What are graduate student loans?
Graduate student loans help cover the cost of advanced degrees, including master's, doctoral, and professional programs. These loans can be used for tuition, fees, books, housing, transportation, and other education-related expenses. There are two main types of graduate loans: federal loans offered by the government, and private loans offered by banks, credit unions, and online lenders.
Federal vs. private graduate student loans
Federal student loans come with uniform interest rates and access to borrower protections, such as income-driven repayment plans and forgiveness programs. For the 2025-26 school year, interest rates on federal graduate loans are either 7.94% or 8.94%. While these rates are fixed for the life of the loan, they may be higher than what well-qualified borrowers or those who apply with a cosigner with strong credit can secure through private lenders. Lenders on the Credible platform currently offer fixed-rate graduate student loan APRs starting at 2.85% and variable-rate graduate student loans from 4.13%. However, private student loans lack the same level of borrower protections and flexible repayment options as federal loans.
How to apply for a graduate student loan with Credible
1. Get prequalified graduate loan rates
With Credible, you can compare graduate student loan rates from multiple private lenders at once - with no impact on your credit score. Just enter your basic personal and school information to instantly see prequalified rates and estimated loan terms from top lenders that match your profile.
2. Compare top graduate student loan lenders
Evaluate private lenders side-by-side to find the best graduate school loan for your needs. Look at interest rates (fixed vs. variable), repayment plans, any fees, borrower perks (like rate reductions or forbearance options), and customer satisfaction ratings.
3. Choose the best graduate school loan option
Once you've compared lenders, select the private graduate student loan that aligns with your budget and academic goals. Decide whether to apply with a cosigner, which may help you qualify for a better rate. If so, gather their contact and financial details for the next step.
4. Complete your graduate school loan application
To apply for a graduate student loan, first prepare the necessary documentation, such as a government-issued ID, proof of income (like pay stubs or tax returns), and enrollment verification. Then fill out the graduate loan application, upload your documents, and submit for lender approval.
How much you can borrow for graduate school
Federal graduate school loan limits (2025-26 school year)
- Direct Unsubsidized Loans: $20,500 annually; $138,500 aggregate (including undergraduate debt)
- Grad PLUS loans: Up to the full cost of attendance (minus other financial aid received)
Private graduate school loan limits
Most private lenders match your school's certified cost of attendance, minus other financial aid you've received, such as federal loans, scholarships, or grants. The cost of attendance is determined by your school and goes beyond tuition and fees to include housing, meals, books, transportation, and other expenses related to your education.
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How to qualify for graduate student loans
To qualify for a private student loan for graduate school, you'll need to meet specific credit and income requirements. Private lenders usually look for a minimum credit score of around 670, along with steady income and a manageable debt-to-income ratio (DTI). Your enrollment status — such as being at least half-time in an eligible graduate or professional program — and the school you attend can also affect whether you qualify for a grad school loan.
If you have limited or no credit history, applying with a creditworthy cosigner can significantly improve your chances of approval. A grad school loan cosigner may also help you qualify for lower interest rates, potentially saving you thousands over the life of the loan.
To be eligible for federal student loans for graduate school, you must meet certain basic requirements. This includes being a U.S. citizen or eligible noncitizen, having a valid Social Security number, and enrolling at least half-time in an eligible graduate or professional degree program. You also need to maintain satisfactory academic progress as defined by your school.
Most federal student loans don't require a credit check. Grad PLUS loans, which do involve a credit review for adverse credit events, are the exception. Federal Direct Unsubsidized Loans are available to most graduate students regardless of income.
How graduate student loan interest works
When you borrow money to pay for graduate school, interest is the cost you pay to the lender in exchange for the loan. It's usually calculated as a percentage of your outstanding principal balance and is expressed as an annual percentage rate, or APR.
For both federal and private graduate student loans, interest typically accrues daily using a simple interest formula, meaning it's calculated only on your current principal balance, not on previously accrued interest. Each monthly payment is first applied to any student loan interest that has accrued since your last payment, with the remainder reducing your principal. As your principal shrinks, your daily interest charges also get smaller. However, in some cases, such as after a grace period or forbearance, accrued interest may be added to your principal, increasing your balance. This is called interest capitalization.
