If students need help paying for graduate school, they can turn to the U.S. Department of Education (ED), which offers Direct PLUS Loans. According to ED's website, these loans have a fixed interest rate of 7.9%, as well as a 4% origination fee. While many students will use PLUS Loans as they work toward a master's degree, education finance company Sallie Mae offers another option.
Through Sallie Mae, students can receive help paying for graduate school using Smart Option Student Loans. In a recent press release, the company announced that it will lower its interest rates for graduate students who choose this loan option.
Sallie Mae's changes to its Smart Option Student Loans for graduate degree seekers will go into effect on April 1. From that point on, those who choose this loan option can select either variable or fixed rates with no origination or prepayment penalties. The variable rate range will extend from 2.25% to 7.5%, while the fixed rate range will run from 5.75% to 8.875%.