree. At this point in most of our lives, we have jobs, families, and other items in life that we are involved in, so finding the money for this degree is not ‘easy.’ It may require tightening our belt in some areas or saving money over time for these costs.

After some research and discussion with a couple of universities, all things financial assistance starts with the FAFSA (Free Application for Student Aid). You will need the following information for your FAFSA: Federal Student Aid (FSA) ID to sign into StudentAid.gov, Social Security number or Alien Registration number, account statements for checking and savings accounts, information about investment accounts, federal income tax returns and record of untaxed income.

There are some differences for the FAFSA for graduate students. First, your dependency status is different now that you are in graduate school so you will have to enter your own income and asset information rather than your parents’ information from when you were an undergraduate.

The only loans you qualify for are direct unsubsidized loans and grad PLUS, so you’re responsible for all interest on your loans. Also, most grad students are ineligible for Pell Grants unless they are pursuing a teaching certification. However, most of the people reading this article have obtained this certification.

Thirdly, unsubsidized graduate loans have borrower caps, but grad PLUS loans have no borrower maximum; thus, you can borrow up the total school-certified cost of attendance.

Grad School FAFSA Eligibility has three elements:

1) you are a US citizen or eligible non-citizen

2) are planning to attend an accredited university in an eligible degree program

3) demonstrate financial need like grants and work-study,

Essentially for graduate school your three main financial aid options are student loans, grants/scholarships (largely dependent on the place you want to attend), and work-study. The work-study option is harder for most people in graduate school due to being already in the workforce.

Remember there is a yearly borrowing limit on direct unsubsidized loans at $20,500 per year, so if you are going to a very expensive grad school, watch the price. Grad PLUS Loans have no such cap.

Turns out there is no actual income limit that qualifies you for money in the FAFSA formula. FAFSA points out that the average full-time graduate student received $28,300 in federal aid; what kind of aid that was (grants vs. loans) was unspecified.

USA Today and StudentAid.gov answered the question of how much aid graduate students qualify for with the PELL Grant up to $7,395 (for those pursuing a teaching certification only), TEACH Grant up to $4000, the aforementioned Direct Unsubsidized Loan, and the GRAD PLUS loans.

Other Ways to Pay for Grad School

In researching this article, some other grad student options came up to help offset the cost of your doctorate program.

Most universities will have private grants or scholarships available.  You need to talk to financial aid about these options. Anything to offset the cost will be great but even better in this case you are not paying back a loan when you still might have some loans from your undergraduate work.

Some universities have fellowships or assistantships available. Depending on what is happening in your life at this time, this could be an option as most of the money can be used for tuition, fees, and housing. For many of us with families and in the workforce, making time for this could be difficult.

Does your employer offer any tuition assistance?  Every option would help here. Everywhere I have worked in Texas this has not been an option, but I would think there are some educational institutions out there where assisting someone toward their doctorate would come in a financial form other than a raise in pay.

As someone who tries to avoid loans, I suggest trending towards a university where I can get some scholarships and grants to help me offset the cost of my final degree.

Teachers never stop learning; check out our available graduate degree programs  to hone your skills and promote lifelong learning and academic excellence.

The post Can You Get Financial Aid for Doctoral Programs? appeared first on Graduate Programs for Educators.

There are various funding opportunities for students, and each has its own benefit depending on the needs of the student. The federal government may offer loans, while many schools provide the opportunity for fellowships and scholarships. Setting a plan for research funding, analyzing degree programs and future career opportunities can help make sound decisions.

FAFSA 

The Free Application for Federal Student (FAFSA) gives families and students resources when seeking financial aid. There are questions you should ask yourself before applying to graduate school. These include what career aspirations do you have after completing graduate school, which type of funding can you receive for graduate school, and which concentration do you want to major in? There are a few differences in filing for financial aid for graduate school as compared to undergrad. Furthermore, funding opportunities include grants, scholarships, tuition reimbursement, and loans.

Planning out the finances for a specific degree program and comparing which universities and schools will support your goals is vital. Identifying funding through FAFSA will determine which option is best for you. Additionally, speaking to colleagues and peers who have moved past the undergraduate level to the graduate level can help determine the best course of action. Knowing how FAFSA differs for graduate school comes with knowing the difference between grants and fellowships and how tuition reimbursement, loans, and fellowships will make the most effective impact on your future.

Grants 

Obtaining a grant is a great way to fund the college process. There are different types of grants depending on the need. When it comes to graduate school students can benefit from grants. An example is when an individual student receives a grant to take specific classes or temporary funding for a research program. Another example of how a graduate student can benefit from a grant is when the college or university has a fellowship or assistantship offered through a program. Both a fellowship and assistant provide funding opportunities to graduate students, but they differ in the manner of the aid to the student. Scholarships are the most well-known method of supplying students with funds in undergrad and graduate school. There are scholarships that vary depending on a student’s race, gender, geographic location, or academic field.

