11 Best Graduate Student Loan Options of June 2023
Graduate students should max out federal unsubsidized loans before turning to federal PLUS or private loans to cover their remaining costs.
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The federal government and private lenders offer graduate student loans. Max out federal unsubsidized loans — likely the cheapest option — before covering remaining costs with federal grad PLUS loans or private student loans.
Grad PLUS loans don't require credit and come with multiple repayment options, which will likely make them best for most borrowers. But you may pay less with a private graduate school loan if you or a co-signer has excellent credit.
Here are our picks for the best loans for graduate school, as well as information on how to choose between them and manage debt while you're in school.
Best Graduate Student Loan Options
Lender | NerdWallet Rating | Min. credit score | Fixed APR | Variable APR | Learn more |
|---|---|---|---|---|---|
5.0 /5 | None | 4.99-6.54% | N/A | ||
5.0 /5 | None | 7.54-7.54% | N/A | ||
5.0 /5 | Mid-600s | 4.44-13.99% | 5.09-13.99% | Check rateon College Ave's website on College Ave's website | |
5.0 /5 | Varies | 5.48-15.52% | 6.99-15.88% | Check rateon Ascent's website on Ascent's website | |
4.5 /5 | 650 | 4.45-14.90% | 5.15-16.42% | Check rateon Earnest's website on Earnest's website |
Our pick for
All borrowers as a first option
Graduate students can take out up to $20,500 annually in unsubsidized federal student loans.
Federal Subsidized/Unsubsidized Loan
None
4.99-6.54%
N/A
Graduate school borrowers qualify for unsubsidized student loans only.
- More flexible repayment options for struggling borrowers than other lenders.
- Subsidized loans do not collect interest while in school or during deferment.
- Lower interest rates compared with private lenders.
- You pay an origination fee.
- No credit check or minimum income is needed to borrow.
- Loan amounts for undergraduates: $5,500 year one, $6,500 year two, $7,500 year three and thereafter, up to a total of $31,000
- Independent students and graduate students have higher loan limits.
- Undergraduate interest rate fixed at 3.73%, while grad students get higher 5.28% rate
Our pick for
Borrowers without credit or a co-signer
Graduate PLUS loan interest rates aren't based on your credit score: All eligible borrowers receive the same fixed rate.
- More flexible repayment options for struggling borrowers compared with private lenders.
- All borrowers who attend a school authorized to receive federal aid can qualify.
- May have higher interest rates compared with private lenders.
- You pay an origination fee.
- You can’t see if you’ll qualify without a hard credit check.
- Grad PLUS loan borrowers must not have adverse credit history.
- Borrowers with adverse credit history can still receive a grad PLUS loan by enlisting a co-signer without adverse credit history or documenting extenuating circumstances for their credit history.
- Loan amounts: Total cost of attendance minus other financial aid.
Our pick for
Borrowers with good credit or a co-signer
College Ave Graduate Student Loan
Mid-600s
4.44-13.99%
5.09-13.99%
- You can see if you’ll qualify and what rate you’ll get without a hard credit check.
- International students can qualify with a co-signer.
- Nine-month grace period is longer than other lenders offer.
- You must be at least halfway through your repayment term before you can request a co-signer release.
- Typical credit score of approved borrowers: Mid-700s.
- Minimum income: $35,000 per year.
- Loan amounts: $1,000 up to the total cost of attendance.
Ascent Graduate and Health Professions Student Loan
Varies
5.48-15.52%
6.99-15.88%
- Forbearance of 24 months is longer than many lenders offer.
- Grace period of 9 months is longer than many lenders offer.
- You can see if you’ll qualify and what rate you’ll get without a hard credit check.
- You must be enrolled at least half-time to qualify.
- Typical credit score of approved borrowers or co-signers: Not available.
- Minimum income: Not available.
- Loan amounts: up to $400,000.
Earnest Private Student Loan
650
4.45-14.90%
5.15-16.42%
- Option to skip one payment every 12 months.
- No late fees.
- Nine-month grace period is longer than most lenders offer.
- You can’t see if you’ll qualify and what rate you’ll get without a hard credit check.
- Loans aren't available in Nevada.
- Typical credit score of approved borrowers: 758.
- Minimum income: $35,000.
- Loan amounts: $1,000 up to your total cost of attendance.
Custom Choice Loan, Powered by Cognition
600
3.65-12.46%
6.14-14.59%
- You can see if you’ll qualify and what rate you’ll get without a hard credit check.
