The Best Graduate Student Loans in 2024: How to Choose Federal and Private Options

Federal loans are generally the best graduate student loans due to fixed rates and flexible repayment. Direct Unsubsidized Loans are a top choice for most students, as they don’t require a credit check. Grad PLUS Loans, another federal option, cover up to your full cost of attendance but come with higher rates, fees, and a required credit check.

If you have excellent credit, private loans could offer lower rates than Grad PLUS, though they lack federal repayment perks. Comparing options helps you find the best balance of cost and flexibility for your financial needs.

Lender	Best for	Our rating
Dept. of Education	Federal student loans	Not rated
College Ave	Private student loans	5/5
Sallie Mae	Cosigners	4.8/5
Earnest	Large loans	4.7/5
SoFi	Member benefits	4.7/5

Federal graduate student loans

To qualify for federal loans, you must complete the Free Application for Federal Student Aid (FAFSA), a form that helps determine your eligibility for federal aid, including loans, grants, and work-study opportunities. Completing the FAFSA is also necessary for accessing many grants and scholarships provided by your school.

As a graduate student, you may be eligible for two types of federal student loans:

Direct Unsubsidized Loans: These loans are available to most graduate students, regardless of financial need. Unlike subsidized loans (which are only available to undergraduate students with financial need), interest accrues on unsubsidized loans from the time they’re disbursed, meaning you’ll be responsible for paying the interest throughout the loan term. Direct Unsubsidized Loans don’t require a credit check, making them more accessible to borrowers.
Grad PLUS Loans: These loans are specifically for graduate and professional students. Grad PLUS Loans cover any remaining costs not covered by other financial aid, up to your total cost of attendance. Unlike Direct Unsubsidized Loans, Grad PLUS Loans do require a credit check, and borrowers must not have an adverse credit history (such as a past bankruptcy or loan default). However, if you do have adverse credit, you may still qualify with an endorser.

Here’s a quick comparison of these two types of student loans.

	Direct Unsubsidized	Grad PLUS
Rates (APR)	7.05%	8.05%
Annual limits	$20,500	Up to cost of attendance
Lifetime limits	$138,500	None
Fees	1.057%	4.228%
Credit check?	❌	✅
Eligibility	Eligible for federal aid	Eligible for federal aid, no adverse credit

Federal loans are typically recommended first for graduate students because of the unique advantages they offer, including fixed interest rates, income-driven repayment plans, and potential loan forgiveness options.

Direct Unsubsidized Loans, in particular, should be first stop because they don’t require a credit check and have relatively low fees, making them accessible for most students.

However, there are cases where private loans might be worth considering over Grad PLUS loans. If you have excellent credit, private lenders may offer lower interest rates and fees, potentially lowering your total cost of borrowing significantly.

That said, it’s important to weigh these benefits carefully, as private loans lack the flexible repayment options and forgiveness programs that federal loans provide.

Best private graduate student loans

Unlike federal student loans, private student loans don’t just come from one source and don’t always have one fixed interest rate.

Multiple lenders, including banks, credit unions, and online lenders, offer private student loans to grad students. Interest rates and terms vary, so you should shop around to find the best lender for your needs.

Here are our picks for the best graduate student loans.

College Ave

Best Overall

5.0 _/5

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Why it’s one of the best

College Ave is an online student lender offering several different products with low interest rates, including medical school loans, law school loans, and MBA loans. The company’s graduate school loans are available in various academic disciplines, allowing students to borrow up to 100% of their school-certified educational costs.

You can borrow up to your school’s cost of attendance and choose repayment terms of five, eight, 10, or 15 years. While you can start making small or full payments immediately, College Ave offers the option of deferring payments while you’re in school and nine months after graduation.

6 different graduate student loans
Cover up to 100% of your school-certified cost of attendance
Receive a credit decision in just 3 minutes

Sallie Mae

Best for Cosigners

4.8 _/5

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Why it’s one of the best

Sallie Mae is one of the most well-known private student loan lenders in the U.S. In addition to its basic graduate student loan, it has specific loans for medical school, law school, dental school, health professions programs like pharmacy school, and other options.

You can borrow as much as you need to pay for school, but you’ll only have a single repayment term option of 15 years. Like College Ave, Sallie Mae offers a six-month grace period.