Scholarships 

Knowing how to find scholarships for graduate school can make the difference between having financial struggles or having most, if not all, of a graduate degree program paid for. Multiple scholarship programs provide support systems to graduate students on both the masters and doctoral levels. The PhD Project is a system of universities and organizations designed to enhance diversity within the business field. With the Ph.D. Project, women, minority students, and students of color can get funding, mentorship, and resources to obtain a Ph.D. in a business field. For graduate students who want to pursue a Doctor of Education, the Carnegie Project on the Education Doctorate (CPED) collaborates with over 130 schools of education to provide resources, research, support in the dissertation phase, and funding opportunities to students who want to pursue a Doctor of Education in the areas of K-12, higher education, and teacher development.

Funding for graduate school also comes in the form of fellowships and assistantships. However, knowing the difference between a fellowship and assistantship is important. Students who are given the opportunity to receive a fellowship are given funds for costs that students incur during school. This can include books, housing, tuition, and academic support. With an assistantship, students are given funds to support the student in exchange for working a certain amount of hours. The work done by the student is tied to the major the student is working. For example, graduate students with education majors may work as grad assistants or contribute to a think tank and support research.

Fellowships/Assistantships 

Funding for graduate school also comes in the form of fellowships and assistantships. However, it is important to know the difference between a fellowship and assistantship. Students who are given the opportunity to receive a fellowship are given funds for costs that students incur during school. This can include books, housing, tuition, and academic support. With an assistantship, students are given funds to support the student in exchange for working a certain number of hours. The work done by the student is tied to the major the student is working.

For example, graduate students who have education majors may work as a grad assistant or contribute to a think tank and support research. The non-profit Black Doctoral Network supports students who want to pursue doctorates in the Social Sciences, humanities, and in the area of Science Technology Engineering and Math (STEM). The program specializes in networking with other colleges and universities as well as business to help students find multiple support systems and funding for students. Whether it is a network of professionals or obtaining a fellowship or assistantship there are positive avenues for students seeking financial support.

Employer Tuition Reimbursement 

There are also companies that provide work incentives in the form of tuition reimbursement. This can be a great opportunity for graduate students who are working a full-time job but still need funding for school. The key to finding the right funding opportunity involves multiple aspects including career choice, family and home life, and what degree program can give a student the most effective and applicable financial support.

Loans

With the average American student debt around $30,000, knowing which loans should be used for the college experience is important. Being a responsible borrower is key to deciding how much money to borrow and how much time it will take to pay the loan back. Many students pay for school through a combination of loans, scholarships, and work-study programs. There is not one specific way to pay for school, and the necessity for financial aid depends on the student, their program of interest, and income needs. Regardless of which financial path you choose, obtaining a graduate degree can be invigorating and lead to career advancement and personal growth.

Educators never stop learning; check out our available graduate degree programs to hone your skills and promote lifelong learning and academic excellence.

The post Understanding Graduate School Financial Aid appeared first on Graduate Programs for Educators.

What Graduate Scholarships are Available? How Do I Apply?

You may know that at the undergraduate level there are literally thousands of scholarships from everything from academic achievements to athletic or extra-curricular activities. However, at the graduate level, scholarships are far less common and are more often based on major, degree, or even life experience.

There are typically two main categories of scholarships for graduate students, those offered by the college or university you are applying to and those that are private or ‘outside’ scholarships. The ones from your college or university are usually fairly straightforward to both learn about and apply for. In most cases your admissions application is the only application required at your school, or, in some rare cases, there is a separate scholarship application required. In either case, these should be listed on your school’s website, or your admissions or financial aid office are the best resources for knowing what particular scholarships your school may offer. While these ones are usually easier to apply for, being that they are managed by your school itself, it also means that everyone else in your program is likely applying for the same scholarship as well, so make sure to stand out and sell yourself as best you can during the admissions and/or application process.

Graduate scholarships offered by private or ‘outside’ agencies are typically harder to find. This usually means fewer applicants and a better chance of being selected. A great place to start on your quest for private scholarships is to check in with agencies that you have worked with or even groups that you may have volunteered with or supported in the past.

It’s not uncommon to find graduate scholarships for adults who want to return to school for a new career path offered by the local or national associations. For example, if you are pursuing a graduate degree in education, local teacher’s associations, national organizations, even local YMCA’s or school districts may offer scholarships. While some may be specifically for undergraduates only, there is often some wiggle-room in there for a graduate student to receive one if the applicant pool is relatively small each year.

Additionally, many larger local foundations that manage hundreds of scholarships annually often have some scholarships for graduate students in their portfolio. However, because they are mostly marketed towards undergraduate students, it’s often the case that the graduate scholarships go un-awarded because they did not have any qualified graduate students apply. I know when I used to volunteer for a multi-million dollar local scholarship foundation, every year a dozen or more graduate student scholarships went unspent for that very reason.

What Should I Expect During the Application Process?

While each scholarship application is going to look different and have different requirements, there are some basic core elements that most applications have in common. The first is your basic demographic and/or financial information (which you can’t really do anything about), and the second is your essay. The essay is far and away the most influential part of your scholarship application.

