The federal government and private lenders both provide graduate Student loans. Max out federal unsubsidized loans, which are typically the lowest choice, before covering the remaining costs with federal grad PLUS loans or private student loans.
Grad PLUS loans do not require credit and offer a variety of repayment alternatives, making them ideal for the majority of borrowers. If you or a cosigner have excellent credit, you may be able to pay less for a private graduate school loan.
Here are our top selections for the finest graduate school loans, as well as advice on how to choose them and manage debt while attending school.
1. Federal Student Aid
Pros
- There are several repayment plan alternatives.
- Forgiveness opportunities.
- All borrowers receive the same interest rate.
Cons
- The annual loan amount is capped at $20,500.
- Loan costs apply to all loan disbursements.
- Students with international or DACA status are not eligible.
Overview: The US Department of Education originates Direct Unsubsidized Loans, which are offered to students pursuing graduate degrees. Although loan limits are lower and interest rates are greater than those of certain commercial lenders, the federal program provides the most comprehensive borrower protections and repayment choices.
Why Federal Direct Unsubsidized Loans are the Best Overall: Because of their range of repayment alternatives, including some repayment programs that result in loan forgiveness, federal student loans are frequently preferred over private student loans. Direct Unsubsidized Loans are an excellent choice because they have lower interest rates than graduate PLUS loans.
Requirements: Borrowers must be US citizens or permanent residents with a valid Social Security number. Borrowers must be enrolled at least half-time in a qualifying degree or certificate program and make good academic progress while attending school.
Fees: All borrowers are charged a 1.057 percent borrowing fee.
2. Best for instant credit decision: College Ave
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Eligible borrowers
Undergraduate and graduate students, parents
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Loan amounts
$1,000 minimum; maximum up to cost of attendance
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Loan terms
Range from 5 to 20 years
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Loan type,s
Variable and fixed
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Borrower protections
Deferment, forbearance, and grace period options are available
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Co-signer required?
Only for international students
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Offer student loan refinancing?
Yes – click here for details
Pros
- High loan amount
- Flexible repayment arrangements
- You can select between variable and fixed rates.
- Borrowers have hardship protection.
- Students in the United States are not obliged to have a co-signer
- Offers cosigner release.
- There are no origination, application, or prepayment costs.
- 0.25% interest rate reduction for autopay.
- Offers student loan refinancing.
- Accepts in-school payments.
Cons
- Non-cosigned loans typically carry higher interest rates.
- Co-signer release cannot be made until half of the repayment period has passed.
Overview: Borrowers can apply for a student loan with College Ave in minutes and receive an instant response, allowing them to plan their next steps fast.
Why College Avenue is ideal for a rapid application process: While you will need to complete a full application later, College Avenue can prequalify you in three minutes.
Requirements: Borrowers must be US citizens or permanent residents participating in a degree program at a qualifying institution; however, overseas students with a US Social Security number and a qualified co-signer may apply. Students must achieve adequate academic progress while at school.
Fees: College Ave may impose an undisclosed late fee.
3. Best for multi-year financing: Citizens Bank
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Eligible borrowers
Undergraduate and graduate students, parents
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Loan amounts
$150,000 maximum, or cost of attendance, whichever is lower
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Loan terms
Range from 5 to 15 years
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Loan types
Variable and fixed
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Borrower protections
Forbearance options available
-
Co-signer required?
No
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Offer student loan refinancing?
Yes – click here for details
Pros
- Flexible repayment arrangements
- You can select between variable and fixed rates.
- Borrowers have hardship protection.
- No co-signer is necessary.
- Offers cosigner release.
- There are no origination, application, or prepayment costs.
- Autopay offers up to a 0.50% interest rate savings.
- Offers student loan refinancing.
- Accepts in-school payments.
Cons
- Non-cosigned loans typically carry higher interest rates.
- The loan amount is limited to a maximum of $150,000 or the cost of attendance, whichever is lower.
Overview: Citizens Bank allows borrowers to apply for all years of graduate school funding at once, eliminating the need to reapply each year. This reduces the burden of wondering how you’ll pay for the next semester. (Borrowers may need to confirm their ongoing eligibility.)
Why Citizens Bank is ideal for multi-year approval: With Citizens Bank, you can be authorized for several years of student loan funds, avoiding a hard credit check each year of school.
Requirements: Borrowers must be U.S. citizens, permanent residents, or eligible noncitizens, with a co-signer who is a US citizen or permanent resident. Borrowers must also be of majority age in their state, or have a co-signer who is. To qualify for a Citizens Bank loan, students must be enrolled at least half-time in a degree-granting program at an authorized institution.
