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As a graduate student, you have the option to take out federal direct unsubsidized loans, graduate PLUS loans or private student loans. Federal direct unsubsidized loans generally have both the lowest interest rates and the most flexible repayment options.
But you can only borrow up to $20,500 per year in direct unsubsidized loans, and some students need to borrow more than that. Below we have identified the best federal and private loan options for graduate students based on features like fees, repayment options and ease of the application process.
Several lenders offer specialized loan programs for those pursuing a master of business administration (MBA), law or medical degree; for this list, we compared only generalized graduate degree loans for master’s or Ph.D. students in other fields.
Annual percentage rates (APRs) and account details are accurate as of July 5, 2024.
Why you can trust Forbes Advisor: Our editors are committed to bringing you unbiased ratings and information. Our editorial content is not influenced by advertisers. We use data-driven methodologies to evaluate financial products and companies, so all are measured equally. You can read more about our editorial guidelines and the loans methodology for the ratings below.
14 enders researched
12 data points evaluated
6 cateogires scored
FEATURED PARTNER OFFER
Ascent Graduate Student Loan
Variable APR
7.74% to 16.10%*
Fixed APR
5.04% to 15.41%*
Terms
7 years, 10 years, 12 years, 15 years or 20 years (medical and dental loans only)
7 years, 10 years, 12 years, 15 years or 20 years (medical and dental loans only)
Details
Loan terms: 7 years, 10 years, 12 years, 15 years or 20 years (medical and dental loans only)
Loan amounts available: $2,001** up to total cost of attendance, to a maximum of $400,000 (aggregate)
Eligibility: Student borrowers with no credit history can qualify with a creditworthy co-signer. Co-signers must show income of at least $24,000 for the current and previous year. Co-signers must have a minimum credit score which can vary.*
Forbearance options: When experiencing financial hardship, borrowers can suspend payments for up to three months at a time, for a total of up to 24 months throughout the loan term. Only four rounds of forbearance (up to 12 months’ worth) may be taken consecutively.
Co-signer release policy: Available after 12 months of consecutive automatic debit payments, if the primary borrower meets certain credit score requirements.
*Disclosures
*Other eligibility requirements apply. Learn more at AscentFunding.com/BorrowerBenefits.
**The minimum amount is $2,001 except for the state of Massachusetts. Minimum loan amount for borrowers with a Massachusetts permanent address is $6,001.
***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: AscentFunding.com/Ts&Cs. Rates are effective as of 7/1/2024 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 rates require full principal and interest payments, the shortest loan term, a cosigner, and are only available for our most creditworthy applicants and cosigners with the highest average credit scores. Actual APR offered may be higher or lower than the repayment examples above, based on the amount of time you spend in school and any grace period you have before repayment begins.
Best Graduate Student Loans
SoFi®
5.0
Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.
SoFi is perhaps best known as a student loan refinance lender, but it also makes loans to undergraduates, graduate students, law and business students and parents. Its undergraduate student loan product offers mostly industry-standard features, plus a few perks: no late fees, an interest rate discount of 0.125% if your co-signer already uses another SoFi product.
Pros & Cons
Access to SoFi member benefits
No late fees
Interest rate estimate available without undergoing a hard credit check
Maximum APR above 12%
Details
Loan terms: 5, 7, 10 and 15 years.
Loan amounts available: $5,000 up to total cost of attendance (no aggregate limit listed).
Eligibility: Does not disclose credit score or income requirements.
Forbearance options: Qualified borrowers can take up to 12 months total forbearance.
Co-signer release policy: Available after 24 payments.
Federal Direct Unsubsidized Loan
5.0
Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.
Variable APR
N/A
Fixed APR
7.08%
N/A
7.08%
Editor’s Take
Among graduate student loan options, federal direct unsubsidized loans are the best overall deal: Their fixed interest rate is one of the lowest you’ll find, and this type of loan isn’t credit-based and doesn’t require a co-signer. All eligible graduate borrowers qualify, and they receive the same rate regardless of credit history.
