As undergraduate you should focus on getting the maximum amount of subsidized loans, because the chances of getting subsidized loans for graduates are very less. Hence, the money drawn during your under graduation through unsubsidized loans can be preserved for the graduate studies. This will reduce the cost of borrowing during your graduation.
As discussed above, the graduate students are eligible for 3 types of Loans – Grad PLUS loans, Stafford loans and the Perkins loans. These loans have a specific limit; both Stafford and the Perkins loans are highly preferred. However, a dependent student can use the Grad PLUS loans to take care of his/her additional expenses, only if the money taken from the Perkins and Stafford loans is insufficient.
What if you are not awarded the financial aid?
The students, who are dependent on their parents can borrow the entire cost of education with the help of these three loan programs.
To avail Grad PLUS LOANS, a dependent student has to pass a credit test. However, the Perkins and the Stafford loans don’t require any kind of tests.