Multiple graduate student loan options
Cosigners can be released after 12 on-time payments
Lower your rate by 0.25% by enrolling in automatic payments

Earnest

Best for Large Loans

4.7 _/5

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Why it’s one of the best

Earnest is a national student lender offering graduate student loans in various degree programs. A cosigner is not required, though Earnest makes adding one to your loan simple. Borrowers can also skip up to one payment per year after graduation, though that payment will be tacked onto the end of your repayment term.

Earnest lends up to your school’s cost of attendance and offers a nine-month grace period. Your repayment term options are five, seven, 10, 12, or 15 years.

4 different graduate student loans
Skip a payment once per year, if needed
No fees

SoFi

Best for Member Benefits

4.7 _/5

View Rates

Why it’s one of the best

SoFi is an online lender that offers student loans for all levels of education. Its graduate student loan comes with several benefits that include no fees, an online application process, and exclusive member benefits. These member benefits include interest rate discounts, financial planning, and more.

Repayment terms are five, 10, or 15 years, and you can use a SoFi loan to cover 100% of your school-certified costs. SoFi’s graduate student loans generally come with a six-month grace period.

No fees
Get access to financial advisors, networking, and more
Check your rate without impacting your credit

Finding the best graduate school loan for you

When it comes to funding grad school, it’s best to start with federal student loans. Federal loans offer unique advantages tailored to students, making them a smart first choice. Here’s what makes federal loans stand out:

Flexible repayment options: Federal loans offer a variety of repayment plans that adjust to your income, including options like Income-Driven Repayment (IDR) plans. With IDR, your monthly payment is based on your earnings, which can ease the financial burden if you’re just starting out or in a lower-paying field.
Potential for loan forgiveness: Federal loans open up eligibility for forgiveness programs like Public Service Loan Forgiveness (PSLF), which can forgive your remaining balance after 10 years of qualifying payments if you work in a qualifying public service job. This benefit isn’t available with private loans, so federal loans can be especially valuable for those considering careers in public service or non-profit sectors.
Fixed interest rates and no credit check: With federal loans, you get predictable, fixed interest rates and won’t need to meet a minimum credit requirement, making them accessible to nearly all students.

Once you’ve maxed out your federal loan options, it’s time to consider private loans to cover any remaining costs. With so many lenders offering competitive options, choosing the right one can feel overwhelming. Here’s what to look for in a private lender:

Interest rates: Your rate will determine how much you repay over time. Look for lenders that offer competitive rates and options to choose between fixed or variable rates. Our top-rated pick, College Ave, is known for its flexible rates, which can make repayment more manageable.
Repayment terms and flexibility: Private loans vary widely in their repayment options. Some lenders allow you to make interest-only payments while in school, while others offer more flexible term lengths. Choosing a lender that lets you tailor your repayment to your income or career path can help make the loan more affordable.
Cosigner release: If you’re applying with a cosigner, check whether the lender offers a release option. This feature allows you to remove your cosigner after making consistent, on-time payments for a set period, giving you full responsibility for the loan.
Additional benefits: Some lenders offer added perks, like rate discounts or member benefits that can support you beyond just loan funding. Consider these extras as a nice bonus if they align with your post-grad goals.

Taking the time to compare these features can help you find a lender that matches your needs, making it easier to manage both school costs and your future finances.

What can graduate student loans be used for?

Graduate student loans can cover a wide range of education-related expenses beyond just tuition. Here’s how they’re commonly used:

Tuition and fees: This is usually the largest cost, especially for specialized programs like law, medical, or MBA programs, which often come with higher tuition rates.
Books and supplies: Textbooks, lab supplies, and other necessary materials are eligible expenses.
Housing and meal plans: Whether you live on or off campus, loan funds can be used to help cover rent, utilities, and meal expenses.
Necessary equipment: This could include a new laptop, software, or other tech that you’ll need for coursework or projects.

Graduate programs can vary widely in cost. For example, professional programs like medical or dental school typically come with higher tuition and associated costs, meaning you may need to borrow more than a student in a general master’s program.

Specialized programs often require costly materials and higher travel expenses for internships or clinical rotations, while research-based programs may have additional fees related to lab work or project funding.