While there’s a chance the most creditworthy borrowers could get a lower interest rate with a private student loan, they’ll miss out on a range of consumer protections that might be useful in the future. Borrowers of federal direct unsubsidized loans have access to income-driven repayment options that can lower the amount due and loan forgiveness for those who work in public service fields.
Direct unsubsidized loans come with an origination fee of 1.057%, while most private graduate loans do not. But in many cases, the low interest rate and loan benefits make the fee worth it.
Pros & Cons
Low fixed interest rate
Multiple repayment and forgiveness options available
No co-signer required in order to get lowest rate
Charges an origination fee
Details
Loan terms: Terms of 10 to 25 years are available, depending on the repayment plan.
Loan amounts: Loan amountsup to $20,500 per year and $138,500 in aggregate are available, including loans used for undergraduate study.
Eligibility: You must be enrolled at least half-time in a school that participates in the federal direct loan program.
Forbearance options: Forbearance available for up to three years in certain circumstances. Enrolling in an income-driven repayment program can lower monthly payments and result in loan forgiveness after 20 to 25 years.
Co-signer release policy: N/A
Federal Graduate PLUS Loan
5.0
Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.
Variable APR
N/A
Fixed APR
8.08%
(graduate school only)
N/A
8.08%
(graduate school only)
Editor’s Take
The federal graduate PLUS loan also offers wide-ranging benefits to borrowers, but fewer than direct unsubsidized loans offer. Since borrowing limits are higher for PLUS loans than direct unsubsidized loans, they’re an option to cover any funding gaps after you’ve maxed out direct unsubsidized loans for graduate study.
The graduate PLUS interest rate is slightly higher than the unsubsidized loan rate; the origination fee—4.228%, which comes out of the loan amount that’s disbursed to you—is much higher. PLUS loans are also the only federal loan type that require a credit check, but it’s possible to get a PLUS loan even if you’re determined to have an adverse credit history (more on that below).
Pros & Cons
Low fixed interest rate
Multiple repayment and forgiveness options available
High maximum loan amount
Charges an origination fee
Details
Loan terms: 10 to 25 years, depending on the repayment plan
Loan amounts available: Up to total cost of attendance, minus other financial aid received
Eligibility: Must be enrolled at least half-time in an eligible school. Must not have an adverse credit history.
Forbearance options: Forbearance available for up to three years in certain circumstances. Enrolling in an income-driven repayment program can lower monthly payments and result in loan forgiveness after 20 to 25 years.
Co-signer release policy: None
Ascent Graduate Student Loan
4.0
Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.
Ascent offers both co-signed and non-co-signed student loans, which gives borrowers without co-signers more college funding options.
Ascent stands out for its range of payment reduction and postponement options, rare among private lenders. Borrowers can choose a graduated repayment plan, which provides a lower monthly payment to start that increases over time. That can be useful for graduates just starting out, who will likely make more money as they move up in their careers.
Borrowers also can pause payments if they’re experiencing a temporary financial hardship for one to three months at a time, up to a maximum of 24 months total. (Taking this forbearance means you will repay the loan over a longer period, though.) Interest continues to accrue during forbearance, which is true for the vast majority of private student loans.
Ascent also offers a graduation reward of 1% cash back on the loan’s original principal balance. Check the conditions you must satisfy to qualify.
Pros & Cons
Both co-signed and independent loans available
International and DACA students can qualify with a co-signer who has
U.S. citizenship or permanent residency
Charges late fees
Maximum fixed APR is above 12%
Details
Loan terms: 7 years, 10 years, 12 years, 15 years or 20 years (medical and dental loans only)
Loan amounts available: $2,001** up to total cost of attendance, to a maximum of $400,000 (aggregate)
Eligibility: Student borrowers with no credit history can qualify with a creditworthy co-signer. Co-signers must show income of at least $24,000 for the current and previous year. Co-signers must have a minimum credit score which can vary.*
Forbearance options: When experiencing financial hardship, borrowers can suspend payments for up to three months at a time, for a total of up to 24 months throughout the loan term. Only four rounds of forbearance (up to 12 months’ worth) may be taken consecutively.
