Many or all companies we feature compensate us. Compensation and editorial research influence how products appear on a page. Student Loans Best Graduate Student Loans Updated Feb 01, 2024   |   14-min read   |   This article has been reviewed by a Certified Financial Planner™ for accuracy. Written by Stephanie Colestock Written by Stephanie Colestock Expertise: Loans, insurance, real estate investing, credit, debt Stephanie is an experienced personal finance writer with more than a decade of experience as a freelancer. Learn more about Stephanie Colestock Reviewed by Erin Kinkade, CFP® Reviewed by Erin Kinkade, CFP® Expertise: Insurance planning, education planning, retirement planning, investment planning, military benefits, behavioral finance Erin Kinkade, CFP®, ChFC®, works as a financial planner at AAFMAA Wealth Management & Trust. Erin prepares comprehensive financial plans for military veterans and their families. Learn more about Erin Kinkade, CFP® Graduate student loans are financing options designed to help students pay for graduate school. Since federal student loans offer better borrower protections, you should always consider them before taking out private student loans. This guide to graduate student loans will help you understand what kind of federal loans you may be eligible for, as well as which private loans to consider in case you max out your federal borrowing limits or don’t qualify for government funding. In this guide: How federal and private graduate student loans compareFederal graduate student loansBest private graduate student loansWhich is the best graduate school student loan?What can graduate student loans be used for?What is the maximum amount I can borrow for graduate school?How do I apply for graduate student loans?How does repayment of graduate student loans work? How federal and private graduate student loans compare While both private and federal student loans work in similar ways to help you pay for your graduate school expenses, there are some important differences between them. FederalPrivateInterest rate typeFixedFixed or variableBorrowing limitsUp to the cost of attendance, depending on your loan and field of studyUp to 100% of your school-certified cost of attendanceOrigination fee1.057% for Direct Loans4.228% for PLUS LoansNone for the lenders belowCredit-basedPLUS Loans check for an adverse credit historyYesRepayment benefitsIncome-driven repayment (IDR) plans, federal loan forgiveness, forbearance, defermentDepends on the lender, but may include forbearance or deferment optionsLearn moreSee federal optionsSee private options Federal graduate student loans To become eligible for federal loans, you need to fill out the Free Application for Federal Student Aid (FAFSA). The FAFSA is required to gain access to loans from the Department of Education, as well as to obtain many types of grants and scholarships provided by the government or your school. Federal graduate student loan benefits and drawbacks There are advantages and disadvantages to funding your graduate school with federal student loans. Benefits to consider Interest rates are fixedYou have flexibility in repayment optionsYou enjoy many borrower protections, such as loan forgiveness Drawbacks to consider You may be limited in the amount you can borrowYou have to pay origination feesYou are automatically assigned a loan servicer Grad students may be eligible for two different types of federal student loans to help cover graduate school costs: Direct Unsubsidized LoansGrad PLUS Loans Direct Unsubsidized Loans While undergrads can obtain both Direct Subsidized and Direct Unsubsidized Loans, grad students are restricted to Unsubsidized Loans. This means the government does not pay interest on the loans while you’re in school or in deferment after graduating. Direct Unsubsidized Loans still have favorable loan terms for graduate students, however, including a low fixed interest rate. Annual borrowing limit: $20,500Aggregate borrowing limit: $138,500Fixed rate (APR): 6.54%Origination fee: 1.057%Credit requirement: None To be eligible, grad students must be enrolled at least half-time in an academic program that confers a degree or certification and participates in the Direct Loan program. You also must complete the FAFSA. Your credit score is not a factor when your eligibility for Direct Unsubsidized Loans is determined. Grad PLUS Loans Grad PLUS Loans—which are a part of the Direct PLUS Loan program—are another option for students seeking federal loans. However, they have different rules and eligibility requirements than Direct Loans. Annual borrowing limit: Up to 100% of the school-certified cost of attendanceAggregate borrowing limit: NoneFixed rate (APR): 7.54%Origination fee: 4.228%Credit requirement: Must not have an adverse credit history To be eligible, graduate or professional students must be enrolled at least half time in a program that will lead to a graduate degree, professional degree or certificate. You also can’t have an adverse credit history, and you must meet the general requirements associated with getting financial aid. These requirements include: Having U.S. citizenship or being an eligible non-citizenHaving a Social Security numberBeing enrolled at an eligible institutionMeeting income limits for your family size and year in school It’s important to note that you cannot qualify for Direct PLUS loans with bad credit, unlike Unsubsidized Loans. And while the interest rate and origination fees are fixed on PLUS loans, the relatively high rate and fees mean that sometimes private student loans are more affordable. Best private graduate student loans Unlike federal student loans, private student loans don’t just come from one source, and they don’t have one fixed interest rate. There are multiple lenders offering private student loans to grad students, including banks, credit unions, and online lenders. There is a lot of variation in interest rates and terms, so you should shop around carefully to make sure you’ve found