- No late fees.
- Principal reduction of 2% if you graduate.
- Stands out for features that enable faster loan repayment.
- Doesn't apply extra payments to the principal balance by default.
- Forbearance program is less generous than others.
- Typical credit score of approved borrowers: 700 for a non-cosigned loan and 733 for co-signed loans.
- Minimum income: No minimum, but borrowers must demonstrate positive income.
- Loan amounts: $1,000 up to $99,999.
RISLA Private Student Loan
680
4.99-6.94%
N/A
- Income-based repayment plan available, with forgiveness after 25 years.
- You can see if you’ll qualify and what rate you’ll get without a hard credit check.
- Partial loan forgiveness for eligible internships; interest forgiveness for qualifying nurses.
- Fewer repayment terms available than other lenders.
- Typical credit score of approved borrowers: 768.
- Minimum income: $40,000.
- Loan amounts: $1,500 to $45,000.
Advantage Education Private Student Loan
Does not disclose
2.84-7.74%
N/A
- Forbearance of 24 months is twice as long as most lenders.
- Loans are available if you’re enrolled less than half time.
- Fewer repayment terms than other lenders offer.
- Borrowers are not able to defer loans if they return to school after their grace period ends.
- Typical credit score of approved borrowers: Does not disclose.
- Minimum income: Does not disclose.
- Loan amounts: Minimum $1,000. Maximum depends on creditworthiness and debt-to-income ratio.
ISL Private Student Loan
660
3.85-8.40%
5.59-10.71%
- Forbearance of 24 months is longer than many lenders offer.
- No late fees.
- Only offers 2 loan terms.
- Typical credit score of approved borrowers or co-signers: 670.
- Minimum income: No minimum income.
- Loan amounts: $1,001 or $2,001, based on residency and school location, up to cost of attendance minus other aid received.
Our pick for
International borrowers without credit or a co-signer
International students don't qualify for federal aid and have fewer private options without a co-signer who's a U.S. citizen.
MPOWER Private Student Loan
None
13.74-15.01%
N/A
- Offers a hard-to-find option: non-co-signed student loans for international and DACA students.
- Borrowers are assigned a dedicated student loan advisor.
- Borrowers can request forbearance of up to 24 months, which is longer than many lenders offer.
- Payment required while in school and during the grace period.
- Offers only one repayment term: 10 years.
- MPOWER considers future income potential but does not factor in credit scores.
- Loan amounts: Minimum $2,001. Maximum loan is $100,000, limited to $25,000 per academic period.
Our pick for
Income-based private loan
- No credit history required.
- Available to students without a co-signer.
- No payment required if borrower's income is less than $30,000 per year.
- Borrowers have to repay 2.25X the borrowed amount if they want to pay off the loan early.
- Not available to freshmen and sophomores receiving a four-year degree.
- Not available to borrowers in Colorado, Iowa, Maine, Vermont and West Virginia.
What are the best loans for graduate school?
1. Federal graduate student loans
Borrowers are eligible for two types of federal loans for graduate school: unsubsidized direct loans and grad PLUS loans.
Federal direct unsubsidized loans limit the amount you can borrow to $20,500 annually and $138,500 overall, including undergraduate loans. But these loans have lower interest rates and fees than PLUS loans, so opt for unsubsidized loans before graduate PLUS loans.
Federal grad PLUS loans have higher interest rates and fees than direct unsubsidized loans, but you can borrow more money — up to your total cost of attendance, minus other aid received. Use grad PLUS loans if you’ve maxed out your federal direct unsubsidized loans and still want to use federal loans to pay for graduate school.
No one can get subsidized loans for graduate school. Certain professional students may be eligible for a federal health professions student loan as well.
You can apply for federal loans for graduate school by completing the Free Application for Federal Student Aid, or FAFSA.
2. Ascent Graduate Student Loan
Ascent's graduate student loan is a good option if you or a co-signer has excellent credit.
While federal interest rates are historically low for the 2020-21 academic year, you still may get a better rate with a private graduate student loan. You'll almost certainly pay less in fees: Grad PLUS loans come with an origination fee of more than 4%, while most private lenders don't charge these fees.
Ascent's graduate student loan stands out due to its flexibility. The lender offers a nine-month grace period and 24 months of forbearance — both of which are longer than many other lenders provide.