Fees: Citizens Bank has a 5% late fee and a $15 returned payment cost.
4. Best for applying with a co-signer: Sallie Mae
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Eligible borrowers
Undergraduate and graduate students, borrowers seeking career training
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Loan amounts
$1,000 minimum; maximum up to cost of attendance
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Loan terms
Range from 10 to 15 years
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Loan types
Variable and fixed
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Borrower protections
Deferment and forbearance options available
-
Co-signer required?
No
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Offer student loan refinancing?
No
Pros
- High loan amount
- You can select between variable and fixed rates.
- Borrowers have hardship protection.
- No co-signer is necessary.
- Offers cosigner release.
- There are no origination, application, or prepayment costs.
- 0.25% interest rate reduction for autopay.
- Accepts in-school payments.
Cons
- Non-cosigned loans typically carry higher interest rates.
- Does not provide student loan refinancing.
Sallie Mae has a co-signer release option with a relatively low threshold: Borrowers can petition to release their co-signer after graduating, making 12 on-time principal and interest payments, and meeting certain credit criteria. This could be an incentive for a co-signer to sign on, knowing they are not responsible for the entire loan term.
5. Best for applying without a co-signer: Ascent
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Eligible borrowers
Qualifying undergraduate juniors and seniors, graduate students
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Loan amounts
Up to $200,000 for undergraduate and $400,000 for graduate loans
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Loan terms
Range from 5 to 15 years
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Loan types
Variable and fixed
-
Borrower protections
Deferment and forbearance options available
-
Co-signer required?
No
-
Offer student loan refinancing?
No
Pros
- Considers borrowers without credit.
- High loan amount
- You can select between variable and fixed rates.
- Borrowers have hardship protection.
- No co-signer is necessary.
- Offers cosigner release.
- There are no origination, application, or prepayment costs.
- Autopay offers up to a 1% interest rate savings.
- 1% cashback rewards
- Accepts in-school payments.
Cons
- Non-cosigned loans typically carry higher interest rates.
- Does not provide student loan refinancing.
Overview: If you do not have a co-signer, Ascent is a decent lender to consider. Borrowers who do not have a co-signer must be U.S. citizens, permanent residents, or DACA recipients with an annual salary of at least $24,000 and at least two years of credit history to qualify for a graduate school loan. There are minimum credit score requirements, but they vary. Ascent also provides graduate school scholarships to assist with your financial needs.
Why Ascent is ideal if you do not have a co-signer: Ascent promises to evaluate things like your school, program, and GPA in addition to your credit score, so you may have a higher chance of getting a lower rate without a cosigner than you would with other lenders.
Requirements: Borrowers must be US citizens, permanent residents, or DACA students. Temporary residents can also apply with a qualifying cosigner. Borrowers applying without a cosigner must have at least two years of credit history, while those with a cosigner must have a minimum credit score. Borrowers and cosigners must have a gross annual income of at least $24,000. Borrowers must attend school at least half-time.
Fees: Ascent does not charge any fees for student loans.
6. Best for fair credit: Earnest
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Eligible borrowers
Undergraduate and graduate students, parents, half-time students, international and DACA students
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Loan amounts
$1,000 minimum (or up to state); maximum up to cost of attendance
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Loan terms
Range from 5 to 15 years
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Loan types
Variable and fixed
-
Borrower protections
9-month grace period
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Co-signer required?
No
-
Offer student loan refinancing?
Yes – click here for details
Pros
- Applicants with acceptable credit may qualify.
- High loan amount
- You can select between variable and fixed rates.
- Borrowers have hardship protection.
- No co-signer is necessary.
- There are no origination or prepayment fees.
- 0.25% interest rate reduction for autopay.
- Qualified borrowers can skip one payment every 12 months and make it up later.
- Offers student loan refinancing.
- Accepts in-school payments.
Cons
- Non-cosigned loans typically carry higher interest rates.
- There are no co-signer release options available.
- Variable rates are not accessible everywhere.
Those with fair credit should consider Earnest, a private lender, to help pay for their graduate degree. Earnest accepts applications from borrowers and cosigners with a minimum FICO® Score of 650. Earnest also stands out for offering a Rate Match Guarantee, which states that the lender will match a competitor lender’s rate and provide a $100 Amazon gift card upon rate match confirmation.
7. Best for a grad-level certificate: SoFi
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Eligible borrowers
Undergraduate and graduate students, parents, health professionals
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Loan amounts
$5,000 minimum (or up to state); maximum up to cost of attendance
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Loan terms
Range from 5 to 15 years; up to 20 years for refinancing loans
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Loan types
Variable and fixed
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Borrower protections
Forbearance options like unemployment protection are available
-
Co-signer required?