the best lender for your needs. Private graduate student loan benefits and drawbacks There are both pros and cons to consider when using private student loans. Benefits to consider No origination feesFlexibility in loan terms among lendersPotentially higher borrowing limits Drawbacks to consider Fewer borrower protections, such as forbearance and loan forgivenessYou’re locked into a repayment schedule unless you refinance your loanCredit requirements can affect eligibility Here are our picks for the best graduate student loans. College Ave View Rates Editorial Selection: Best Overall 6 different graduate student loansCover up to 100% of your school-certified cost of attendanceReceive a credit decision in just 3 minutes College Ave is an online student lender offering many different products with low interest rates. The company’s graduate school loans are available in a wide variety of academic disciplines, allowing students to borrow up to 100% of their school-certified educational costs. Types of graduate student loans College Ave offers Master’s and Ph.D. program loansMedical school loansDental school loansLaw school loansMBA program loansHealthcare profession loans Terms of College Ave’s graduate student loan College Ave’s graduate student loanFixed APR3.99% to 11.98%Variable APR1.99% to 10.97%Loan amount$1,000 to 100% of school-certified costsRepayment term5, 8, 10, or 15 yearsIn-school repaymentFull, interest-only, flat $25, or deferredGrace period6 monthsFeesLate payment fee Sallie Mae View Rates Editorial Selection: Best for Cosigners 9 different graduate student loansCosigners can be released after 12 on-time paymentsLower your rate by 0.25% by enrolling in automatic payments Sallie Mae is the most well-known private student loan lender in the U.S. In addition to its basic graduate student loan, it also has specific loans for medical school, law school, dental school, and other programs. Types of graduate student loans Sallie Mae offers Master’s and Ph.D. program loansMBA program loansMedical school loansMedical residency loansDental school loansDental residency loansHealthcare profession loansLaw school loansBar study loans Terms of Sallie Mae’s graduate student loan Sallie Mae’s graduate student loanFixed APR4.25% to 12.92%Variable APR2.50% to 12.22%Loan amount$1,000 to 100% of school-certified costsRepayment term15 yearsIn-school repaymentInterest-only, flat $25, or deferredGrace period6 monthsFeesLate payment fee Ascent View Rates Editorial Selection: Best for Eligibility 5 different graduate student loansReceive a 1% cash reward upon graduationCheck your rate without impacting your credit Ascent is an online student lender. The company offers five different graduate student loan options, depending on the field of study. Each of these loans requires a credit check but can be applied for with or without a cosigner. Types of graduate student loans Ascent offers Master’s and Ph.D. program loansMBA program loansMedical school loansDental school loansLaw school loans Terms of Ascent’s graduate student loan Ascent’s graduate student loanFixed APR3.27% to 14.75%1Variable APR0.98% to 11.80%1Loan amount$2,001* to $400,000Repayment term7, 10, 12, or 15 yearsIn-school repaymentInterest-only, flat $25, or deferredGrace period9 monthsFeesLate payment fee * Minimum of $6,001 for borrowers with a Massachusetts permanent address. Earnest View Rates Editorial Selection: Best for Skipping a Payment 4 different graduate student loansSkip a payment once per year, if neededNo fees Earnest is a national student lender offering graduate loans to students in a variety of degree programs. A cosigner is not required, though Earnest makes it simple to add one to your loan. Borrowers can also choose to skip up to one payment per year after they graduate. Types of graduate student loans Earnest offers Master’s and Ph.D. program loansMBA program loansMedical school loansLaw school loans Terms of Earnest’s graduate student loan Earnest’s graduate student loanFixed APR3.24% to 12.78%Variable APR1.34% to 11.44%Loan amount$1,000 to 100% of school-certified costsRepayment term5, 7, 10, 12, or 15 yearsIn-school repaymentInterest-only, flat $25, or deferredGrace period9 monthsFeesNone SoFi View Rates Editorial Selection: Best for Career Services 5 different graduate student loansGet access to career services, financial advisors, networking, and moreCheck your rate without impacting your credit 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 exclusive rate discounts, access to career services and financial advisors, and more. Types of graduate student loans SoFi offers Master’s and Ph.D. program loansMedical school loansLaw school loansMBA program loansHealthcare profession loans Terms of SoFi’s graduate student loan SoFi’s graduate student loanFixed APR4.75% to 13.35%Variable APR2.59% to 12.13%Loan amount$1,000 to 100% of school-certified costsRepayment term5, 10, or 15 yearsIn-school repaymentFull, interest-only, flat $25, or deferredGrace period6 months (9 months for Healthcare profession loans)FeesNone Other lenders that stood out for unique benefits While the lenders above were the highest rated in our evaluation, the following lenders did stand out for specific benefits: RISLA: Offers Rhode Island residents and students unique benefits to lower the cost of their loans. Which is the best graduate school student loan? First and foremost, you should consider all of the federal student loan options available to you before you turn to private loans. Federal loans can help you pay for graduate school programs with a fixed interest rate, and do not have a minimum credit score requirement. Federal loans also offer benefits that private loans don’t, such as income-driven repayment plans and loan forgiveness programs. Once you’ve exhausted all of your federal student loan funding, you can then turn to private graduate loans to cover the difference. Our top-rated pick, College Ave, offers loans with either fixed or variable interest rates to pay for law