Graduate Student Loans Of 2025

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What to know first: Before choosing the best graduate student loans of 2025, understand your options. Federal loans offer fixed rates and flexible repayment. Private loans may provide lower rates but require good credit. Compare lenders, terms, and benefits to find the most affordable way to fund your graduate education.

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Best Graduate Student Loan Options of 2025

You have several graduate student loan options to help finance your education as these include federal Direct Unsubsidized Loans, Graduate PLUS Loans, and private student loans. Among these, federal Direct Unsubsidized Loans are usually the most affordable, offering lower interest rates and greater repayment flexibility.

However, there’s a borrowing cap students can only receive up to $20,500 per academic year through Direct Unsubsidized Loans. If your education expenses exceed that amount, you may need to check the extra funding sources. We’ve reviewed and ranked the top federal and private student loans for graduate students based on important features like interest rates, fees, repayment terms, and application simplicity.

What Is a Graduate Student Loan?

Graduate student loans are financial aid tools specifically created for students working toward advanced degrees, such as a master’s, Ph.D., or other postgraduate programs.

There are two main types of federal loans available to graduate students: Direct Unsubsidized Loans and Graduate PLUS Loans. With Direct Unsubsidized Loans, you can borrow up to $20,500 annually. Graduate PLUS Loans allow you to borrow up to the full cost of attendance at your institution, minus any other financial aid you’ve received.

In addition to federal loans, private graduate student loans are available through banks, credit unions, and online lenders. These lenders often let you borrow up to your school’s full cost of attendance, though borrowing limits can vary. Some lenders also offer personalized loan options for students in MBA, law, or medical programs.

Federal graduate loans have fixed interest rates, which remain the same for all borrowers. Private student loans, however, may come with either fixed or variable rates, depending on your credit profile. Those with strong credit histories typically qualify for more competitive interest rates.

Regardless of whether you choose federal or private loans, graduate student loans can be used to cover tuition, fees, books, and other essential education-related costs.

How Do Student Loans Work for Graduate School?

Graduate student loans operate much like undergraduate loans, offering both federal and private financing options. For many students, federal loans are the preferred choice—they’re easier to qualify for, offer more flexible repayment plans, and may include lower interest rates compared to private loans. Plus, federal loans come with valuable borrower protections, such as loan forgiveness opportunities and emergency relief measures like the COVID-19-related payment and interest pause that began in March 2020.

A main difference with graduate loans is the borrowing limit. Graduate students are generally eligible to borrow more than undergraduates, often up to the total cost of attendance or within a higher lifetime cap. This is especially important for those entering high-cost programs such as law or business school.

However, higher loan limits also typically come with higher interest rates. For example, during the 2021–22 academic year, undergraduate students could borrow Direct Unsubsidized Loans at a 3.73% interest rate, while graduate students borrowing the same type of loan paid a higher rate of 5.28%.

Types of Graduate School Loans

Graduate students have three primary loan options to help fund their education. You can choose between two federal loan types—Direct Unsubsidized Loans and Graduate PLUS Loans, or apply for financing through a private lender. As federal loans offer consistent interest rates and terms for all applicants, private student loan rates and conditions vary based on factors like your credit score, income, and financial history.

Below is a comparison of the major differences between graduate loan options:

Loan Type	Eligibility	Credit Check Required?	Interest Rate (2022–23)	Origination Fee (2022–23)	Borrowing Limit	Co-signer Allowed?
Direct Unsubsidized Loan	Must be enrolled at least half-time and meet federal aid criteria	No	6.54%	1.057%	Up to $20,500 annually; $138,500 lifetime cap	Not permitted
Graduate PLUS Loan	Must be enrolled at least half-time, meet federal criteria, and pass a credit check	Yes	7.54%	4.228%	Up to your school’s full cost of attendance, minus other aid	Allowed
Private Student Loan	Normally requires good credit, steady income, U.S. citizenship, and enrollment in an eligible program	Generally yes	Varies by lender; top-tier borrowers may access lower rates than federal loans	Most private lenders charge no origination fees	Usually up to the total cost of attendance	Usually allowed

How to Apply for Student Loans for Graduate School

The steps to apply for graduate student loans differ depending on whether you choose federal or private loans. Here’s how to navigate both processes:

Applying for Federal Graduate Student Loans

To access federal loans for graduate school, you’ll need to complete the Free Application for Federal Student Aid (FAFSA). This application decides your eligibility for federal financial aid, including loans, grants, and work-study programs.

Graduate students only need to submit their own financial details, not their parents’, unlike undergraduate applicants. A new FAFSA must be filed for each academic year you plan to enroll.