After sitting on hundreds of scholarship review boards, I can definitively say that if it’s an ‘essay optional’ scholarship and you don’t write the essay, you have a very small chance of being awarded the funding. The scholarship reviewers want to feel like they know you and that they are helping you accomplish something important. This is your chance to sell yourself and stand out among the crowd.

Spend time on your essay, making sure to answer whatever the essay topic is thoroughly and to stick within the required word count that they give you. One of the quickest ways to go to the bottom of the pile is to write a great American novel instead of a one-page essay or to write two sentences instead of two paragraphs. In both cases the reviewers see that you aren’t following directions or taking their request seriously so they will often move on immediately to the next candidate. So pay attention to details, but also be honest and showcase yourself in the best light to ensure you stand out from the other applicants. Share personal stories or details such as how your upbringing or family or a particular event influenced your decision to pursue graduate school or a particular career.

Once you submit your scholarship application, whether it’s one at your college or university, or one from a private agency, you will need to wait to hear back until after all the applications are received and reviewed. Typically, you can expect to be notified if you are being awarded a scholarship within 30-90 days after the scholarship application deadline has passed. Depending on the number of applicants and the size of the agency, some will be able to make decisions faster than others.

In most cases you will only hear from the scholarship agency if you are a selected recipient and not if you weren’t selected. But, when you do find out you’ve been awarded a scholarship, it’s critical that you send that information to your financial aid office. The financial aid office at your school will then work on your behalf to ensure that your money is actually paid to you and will often pre-credit your bill for the amount of your scholarship. What that means is that they will often show the scholarship as pending on your bill even if the funding doesn’t come in for a few months or weeks so you are not required to pay that amount. If you don’t notify the financial aid office, the chances of you never receiving the money and/or having to pay your entire bill in full are much higher.

All in all, while the pursuit of graduate school scholarships may seem elusive at first, the truth is that your chances of finding and receiving one are higher if you are willing to do the research.

Interested in learning more about your financial aid options? Explore our comprehensive funding e-guide here, and then find your perfect graduate program here!

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The TEACH Grant is a very unique federal grant in that it is one of the few grants that students of graduate programs can receive, and it’s only for teachers. It also requires you to complete a set number of years of teaching (your ‘service obligation’) or else the grant is converted into a loan retroactively.

The TEACH Grant program provides up to $4,000 a year for highly qualified students completing a teaching degree in a high-need program of study and at a low-income school district. Upon completion of your degree you will be required to work in an eligible teaching position for a minimum of four years of the immediate eight years upon graduation. If you choose not to teach in a high-need field or at an eligible institution your TEACH Grant will be converted into a loan retroactively, and you will be required to begin making payments on it.

How Do I Qualify for the TEACH Grant?

To be eligible for a TEACH Grant, you must meet the Basic Eligibility Criteria for federal aid programs and meet certain academic achievement requirements to qualify you as a ‘highly qualified’ teacher. Generally, if you maintained a cumulative undergraduate college GPA of at least 3.25 you can qualify for the TEACH grant in the first semester you begin your graduate studies. However, if your undergraduate GPA was below a 3.25, you could qualify for a TEACH grant in your second semester of graduate school by receiving at least a 3.25 in your first term. Additionally, you must be enrolled in a school that offers the TEACH Grant and be enrolled in a TEACH grant eligible program at that school. Not all colleges and universities offer the TEACH Grant, so it’s best to ask your financial aid office before enrolling if this is an important part of your graduate school financing plan.

A TEACH Grant eligible program is a program of study that prepares you for teaching in a high-need field and leads to a degree (master’s, certificate of advanced graduate standing or some bachelor’s degree programs). Current high-need fields include bilingual education and English language acquisition, foreign language, reading specialist, mathematics, science, and special education, as well as any other field that has been identified as high need and is included in the annual Teacher Shortage Area Nationwide Listing. Additionally, you must be employed and teach in your service area at a low-income qualified school district. To see if your current school district qualifies you can check the Teacher Cancellation Low Income Directory. While the Teacher Cancellation Low Income Directory is updated annually and school districts can be subject to change annually, it’s usually a fairly safe assumption that if the school you work at is on the list now that it will more than likely remain eligible in future years.

In order to fulfill the conditions of the grant, you must teach for a minimum of four years of the first eight years after completing your degree in a qualified school district in a high-need field. This is commonly called your ‘service obligation.’ You will need to report and certify your employment annually with your TEACH Grant servicer. The good news that most people don’t realize, though, is that if you do teach for your required four years in an eligible position, those four years also count towards your Teacher Loan Forgiveness Program if you are pursuing loan forgiveness. This means that you will be able to ‘double dip’ and both meet your service obligation for the TEACH Grant and have four years banked towards your loan forgiveness.

The TEACH Grant is an excellent opportunity for students pursuing teaching in a high-need field to help offset the costs of graduate school and should be considered a valuable resource. For more information on if your school offers the TEACH Grant, you should contact the financial aid office. As a result of the fact that this grant could convert into a loan, many schools will not award you a TEACH Grant without you submitting a written request to the financial aid office, so be sure to reach out to them if you are interested.