Co-signer release policy: Available after 12 months of consecutive automatic debit payments, if the primary borrower meets certain credit score requirements.
**The minimum amount is $2,001 except for the state of Massachusetts. Minimum loan amount for borrowers with a Massachusetts permanent address is $6,001.
Citizens Bank
4.0
Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.
Citizens Bank provides an additional 0.25% loyalty discount if a student loan borrower or their co-signer has an existing account with the bank. (Checking and savings accounts are only available in Connecticut, Delaware, Massachusetts, Michigan, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island and Vermont.)
It also makes its loans available to international students. But co-signers must wait a longer period of time to be released from the loan than what many other lenders provide.
Pros & Cons
International students can qualify with a co-signer who has U.S. citizenship or permanent residency
Up to 0.50% interest rate discount available for existing Citizens Bank customers
Co-signer release after 36 months, about 12 months later than many other lenders’ policies
Details
Loan terms: 5, 10 and 15 years
Loan amounts available: $1,000 to $350,000 (depending on degree)
Eligibility: Does not disclose credit score or income requirements.
Forbearance options: Up to 12 months of forbearance available.
Co-signer release policy: Co-signers can be released from the loan after 36 payments.
College Ave
4.0
Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.
College Ave offers a solid all-around private loan product with a few unique features. Borrowers can choose an eight-year term, which is in addition to the typical five-, 10- and 15-year terms many lenders provide. Borrowers can also access an extended six-month grace period beyond the initial payment-free six months allowed after separating from school.
Pros & Cons
Interest rate estimate available without undergoing a hard credit check
International students can qualify with a co-signer who has U.S. citizenship or permanent residency
Long time period (210 days) before unpaid loans go into default
Relatively high APR
Details
Loan terms: 5, 8, 10 and 15 years
Loan amounts available: $1,000 up to 100% of the school-certified cost of attendance
Eligibility: Applicants must have a minimum credit score in the mid-600s.
Forbearance options: Up to 12 months of forbearance is available, in three- to six-month increments
Co-signer release policy: Available after 24 payments
*Borrowers with a co-signer who choose the shortest repayment term available and who make full monthly payments while in school qualify for the lowest rates.
*Disclosures
1 – College Ave Student Loans products are made available through either Firstrust Bank, member FDIC or Nationwide Bank, member FDIC. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply.
2 – All rates shown include the auto-pay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. Variable rates may increase after consummation.
3 – Cover up to 100% of your cost of attendance as certified by your school and less any other financial aid you might receive. Minimum $1,000.
PNC Bank
4.0
Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.
PNC Bank offers an extra-generous 0.50% interest rate discount for making automatic payments, and it provides a 12-month loan modification program for borrowers in financial distress (in addition to 12 months of forbearance). Loan modification lowers the interest rate and monthly payment charged.
It also offers co-signer release, though after an even longer period than Citizens Bank’s policy: 48 months.
Details
Loan terms: 5, 10 and 15 years
Loan amounts available: Up to $65,000 with an overall maximum limit of $225,000
Eligibility: Does not disclose credit score or income requirements.
Forbearance options: Up to 12 months of forbearance available.
Co-signer release policy: Co-signers can be released from the loan after 48 payments.
Rhode Island Student Loan Authority
4.0
Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.
Rhode Island Student Loan Authority, known as RISLA, is a nonprofit based in Rhode Island that lends to students across the country. It offers two different loan types for undergraduate students, which each come with their own fixed interest rates. One loan requires immediate repayment, and one lets you defer payments until six months after you leave school. Everyone who qualifies for each of the loan types gets the same rate, which makes it easy to compare RISLA loans with others you’ve qualified for.
