Best Student Loans for PhD Students

A doctoral degree is an impressive credential, but it comes with a hefty price tag. PhD students graduate with an average of about $100,000 in debt, according to the National Center for Education Statistics.

The best way to pay for this higher education is through scholarships and grants, followed by federal student loans. But these often aren’t enough to complete a PhD program, and private student loans can help you foot the rest of the bill.

8 best private student loans for a doctorate degree

To find the best private student loan for your doctorate degree, it’s important to compare as many lenders as you can.

The companies in the table below are Credible’s approved partner lenders. Whether you’re the borrower or cosigner, Credible makes it easy to compare rates from multiple private student loan providers without affecting your credit score.

Methodology

Credible evaluated private student loan lenders in 10 different categories to determine the best lenders for PhD loans. This included interest rates, repayment options, terms, fees, discounts, customer service availability, as well as eligibility requirements and cosigner release options.

Federal loans for PhD students

The federal government also makes loans available to students pursuing a PhD. While federal loans come with more accommodating repayment plans, you may face loan limits and higher interest rates than you’ll find with private student loans.

• Federal Direct Unsubsidized Loans: These loans are available to both undergraduate and graduate students, and they’re not dependent on financial need. You’re responsible for interest that accrues on these loans from the time they’re disbursed. And, there’s a limit on the total amount you can borrow.
• Federal Grad PLUS Loans: These are available to parents of undergraduate students or graduate and professional students. Interest rates on federal Grad PLUS Loans are higher than other federal loans, currently at 7.54%. You’re able to borrow up to the cost of attendance of your school, minus any financial aid you receive. You’re also responsible for accrued interest.

Keep Reading: Student Loan Limits: How Much in Student Loans You Can Get

How to get a PhD loan

Follow these five steps to help make sure you get the best student loans for your individual situation:

• Start with the FAFSA. Fill out the Free Application for Federal Student Aid to make yourself eligible for grants, scholarships, work-study programs, and student loans from the federal government. Many of these forms of financial aid don’t require you to repay them, so you’ll want to make sure you receive as much as you can qualify for. You may also choose to borrow certain federal student loans to take advantage of the more flexible repayment plans they offer.
• Determine how much more money you need for your education. Your university’s financial aid office will help you determine how much you’ll need to borrow in student loans to meet your cost of attendance, taking into account any federal financial aid you receive.
• Prequalify for a private student loan. Most private student lenders make it easy to prequalify for a graduate student loan. You can do this online by submitting some basic information about yourself, such as your annual income, the school you’re attending, and how much you’d like to borrow. It’s a good idea to prequalify with several different lenders to see the rates and terms you might qualify for.
• Choose your loan. Review your prequalification offers, comparing loan terms, interest rates, and monthly payment amounts. Select the lender and loan option that works best for you, then submit a formal application.
• Make sure your loan funds are received. Student lenders typically disburse your loan funds directly to your university. You’ll want to double check with your school’s financial aid office that the money was received.

Student loan limits for PhD loans

Different graduate student loan programs have varying limits on how much you can borrow. Because PhD programs are often expensive, you may run into these limits as you complete your education:

• Federal Direct Unsubsidized Loans: Graduate students can borrow up to $20,500 per year, with an aggregate limit of $138,500 (a total that includes any undergraduate loans).
• Federal Grad PLUS Loans: These loans don’t have a total loan limit. You can borrow up to your school’s cost of attendance.
• Private PhD loans: Each lender has its own limits on how much or little you can borrow. The smallest amount you can typically borrow is $1,000. Some private student lenders have maximum loan amounts of $110,000 to $180,000 or higher. Others don’t have a set maximum loan amount, and instead allow you to borrow up to your school’s cost of attendance. In some cases, a general PhD loan may have different loan limits than a professional school program, like law school or an MBA program. So be sure to check with each lender you’re considering.

Check Out: Graduate Student Loan Limits: How Much Can You Get?

When PhD student loan payments start

With student loans, you generally have the option of beginning to pay them back right away or waiting until you leave school. The rules vary depending on the type of loan you take out:

• Federal Direct Unsubsidized Loans: You’re not required to begin repaying these loans until six months after you graduate, leave school, or drop below half-time enrollment. But you are responsible for the interest that accrues from the moment the loan is disbursed. If you don’t pay the interest while you’re in school, it'll be added to the principal of the loan once you graduate. You may choose to make interest-only payments while in school to keep this from building up and adding to the total you have to repay.
• Federal Grad PLUS Loans: Like Direct Unsubsidized Loans, you have a six-month grace period after leaving school before you’re required to begin paying back your loan. You’re responsible for the interest from the time the money is disbursed, and you may make interest-only payments while in school.
• Private PhD loans: Different lenders may have slightly varying rules, but you generally don’t need to make loan payments while enrolled in school or during a six- to nine-month grace period after graduating. You’re generally responsible for the interest that accrues from the time the loan is disbursed. You typically have the option to make interest-only payments or full principal and interest payments, or to defer payments entirely. However, this last option will mean the interest that accrues while you’re enrolled in school will be added to the total you’ll need to pay back.

Student loan forgiveness for PhD loans

If you have federal student loans, you may be eligible for certain loan forgiveness programs that can help erase the amount you borrowed for your PhD program.

One of the most common ways to do this is through the Public Service Loan Forgiveness Program. To be eligible, you must make 120 qualifying loan payments under an income-driven repayment plan while working full-time for a government or not-for-profit agency. Only Direct Loans qualify for PSLF.

If you’re a teacher, you may qualify for the Teacher Loan Forgiveness Program, which only requires five years of employment in a qualifying elementary or secondary school — though you may only receive up to $17,500 in loan forgiveness.

Private loans aren’t eligible for any type of loan forgiveness.

PhD loan alternatives

You should generally use student loans as a last resort when paying for your higher education. You may be able to help pay for the cost of tuition and living expenses with a few of these options, reducing the amount you need to borrow:

• Scholarships and grants: Both scholarships and grants are considered gift aid — meaning you don’t need to pay them back. You may be able to earn a scholarship or grant from your university, or from nonprofit organizations. Each scholarship or grant program has its own criteria. Your school’s financial aid office may be able to help you determine which programs you can qualify for.
• Fellowships and assistantships: Many universities employ PhD students as teaching or research assistants for professors, typically in the same department. You may also qualify for a fellowship — a competitive short-term research opportunity with financial support.
• Employer assistance: Depending on where you work, your current employer may be willing to help you pay for your higher education if your field of study is related to your career. Your company’s human resources department can let you know if you qualify for employer assistance programs.

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Learn More: Up to $20K in Student Loan Forgiveness for Some Borrowers, And Payments Remain Paused