A loan is a type of debt. Like all debt instruments, a loan entails the redistribution of financial assets over time, between the lender and the borrower.

graduate student loan

Graduate student loan

There are different ways of handling graduate student loan. Each school adopts a federal loan program - either the Federal Family Education Loan Program (FFELP) or the Direct Loan Program. FFELP, private lenders provide the loan funds and work with guarantors to back the loans. Whereas the Direct Loan Program, are programs in which government provides the loan funds "directly" to the school.

Various graduate student loans are available. You may not be eligible for all of the graduate student loan programs - your school's financial aid office determines your eligibility for both loan and non-loan programs.

There are a variety of low-interest loans and other aid programs available to graduate students loans through the FFELP and Direct Loan Program.

Sequence of Events which has to be followed to make graduate student loan Application through the Board of Graduate Studies (BGS):-

You have to fill an 8 page FAFSA (Free Application for Federal Student Aid)
Form in which you have to give relevant information on:-
1. Finance,
2. Family situation,
3.Citizenship details and so on.

You can complete this FAFSA (Free Application for Federal Student Aid)

1. Form online also. The FAFSA can be completed at any stage after 1 January in the year you plan the loan to start. At this point you need not specify the name of the College you will be registering. After completed the form, you will have to send it to the Federal Student Aid Program.

2. After 3-4 weeks the FSAP will issue the SAR (Student Aid Report) constituting a pink form with guidance notes, which will summarize the information you recorded onto the FAFSA.

3. After receiving the SAR check for the details .If any of the recorded details are incorrect, make corrections, sign and return the SAR to FSAP, and obtain a corrected version.

4. You have to obtain a Master Promissory Note. Guarantee Agencies' websites give instructions on how to request a MPN.

5. Complete the first section of the MPN and the personal details on the School Certificate and then send the MPN, the SAR and the School Certificate to the BGS.

6. At this point, BGS fills in the School Certification section of the MPN, transfers responsibility for your loan to your University of Cambridge College by sending the form to the College for signature.

BGS checks the following details:-
• Checks your eligibility against the details provided by you in SAR
• Checks for the year of study and status you specified
• Calculate the amount of loan you are eligible for .
• School Code, name and address.

7. MPN will be send back to the Guarantee Agency by the College.

8. You will receive confirmation of the loan to you by The Guarantee Agency.

9. After receiving the confirmation you have to send a copy of this letter of confirmation to BGS in fulfillment of the Financial Guarantee. BGS will then confirm your place if all your other conditions of admission have been met. BGS will forward copies of loan documents to your College.

10. You will need to confirm approval of graduate student loan directly not via the College.