GraduateSchoolsOnline.orgPaying for an Online Degree
The primary way that students in graduate programs pay for their education is through low-interest federal student loans. Graduate students, both online and in campus-based programs, are eligible for these loans as long as their programs are accredited. Three different fixed-interest loans (meaning the interest rates of these loans never change) are available to graduate students, and are awarded based on the financial need of the borrower.
Perkins Loans
With a 5% interest rate, Perkins loans have the lowest interest rate and are granted to students who need the most help paying for their graduate degrees. Perkins loans are subsidized, which means that the federal government will pay the interest on the loans while the borrower is enrolled at least half-time in his or her program. Students can borrow up to $8,000 a year in Perkins loans and up to $60,000 total, including any Perkins loans received for undergraduate degrees.
Stafford Loans
Direct Stafford loans are awarded to students that do not meet financial-need requirements for Perkins loans. Available as both subsidized and unsubsidized loans, Stafford loans have a high maximum borrowing limit. For the 2011 -- 2012 academic year, all Stafford loans have an interest rate of 6.8%.
- Subsidized Stafford Loans: Students who demonstrate a high need for financial assistance can receive subsidized Stafford loans. Over the course of their entire education – including undergraduate and graduate programs – students may borrow up to $65,000 in subsidized Stafford loans. The interest rate of these loans may change yearly, but once a borrower accepts the loan, the interest rate is fixed.
- Unsubsidized Stafford Loans: For students who do not qualify for subsidized Stafford or Perkins loans, there are unsubsidized Stafford loans. The interest on these loans does accrue while the borrower is enrolled in school. The borrower may either pay the interest at that time or can wait till six months after graduating to begin paying. To pay for both undergraduate and graduate degrees, a student can borrow up to $138, 500.
Accreditation
For students to be eligible to receive federal loans, the program they are enrolled in must be accredited with the US Department of Education. The Secretary of Education accredits hundreds of graduate and undergraduate programs, and then registers these programs with the Department of Education.
As a service to students, the Department of Education has compiled a database of these accredited programs. Students who want to confirm the accreditation of their online graduate programs can access this database for free online.
Additionally, the Secretary of Education publishes a list of the regional organizations that are responsible for awarding accreditation in specific fields. Any online student that wants to know more about the accrediting process for their profession or area of study should contact these organizations directly.
Sources:
The Department of Education’s Federal Student Aid site provides information on Perkins Loans and Stafford Loans.
U.S. Department of Education Database of Accredited Post-Secondary Institutions and Programs
Council for Higher Education Database of Accredited Programs and Institutions