3. College Ave Graduate Student Loan
College Ave is a good choice if you're working your way through graduate school. Unlike many lenders, including the federal government, College Ave offers graduate student loans if you're attending school less than half-time.
In addition to Ascent and College Ave, graduate students looking at private student loans may want to consider Discover, SoFi, RISLA and Wells Fargo. It's best to get quotes from multiple lenders before applying to ensure you get the best rate possible.
4. Prodigy Graduate Student Loan
Prodigy is a good choice for international graduate students who don't have a U.S. citizen co-signer. You can qualify for a Prodigy graduate student loan without a co-signer; lending decisions are based on your future income, rather than your current financial situation. Prodigy only offers variable-rate loans, which are riskier than fixed-rate options, and doesn't lend to borrowers in all 50 states.
5. Stride Funding Income Share Agreement
An income share agreement, or ISA, is not a student loan, but graduate students may be able to use one to finance their education. Stride Funding prioritizes lending ISAs to graduate students, particularly those in STEM and health care fields.
With an ISA, you promise to pay a percentage of your future income in exchange for upfront funding. You may repay more or less than you receive. Be sure to compare ISAs and student loans to understand their potential costs before borrowing.
Which graduate student loan is best for you?
If you need loans to pay for graduate school, the best option will likely be federal student loans. These offer protections that private graduate school loans lack, including income-driven repayment plans and loan forgiveness programs.
Those benefits can come in handy depending on how much you owe — the average graduate student debt is $82,000, including undergraduate loans — and your career plans. For example, you may want to pursue Public Service Loan Forgiveness if you plan to get a Ph.D. and work at a university.
If you won't work at a nonprofit or need federal benefits, compare private student loans to see what interest rate you'd qualify for. Many lenders have specific graduate student loan products based on the degree you're pursuing:
Most lenders won't require you to pay student loans while in graduate school, provided you're enrolled at least half-time. But depending on how much you get paid as a graduate student, making payments can save you money because all graduate school loans accrue interest, increasing the amount you owe.
STUDENT LOAN RATINGS METHODOLOGY
Our survey of more than 29 banks, credit unions and online lenders offering student loans and student loan refinancing includes the top 10 lenders by market share and top 10 lenders by online search volume, as well as lenders that serve specialty or nontraditional markets.
We consider 40 features and data points for each financial institution. Depending on the category, these include the availability of biweekly payments through autopay, minimum credit score and income requirement disclosures, availability to borrowers in all states, extended grace periods and in-house customer service.
The stars represent ratings from poor (one star) to excellent (five stars). Ratings are rounded to the nearest half-star.
Read more about our ratings methodologies for student loans and our editorial guidelines.
Last updated on May 9, 2023
NerdWallet's Best Graduate Student Loan Options of June 2023
- Federal Subsidized/Unsubsidized Loan: Best for All borrowers as a first option
- Federal Grad PLUS Loan: Best for Borrowers without credit or a co-signer
- College Ave Graduate Student Loan: Best for Borrowers with good credit or a co-signer
- Ascent Graduate and Health Professions Student Loan: Best for Borrowers with good credit or a co-signer
- Earnest Private Student Loan: Best for Borrowers with good credit or a co-signer
- MPOWER Private Student Loan: Best for International borrowers without credit or a co-signer
- Custom Choice Loan, Powered by Cognition: Best for Borrowers with good credit or a co-signer
- RISLA Private Student Loan: Best for Borrowers with good credit or a co-signer
- Edly Private Student Loan: Best for Income-based private loan
- Advantage Education Private Student Loan: Best for Borrowers with good credit or a co-signer
- ISL Private Student Loan: Best for Borrowers with good credit or a co-signer
Frequently asked questions
- What is the best student loan for graduate school?
Most students should max out federal student loans for graduate school before considering other options. But if you have excellent credit, a private student loan may be cheaper in the long run.
- How much can graduate students borrow in student loans?
Grad students can get up to $20,500 annually and $138,500 overall in unsubsidized federal loans. Federal PLUS loans and private loans can cover up to your cost of attendance minus other aid received.
- How do grad PLUS loans differ from other federal loans?
Interest rates and loan fees are higher with grad PLUS loans. But you can also borrow more with these loans — up to your cost of attendance — compared to other federal options.
- How do I get loans for graduate school?
Complete the FAFSA to qualify for all federal aid, including unsubsidized loans and graduate PLUS loans. If you want a private student loan for grad school, apply directly with the lender.