Average Medical School Debt

What is the maximum amount I can borrow for graduate school?

Federal student loans have both annual and aggregate (lifetime) borrowing limits.

For Direct Unsubsidized Loans, graduate students can borrow up to $20,500 per year, with an aggregate cap of $138,500 (including any amount borrowed for undergraduate studies).
Graduate PLUS Loans, however, can cover up to the full cost of attendance, minus any other financial aid you receive, with no aggregate limit—making them a good option for high-cost programs if you’ve reached other federal loan limits.

If you reach your federal loan limits and still need additional funding, private student loans can help bridge the gap. Private lenders typically allow you to borrow up to your full cost of attendance as well, but the exact limit will depend on your credit profile, your school’s cost, and the lender’s policies. Here’s what to keep in mind:

Credit-based limits: Unlike federal loans, private loan amounts are generally based on your creditworthiness, and that of your cosigner, if you have one. Strong credit or a creditworthy cosigner may give you access to larger loan amounts and lower rates.
Program-specific limits: Some private lenders may cap loan amounts based on the program’s total cost or limit funding for particular programs. High-cost programs like medical or law school might have higher borrowing limits or specialized loan options to cover the significant expenses associated with these fields.
Aggregate caps and borrowing maximums: While some private lenders don’t impose aggregate loan limits, others might set a lifetime borrowing cap, especially if you’ve taken out multiple loans through the same lender over time. It’s worth checking each lender’s policies, especially if you plan to borrow across multiple years.

Private loans offer flexibility in helping cover costs beyond federal loan limits, but keep in mind that they may carry higher interest rates and fewer repayment protections. Make sure to carefully consider your borrowing needs and future ability to repay before taking on private loans.

There are two main differences between undergrad and grad loans:

1. In grad loans, your income does not play as much of a factor, if any.
2. Your FAFSA application as a grad student does not include your parent’s income anymore.

This could open opportunities to borrow more, especially since grad school can cost more than undergrad. However, grad student loans are typically shorter (grad school is approximately two years vs. four years for traditional undergrad), resulting in potentially higher interest rates for the grad school loan.
Erin Kinkade, CFP®

How do I apply for graduate student loans?

Applying for graduate student loans can be a lengthy process, so it’s important to start early.

1. Fill out the FAFSA

The Free Application for Federal Student Aid, (FAFSA), is an important form for eligible students to complete before the deadline each year. This form will help determine how much financial aid you’re eligible to receive and is a requirement if you’ll be borrowing federal student loans for graduate school.

2. Exhaust federal loan options

If needed, take out all Direct Unsubsidized Loans available to you for the school year. This ensures you can lock in important loan benefits and fixed interest rates.

3. Consider other funding sources

If you have college savings or plan to work while you’re in school, be sure to factor that money into your budget. This will show you how much more you need to borrow to pay for tuition, housing, and books or equipment for class.

4. Apply for a Grad PLUS or private loan

Once you know how much you need beyond Direct Unsubsidized Loans (if anything), you can begin applying for other options, such as a Grad PLUS Loan or private graduate school loan.

Grad PLUS loans may come with more benefits and the potential for loan forgiveness, but a private loan could have a better interest rate and lower fees. Many private lenders offer a quick online application or prequalification process, which will give you an answer in just a few minutes.

After you find the loan and terms that work best for you, you can proceed with your loan of choice.

5. Add a cosigner

In many cases, adding a cosigner to your private loan can be helpful if not required. A creditworthy cosigner can not only unlock better loan terms and lower rates but may also enable you to borrow the full amount you need for school.

6. Get funded

Once you’ve completed all necessary forms for your new lender and your school has certified the amount, your lender will send your loan funds to the school. After the school applies these funds to outstanding charges, such as your tuition bill, it will refund the difference to you.

How does repayment of graduate student loans work?

Repayment of graduate student loans starts after you finish your program, with federal and private loans each offering different repayment options. Federal loans generally offer more flexible plans and protections, while private loans tend to have fixed terms and fewer options for adjusting your payments.

Federal graduate student loan repayment

Federal loan repayment offers a variety of options to help make monthly payments manageable. If you don’t select a plan, you’ll automatically be enrolled in the standard repayment plan with fixed payments over 10 years. However, federal loan borrowers can switch to a different plan at any time.