No
-
Offer student loan refinancing?
Yes – click here for details
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Offer parent loan?
Yes – click here for details
Pros
- High loan amount
- You can select between variable and fixed rates.
- Borrowers have hardship protection.
- No co-signer is necessary.
- There are no origination, application, or prepayment costs.
- 0.25% interest rate reduction for autopay.
- SoFi members receive career coaching, financial guidance from planners, and a 0.125% interest rate discount on any additional SoFi lending product, including student loan refinancing.
- Accepts in-school payments.
Cons
- Non-cosigned loans typically carry higher interest rates.
- There are no co-signer release options available.
- Loan size minimum of $5,000.
Overview: It can be more difficult to acquire funding for people seeking only a graduate certificate rather than a full graduate degree because not all graduate certificate programs are eligible for federal help. SoFi, on the other hand, lends to eligible borrowers in graduate-level certificate programs as well as half-time graduate students (something that few private lenders do).
Why SoFi is ideal for a low APR: In addition to having some of the most attractive starting APRs on this list, SoFi provides extra options to reduce your interest rate through autopay, member discounts, and rewards. The company also offers a cutting-edge scheme that allows borrowers to earn points by using its app and then use them to pay off their student loan obligations.
Requirements: Borrowers must be U.S. citizens, permanent residents, or nonpermanent resident aliens who have reached the age of majority in their respective states. If they do not meet these requirements, borrowers must find a co-signer. Borrowers must be enrolled at least half-time at an eligible institution.
Fees: SoFi has no fees.
8. EDvestinU
Private student loans have three loan terms: seven, ten, and fifteen years, although they waive several regular student loan fees. To qualify for an EdvestinU loan, you must be enrolled at least half-time in an eligible school.
Pros
- A higher autopay discount than many other lenders.
- International students may qualify with a cosigner who is a United States citizen or permanent resident.
- Flexible repayment options
Cons
- Borrower or cosigner must have a credit score of at least 750 and a minimum income of $30,000.
- Most borrowers require a cosigner to qualify.
- Cosigner release is only granted after 36 consecutive on-time payments, as well as meeting credit score and income requirements
9. INvestEd
Offers student loan refinancing to students from any state; however, you must live or attend college in Indiana to qualify for a new private student loan. The lender charges a 5% late payment fee, but there are no application, origination, or disbursement fees.
Pros
- 2% reduction in principal for graduation within six years.
- Funding up to 100% of the cost of attendance.
- Numerous repayment plan choices
Cons
- To qualify for the new loan, you must either live in Indiana or attend school there.
- Only three loan term options: five, ten, or fifteen years.
- Can’t file for cosigner release until after making 48 consecutive on-time payments, having a FICO score of
- 670, and a monthly income of $3,333 (or debt-to-income ratio of no more than 30%).
10. MEFA
Only provides a 15-year loan term, however, payments can be deferred until six months after graduation.
Pros
- Can borrow up to the cost of attendance, minus additional financial aid obtained.
- A low minimum income is required.
- Flexible repayment schemes
Cons
- There is only one 15-year term available for graduate student borrowers.
- Cosigner release only after 48 consecutive on-time payments.
- Students must be enrolled at least half-time at a qualified nonprofit school.
The best graduate student loan rates
| Lender | APR For Graduate Student Loans* | Loan Terms | MIN. Loan Amount | MAX. Loan Amount |
|---|---|---|---|---|
| U.S. Department of Education: Direct Unsubsidized Loan | 7.05% fixed standard | d repayment term is 10 years | t specified | $20,500 per year (lifetime limit $138,500) |
| Ascent | Fixed: 5.13%-14.56% (with autopay); Variable: 7.20%-15.21% (with autopay) | 5-20 years | $2,001 | $400,000 |
| Citizens Bank | Fixed: 4.99%-12.24% (with autopay); Variable: 6.84%-13.32% (with autopay) | 5-15 years | $1,000 | $350,000 |
| College Ave | Fixed: 4.11%-14.49%; Variable: 5.59%-14.49% | 5-20 years | $1,000 | 100% total cost of attendance ($150,000 maximum for some programs) |
| U.S. Department of Education: Grad PLUS loan | 8.05% fixed standard | d repayment term is 10 years | t specified | 100% total cost of attendance Sallie |
| e Mae | Fixed: 4.99%-14.48% (with autopay); Variable: 6.87%-16.47% (with autopay) | 15-20 years | $1,000 | 100% total cost of attendance |
| SoFi | Fixed: 4.99%-14.48% (with autopay); Variable: 5.99%-14.48% (with autopay) | 5-15 years | $1,000 | 100% total cost of attendance |
*The rates in this table represent the rate ranges provided for graduate student loans. The lender information presented here reflects the entire student loan rate range offered by each lender.