For borrowers who struggle to afford their loan after graduating, RISLA is one of the only private lenders to offer an income-based repayment plan, which limits payments to 15% of income for a 25-year period.
RISLA was a winner of Forbes Advisor’s best private student loans of 2020 awards. Learn more here.
Pros & Cons
Low interest rates
Income-based repayment plan available
Nurses pay 0% interest for 48 months following graduation
No options for international students
Details
Loan terms:
5, 10 and 15 years
Loan amounts available:
$1,500 to $45,000 per year ($150,000 aggregate per borrower).
Eligibility:
Applicants must show a minimum income of $40,000 per year and a minimum credit score of 680. Most undergraduate students will need a co-signer to qualify.
Forbearance options:
Forbearance available for up to 24 months.
Co-signer release policy:
Co-signer release is available after 24 months of payments. Periods during which borrowers use income-based repayment do not qualify.
Prodigy Finance
3.0
Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.
Many international students don’t qualify for federal student loans, and they typically need a U.S. citizen co-signer in order to get approved for a private student loan. Prodigy Finance is a London-based company that offers private student loans to international master’s students without requiring a co-signer.
You must attend an eligible school in one of the 18 countries Prodigy Finance lends in. All interest rates are variable, meaning they can change with market conditions, and borrowers receive rate offers based on their course of study and future earning potential. The average rate, according to Prodigy Finance, is 7.3%. The loan comes with a 4% administration fee.
Prodigy Finance doesn’t lend to U.S.-based borrowers living in these states: Alabama, Arkansas, Connecticut, Delaware, Hawaii, Idaho, Indiana, Iowa, Maine, Michigan, Mississippi, Minnesota, Montana, Nevada, New York, North Dakota, Ohio, Rhode Island, South Dakota, Vermont, Washington, West Virginia and Wyoming.
Pros & Cons
No co-signer required
Available to international students
Multiple hardship repayment options available
Charges an origination fee
Only variable interest rates available
High minimum APR
Details
Loan terms: 7 to 20 years
Loan amounts available: $15,000 minimum; maximum amount based on individual application.
Eligibility: Must be a resident of an eligible state and country attending an eligible school either part-time or full-time
Forbearance options: Available for nine months. Borrowers with financial hardships may apply for an interest-free payment arrangement; those facing low incomes, medical emergencies, unexpected family responsibilities or unemployment can apply for $0 or reduced payments.
Co-signer release policy: N/A
Sallie Mae
3.0
Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.
Sallie Mae graduate loans offer loans from $1,000 up to the total cost of attendance. You’ll pay no origination fee or penalty for paying off your loan before its due date. What’s more, you’ll receive a 0.25% rate discount when you enroll in autopay.
Borrowers can qualify for a Sallie Mae graduate loan even if they’re attending school less than half-time, which not all lenders allow. After graduation, borrowers also have access to a few hardship repayment programs beyond forbearance, including a rate reduction or one year of interest-only payments.
Sallie Mae’s graduate loan offers a comparatively short time period—12 months—after which primary borrowers can apply to release their co-signers.
Pros & Cons
No origination fee
Co-signer release available after 12 monthly payments
Students must apply for a new loan each school year
No rate estimate available with soft credit check
Details
Loan terms: Terms up to 15 years are available.
Loan amounts: Loan amounts of $1,000 up to the total cost of attendance are available.
Eligibility: Borrowers are eligible if they’re attending full-time, half-time or less than half-time.
Forbearance options: Sallie Mae offers a six-month grace period and 48 months of deferment.
Co-signer release policy: Co-signer releases are available after 12 on-time monthly payments.
Earnest
3.0
Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.
Earnest offers a fee-free private loan option—no origination fees and no late fees—and borrowers have the ability to skip² one monthly bill every year, in addition to applying for standard forbearance when necessary. Borrowers have multiple repayment terms to choose from, and graduate students receive a nine-month grace period³ before they must make payments after graduation, which is longer than the typical six-month grace period.