Federal graduate loans always come with fixed interest rates set by the government. These rates stay the same over the life of the loan, providing predictability. Private graduate student loans may offer either fixed or variable rates. Variable rates can fluctuate with the market and may increase your borrowing costs over time.
Pros and cons of private graduate student loans
Private student loans can be a great way to fund your graduate education, especially if you've exhausted federal aid or need additional funds. However, they come with important trade-offs. Before applying, consider the advantages and drawbacks of private graduate student loans so you can make the best choice for your financial future.
How to reduce the amount you need to borrow for grad school
By planning ahead and exploring alternative funding options, you can reduce how much you need to borrow in graduate student loans and save money over time. Here are some strategies to help minimize graduate school loan debt:
- Search for graduate scholarships and fellowships: Many universities, professional organizations, and private foundations offer financial awards based on academic achievement, research interests, or demographic criteria. Unlike loans, these don't need to be repaid.
- Consider part-time work or assistantships: Look into teaching assistant (TA) or research assistant (RA) positions, or consider flexible part-time jobs that allow you to earn money without disrupting your studies.
- Explore service-based loan assistance programs: Some federal and state programs offer tuition support or future loan forgiveness in exchange for working in public service, education, or underserved areas after graduation.
- Stick to a realistic budget: Limiting expenses on housing, food, and entertainment during grad school can reduce how much you need to borrow. Every dollar you save is one you won't pay back with interest.
- Choose an affordable graduate program: Public universities, online programs, and schools that offer in-state tuition can significantly lower the cost of your degree and the size of your loan.
The less you borrow for graduate school, the easier it will be to manage and pay off your student loans after graduation — giving you more freedom and less financial stress as you launch your career.
FAQ
Can I get a graduate student loan with bad credit or no credit?
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Do graduate school loans cover living expenses?
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How do I compare private graduate student loan lenders?
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What’s the difference between a grad PLUS loan and a private loan for grad school?
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Do I need a cosigner for a private graduate loan?
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When should I apply for a private graduate loan?
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How long does it take to repay graduate student loans?
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A closer look at the best graduate student loan lenders
Advertiser Disclosure
Ascent: Best for No-Cosigner Loans
Min. Credit Score
Does not disclose
Fixed APR
2.89 - 14.93%
Variable APR
-
Loan Amount
$2,001 to $400,000
Term
5, 7, 10, 12, 15, 20
Expert Insights
Ascent stands out for offering private student loans to students without a cosigner and who have limited credit. Its outcomes-based loan uses factors such as academic performance and graduation timeline instead of credit to determine eligibility. Students can also qualify for a cash-back graduation reward and choose from a wide range of repayment plans.
Advertiser Disclosure
College Ave: Best for Extended Grace Periods
Min. Credit Score
Does not disclose
Fixed APR
2.89 - 17.99%
Variable APR
-
Loan Amount
$1,000 up to 100% of the school-certified cost of attendance
Term
5, 8, 10, 15 (20 for health professionals)
Expert Insights
College Ave offers a wide range of borrower-controlled features that makes it especially compelling for those who want predictability and planning power with their student loans. From 5 to 20-year terms and multiple in-school payment options to profession-specific grace periods, College Ave offers more structure and flexibility than many of its competitors.
Advertiser Disclosure
Custom Choice: Best for Discounts and Rewards
Min. Credit Score
Does not disclose
Fixed APR
3.24 - 15.71%
Variable APR
-
Loan Amount
$1,000 to $99,999 annually $180,000 aggregate limit)
Term
7, 10, 15
Expert Insights
Custom Choice offers a compelling combination of rate discounts, graduation rewards, and zero fees. You can reduce your interest rate by 0.25 percentage points with autopay and earn a 2% principal reduction after graduating. With no fees, cosigner release after 36 payments, and hardship forbearance, it's a good option for students seeking both savings and support.
Advertiser Disclosure
Sallie Mae: Best for Specialized Loans
Min. Credit Score
Does not disclose
Fixed APR
2.89 - 17.49%
Variable APR
-
Loan Amount
$1,000 up to 100% of school-certified cost of attendance
Term
10 - 20
Expert Insights
Sallie Mae stands out from the competition with one of the broadest selections of specialized private student loans on the market. Loans cover everything from undergraduate degrees to medical residencies, bar study, flight training, and trade schools. This makes Sallie Mae a good option for students pursuing specialized or less traditional educational paths.