**The minimum amount is $2,001, except in Massachusetts. The minimum loan amount for borrowers having a permanent address in Massachusetts is $6,001.
Types of Graduate Student Loans
You have three options: federal Direct Unsubsidized student loans, federal Grad PLUS student loans, and private student loans.
Federal graduate student loans
The US Department of Education backs federal student loans, which are filled with borrower safeguards and flexibility. Graduate students in this program can select between a Direct Unsubsidized Student Loan and a Grad PLUS Loan.
A Direct Unsubsidized student loan allows you to borrow up to $20,500 every school year, with a maximum aggregate of $138,500 for most degrees. A graduate PLUS loan allows you to borrow up to 100% of the cost of attendance. In general, it is advisable to maximize your unsubsidized loan alternatives initially, as they have lower interest rates than grad PLUS loans. In addition, grad PLUS loans require a credit check, whereas Direct Unsubsidized Loans do not.
To apply for either of these loans, you must complete the FAFSA, which is available on October 1 of each year. If you’re seeking a grad PLUS loan, you’ll need to fill out a second application after completing the FAFSA. If this is your first time receiving a Direct Loan, you must complete admission counseling.
Pros
- Flexible repayment choices, including income-based payback arrangements.
- The same fixed rates apply to all borrowers, regardless of credit score.
- Borrower safeguards include choices for deferment and forbearance, as well as potential loan forgiveness.
Cons
- Loan limitations are quite low for Direct Unsubsidized Loans.
- Fees for originating transactions.
- If you fail to pay, you may have your salary or tax refund garnished.
- If you have great credit, your interest rates may be higher than those offered by private lenders.
Private graduate student loans
Banks, credit unions, and online lenders are examples of private financial entities that originate student loans. You have dozens of possibilities, but each lender determines its prices, terms, and eligibility restrictions. Rates typically range from roughly 4% to 17% and might be fixed or variable. Your credit score and financial background will determine the exact rate you are charged. As a result, to be authorized for a loan, you must first pass a hard credit check.
Unlike government student loans, private lenders typically provide a variety of payback options, ranging from five to twenty years. Private student loan lenders frequently provide degree-specific loans designed to meet the needs of law school, medical school, business school, and other programs.
Pros
- Many loans charge zero costs.
- If you have a great credit score, you will get lower interest rates.
- Choose between fixed and variable interest rates.
- High borrowing limitations.
Cons
- There are no stated hardship plans.
- There are no income-driven repayment or forgiveness schemes.
- Poor credit makes qualifying more difficult.
| Federal Graduate Student Loans | Private Graduate Student Loans | |
|---|---|---|
| APR | Fixed: 7.05%-8.05% | Fixed: 3.98%-15.31%; Variable: 5.59%-16.10% |
| Fees | Origination fees of 1.057%-4.228% | Varies by lender; often only late fees |
| Borrowing limits | Direct Unsubsidized Loan: Up to $20,500 per year; Grad PLUS loan: Up to 100% total cost of attendance | p to 100% total cost of attendance |
| Repayment terms standard | d term is 10 years | 5-20 years |
Tips to Compare Graduate Student Loan Lenders
Comparison shopping is almost always a wise decision, especially when you’re signing up for a financial product — such as a graduate student loan — that will have long-term consequences for your financial well-being. When evaluating lenders, crucial factors to consider include:
Loan types and rates: Is the lender offering variable or fixed-rate products? Are there various loans accessible, or does the lender offer customized loans based on the degree you are pursuing? What are the prerequisites for receiving the best APR?
Available loan amounts: Does the lender have a limit on the amount you can borrow? Will you be able to meet all of your finance demands with a single loan?
Eligibility requirements: Graduate student lenders typically require borrowers and cosigners to be US citizens or permanent residents. Certain loans may only be offered to undergraduate students. Lenders often need borrowers and cosigners to have outstanding to exceptional credit.
Loan repayment plans and terms: How many repayment options does the lender offer? Will you be able to repay the loan within the specified timeframe? What are its policies for deferral, in-school payments, and post-graduation repayment?
Available discounts: A discount for enrolling in autopay is pretty common among student loan providers. Some lenders may provide additional discounts or incentives, such as a monetary prize for graduating on time.
Fees and penalties: Is the lender charging or waiving customary fees, such as the origination fee? Is there a penalty for skipping a payment or prepaying?
