Guest Author - D. Lynn Byrne, Ph.D.

Have you maxed out your student loan eligibility? Do you no longer qualify for standard, need-based grants and scholarships? Have you hit the top of your hours limit on that work-study, fellowship or Teaching Assistant/Research Assistant position? Are you wondering how in the heck you are going to pay for this semester's graduate studies? If this describes your financial position, then maybe it is time to think about taking out one of the new Graduate PLUS Loans.

The PLUS (Parent Loans for Undergraduate Students) program used to be limited to undergraduate students. But, this is no longer the case. Yes, it is still a parent loan, so you will need to sit down and have a long chat with Mom or Dad (or whoever your "parental" unit is) about this one. But, this loan can be used to cover graduate school educational costs beyond tuition and fees (like books and supplies, room and board, and personal expenses).

Interest rates are decent, starting out at around 8.0 percent (it's a fixe rate once you take out the loan). But, borrowers will need to have good credit or a cosigner to take out one of these loans. Also, if you are thinking about taking this loan out through a private lender (in other words, the non-federal PLUS), make sure you read all of the fine print before signing. Sure, you can find some really good deals (like discounted interest rates after a set number of regular payments), but you have got to really look at the fine print in order to compare your options.

For more information on the new Graduate PLUS Loans, visit with the financial aid office on your university campus or an educational loan representative at y our local bank or credit union. Just remember, at the end of your graduate school education, you will need to pay mom or dad back for this one.

Until next time!

Lynn Byrne