The first thing you need to understand what a Ph.D. is.
Now, a lot of people are confused about whether there’s a difference between a Ph.D. and a doctorate and, for the most part, it’s the same thing.
You see, a doctorate is an umbrella term, enveloping (amongst other things) a doctorate, as well. So, a Ph.D. falls under the doctorate category, which would mean that a Ph.D. is always a doctorate but a doctorate is not always a Ph.D.. Other popular doctoral degrees are EdD (Doctor of Education) and EngD (Doctor of Engineering).
The most common method of earning a doctoral degree ends up by producing a thesis, which can be as much as 100,000 words long. Now keep in mind that this is an incredible amount of work, which, when you count in all the research and back-up work may take quite a bit of your time. Needless to say, this will seriously limit your ability to work (at least full-time) or keep you at the limit of your psycho-physical abilities.
This is yet another reason why you need to have the issue of finances handled as soon as possible and get this out of the way as soon as possible. With that in mind and without further ado, here are some things you need to know about Ph.D. student loans.
Are they really worth it?
The first question to ask, while on this topic is the one of are the Ph.D. student loans actually worth it. Well, first of all, it depends on the amount of money that you need and the interest rate that you’re facing.
Keep in mind, though, that in some parts of the world, collecting a student loan is automated in a similar way in which an income tax is. This means that it gets directly withdrawn from your account each month. When observed from this perspective, paying off a Ph.D. student loan is like making credit payments for a better job with a higher income.
So, the question of whether they’re worth it mostly concerns two factors. First, will this degree result in an increase in your income? If that is so, then the choice to get a loan is more than financially viable. On the other hand, knowledge is a reward on its own and if this is your mindset, then the money that you would borrow and, later on, pay off, is just a means to an end.
How much money do you need?
The next important question for you to ask is – how much money do you need. First of all, you need to understand that postdoctoral studies take about 6.5 years of Ph.D. training and 4-5 years of postdoctoral research (should you decide to pursue this, as well). In other words, it takes approximately 11 years of training.
However, you need to keep in mind that the vast majority of people has a regular paying job during their postdoctoral studies, which means that their need for cash tends to be somewhat lower than it would usually be. Also, keep in mind that in the field of engineering, you’re usually paid to do the research work, meaning that you’re in a much better financial situation right off the bat.
Keep in mind, however, that while you’re working on your Ph.D., you’ll be faced with a scenario in which you need to work overtime and commit to your studies so hard that you miss out on an opportunity to advance. Also, you’ll limit your ability to get one more job, which could seriously set you back in terms of income. For this reason alone, your Ph.D. student loan needs to cover for this as well.
Should you really borrow the maximum amount?
The next question worth asking is whether you should really borrow the maximum amount. You see, just because you’re presented with a potential loan of $35,000 it doesn’t mean that you should take all this money. Remember, you’ll eventually have to pay it back. Sure, student loans usually have better terms than commercial loans, yet, they’re still something that you’ll eventually have to pay back.
This is why it might be good to combine different methods in order to make the most financially sustainable method. For instance, you can take the amount you need at the moment and, later on, if you feel the need for such a thing, you can apply for cash loans online to back up your funds.
In some countries, things with student loans are better regulated than in other places. First of all, in the UK, a student loan gets wiped out after you regularly pay for it for 30 years.
Second, your monthly credit payment gets determined by your income, meaning that as your income grows, the credit payment grows, as well, which gives you an opportunity to pay off the loan a lot sooner. On the other hand, while your income is still quite modest, your monthly payment rate will be fairly low in order for it to remain manageable.
How can you qualify for a Ph.D. student loan?
Basically, there are two criterions for you to qualify for a student loan. First, you need to be under a certain age threshold (usually it’s 60 years of age). This is a safeguard to ensure that you’ll be there in 30 years to keep paying off your loan.
Second, you need to pick an eligible course. This, however, is more concerned with the format of the course than its subject. Namely, it needs to be a full, standalone doctoral course, and not a top-up one and it needs to last somewhere between three and eight academic years. Also, keep in mind that there are no restrictions if it’s a distance learning course.
The subject of the course may also be relevant. This last part may seem a bit harsh, even unfair, yet, from a financial standpoint, it makes a perfect sense. You see, while following your passion may be more than a worthy goal, a lender needs to have a guarantee that you’ll be able to pay them back. Therefore, they’re much more comfortable financing a postgraduate education path that will result in a better career opportunity or a higher income.
However, there are some additional reasons why you might be seen as ineligible for such a loan and here are four of them. First of all, you might be already receiving related funding. If this is truly the case, you can make things a lot worse by not being diligent with your payments, which is a second reason why you might get rejected.
If you already have a doctoral degree or a higher qualification, you will also be ineligible for such a loan. Finally, if you’ve already received the postgraduate doctoral loan before you’ll also be found ineligible. On the other hand, if you were forced to leave the course due to a strong personal reason (like illness) the lender may be willing to overlook this.
Other than this, keep in mind that your undergraduate student loan is considered to be a completely separate loan and is to be treated as such. Also, if you already have a Postgraduate Master’s Loan it can be merged with your Postgraduate Doctoral Loan. This means that you get to pay back a single loan instead of having to go for two. Both of these, as we’ve already mentioned, will be determined based on your salary, meaning that you shouldn’t have a problem covering them.
How do you apply for one?
What you need to do is find an organization that specializes in Ph.D. student loans and check out their application process. Seeing as how we’ve already covered the issue of necessary documentation, all you have to do now is gather the necessary paperwork.
When it comes to the application itself, things here are somewhat different than they are with undergraduate studies. The first major difference lies in the fact that you don’t have to reapply every single year. Most commonly, the deadline for applying is nine months after the first day of the last academic year of the course that you intend to take. This is definitely the rule that you need to adhere to and take quite seriously and literally. It’s always better to apply a tad sooner than to do so a tad later.
other valuable tips:
Don’t Let Your Tax Refund Get Garnished to Pay for Student Loans
In conclusion
At the end of the day, when it comes to the question of whether Ph.D. student loans are worth it then the answer is definitely yes. The interest rates are substantially lower than those on commercial loans (which is something that we’ve already mentioned) and the monthly payment is, for the most part, adjusted to your income. This means that you’ll always have the ability to pay it back, potentially even pay it back a lot sooner than you’ve originally intended. Education is priceless and with a great loan, you can make acquiring it into a truly affordable process. All you have to do is conduct research on this topic and make the choices that are the best for you.
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