Professional Student Loans

Professional student loans are designed for collegebound individuals who are seeking to obtain additional training to change occupations or receive additional training in their current career. "Give me now wisdom and knowledge, that I may go out and come in before this people: for who can judge this thy people, that is so great?" (2 Chronicles 1:10) God often calls people in the direction of education, but it's often hard to afford. With all types of borrowing, though, higher education is far easier to obtain.

A Federal Stafford loan, a type of professional student loan, consists of simple interest, is government guaranteed, and requires no collateral. A Federal Stafford can be subsidized or unsubsidized. The Federal Government will pay the interest for those who have secured a subsidized amount up to 6 months after graduation. An unsubsidized amount requires that the borrower pay the interest. In order to qualify for a Federal Stafford, the individual applying must be a U.S. citizen, have a high school diploma or GED, not be in default of a previously lended amount, and must be enrolled in school at least halftime.

The Federal Perkins is another professional student loan. This type is low interest for graduate or undergraduate students. The school is the lender but the government funds part of the loan and the school funds the rest. Repayment of Federal Perkins are made to the school. There are limits to the total amount borrowed both for graduate and undergraduate students. Repayment of these funds usually doesn't begin until 6 months after graduation. There are usually no fees associated with a Federal Perkins professional student loan. Deferments may be obtained by requesting in writing through the school. Forbearance allows for payments to be postponed or delayed and may be obtained by requesting in writing.

Repayment of professional student loans, vary depending on the type. A standard repayment plan is usually set up with a term of 10 years, has a fixed rate, and a minimum amount of a monthly payment. Extended repayments are set up for 12 to 30 year terms. An extended repayment decreases the monthly payment amount but increases the time for payoff. Graduated repayments are also available. This type of repayment means an initial lower monthly payment with increases every 2 years. The terms for these repayments are for 12 to 30 years. The monthly payment must cover at least the interest due on the amount. Income contingent repayments for professional student loans are based upon income and total debt. Payments are adjusted each year based upon income fluctuations.

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