Cosigner requirements and cosigner release terms: Graduate and undergraduate borrowers frequently require cosigners to qualify for a loan. What is the minimal credit score and income level for cosigners? How long will it take before you can ask the lender to discharge your cosigner from the loan?
What is a graduate student loan?
A graduate school loan is a sort of student loan used to pay for graduate school tuition, fees, books, housing, and other expenses. Graduate education is more expensive than undergraduate school, hence these loans frequently have larger borrowing restrictions. They may also offer incentives particular to your degree, such as prolonged deferment during a clerkship or fellowship chances.
What are the best loans for graduate school?
The best loans for graduate school are:
1. Federal graduate student loans
Borrowers can apply for two types of federal loans for graduate school: unsubsidized direct loans and graduate PLUS loans.
-
Federal direct unsubsidized loans Limit your borrowing to $20,500 per year and $138,500 total, including undergraduate loans. However, these loans have lower interest rates and costs than PLUS loans, so choose unsubsidized loans over graduate PLUS loans.
-
Federal Grad PLUS loans have higher interest rates and costs than direct unsubsidized loans, but you can borrow more money—up to your total cost of attendance, minus any financial aid received. If you’ve used up all of your federal direct unsubsidized loans but still want to pay for graduate school, use grad PLUS loans.
No one can receive subsidized loans for graduate study. Some professional students may be eligible for a federal health professions student loan as well.
To apply for federal loans for graduate school, complete the Free Application for Federal Student Aid, or FAFSA.
2. Ascent Graduate Student Loan
If you or a cosigner have exceptional credit, Ascent’s graduate student loan may be a suitable fit.
While federal interest rates remain historically low for the 2020-21 academic year, a private graduate student loan may provide a better deal. You’ll almost probably pay fewer fees. Grad PLUS loans have a higher origination fee than most private lenders, which is less than 4%.
Ascent’s graduate student loan distinguishes out for its flexibility. The lender provides a nine-month grace period and 24 months of forbearance, both of which are longer than many other lenders’ terms.
3. College Ave Graduate Student Loan
If you’re in graduate school, College Ave is an excellent choice. Unlike many lenders, including the federal government, College Ave provides graduate student loans if you are attending school less than half-time.
In addition to Ascent and College Ave, graduate students searching for private student loans may explore Discover, SoFi, RISLA, and Wells Fargo. It is best to obtain quotations from numerous lenders before applying to guarantee you get the best available rate.
4. Prodigy Graduate Student Loan
Prodigy is an excellent option for international graduate students who do not have a US citizen co-signer. You can get a Prodigy graduate student loan without a co-signer; lending decisions are based on your future income, not your current financial condition. Prodigy only provides variable-rate loans, which are riskier than fixed-rate options and does not lend to borrowers in all 50 states.
5. Stride Funding Income Share Agreement
An income share agreement, or ISA, is not a student loan, although graduate students may be allowed to utilize one to fund their studies. Stride Funding encourages lending ISAs to graduate students, particularly those studying STEM and health care.
An ISA entails promising to pay a percentage of your future income in exchange for upfront cash. You can repay more or less than you received. Before borrowing, make sure you compare ISAs and student loans to understand the potential expenses.
Which graduate student loan is best for you?
If you need loans to pay for graduate school, federal student loans are likely to be your best option. These include income-driven repayment plans and loan forgiveness programs, which are not available with private graduate school loans.
Those perks can be useful depending on how much debt you have (the average graduate student debt is $82,000, including undergraduate loans) and your professional goals. If you want to seek a Ph.D. and work at a university, you may want to apply for Public Service Loan Forgiveness.
If you won’t be working for a nonprofit or need government benefits, compare private student loans to discover what interest rate you’d be eligible for. Many lenders provide specific graduate student loan solutions based on the degree you’re pursuing.
-
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Most lenders will not force you to pay student loans while attending graduate school, as long as you are enrolled at least half-time. However, depending on how much you are paid as a graduate student, making payments can save you money because all graduate school loans accrue interest, increasing the amount owed.
Student Loan Rating Methodology
Our survey of over 29 banks, credit unions, and online lenders who provide student loans and refinancing includes the top ten lenders by market share and internet search volume, as well as lenders that serve specialist or atypical markets.
We take into account 40 attributes and data elements for each financial institution. Depending on the category, features include biweekly payments via autopay, disclosures of minimum credit score and income requirements, loan availability in all states, extended grace periods, and in-house customer assistance.
The stars indicate evaluations ranging from unsatisfactory (one star) to outstanding (5 stars). Ratings are rounded to the nearest half-star.
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