For more information, as well as the next steps required if you wish to receive the TEACH Grant, check out TEACH Grants on the StudentAid website.

Interested in learning more about your financial aid options for graduate school? Explore our comprehensive funding e-guide here.

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To that end, the Department of Education has announced a number of different relief efforts for students who are either currently enrolled in school or who are in loan repayment to help mitigate some of the effects that we may be all feeling.

COVID-19 Financial Aid Relief Efforts

As of today, here are some of the approved relief efforts that are underway for those impacted by COVID-19:

On March 13, 2020, it was announced that that all loans owned by the US Department of Education will have interest waived for the foreseeable duration of the COVID-19 outbreak (a minimum of 60 days). If you have loans in repayment, as long as they are owned by the US Department of Education, they will be eliminating all interest that would normally accrue. This includes Direct Unsubsidized Loans, Direct Subsidized Loans in repayment (they are already interest free while you are enrolled), as well as Federal Perkins Loans and FFEL Loans.

If your loans are not currently held by the US Department of Education, you do have the option to consolidate your currently-held loans by the US Department of Education (ED) so your interest will be waived. However, it is possible that once the 0% interest waiver period ends that you could have a higher interest rate under ED than you did with your previous servicer, so it’s important to ask that question prior to consolidation. Your current servicer will be able to provide you with the terms that your loans are under (loan balance, interest rate and total amount paid) and how it would compare if you consolidated them under ED.

To find out who your servicer is and whether or not you currently qualify to have your interest waived, use your current FSA ID and password. If you do not know your FSA ID or password, or need to create one, you can do that from the same webpage under ‘manage my FSA ID’ or ‘Create an FSA ID’ tabs. You can also contact ED at 1-800-4-FED-AID (1-800-433-3243 or 1-800-730-8913 for the deaf or hearing impaired) for assistance.

If you find that your loans are currently owned by ED, there is nothing else that you need to do, and the interest will be waived automatically as of March 13, 2020.

It’s important to note, though, that if your interest is being waived, your monthly payment will not go down. During this time when the interest is waived, your loan payment will remain the same, but the entire amount that you pay will be applied to principle, which means that you are likely to pay your balance down much more quickly during this time period.

During this period of time you also have the option of suspending your payments under a specific type of forbearance called administrative forbearance, which has been enacted as a result of COVID-19. An administrative forbearance allows the borrower to temporarily stop making payments to their federal student loans without becoming delinquent. Because the interest is already being waived, interest will not accrue during this time. Your loan servicer will cancel any scheduled auto-debit payments and your payments will not resume until after the approved period ends. If you are current on your loan payments and you wish to request an administrative forbearance, you should contact your loan servicer.

If you are already 31 days or more behind on your current loan payments as of March 13, 2020, your servicer will automatically place you in an administrative forbearance to give you a safety net during the COVID-19 national emergency.

If you are pursuing Public Service Loan Forgiveness (PSLF) or Income-Driven Forbearance (IDR Forgiveness), you may not want to go into an administrative forbearance unless absolutely required for your current financial status. The time that you are in the administrative forbearance does not count towards your required number of minimum payments that both forgiveness programs have, so the time you are under administrative forbearance would extend the amount of time before your loan balances are forgiven. However, if your income has changed as a result of COVID-19, you may qualify for a lower monthly payment under an IDR plan, and your payments could be adjusted to as low as $5, and this would count towards the forgiveness period. If you are on an IDR Plan and your income has changed, you can update your information and get a new payment amount anytime online. To do so, visit here and click on ‘Apply Now’ and then start an application by clicking the button next to ‘Recalculate my monthly payment.’

If you can afford to make your monthly loan payments during this time, I strongly encourage you to do so, as the full amount of your payment will go towards your principle, thus reducing the amount of interest accrued and shortening your payment terms drastically. However, if this is not possible for you, know that you are not alone and that there are many new resources available to support you during this time.

Update as of 03/31/2020 – New Changes

As of the signing of the CARES Act (Coronavirus Aid, Relief and Economic Security Act) on March 27, 2020, there are now new benefits for students currently in repayment on their Federal Student Loans. The CARES Act seeks to provide many financial incentives to help stabilize the economy and provide relief to taxpayers during this unprecedented time. A summary of some of the new changes are below:

Federal Student Loan Payments will be automatically stopped and the interest rates set to 0% on all eligible loans from March 13, 2020 through September 30, 2020. If your loans qualify, your servicer is required to contact you prior to April 14^th to inform you that your loan payments are automatically being deferred and will not require a payment until on or after October 1, 2020.

If your loans are automatically deferred and payments postponed, the servicer is also required to reach out to you in August to remind you when your payments will resume. Loans that qualify include all Direct Loans (Subsidized, Unsubsidized, PLUS Loans) and FFEL and Perkins loans owned by the Department of Education regardless of their current standing (default, delinquency or good standing).

