Best graduate student loans of 2024

Earning a graduate or professional degree can open up new career opportunities, but it can also come at a big cost. In the 2023-24 school year, master's students at private colleges faced an average total tuition and fees of $30,970, while doctoral students paid around $49,660 according to the College Board.

If you've already exhausted grant and scholarship options, a graduate student loan can help you cover any remaining expenses.

Federal unsubsidized loans are graduate PLUS loans are often the best starting point because of their low interest rates and flexible repayment terms. But depending on your financial qualifications, you may be able to secure a more competitive interest rate through a private graduate school loan.

Compare graduate student loan rates

8 best graduate student loans from private lenders

Other graduate loans to consider

Federal loans for graduates

Federal student loans offer graduate students flexible repayment options and potentially lower interest rates compared to private loans. Direct Unsubsidized Loans are available to all graduate and undergraduate students, and come with benefits like deferment options and income-driven repayment plans. These loans do have annual and aggregate borrowing limits, though.

Grad PLUS loans are specifically for graduate and professional students. These loans can cover the full cost of attendance of your school, minus any other financial aid you receive (including tuition, fees, living expenses, and other educational expenses). Just keep in mind that interest rates on grad PLUS loans are higher than unsubsidized federal loans.

SoFi graduate loans

SoFi is a private lender offering graduate student loans with competitive rates and flexible repayment terms of five, seven, 10, or 15 years. SoFi is popular for its generous member benefits, such as access to financial advisers, networking opportunities, discounts, and rewards to help pay down your loan. Plus, grad school students are able to use a recent job offer letter as proof of income when applying for a loan. SoFi graduate loans cover your school's certified cost of attendance, minus other financial aid you receive.

Methodology

We evaluated these student loan lenders based on interest rates and origination fees, loan amounts, loan terms, discounts, whether cosigners are accepted, and more. Our team of experts gathered information from each lender's website, customer service department, directly from our partners, and via email support. We verified each data point to make sure it was accurate and up to date. Read our full methodology for more details.

Private vs. federal loans for graduates

Graduate students are eligible for both private and federal student loans. Federal loans for graduates include Direct Unsubsidized Loans and grad PLUS loans. These loans are often the best for graduate students because of the many benefits they offer, including:

• Affordable fixed interest rates based on the time period you borrow, not based on your credit score or income
• Flexible repayment plans ranging from 10 to 25 years, with the option to switch plans as needed
• The ability to choose an income-driven repayment plan so payments are set at a percentage of discretionary income (and could be as low as $0)
• Loan forgiveness programs, including forgiveness through the Public Service Loan Forgiveness (PSLF) program and through income-driven plans

Direct Unsubsidized Loans also come with low origination fees and low interest rates, but there are limits on how much you can borrow.

With grad PLUS loans, you can borrow up to the total cost of attendance of your school, but the origination fee and interest rate are a little higher compared to Direct Unsubsidized Loans. That's why it's usually a good idea to max out unsubsidized loans first before taking out a PLUS loan.

After taking out all federal loans you're eligible for, private student loans can help fill the gaps and cover additional expenses. Just be sure to understand the key differences between federal vs. private student loans to decide how much private debt you're willing to take on.

What to consider when choosing a graduate loan

Whether you're considering private or federal graduate student loans, it's important to know the loan terms for the debt you're taking on. Here are some key things to pay attention to when deciding which loan is right for you:

• Interest rates: Federal student loan rates are set based on the time when you borrow. For Direct Unsubsidized Loans disbursed on or after July 1, 2023, and before July 1, 2024, the rate is 7.05%, and for grad PLUS loans disbursed during the same time period, the rate is 8.05%. Private student loan rates vary by lender.
• Origination fee: Both Direct Unsubsidized Loans and Direct PLUS Loans have an origination fee - 1.057% and 4.228%, respectively - for loans disbursed on or after Oct. 1, 2020 and before Oct. 1, 2024. Many private loan lenders do not charge origination fees.
• Repayment terms: Federal loans have a standard 10-year repayment period, but there are options to repay over 25 years. Repayment term options vary with private lenders, and you'll need to choose your payoff timeline up front.
• Loan limits: Direct Unsubsidized Loans have annual and lifetime borrowing limits. Both PLUS loans and private loans allow you to borrow up to the cost of attendance minus other financial aid.
• Eligibility criteria: Private student loan lenders typically check your credit and income to determine if you're eligible, and they may require a cosigner if you don't have solid financial credentials. Direct Unsubsidized and Direct PLUS Loans are available regardless of income. Direct Unsubsidized Loans are also available regardless of credit, while PLUS loans do restrict eligibility and won't let you borrow if you have adverse credit. However, there are some exceptions.

Be sure to look at all these terms and consider the unique benefits of private student loans before deciding what the best graduate student loans are for your situation.

How to apply for graduate student loans

To apply for federal student loans, you'll need to sign up for a Federal Student Aid (FSA) ID. You'll then complete the Free Application for Federal Student Aid (FAFSA) and provide basic information about your financial credentials.

If you're applying for a graduate PLUS loan, you'll also need to complete the Direct PLUS Loan application. This can be done online, and you'll need to provide your FSA ID, your school name, your personal and employment information, and the amount you wish to borrow.

Private student loan lenders each have their own application process. It's helpful to get multiple online quotes from different lenders to compare pricing and then move forward with completing an application with the most affordable loan provider.

With a private lender, you can expect to be asked for proof of income as well as your Social Security number for a credit check. Your cosigner will also need to provide financial information if you're unable to qualify to borrow on your own.

Tip: If you have a cosigner, you can always choose to refinance student loans later once you can qualify on your own so your cosigner won't always have to be responsible for the debt. Some lenders also offer cosigner release after a certain number of on-time payments.

Alternatives to fund graduate school

Graduate student loans are not the only option to pay for an advanced degree. Other potential sources of funds include:

• Scholarships: Scholarships are great because you don't have to pay back the money. You can check with your school's financial aid office, use resources such as BigFuture's scholarship search, or check with local and professional organizations and groups about available scholarships.
• Grants: Grants are also free sources of funds you don't have to pay back. They're often based on financial need and may be offered by the government, nonprofits, or private organizations. Check with your school's financial aid office or your state's Department of Education to find grant options. 
• Savings: If you have money saved, you can use it to pay for school and avoid borrowing. This will allow you to save on interest charges over the life of your loan.
• Employer education benefits: Some companies, including Deloitte, Best Buy, and KFC, provide tuition assistance programs for graduate students.

Graduate student loans FAQ

What kind of loan is best for graduate school?

Most graduate students will find that Direct Unsubsidized Loans are their best borrowing option. These federal loans come with low origination fees and interest rates, are available regardless of your credit history, and come with federal borrower benefits, including access to loan forgiveness and income-driven repayment plans. Grad PLUS loans also offer federal benefits and are a good borrowing option, although interest rates are higher than Direct Unsubsidized Loans. Private student loans can help fill the gap and cover what federal loans don't.

What is a good interest rate for grad school loans?

Direct Unsubsidized Loans for graduate students offer a competitive interest rate of 7.05% if disbursed on or after July 1, 2023, and before July 1, 2024. Many students will find Direct Unsubsidized Loans usually have the lowest interest rate, below what other federal or private loans charge. However, it can be a good idea to research multiple private loan options to find out if you may qualify for a lower rate.

What is the average student loan debt for a graduate degree?

The average grad school loan debt varies by type of degree and program. For example, in the 2019-20 academic year, 37% of masters degree recipients and 25% of doctoral degree recipients graduated with a cumulative debt of $50,000 or more, according to recent College Board data.

How much does FAFSA give for grad school?

The Free Application for Federal Student Aid (FAFSA) allows graduate students to become eligible for Direct Unsubsidized Loans. These loans have an annual limit of $20,500 for graduate or professional students. Your school will determine how much you can borrow.