Repayment plan	Length (years)	Monthly payment
Standard repayment	10	Fixed
Graduated repayment	10–30	Starts low, increases every 2 years
Extended repayment	Up to 25	Fixed or graduated
SAVE	10 – 25	5–10% of discretionary income
PAYE	20	10% of discretionary income
Income-based repayment (IBR)	25	10–15% of discretionary income
Income-contingent repayment	25	Lower of 20% of income or 12-year plan amount
Income-sensitive repayment	10	Based on annual income

For those with income-driven plans, monthly payments adjust based on your income and family size. Some borrowers may also qualify for loan forgiveness if they work in public service or meet certain requirements under these plans.

Private graduate student loan repayment

Repayment terms for private loans vary by lender but typically range from 5 to 15 years. Unlike federal loans, private student loans don’t offer income-driven repayment plans or forgiveness options. You’ll usually need to make fixed monthly payments, which are set to pay off the loan within the chosen term.

Detail	Amount
Loan amount	$40,000
Interest rate	6%
Repayment term	10 years
Monthly payment	Approximately $444
Total cost over loan term	Approximately $53,280

In this example, a $40,000 loan at a 6% interest rate over 10 years results in a fixed monthly payment of about $444. Over the life of the loan, you’d pay around $13,280 in interest. If your income or expenses change, refinancing might be an option to adjust your payment terms, though there are typically fewer options than with federal loans.

While federal loans offer greater flexibility and protection, private loans can be a useful supplement if you reach federal loan limits. It’s a good idea to weigh each lender’s terms and repayment options carefully to find the best fit for your financial situation.

If you have undergrad loans, you can begin paying on them when you graduate (following the original terms), or you may have the option to defer paying until you graduate grad school. However, interest will still accrue which will end up leaving you with a higher debt repayment after grad school graduation.

To avoid this, I recommend paying the undergrad loans as you go through grad school (by obtaining a part-time job or some side gig that is flexible and provides income) and then focus on repaying the remainder of the loan and the grad school loans after school is completed.

Remember as you apply for undergrad school loans, you may want to go to grad school, so overborrowing is definitely something you want to avoid.
Erin Kinkade, CFP®

FAQ

Can you get Subsidized Loans for grad school?

No, subsidized loans are not available for graduate students. The Federal Direct Subsidized Loan program is only available to undergraduate students who demonstrate financial need.

Graduate students can, however, apply for Federal Direct Unsubsidized Loans and Grad PLUS Loans, which do not require proof of financial need but do accrue interest while you are in school.

Can you take out a student loan for a master’s degree?

Yes, you can take out student loans for a master’s degree. Graduate students can access Federal Direct Unsubsidized Loans and Grad PLUS Loans to help cover the costs of their education.

Additionally, private student loans are available from various lenders, though terms and interest rates may vary. It’s important to research and compare the options to find the best fit for your financial needs.

Can student loans be forgiven for graduate students?

Yes, student loans can be forgiven for graduate students under certain conditions. Programs such as Public Service Loan Forgiveness (PSLF) and Income-Driven Repayment (IDR) plans can lead to forgiveness of the remaining loan balance after making a required number of qualifying payments.

PSLF is available to those who work in qualifying public service jobs, while IDR plans are available to borrowers who have high debt relative to their income.

It’s essential to understand the eligibility requirements and maintain proper documentation to take advantage of these forgiveness programs.

How we selected the best graduate student loans

LendEDU evaluates student loan lenders to help readers find the best student loans. Our latest analysis reviewed 725 data points from 25 lenders and financial institutions, with 29 data points collected from each.

This information is gathered from company websites, online applications, public disclosures, customer reviews, and direct communication with company representatives. These star ratings help us determine which companies are best for different situations.

We don’t believe two companies can be the best for the same purpose, so we only show each best-for designation once.

Recap of the best graduate student loans

Lender	Best for	Our rating
Dept. of Education	Federal student loans	Not rated
College Ave	Private student loans	5/5
Sallie Mae	Cosigners	4.8/5
Earnest	Large loans	4.7/5
SoFi	Member benefits	4.7/5