FFEL Loans and Perkins Loans that are still owned by private commercial lenders or your previous institution do not qualify. If you have loans in these categories and wish to qualify for the 0% interest rate period that is in effect until September 30, 2020, you can still choose to consolidate them with the Department of Education.

Additionally, the CARES Act now allows the suspended payments from March-September to still count towards Income Driven Repayment Forgiveness and Public Service Loan Forgiveness as though you were still making on time payments. Additionally, if you are in the process of rehabilitating your defaulted loans, the suspended payments will also count towards your rehabilitation period.

If you wish to continue making payments during this time you are free to do so by contacting your servicer. Any payments made during this time will go directly to principle, so it’s a great time to make the payments if you can afford to do so. During this time, you can choose to pay any amount, regardless if it is more or less than your previously scheduled monthly payment.

Finally, if you are currently defaulted on your federal student loans, the Department of Education will temporarily suspend collections penalties, such as confiscation of your federal tax refunds, reduction in social security benefits, or wage garnishments. This will also remain in effect until September 30, 2020.

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There is a recent shift in Washington that is now allowing and encouraging bills focused on providing key financial relief strategies to the American population to emerge. There are currently dozens of bills with a variety of relief strategies under debate, and these are set to continue for the foreseeable future.

Undoubtedly you are experiencing some of the effects of COVID-19. Whether it’s in your personal classroom as an educator or as a student yourself who is now likely transitioning to an online format, we have all felt it. This article is geared towards students who are currently enrolled in a college or university and what financial aid options and new laws have been put into effect as of March 22, 2020 to provide support to you.

Some of these relief measures may or may not apply to you directly based on your current enrollment status (a.k.a. how many credits you are taking), your personal financial status, and what types of aid you are receiving. Additionally, there is some flexibility for each school on how these relief efforts are administered, so it is possible that your school may implement some of these slightly differently than below. However, this is a starting point for you as a recipient of Federal Student Aid to know that there are options and relief in sight, even if the world feels a bit chaotic right now.

COVID-19 Relief Efforts

On March 5, 2020, the US Department of Education (ED) announced the first of a series of efforts for schools and students impacted by COVID-19. These first relief efforts are summarized below:

Students Living On Campus or in Residential Housing at a School that Closes the Physical Campus

For students who have been forced to relocate from their university or college-sponsored housing as a result of campus closures, schools will be refunding students an appropriate amount (to be determined by each school independently) for unused room and board charges. Since your financial aid eligibility is based on a set of charges that you are scheduled to accrue, under normal circumstances your financial aid would be reduced prior to the refund of housing and board charges. In essence, under ‘normal’ times, if you were scheduled to pay $5,000 in housing and board charges, but then it changed, we would also have to reduce your financial aid by up to $5,000.

So while your total charges and amount owed would be reduced, you also would not be eligible for a refund or check in your pocketbook. However, under the new guidance, ED is allowing schools that are reducing housing and board charges as a result of campus closures to not adjust your financial aid, thus enabling all reduced charges to essentially be refunded back to you in the form of a check or payment. The goal of this is to give cash on hand to students who may now need to secure new housing arrangements.

Students Currently Employed at their College or University Under Federal Work Study

Federal Work Study allows students to work on campus and earn a paycheck for doing so just like any other employee. That means that if the college or university campus closes, you would not be able to work, therefore not earn a paycheck. ED has announced that it will allow a one-time change to the regulations, which allows schools to choose to pay Federal Work Study students their wages even if they are not able to work as a result of COVID-19 closures. This one-time change is optional for schools to partake in, so each school is likely to vary in whether or not or how they choose to implement this.

While the allowance is only for students who are working a Federal Work Study job, many schools are expanding this to all student workers, regardless of their funding source. So it is highly possible that if you are working on your college or university and it is forced to close that you may still be eligible for your earnings for the rest of the semester. Check with your campus supervisor or student employment office to see how your school is planning to handle student work earnings.

Veterans Benefits under the GI Bill Program

If you are a recipient of VA Benefits, these benefits cannot typically be used for online courses unless your school is approved to do so. Since many schools have been forced to adopt online courses unexpectedly, the Veterans Association has temporarily allowed an expansion to their rules and will not take away GI Bill Funding for students whose courses are moved to an online format beyond their control.

There are also several more bills pending on Capitol Hill that are focused specifically on financial resources for enrolled students; while they are not yet approved, we have every reason to expect that they will be in the coming days. So please stay tuned for more information as this continues to evolve. And also, always know that each financial aid office understands how challenging this time is for students. So while many of us are simultaneously adapting to our new remote working realities and challenges, we also are here to serve you as best we can. If you ever feel overwhelmed, unsure, or need financial support during this time, always reach out to your financial aid department as you never know what options they may have for you.

Update as of 03/31/2020 – New Changes

While the idea of either going back to graduate school or starting graduate school during a global pandemic may sound daunting, it is actually the best time in recent years to attend school as a result of the CARES Act. The CARES Act (Coronavirus Aid, Relief and Economic Security Act) was signed into legislation on March 27, 2020, and committed over 14 billion dollars in funding for colleges and universities across the country, a minimum of 50% of which must be given out to both undergraduate and graduate students in the form of relief grants.