Earnest doesn’t have a co-signer release program. That means borrowers who use a co-signer must keep that person on the loan unless they refinance it into their own name.
Pros & Cons
9-month grace period for graduate students
No late fees
Option to skip one payment per year
No co-signer release program
No rate estimate available with soft credit check
Details
Loan terms: 5, 7, 10, 12 or 15 years⁴
Loan amounts available: $1,000 up to total cost of attendance (no aggregate loan amount listed).
Eligibility⁵: Students must be attending school at least half-time. International students can apply with a U.S. citizen co-signer.
Forbearance options: Available for up to 12 months throughout the loan term
Co-signer release policy: None
Disclosures
¹You can take advantage of the Auto Pay interest rate reduction by setting up and maintaining active and automatic ACH withdrawal of your loan payment from a checking or savings account. The interest rate reduction for Auto Pay will be available only while your loan is enrolled in Auto Pay. Interest rate incentives for utilizing Auto Pay may not be combined with certain private student loan repayment programs that also offer an interest rate reduction. For multi-party loans, only one party may enroll in Auto Pay. It is important to note that the 0.25% Auto Pay discount is not available while loan payments are deferred.
²Earnest clients may skip one payment every 12 months. Your first request to skip a payment can be made once you’ve made at least 6 months of consecutive on-time payments, and your loan is in good standing. The interest accrued during the skipped month will result in an increase in your remaining minimum payment. The final payoff date on your loan will be extended by the length of the skipped payment periods. Please be aware that a skipped payment does count toward the forbearance limits. Please note that skipping a payment is not guaranteed and is at Earnest’s discretion. Your monthly payment and total loan cost may increase as a result of postponing your payment and extending your term.
³Nine-month grace period is not available for borrowers who choose our Principal and Interest Repayment plan while in school.
⁴Earnest’s Loan Cost Examples: These examples provide estimates based on principal and Interest payments beginning immediately upon loan disbursement. Variable APR: A $10,000 loan with a 15-year term (180 monthly payments of $118.28) and a 11.69% APR would result in a total estimated payment amount of $21,290.40. For a variable loan, after your starting rate is set, your rate will then vary with the market. Fixed APR: A $10,000 loan with a 15-year term (180 monthly payments of $126.82) and a 13.03% APR would result in a total estimated payment amount of $22,827.79.
These examples provide estimates based on interest only payments while in school. Variable APR: A $10,000 loan with a 15-year term (180 monthly payments of $145.41) and a 11.69% APR would result in a total estimated payment amount of $26,173.03. For a variable loan, after your starting rate is set, your rate will then vary with the market. Fixed APR: A $10,000 loan with a 15-year term (180 monthly payments of $156.59) and a 13.03% APR would result in a total estimated payment amount of $28,186.67. Your actual repayment terms may vary. Other repayment options are available.
These examples provide estimates based on fixed $25 payments while in school. Variable APR: A $10,000 loan with a 15-year term (180 monthly payments of $169.92) and a 11.69% APR would result in a total estimated payment amount of $30,584.74. For a variable loan, after your starting rate is set, your rate will then vary with the market. Fixed APR: A $10,000 loan with a 15-year term (180 monthly payments of $188.42) and a 13.03% APR would result in a total estimated payment amount of $33,915.55. Your actual repayment terms may vary. Other repayment options are available.
These examples provide estimates based on deferred payments. Variable APR: A $10,000 loan with a 15-year term (180 monthly payments of $174.79) and a 11.69% APR would result in a total estimated payment amount of $31,462.16. For a variable loan, after your starting rate is set, your rate will then vary with the market. Fixed APR: A $10,000 loan with a 15-year term (180 monthly payments of $193.75) and a 13.03% APR would result in a total estimated payment amount of $34,874.28. Your actual repayment terms may vary. Other repayment options are available.
