Graduate Degree Financial Aid for the Unemployed

If you are one of the 44% of unemployed Americans who have been out of work for 6 months or longer, this might be a great time to return to college for retraining. While retraining doesn't automatically come with a guaranteed job, it will increase your options and make you more marketable.

Unemployed college graduates holding a bachelors or masters degree will quickly discover that financial aid options for retraining is more limited than when we were under grads. Under graduates are eligible for need-based Pell Grants, which is not an option for graduate students. Instead, we have to explore other options.

I have several unemployed friends who have returned to college for graduate studies; here are two financial aid options they've discovered.

Federal Stafford Loan. Stafford Loans are fixed rate, low interest loans for college students which can help supplement family resources, scholarships, or work study programs. Stafford Loans are either subsidized or unsubsidized, depending on the student's needs.

--Subsidized Stafford Loans are based on financial need. These loans have low fixed interest rates (as low as 4.5%), higher borrowing limits (up to $20,500 per year), with no payments and no interest as long as the student is enrolled full time in school or in deferment. This loan is not dependent on credit history.

--Unsubsidized Stafford loans are NOT based on financial need. An unsubsidized Stafford loan has a slightly higher interest rate (6.8%), a borrowing limit of $12,000, and no payments as long as the student is enrolled in school. One huge difference between the two types of Stafford Loans is the interest The subsidized loan defers the interest while in school, with the unsubsidized loan the the interest continues to accrue and is capitalized.

For more information about the Stafford loan programs, visit staffordloancom.

Scholarships. Scholarships are the second financial aid option available for graduate students. The resources recommended by the financial aid offices at several of our area colleges and universities include the following list:
--Employer
--Church
--Associations related to your area of study or organizations that you belong to and actively participate in.
--On-line resources. The on-line resources most highly recommended to incoming students can be found at
Fastweb.com
brokescholar.com
americorps.org

More articles by this contributor:
How to cut college costs in a bad economy.
Cheap back-to-college shopping at the dollar store.
How to save money easily.

resources:
http://www.servicelocator.org/onestopcenters.asp
http://federalstudentaid.ed.gov/opportunity/questions.html
www.fafsa.ed.gov
http://money.cnn.com/2011/02/14/news/economy/fed_unemployment/index.htm