This is free money that will not need to be paid back to help offset lost wages and provide financial incentives for students. This emergency funding will be awarded by the financial aid department and can be used for any expenses that a student may incur such as tuition, fees, room, board, transportation, or childcare costs. This funding is to be used for both graduate and undergraduate students, but how the school chooses to allocate it is the individual decision of each institution. Additionally, schools that participate in the Federal Campus Based Programs are temporarily allowed to use Federal Supplemental Opportunity Grant (FSEOG Grant) funding for graduate students as well as undergraduate students.

For more information on these relief grants, and other additional financial incentives for students during the months ahead, you should contact the financial aid office at your school. However, please be advised that it is likely to be a month or more before schools know how much funding they will receive and how they are going to allocate it.

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Federal financial aid for undergraduate and graduate students is very different. At the undergraduate level, many types of financial are need-based. This means that in order to qualify you must be below certain income thresholds. However, at the graduate level this is rarely the case. Almost all funds you can qualify for regardless of how much money you make.

The Federal Student Aid programs for graduate students are, by and large, for any student regardless of income or assets. This means that whether you are unemployed or working full-time when you apply for financial aid, you will often qualify for the same types and amounts of aid as most other students in your program.

What Kinds of Financial Aid for Graduate School are Available?

The main types of federal financial aid for graduate students are Direct Unsubsidized Loans, Graduate PLUS Loans, and (in some cases) Federal TEACH Grants. All three of these you can receive regardless of your income.

Direct Unsubsidized Loans

Federal Unsubsidized Loans are the most common type of federal financial aid for graduate students. These are non-need-based loans from the Federal Government and simply require you to submit your FAFSA to determine your eligibility. The FAFSA is your application for federal student aid and is available online or on the ‘myStudentAid’ app on your mobile device.

As long as you meet basic eligibility criteria (such as having a valid Social Security Number, be a US Citizen or Eligible Non-Citizen and not currently in default on any other federal student loans, for example) you can qualify for up to $20,500 a year in a Direct Unsubsidized Loan.

This loan does accrue interest while you are enrolled in your program but does not require payments while you are enrolled at least half-time in a degree program. The unsubsidized loan is one of the best options there is for financing a graduate degree as the interest rate, repayment terms, and eligibility criteria are the most flexible.

Graduate PLUS Loans

Federal Graduate PLUS Loans are the next most common type of federal financial aid program for graduate students and are also not need-based. These loans require you to submit a FAFSA and meet the same basic financial aid qualifications as a Direct Unsubsidized Loan, but these also do require a basic credit evaluation.

Graduate PLUS Loans have much more forgiving credit criteria than most (if not all) private alternative loans. They simply require the ‘absence of negative credit history’ and do not require any sort of income level or debt-to-income ratios like all other loans require. An absence of negative credit history is defined as not being delinquent or in default on any current financial obligations.

So, even if your credit score is not what you want it to be, as long as you are not currently behind on your financial obligations you should still be able to qualify for a Graduate PLUS Loan. These loans can be for any amount (up to the cost of attendance for the college or university of your choosing) and also do not require any payments while you remain in school.

Federal TEACH Grants

The last most common type of non-need-based federal financial aid is the Federal TEACH Grant. The Federal TEACH Grant is for students who are looking to teach in a low-income district or high-need subject area and commit to teaching for at least four of the following eight years after graduating in a qualifying position and school district.

This is one of the only types of federal grants that does not have any income level requirement, and any student can qualify for it regardless of current salary or financial status. It is important to note, though, that if you do not fulfill the required teaching obligations after graduation that your TEACH Grant will be converted into a Direct Unsubsidized Loan at that time.

Regardless of your current income situation, there are a large variety of Federal Student Aid programs for grad school students that can help make pursuing your graduate degree affordable.

The post I Work & have Income: Can I Still Qualify for Financial Aid? appeared first on Graduate Programs for Educators.

First thing’s first – do you have student loans already from a previous degree? If this answer is ‘no’ you can skip ahead and just focus on options for graduate students by and of itself. But, if you are like millions of students who do have some educational debt from your undergraduate or other degree work, the first step is to determine which types of loans you have.

Federal vs. Private Student Loans

Fundamentally, there are two main categories of student loans: federal loans and private or alternative loans. These two categories are very different from one another when it comes to repayment and consolidation options, so it’s important to take inventory of what type of loans you have already to ensure your graduate educational debt ‘plays nicely’ with your existing loans when it comes to repayment. There is nothing worse than needing to write eight or ten or more checks a month for small individual loans that cannot be consolidated (aka merged) together. Not only is this a hassle, but it also means a much higher monthly payment amount than if your loans were consolidated.

If you don’t know which of your loans are federal and which are private, there are a few options for you to find out. First, you can review each of your current monthly loan statements and look for the words ‘Federal Direct Unsubsidized, Federal Direct Subsidized, Federal Perkins or Federal Direct PLUS Loans’ on the payment section of your monthly statement or online account. Any loans with those names are clearly Federal Loans.