⁵Loan Eligibility criteria: Eligible students must: 1) For college Freshmen, Sophomores and Juniors, attend, or be enrolled to attend, a Title IV school full-time. For college Seniors and Graduate students, attend, or be enrolled to attend, a Title IV school at least half-time; and 2) be pursuing a Bachelor’s or Graduate degree. Earnest private student loans are subject to credit qualification, completion of a loan application, verification of application information, self-certification of loan amount, and school certification.
Responsible borrowing tip: Explore all scholarship, grant and federal options before applying for a private loan.
Earnest Private Student Loans are made by One American Bank, Member FDIC, or FinWise Bank, Member FDIC. One American Bank, 515 S. Minnesota Ave, Sioux Falls, SD 57104. Finwise Bank, 756 East Winchester, Suite 100, Murray, UT 84107
Earnest loans are serviced by Earnest Operations LLC, 535 Mission St., Suite 1663 San Francisco, CA 94105, NMLS #1204917, with support From Navient Solutions, LLC (NMLS #212430). One American Bank, FinWise Bank, and Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by agencies of the United States of America.
Federal direct unsubsidized student loans are a strong option for graduate students because they don’t require a credit check or a co-signer.
If you need more money for school than what unsubsidized loans provide, you might turn to graduate PLUS loans, which require a credit check. But there are specific negative marks the government is looking for. You’ll be considered to have “adverse credit history” if you have one or more of the following on your credit report:
Debts totaling more than $2,085 that are at least 90 or more days past due or that were in collections or charged off in the past two years
Default determination within the past five years
Bankruptcy within the past five years
Foreclosure within the past five years
Repossession within the past five years
Tax lien within the past five years
Wage garnishment within the past five years
Charge-off of a federal student aid debt within the past five years
But if you learn you have an adverse credit history after you apply, you can explain the circumstances that led to it and the government could determine that you’re eligible for a PLUS loan after receiving loan counseling. Another option is to get an endorser, similar to a co-signer, that can help you qualify.
Some borrowers might qualify for a lower rate on a private graduate student loan than on a PLUS loan. But when comparing interest rates among private lenders, know that only the borrowers with the highest credit scores, least outstanding debt and strongest incomes will get the lowest rates. For graduate students, that often means using a co-signer. All private student loan rates listed on this page also include a standard 0.25% interest rate discount for using automatic payments.
It’s best to identify the interest rate and terms you’d receive on a private loan, then compare the overall cost and features with those of a PLUS loan. A student loan calculator can help you determine how much you’ll pay over time.
We collected data from 14 student loan entities that offer graduate student loans in at least 25 U.S. states and scored them across 12 data points in the categories of interest rates, fees, loan terms, hardship options, application process and eligibility. We chose the best to display based on those earning three stars or higher.
The following is the weighting assigned to each category:
Hardship options: 20%
Interest rates: 20%
Loan terms: 15%
Fees: 15%
Eligibility: 10%
Application process: 20%
Specific characteristics taken into consideration within each category included number of months of forbearance available, hardship repayment options beyond traditional forbearance, origination fees, availability of a post-school grace period and other factors.
Lenders who offered maximum interest rates below 12% scored the highest, as did those who offered more than the standard 12 months of forbearance, who offered interest rate discounts beyond the standard 0.25% for automatic payments, who charged no origination fees and who offered a co-signer release option.
In some cases, lenders were awarded partial points, and a maximum of 3% of the final score was left to editorial discretion based on the quality of consumer-friendly features offered.
Graduate student loans—whether federal or private—are designed for graduate students pursuing their master’s, doctorate or other advanced degrees.
Federal graduate student loans include Direct unsubsidized and grad PLUS loans. Direct unsubsidized loans have a maximum borrowing limit of $20,500 per year. Grad PLUS loans, on the other hand, let you borrow up to your school’s cost of attendance minus any other financial aid you’ve already received.