Advertiser Disclosure
Abe: Best for Payment Relief Options
Min. Credit Score
660
Fixed APR
2.85 - 15.61%
Variable APR
-
Loan Amount
$1,000 to $99,999 annually $180,000 aggregate limit)
Term
5, 7, 10, 15, 20
Expert Insights
Few private lenders match the borrower protections Abe offers. You'll find options like in-school default protection, extended grace periods, and multiple types of forbearance — including for job loss and illness. These features make Abe an especially good fit for students who want a safety net during unpredictable times.
Advertiser Disclosure
SoFi: Best for Member Perks
Min. Credit Score
Does not disclose
Fixed APR
3.18 - 15.99%
Variable APR
-
Loan Amount
$1,000 to $100,000
Term
5, 7, 10, 15
Expert Insights
SoFi offers borrower-friendly benefits rarely seen among student loan lenders. Perks include cash back for strong grades, a loyalty discount on future loans, and cosigner release after just 12 months. With flexible terms and competitive rates, SoFi is a standout option for students seeking long-term value.
Advertiser Disclosure
Citizens: Best for Multiyear Approval
Min. Credit Score
640
Fixed APR
3.24 - 14.99%
Variable APR
-
Loan Amount
$1,000 to $400,000 (depending on degree)
Term
5, 10, 15
Expert Insights
Citizens could be a great fit for borrowers who already bank with the lender and want to save more on their student loans. Customers can lower their interest rate by 0.25 percentage points with a loyalty discount, and by another 0.25 percentage points for enrolling in autopay. Citizens also offers multiyear approval, making it easier to get additional loans without repeated hard credit checks.
Advertiser Disclosure
ELFI: Best for flexible repayment
Min. Credit Score
680
Fixed APR
2.99 - 14.22%
Variable APR
-
Loan Amount
$1,000 up to cost of attendance
Term
5, 7, 10, 15
Expert Insights
ELFI stands out for offering a broad range of repayment terms — 5, 7, 10, or 15 years — so you can tailor your loan to fit your budget and timeline. Whether you want to pay off your loan quickly or stretch payments over time, ELFI gives you the tools to choose. This flexibility makes it a strong option if you're seeking maximum control over your repayment plan.
Advertiser Disclosure
Nelnet Bank: Best for Competitive Rates
Min. Credit Score
Mid to high 600’s FICO
Fixed APR
3.47 - 9.99%
Variable APR
-
Loan Amount
$1,000 to $500,000
Term
5, 10, 15
Expert Insights
Nelnet Bank stands out among private student loan lenders for offering low starting rates and high loan limits across undergraduate, graduate, and health professional programs. You can qualify for a Nelnet Bank student loan with mid-600s credit or apply with a cosigner to improve your chances of approval and secure a better rate.
Advertiser Disclosure
MEFA: Best for Borrowers With Good Credit
Min. Credit Score
670
Fixed APR
3.29 - 8.89%
Variable APR
-
Loan Amount
$1,500 up to school’s certified cost of attendance less aid
Term
10, 15
Expert Insights
MEFA is best for borrowers with strong credit who want stable, low-cost college financing without the extras. It offers low, fixed-interest rates and zero fees. But there are no variable rates, autopay discounts, or short-term repayment options. If you meet its credit standards, MEFA's nonprofit model makes it a reliable, no-frills alternative to traditional private lenders.
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Methodology
To determine the best graduate student loan lenders, Credible collected more than 1,000 points of data on two dozen companies and evaluated them on several different categories: repayment options, eligibility, interest rates, loan terms, and customer support. We assigned a score out of five stars to each lender based on our findings. Below are the weightings assigned to the general categories for the best student loan companies — which comprise individual criteria that are also weighted.
- Repayment options: 30%
- Eligibility: 25%
- Interest rates: 20%
- Loan terms: 15%
- Customer support: 10%
While the best graduate student loan lender for you will depend on your unique needs and financial circumstances, these findings should help answer your questions and assist you in your search for the best student loan.
Learn more about our methodology.