Alternatively, you can log into your Federal Aid account or at the National Student Loan Database and view your federal loans there. Once you determine which of your loans are federal, you can assume that any remaining loans (if any!) are private or alternative loans. You want to make a list of which loans you have that are federal and which ones are private and your total loan balance on each before making the best decision for how to fund your graduate studies.

When it comes to monthly payments, consolidation, deferral, and payment plans, federal loans can only be combined with federal loans, and private loans can rarely be combined with anything. In fact, in most cases, if you have three different private loans, even if they are with the same servicer, you may still be required to make three separate payments. Private loans all have different terms and conditions, and unless you took the exact same private loan for more than one year in a row, you are bound to have private loans that don’t play nice together in repayment.

This same tenant is true for graduate student loans as well. Graduate federal student loans can be easily and automatically combined with any other federal student loans that you have, which means a lower monthly payment in the long run for you. Similarly, graduate private loans can never be combined with other loans.

Which is Better for Me?

So, if you have federal student loans from previous education, and you are seeking the most affordable and flexible repayment options, federal graduate student loans are a no-brainer. They are automatically consolidated once you graduate and offer a far greater variety of flexible and adjustable repayment options.

Furthermore, you also retain the advantages of forbearance, deferment, Teacher Loan Forgiveness and Public Service Loan Forgiveness that are only available for federal loan holders. Federal graduate student loans don’t all require a credit check, income requirements, and can be processed for you by your Financial Aid Office.

If you do not have federal loans from previous degrees, or if you are looking for the best interest rate and are comfortable with potentially a higher monthly payment for less interest paid during the life of the loan, then a private loan might be something to consider. Private loans do require a strong credit score and consistent income, but they give you the option of a strong cosigner if your credit or income is less than what you want it to be. In some cases, this can mean that you could receive a private loan for as low as 3.75-5%.

This contrasts with federal graduate loans which start at around 6.6% for the 2018/2019 award year. While this interest rate difference might sound massive, it’s only an average difference of $285 a year in interest on a $10,000 loan. But, for the consumer who is looking for the best rate and the lowest cost over time, it may be a good option with one caveat. Often the lowest interest rate private loans are variable and are not fixed rates. This means that the loan interest rate is subject to change at any time, so you do run the risk that in the long run your interest rate could exceed that of a fixed rate federal graduate loan.

In summary, if you have existing federal loans, it’s almost always the best decision to take a federal graduate loan for your graduate studies. This ensures you the most benefits when it comes to monthly payments and the potential for loan forgiveness down the road. If you do not have any federal loans from previous education, and you have a strong credit and financial status, a private loan may be worth the consideration. Whichever route you take, it’s best to read the fine print to ensure you know all the terms and conditions prior to signing on the dotted line.

Interested in learning more about your financial aid options for graduate school? Explore our comprehensive funding e-guide here.

The post Federal Loans vs. Private Loans: Which is Better for Me? appeared first on Graduate Programs for Educators.

Benefits of the Federal Student Loan Programs

The biggest benefit (in my opinion) of the Federal Student Loan programs are not just the low interest rates and easier eligibility requirements, but the number of different repayment options and contingencies that they offer. I have always been a ‘what if’ kind of a person myself, so knowing that all these options exist for students is one of the many reasons I have worked in this field for over fifteen years.

Whether you have just begun paying back your student loans, or if you have been in repayment for a while, there are a number of different options available if you struggle to make your monthly payments. However, if you are applying for Teacher Loan Forgiveness or Public Service Loan Forgiveness down the road, you should always check with your loan servicer(s) before making any changes to your federal loan repayment. Sometimes the changes you may make now will have implications in your Teacher or Public Service Loan Forgiveness eligibility, so it’s always best to know the full array of options before making a decision. More information on contacting your loan servicer or finding out who your servicer is can be found here.

Ways to Reduce, Adjust, or Postpone Your Loan Payments

Below are some of the most common ways to reduce, adjust, or postpone your federal student loan payments:

Reduce or Adjust Your Payments:

1. Apply for an Income Driven Repayment Plan (IDR) – If you are looking for a long-term solution to reduce your monthly student loan payments, changing to an Income Driven Repayment (IDR) plan is a great option. These repayment plans cap your monthly payment at a percentage of your monthly discretionary income, assuring that you will always be able to afford your loan payments. There are four different types of Income Driven Repayment Plans which all have different requirements and options. For information on how to apply or to get a repayment estimate, click here.
2. Recertify your Income Driven Repayment Plan (IDR) – If you have had a change in income during your annual payment period, you can opt to update your income and recertify your IDR early before your 12-month cycle is up. This way if you have an unforeseen change in income you can adjust your payments automatically anytime. Information on the recertification process is located here.
3. Change your Income Driven Repayment Plan (IDR) – If you have had an increase in family size or the number of people you are taking care of (such as having a baby, getting married, taking care of relatives, etc.), you can apply to have your IDR plan recalculated. This can be done anytime during your annual application process, and you do not need to wait until your year is up. The same is true if you want to switch from one of the four different IDR plans, because one may benefit you more now than before based on the changes in your family circumstances. Information on changing your plan can be found here.