You can also find graduate student loans from private lenders, such as banks, credit unions and online lenders. Many let you borrow up to your school’s cost of attendance, though some set lower limits. Some lenders design loans specifically for MBA, law and medical school students.
While federal graduate student loans have fixed interest rates that are the same for all borrowers, private student loans offer a range of rates that may be fixed or variable. Borrowers with the best credit typically qualify for the lowest rates.
Whether you borrow a federal or private graduate student loan, you can use your loan on tuition, fees and other education-related expenses.
Graduate student loans work similarly to undergraduate loans. Both federal and private student loans are available for graduate students. Federal loans are generally easier to qualify for, have more flexible repayment options and can come with lower interest rates than private debt. They also come with major benefits and protections, such loan forgiveness programs as well as the pause on payments and interest accrual that’s been in effect since March 2020 due to Covid-19.
Keep in mind that graduate student loans typically come with higher loan limits compared to undergraduate debt—meaning you can borrow a larger amount each year, up to your school’s cost of attendance or up to a lifetime limit. This is because options like business or law school are generally more expensive than a bachelor’s degree.
Along with higher borrowing limits, graduate student loans usually come with higher interest rates, too. For example, undergrads can borrow federal unsubsidized loans with a 3.73% rate in the 2021-22 school year while graduate students will pay 5.28% for the same loan.
Graduate Student Loan Limits
The maximum amount you can borrow for graduate school varies by loan type. Direct unsubsidized loans have an annual limit of $20,500 and an aggregate limit of $138,500 (no more than $65,500 of this can be in subsidized loans). Grad PLUS loans allow you to borrow up to the total cost of attendance minus any other financial aid you’ve received, as certified by your school.
Private student loan borrowing limits vary by lender. However, many allow you to borrow up to your school’s total cost of attendance.
Types of Graduate School Loans
There are three types of graduate student loans. Borrowers can choose between two federal options—direct unsubsidized loans or grad PLUS loans—or opt to borrow from a private lender. Keep in mind that while the interest rates and loan terms for federal loans are standardized for all borrowers, the terms you’re offered on a private loan can vary widely depending on your credit and other factors.
Be enrolled at least half-time, pass a credit check and meet general federal lending requirements
Typically must have good credit, have consistent income, be a U.S. citizen and be enrolled in an eligible school
Credit check?
No
Yes
Usually yes
Interest rate for 2022-23
6.54%
7.54%
Varies; highly qualified borrowers may receive lower rates than what’s offered on federal loans
Origination fee for 2022-23
1.057%
4.228%
Usually none
Borrowing limit
$20,500 annually, $138,500 lifetime limit
Up to total cost of attendance minus any other financial aid you’ve received
Usually up to the total cost of attendance
Co-signer allowed?
No
Yes
Yes
How to Apply for Student Loans for Graduate School
The process to apply for a graduate student loan will depend on whether you want to get a federal or private student loan.
Federal student loans
If you want to take out a federal student loan, you’ll need to fill out the Free Application for Federal Student Aid (FAFSA). This form determines your eligibility for all types of federal aid, including student loans and grants. While most undergraduate students must submit both their and their parents’ financial information, graduate students are only required to provide their own information. You’ll have to complete a new FAFSA for each year you plan to attend school.
After the FAFSA is processed, you’ll receive a financial aid award letter from your school detailing what federal student loans and other aid you qualify for. You can then choose which loans to accept and how much you need to borrow. Before the start of the semester, the money will be sent directly to your school. After tuition and fees are taken care of, any remaining amount will be refunded to you to use for other school expenses.
Private student loans
If you’d like to get a private student loan, be sure to take the time to shop around and consider as many lenders as possible. Since each lender has its own individual rates and terms, comparing them can help you find the right loan for your needs. Many lenders allow you to prequalify for a loan, which will let you see the estimated interest rates you qualify for.