school, medical school, business school, and more. What can graduate student loans be used for? Graduate student loans can be used to cover a variety of education-related expenses, such as tuition, fees, books, housing, and meal plans. You can even use your loan to cover necessary equipment, such as a new laptop for classes. If you are taking out federal student loans, however, you may reach your annual and/or aggregate loan limits prior to meeting all of your expense needs. In this case, private loans may help cover the difference. What is the maximum amount I can borrow for graduate school? Your borrowing limits depend on the type of loans you take out for graduate school. Private loans are available to creditworthy borrowers for up to 100% of their certified expenses. Federal loans may be subject to annual and aggregate limits; currently, graduate students can borrow up to $20,500 in unsubsidized federal loans each year. 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. Fill out the FAFSA. The Free Application for Federal Student Aid, or FAFSA, is an important form for eligible students to fill out 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.Exhaust federal loan options. Ideally, you’ll want to take out any and all federal loans available to you for the school year. This ensures that you can lock in those important loan benefits and fixed interest rates.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 exactly how much more you need to borrow to pay for tuition, housing, and books or equipment for class.Apply for private loans. Once you know how much you need beyond federal loans (if anything), you can begin applying for private graduate school loans. Many lenders offer a quick online application 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.Add a cosigner. In many cases, adding a cosigner to your 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.Get funded. Once you’ve completed all necessary forms for your new lender, and your school has certified the amount, your loan funds will be sent to the school directly. After the school applies these funds to any outstanding charges, like your tuition bill, the difference can be refunded to you. How does repayment of graduate student loans work? All student loan repayment works roughly the same way. First, you borrow money while in school to pay for your necessary educational expenses. After you graduate, your repayment period will begin, and you’ll be responsible for making your monthly loan payments as agreed. With that said, repaying federal loans can look a bit different than repaying private loans. Private graduate student loan repayment When you repay private student loans, your terms will vary by lender. Many private lenders offer at least five-, 10- or 15- year repayment terms. Your payments are always structured to allow you to pay off your loan by the end of the loan term. There are typically no options for income-based repayment or loan forgiveness. And while you can change your payment plan with federal student loans, you can’t just switch payment plans or change your loan term once you’ve taken out a private graduate school loan. If you want to change the way you pay back your private loan debt, you would have to refinance the loan entirely. Federal graduate student loan repayment There are many federal student loan repayment plans available, including the following: Standard repayment plan: Loans are repaid over 10 years on a fixed repayment schedule.Graduated repayment plan: Loans are repaid over 10 years (or up to 30 years if you consolidate your loans), and payments increase every two years.Extended repayment plan: You can either choose from a fixed or graduated repayment schedule, and your loans are repaid over 25 years.REPAYE: Payments are capped at 10% of discretionary income. Any outstanding balance on your loans is forgiven after 25 years of payments if you took out loans for grad school.PAYE: Monthly payments are capped at 10% of discretionary income, but the payment can’t exceed the amount you’d have paid under the standard repayment schedule. Any outstanding balance on your loans is forgiven after 20 years of payments.Income-Based Repayment: Payments are capped at either 10% or 15% of monthly income, and any outstanding balance on your loans is forgiven after 25 years.Income Contingent Repayment: Monthly payments equal the lesser of 20% of discretionary income or the amount you’d pay on a fixed payment schedule over 12 years. Any outstanding loan balance is forgiven after 25 years.Income-Sensitive Repayment: Monthly payment is based on annual income, but your loan is repaid in 10 years. Many of these repayment plans have specific requirements you will need to meet, so be sure to talk with your loan servicer to choose the right one. 1 Ascent’s undergraduate and graduate student loans are funded by Bank of Lake Mills or DR Bank, each Member FDIC. Loan products may not be available in certain jurisdictions. Certain restrictions, limitations; and terms and conditions may apply. For Ascent Terms and Conditions please visit: www.AscentFunding.com/Ts&Cs. Rates are effective as of 10/01/2022 and reflect an automatic payment discount of either 0.25% (for credit-based loans) OR 1.00% (for undergraduate outcomes-based loans). Automatic Payment Discount is available if the borrower is enrolled in automatic payments from their personal checking account and the amount is successfully withdrawn from the authorized bank account each month. For Ascent rates and repayment examples please visit: AscentFunding.com/Rates. 1% Cash Back Graduation Reward subject to terms and conditions. Cosigned Credit-Based Loan student must meet certain minimum credit criteria. The minimum score required is subject to change and may depend on the credit score of your cosigner. Lowest APRs require interest-only payments, the shortest loan term, and a cosigner, and are only available to our most creditworthy applicants and cosigners with the highest average credit scores.