Once your FAFSA is reviewed, your school will send you a financial aid award letter outlining what federal aid, including Direct Unsubsidized and Grad PLUS Loans, you qualify for. You can then choose the amount and types of loans you wish to accept. The approved loan funds are disbursed directly to your school to cover tuition and fees. If there’s any surplus, it will be refunded to you for additional educational expenses.

Applying for Private Graduate Student Loans

You should compare multiple lenders to find the best fit if you’re considering a private loan. Private student loan terms, including interest rates, fees, and repayment flexibility, can vary widely, so shopping around is key.

Many private lenders offer a prequalification process that lets you check estimated interest rates without affecting your credit score. When evaluating lenders, pay close attention to:

Interest rates (fixed or variable)
Origination or late fees
Repayment terms and flexibility
Options for financial hardship or deferment

You can apply online through their website once you’ve selected a lender. Most applications are processed within a few business days. You’ll sign a loan agreement if you’re approved and agree to the final terms. The funds will then be sent directly to your school, and any leftover balance will be refunded to you for personal education-related costs.

What Are The Best Student Loans For Graduate Students?

Federal student loans are often the top choice when it comes to financing graduate school. These loans don’t require a strong credit history and come with valuable borrower protections that many private graduate loans simply don’t offer. Major federal benefits include:

Income-driven repayment plans
Loan forgiveness programs
Flexible repayment options

These features can be especially important given the cost of advanced education. According to the National Center for Education Statistics, the average graduate student carries around $88,220 in total student loan debt, including any undergraduate loans.

Even if you choose federal or private loans, most lenders don’t require payments while you’re enrolled at least half-time. However, interest continues to accrue during this period. If your income as a grad student allows it, making in-school payments can help lower the total interest you’ll pay over the life of the loan.

Eventually, the best graduate student loan is one that offers low interest rates, flexible repayment, and borrower-friendly terms, and for most students, federal loans check all those boxes.

Can You Use Graduate Student Loans For Living Expenses?

Yes, graduate student loans can be used to cover living expenses while you’re in school. These expenses can include housing or rent, groceries, utilities, transportation, and personal costs, essentially, anything that falls under the school’s defined cost of attendance (COA). If you’re living on campus, many of these costs are bundled into your tuition and fees and paid directly to the school.

For off-campus students, any leftover loan funds, after tuition and school-related fees are paid, will be paid to you in the form of a refund. You can then use that money to help cover your day-to-day expenses throughout the semester. It’s important to budget carefully, as loans accrue interest even when used for non-tuition needs. Even if you’re using federal or private graduate student loans, it’s smart to borrow only what you need to avoid excessive debt.

Graduate student loans are a flexible financial tool that not only support your education but also help maintain your cost of living while earning your degree.

Top 12 Graduate Student Loan Lenders :

We’ve compared interest rates, repayment terms, eligibility requirements, and special features from 12 top lenders to help you find the best financing for your advanced degree.

1. Federal Direct Unsubsidized Loan

Fixed APR: 8.08%
Loan Terms: 10-25 years
Max Loan Amount:
20,500/year
20,500/year(138,500 aggregate)
Best For: Lowest fixed rates & federal borrower protections
Key Features: Income-driven repayment, loan forgiveness options, no credit check

2. Federal Graduate PLUS Loan

Fixed APR: 9.08%
Loan Terms: 10-25 years
Max Loan Amount: Up to cost of attendance
Best For: Covering funding gaps after maxing unsubsidized loans
Key Features: Flexible repayment plans, but has 4.228% origination fee

3. SoFi® Graduate Student Loans

Fixed APR: 3.54%-14.83% (with autopay)
Variable APR: 4.64%-15.86% (with autopay)
Loan Terms: 5, 7, 10, 15 years
Best For: Borrowers with strong credit
Key Features: No late fees, rate discounts, SoFi member benefits

4. Ascent Graduate Student Loan

Fixed APR: 4.39%-13.76%
Variable APR: 6.86%-14.27%
Loan Terms: 7-20 years (longer terms for medical/dental)
Best For: Borrowers without co-signers
Key Features: 1% cash back graduation reward, 24-month forbearance

5. Citizens Bank Graduate Loans

Fixed APR: 3.99%-15.59%
Variable APR: 4.97%-15.59%
Loan Terms: 5, 10, 15 years
Best For: Existing Citizens Bank customers (0.25% loyalty discount)
Key Features: Co-signer release after 36 payments

6. College Ave Graduate Loans

Fixed APR: 3.47%-14.49% (with autopay)
Variable APR: 4.44%-14.49% (with autopay)
Loan Terms: 5, 8, 10, 15 years
Best For: Flexible repayment options
Key Features: 12-month grace period, soft credit check for rate estimates

