We understand financing your graduate education is very important. As you are aware, graduate students are not eligible for federal and/or state grants. The following types of student loans are available at The Chicago School:
Federal Direct Stafford Unsubsidized Loan
To be eligible for a Federal Direct Unsubsidized Loan, students must first complete and submit the Free Application for Federal Student Aid (FAFSA). It is important to note that most students are eligible for this loan regardless of credit history. The Unsubsidized Loan is eligible for consolidation, in-school deferment and six month grace period. It has a fixed interest of 6.8 percent and begins accruing immediately upon disbursement. Although repayment begins six months after graduation, we recommend students to pay the interest, which can range from $30 to $60, on a monthly basis.
Please note as of July 1, 2012 and per federal regulations, graduate students are NOT eligible for the Federal Direct Stafford Subsidized Loan.
Federal Grad PLUS Loans
Students may apply for the Grad PLUS loan to assist with supplemental funds. The Grad PLUS has a fixed interest rate of 7.9 and 4 percent origination fee. It has many of the same benefits of Stafford Loans such as eligible for consolidation, in-school deferment, and discharge upon the death or disability of the borrower. The Grad PLUS is a credit-based loan.
Private Education Loans
A private education loan is an extension of credit that is not made, insured, or guaranteed under title IV of the Higher Education Act of 1965. These loans are extended to students specifically, in whole or part, for post secondary educational expenses, regardless of whether the loan is provided by the educational institution that the student attends. Private education loans do not include open-end credit or any loan that is secured by real property or a dwelling. Also, private education loans do not include extensions of credit in which the covered educational institution is the creditor and (1) the term of the extension of credit is 90 days or less; or (2) an interest rate will not be applied to the credit balance and the term of the extension of credit is one year or less, even if the credit is payable in more than four installments.
Private education loans are usually more expensive than federal education loans, since federal education loans offer fixed interest rates where private educational loans typically apply higher, variable rates. Repayment options for federal education loans are typically more favorable than with private education loans. Students are encouraged to carefully weigh these and other distinctions between private and federal educational loans when considering the type of loan product that best suits their needs and situation.
Students who have elected to obtain a private education loan must submit to the private education lender a completed and signed Self-Certification Form. The Office of Financial Aid can provide students with the information requested in Section 2 of this form, to the extent that The Chicago School possesses the information.
Grad PLUS or Private Loan?
Not sure what’s the best option for you, review this Private Student Loan vs. PLUS Comparison Chart. Please note this chart was prepared by a third-party; The Chicago School does not endorse any lenders.
Preferred Lender Lists and Arrangements
The Chicago School of Professional Psychology has not entered into a preferred lending arrangement with any lender. Therefore, we do not have, distribute, or publicize a Preferred Lender List.