Also review each lender’s policies, including applicable fees, when repayment starts, how long you’ll have to pay off your loans and how the lender can help if you ever have trouble making payments.
When you’re ready to apply, you can typically submit an application directly on the lender’s website. Approval usually only takes a few days, and if you agree with the final terms and conditions, you can sign off on the closing paperwork. Most private lenders will send the funds directly to your school, which will apply the funds to your tuition and fees. Any remaining amount will be released to you.
Alternatives to Graduate Student Loans
While student loans can help you cover a gap in funding, you may want to keep borrowing to a minimum. Consider these alternatives to graduate student loans to help you pay for school:
Grants. You may qualify for federal, state or school grants, which require no repayment, based on your financial need or course of study. Federal grants for graduate students include TEACH grants and Fulbright grants.
Scholarships. It’s also worth applying for scholarships, which may be awarded based on financial need, academic merit, athletics or other achievements.
Work-study. Students with financial need can qualify for the work-study program, where they can find part-time jobs on or off campus.
Part-time job. If you don’t qualify for work-study, you might still seek out part-time work to make some money for school.
Savings. Drawing on your personal savings can also help you reduce the amount you need to borrow in student loans.
Income-share agreements. Another alternative to graduate student loans is an income-share agreement, through which you get help to pay for school in exchange for a portion of your future earnings for a set period of time.
Federal subsidized loans are only available for undergraduate students with financial need. Graduate students are not eligible for direct subsidized loans.
Can you use graduate student loans for living expenses?
You can use student loans to pay for living expenses, whether it’s rent, utilities, transportation costs or food. If you live on campus, those costs are included in your full cost of attendance and get paid directly to your school. Any leftover money from your loans will be refunded to you, which can then be applied to remaining living expenses.
How much graduate student loans can I borrow?
It’s always best to borrow as little as possible in student loans, which means maxing out scholarships and grants first. Make sure to fill out the Free Application for Federal Student Aid, or the FAFSA, each year you’re in graduate school to get all the financial aid you qualify for.
When deciding how much to borrow, graduate students have the potential added complication of still having outstanding loans from undergrad. Ideally, your total debt after leaving graduate school should be no more than you plan to earn your first year in the workforce with your degree. Undergraduate loans should be included in that total.
So if you are getting a master of arts in industrial and organizational psychology and expect to earn a starting salary of about $70,000 (according to a salary resource like PayScale), you shouldn’t have more than $70,000 in total student loans after graduating.
Does student loan forgiveness include graduate school?
Some types of graduate student loans are eligible for forgiveness. While unsubsidized federal loans are the only type of graduate loan eligible for Teacher Loan Forgiveness, both unsubsidized loans and grad PLUS loans are eligible for Public Service Loan Forgiveness (PSLF).
Unsubsidized federal loans and grad PLUS loans may also be eligible for income-driven repayment (IDR) plans, which promise forgiveness after 20 or 25 years of payments. Not all types of loans are eligible for every IDR plan, so review the requirements carefully.
Both private and federal grad school loans may also be eligible for state-based repayment programs, which often offer student loan repayment if you work in a qualifying career in high-need areas. Some states or cities even offer loan repayment if you relocate to a qualifying area.
How is the interest rate on a private graduate student loan determined?
Private student loans usually offer variable and fixed interest rates that are based on the borrower’s creditworthiness. Variable rates rise and fall according to the index they follow. For example, the lender may use the prime rate as its benchmark.
If you have good or excellent credit, then you’ll be eligible for a lower interest rate. But if you have poor or fair credit, prepare for an interest rate on the higher end of the range. Using a creditworthy co-signer can help you get a lower rate.
What is ‘co-signer release’?
Some private lenders offer to release the co-signer from a loan after the borrower makes a certain number of payments. That can protect the co-signer from a credit hit as a result of the primary borrower’s negative payment history. If you plan to use co-signer release, check your loan documents to see when it will be possible (in 36 months, for instance) and what additional requirements you might need to meet.
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