Postpone Your Payments:

1. Deferment – Deferment is an automatic ‘pause’ on your student loan payments if you qualify. Depending on your circumstances, you could be granted up to 36 months to suspend your loan payments. However, interest will accrue during this time and will be capitalized on your loan balance. This is a particularly helpful option if you have unexpectedly lost a job, had a large or unforeseen medical expenses within your family, or some other financial crisis. A deferment will give you time to get back on your feet financially without any negative impact to your credit score for the time you are in deferment. Common situations that would qualify for a deferment include:

• In-School Deferment – Returning back to school at least half-time
• Graduate Fellowship Deferment – Enrollment in an approved graduate fellowship
• Military Service Deferment – Service in the US Military, Peace Corps, or AmeriCorps. The application is available here.
• Rehabilitation Program Deferment – Enrollment in an approved program for vocational, drug abuse, mental health, or alcohol abuse treatment. Apply here.
• Unemployment Deferment – If you are currently unemployed or working less than 30 hours a week while searching for full-time employment, you could qualify (for up to 3 years!). Apply here.
• Economic Hardship Deferment – If you are receiving a means-tested benefit, such as TANF, SSI, SNAP, welfare, or other government benefits, or if you work full-time and have earnings below the poverty guidelines for your family size and state of residence, you may qualify. Apply here.
• NEW Cancer or Medical Hardship– Starting in 2019, the Department of Education Appropriations Act now allows for a deferment while you or someone in your immediate family is undergoing cancer treatment. This is a new program, so it’s best to contact your servicer directly if you think you may qualify. Find more information here.

2. Forbearance – Forbearance is at the discretion of your loan servicer and can also allow for you to temporarily suspend your loan payments for up to 12 months. This is a good option if you need to extend your deferment or if you have a situation that may not qualify for an automatic deferment. Contact your servicer directly for their forbearance application, but common reasons for a forbearance include financial difficulties, medical expenses, changes in your employment, or other catastrophic or unforeseen life events. While a forbearance is only approved for 12 months at a time, you can receive up to 3 consecutive forbearances so you could pause your loan payments for a total of 36 months.

The post What Student Loan Deferment Options are Available after Graduation? appeared first on Graduate Programs for Educators.

Sometimes people wonder if they can afford to go to graduate school while they are still paying on their undergraduate student loans. The good news is that you don’t always have to pay on them when your back in school (unless you want to!), so you shouldn’t have to worry! Learn about how to delay student loan payments below.

How Long can I Defer Student Loans?

Fundamentally, there are two different types of loan categories, federal loans and private loans. Each one of these has slightly different rules when it comes to repayment options. For federal loans, as long as you are degree-seeking and enrolled at least half-time in your program, your federal loans will automatically be deferred.

At the graduate level, ‘half-time’ status can mean different things based on how your program is designed. However, as a general rule of thumb, as long as you are taking two courses each term you are most often considered at least half-time and therefore able to delay your student loan payments. While you are in graduate school you can of course choose to continue to make payments on your undergraduate federal loans as well, but you won’t be required to.

How to Defer Your Private Student Loans

If you have private loans from your previous degree, those have a variety of different rules regarding in-school deferment options. In most cases they will follow similar rules as your federal loans, and you can defer them while you are enrolled at least half-time. However, not all private loans offer an in-school deferral option, and it certainly won’t be automatic if they do. You will need to consult directly with your loan company to find out the details for your particular loans and what the process is for requesting a deferral. In most cases they will have an online form to complete or a paper form for your new school to complete and submit to them on your behalf. This process is individual to your particular loan holder, so it’s best to inquire early so you know what their timelines are to ensure adequate time.

However, if you have the option of paying on any of your loans while you are in graduate school, you should always pay on your private loans rather than your federal loans. Private loans are often at higher interest rates than federal loans, and they cannot be consolidated the way your federal loans are, so these are always in your best interest to pay off first.

Either way, it’s important to know that even if you choose to put your private loans in deferment for financial reasons while you go back to school, it’s always a better choice to go to graduate school. The increase in earning potential that a graduate degree provides always far exceeds the amount of interest you would have accrued had you chosen to pay your private loans off faster rather than going to graduate school.

When you come to the end of your graduate program and are completing your practicum, thesis, or final culminating experience, some schools do not consider you to be enrolled ‘at least half-time,’ so it’s a good idea to ask your advisor what your specific program defines as half-time in your final semesters. If you are not considered half-time, your federal and private loans will go back into repayment. In those cases, based on your economic status, you can still apply for a deferment for up to a total of twelve months; however, this will not be automatic, and you will need to contact your loan holders at that time.

The post How to Delay Student Loan Payments Until Graduation appeared first on Graduate Programs for Educators.