7. PNC Bank Graduate Loans

Fixed APR: 3.59%-13.99%
Variable APR: 4.09%-14.49%
Loan Terms: 5, 10, 15 years
Best For: 0.50% autopay discount
Key Features: 12-month loan modification program

8. RISLA (Rhode Island Student Loan Authority)

Fixed APR: 3.85%-8.64%
Loan Terms: 10-15 years
Best For: Low fixed rates
Key Features: Income-based repayment option (15% of income)

9. Prodigy Finance (For International Students)

Variable APR: 8.35%+ (average 7.3%)
Best For: International students without U.S. co-signers
Key Features: No co-signer required, but charges 4% admin fee

10. Sallie Mae Graduate Loans

Fixed APR: 3.49%-14.48%
Variable APR: 4.54%-13.98%
Loan Terms: 5-15 years
Best For: Less-than-half-time students
Key Features: Co-signer release after 12 payments

11. Earnest Graduate Loans

Fixed APR: 3.47%-14.30% (with autopay)
Variable APR: 4.99%-15.97% (with autopay)
Loan Terms: 5-15 years
Best For: Flexible payment options
Key Features: Skip 1 payment/year, 9-month grace period

12. LendKey Graduate Loans

Fixed APR: 4.39%-11.99%
Variable APR: 5.29%-11.99%
Best For: Credit union & community bank loans
Key Features: Co-signer release after 12-24 months

Tips For Comparing Graduate Student Loan Lenders

Comparison shopping is important when choosing a graduate student loan lender. A loan will have long-term financial implications, so finding the right one is essential. Here are the main factors to consider:

1. Loan Types and Interest Rates

Does the lender offer both variable-rate and fixed-rate loans?
Are there specialized loans based on the specific graduate program you’re pursuing?
What criteria does the lender use to offer the best APR?

2. Loan Amounts Available

Does the lender have a borrowing limit?
Can a single loan cover all your educational expenses, or will you need multiple loans?

3. Eligibility Requirements

Most lenders require borrowers or their cosigners to be U.S. citizens or permanent residents.
Some loans may only be available for undergraduate students.
Most lenders will need borrowers (or cosigners) to have good to excellent credit.

4. Repayment Plans and Loan Terms

How many repayment term options are available?
Will the term duration be manageable for you to repay the loan comfortably?
How does the lender handle deferral, in-school payments, and post-graduation repayment options?

5. Discounts and Incentives

Many lenders offer autopay discounts, but do they provide other rewards like cash incentives for on-time graduation?

6. Fees and Penalties

Does the lender charge common fees, such as an origination fee?
Are there penalties for late payments or prepaying the loan early?

7. Cosigner Requirements and Release Terms

If you need a cosigner, what are the minimum credit score and income requirements?
After a period of timely payments, how soon can you request cosigner release from the loan?

How Much Can I Borrow As A Graduate Student?

The type of loan and the lender have a significant impact on how much you may borrow as a graduate student. Graduate students can borrow up to $20,500 per year through federal student loans like Direct Unsubsidized Loans. For the majority of graduate students, this is usually the highest sum.

On top of that, graduate students can apply for Grad PLUS loans, which allow borrowing up to the total cost of attendance, including tuition, fees, and living expenses, minus any other financial aid received. These loans require a credit check, and interest rates are typically higher than those for Direct Unsubsidized Loans.

Private loans are another option, where borrowing limits depend on the lender and your creditworthiness. While these loans can cover the remaining cost of attendance, they often come with higher interest rates and less flexible repayment terms.

Can International Students Apply For Graduate Student Loans?

Yes, international students can apply for graduate student loans. As federal student loans, accessible through the Free Application for Federal Student Aid (FAFSA®), are not available to international students, there are still options for financial assistance. International students who are enrolled in U.S. institutions can apply for private loans, provided they have a creditworthy cosigner. The cosigner must be a U.S. citizen or permanent resident. Moreover, an unexpired government-issued photo ID is required to verify identity.

Although federal loans are not an option, international students can still explore other forms of financial aid, such as scholarships and grants, which are often offered by universities or external organizations. It’s important for international students to research available resources to help cover tuition and living costs while studying in the U.S.

Alternatives to Graduate Student Loans

Graduate student loans are a common way to cover educational expenses, but minimizing debt is often a top priority. Check the following options to fund your education if you’re looking for alternatives to student loans:

Grants: You may be eligible for grants offered by federal, state, or school programs. Grants do not require repayment and are typically awarded based on financial need or your specific course of study. Notable federal grants for graduate students include TEACH Grants and Fulbright Grants.

Scholarships: Scholarships are another great way to reduce the financial burden. They can be awarded based on factors like academic merit, financial need, athletics, or other notable achievements. Applying for scholarships from both private and institutional sources can provide significant financial support.

Work-Study Programs: Graduate students with financial need may qualify for federal work-study programs, which offer part-time employment opportunities on or off campus. This option helps you earn money while gaining valuable work experience.

Part-Time Employment: Even if you’re ineligible for work-study, part-time employment can still be a viable solution. Many part-time job opportunities are available both on and off-campus, helping you supplement your income while pursuing your degree.

Personal Savings: Using your own savings to cover educational expenses can minimize the amount you need to borrow in loans. Tapping into personal savings, if available, can ease the financial strain of graduate school.

Income-Share Agreements (ISAs): Income-share agreements are an innovative alternative to traditional loans. With an ISA, you receive funding to pay for school in exchange for a percentage of your future income for a set period. This option provides a flexible way to manage educational costs based on your future earnings.

Check Your Options: Before taking on any loans, it’s important to explore these alternative funding sources to reduce the financial burden of graduate school.

Conclusion

Pursuing a graduate degree is a significant investment, and choosing the right student loan can greatly impact your financial future. For most students, federal loans especially Direct Unsubsidized Loans remain the safest and most cost-effective choice due to their fixed interest rates, income-driven repayment plans, and forgiveness options. However, once federal aid is maxed out, Graduate PLUS Loans or private student loans from reputable lenders like SoFi, College Ave, or Citizens Bank can help fill the gap.

Before borrowing, compare loan features carefully—look at interest rates, repayment terms, origination fees, and borrower perks. Use only what you need to avoid unnecessary debt, and if possible, start repaying interest while still in school.

Ultimately, the best graduate student loan is one that fits your budget, credit profile, and career goals—helping you fund your education while keeping long-term debt manageable.

FAQ’s

FAQs About Graduate Student Loans

What Types of Student Loans Are Available for Graduate Students?

Graduate students have two main loan options:

Federal Student Loans

Direct Unsubsidized Loans – Available to all graduate students regardless of financial need. Interest accrues while in school.
Grad PLUS Loans – Covers remaining education costs after other aid. Requires a credit check but no minimum credit score.
How to Apply: Submit the FAFSA® (Free Application for Federal Student Aid).

Private Student Loans

Offered by banks, credit unions, and online lenders like Sallie Mae, these loans can fill funding gaps. Benefits include:

Competitive interest rates (fixed or variable)
Loans tailored to specific degrees (medical, law, MBA, etc.)
Flexible repayment options

How Do I Apply for a Private Graduate Student Loan?

Applying is quick and straightforward:

Click “Apply Now” on the lender’s website.
Select Your Loan Type (e.g., medical school, law school, general graduate studies).
Fill Out Basic Information (15-minute process).
Undergo Credit Review (a cosigner may help with approval).

Receive Funds (disbursed directly to your school).

Do I Qualify for a Graduate Student Loan?

Private graduate loans are credit-based, meaning lenders assess:

Your credit score & history
Debt-to-income ratio (if employed)
Cosigner eligibility (if your credit is limited)

No credit or poor credit? A creditworthy cosigner can increase approval odds.

What Can I Use Graduate Student Loans For?

Eligible expenses include:

✔ Tuition & fees
✔ Books & supplies
✔ Housing & meals
✔ Transportation
✔ Technology (laptop, software)
✔ Childcare (if required for studies)

Not Covered: Non-essentials (vacations, dining out, other debts).

Are Graduate Students Eligible for Subsidized Loans?

No. Federal subsidized loans (where the government pays interest while in school) are only for undergraduates. Graduate students can access:

Unsubsidized Direct Loans
Grad PLUS Loans

Is There Loan Forgiveness for Graduate Students?

Yes. Some options include:

Public Service Loan Forgiveness (PSLF) – For federal loans after 10 years of qualifying payments.
Income-Driven Repayment (IDR) Forgiveness – Forgives remaining debt after 20-25 years.
State-Based Repayment Programs – Some states offer repayment assistance for high-need careers.

How Are Private Graduate Loan Interest Rates Determined?

Private lenders set rates based on:

Your credit score (higher score = lower rate)
Loan type (fixed vs. variable)
Market conditions (e.g., prime rate fluctuations)

Variable rates may start lower but can increase over time.

What Is a Co-signer Release?

Some lenders allow you to remove a cosigner after meeting certain requirements, such as:

Making 36 on-time payments
Passing a credit check
Meeting income criteria