The 14 Best Graduate Student Loans

Federal and private graduate student loans are both types of financing that can be used to pay for the costs of a graduate degree.

Federal Graduate Student Loans

Federal student loans are funded by the government and are available to eligible students who are enrolled in an approved program of study. They include direct unsubsidized loans, and Direct Grad PLUS loans, among others. Federal student loans generally have fixed interest rates and offer borrower protections such as income-driven repayment plans and loan forgiveness programs.

Private Graduate Student Loans

Private student loans are given by private financial establishments such as banks. The loans are not based on financial need and may have stricter eligibility requirements such as a good credit score. Private student loans may have variable interest rates and may not offer the same borrower protections as federal student loans. They may also have origination fees and other costs associated with borrowing.

Difference between Federal and Private Loans

The following table shows the main difference between the two types of loans.

Which type of loan to get – Federal or Private?

When deciding between federal and private student loans, it is important to carefully compare the terms and conditions of each option and consider your personal financial situation. Federal student loans are often the more affordable and flexible option, but private student loans may be necessary for some students to fully cover the costs of their education.

To apply for a graduate student loan, you will typically need to complete a Free Application for Federal Student Aid (FAFSA) or a similar application for a private student loan. This application will ask for information about your financial situation, including your income, assets, and expenses. Subsequently, you will be offered a loan with specific terms and conditions, such as the interest rate, repayment period, and any fees associated with borrowing.

Repayment terms for graduate student loans vary depending on the type of loan and the lender. Federal student loans typically have a fixed interest rate and offer several repayment plan options, including income-driven repayment plans and loan forgiveness programs. Private student loans may have variable interest rates and may require a co-signer if you have a low credit score.

In general, it’s a good idea to try to pay off your student loans as soon as possible to minimize the amount of interest you pay over the life of the loan. This is because shorter loan terms reduce the total interest you pay on your loan which in turn reduces the total cost of the loan. You can calculate the total payment, total interest, and monthly payments of your loan depending on the terms you get using our student loan calculator below.

However, if you are having difficulty making your loan payments, you may be able to temporarily postpone or reduce your payments through a deferment or forbearance.

Federal loans should be the first option when getting a student loan. However, private loans are the next option if you are unable to qualify for federal loans or need more money to cover all your educational expenses. There are some important factors to consider when shopping for the best private graduate student loans.

• Interest rate: The lower the interest rates you get, the lesser the total loan cost will be and the more you will save up on monthly payments. Therefore, it is better to get a quote from multiple lenders and choose the one offering the lowest interest rates.
• Loan terms: Different loans may have different repayment terms which can affect your monthly loan payments and the total loan cost. The longer the term is, the lower your monthly payment will be. This can make repayments more manageable. However, longer terms result in more interest to accrue and it increases the total loan cost that needs to be returned by the end of your term. Shorter terms may have higher monthly payments, but the total loan cost decreases as less interest is accrued. Moreover, lenders also offer lower rates to students who opt for shorter terms. The student calculator can help you calculate how your total loan cost, monthly payments, and interest accrued based on the interest rate offered, the total loan amount borrowed, and the term you want to opt for.
• Maximum and minimum loan amounts: Some lenders may have a cap on how much you can borrow. It is important to check how much you can borrow and if the amount will be enough for your educational costs.
• Other loan costs: There are various other types of costs associated with getting a graduate student loan. Some lenders may have an origination fee, application fee, or late payment fee, which can make your loan more expensive. It’s better to avoid those lenders and go for ones that do not have such extra fees attached to the loan.
• Autopay: Check if the lender you are considering has an automatic payment option. This is because when you sign up for autopay, lenders give interest rate discounts which lower your monthly payments and the total cost of the loan.
• Eligibility requirements: Different lenders have different eligibility requirements. Compare different lenders and check their eligibility requirements to see if you qualify. This can save a lot of time and money.
• Cosigner requirements: Check the minimum income and credit score requirements that the lender may have and if you meet them. In case you are unable to meet their basic requirements, you will need to look for a cosigner that does. Some lenders also have a cosigner release option which allows you to remove the cosigner from your loan once you are ready to do so. This is a good option to have in the long-term.

In case you are unable to qualify for federal or private loans, there are other options available to help you pay for your education.

1. Grants: Grants are a type of financial aid that is usually based on financial need and does not need to be paid back. Check if you are eligible for any type of government grant. They may not be able to cover your full cost of tuition but can help you pay off a good chunk of it.
2. Scholarships: Scholarships are financial gifts that are given out on the basis of certain eligibility criteria. Some scholarships might be need-based, some merit-based, some awesome degree-specific, and some may be based on certain talents. With scholarships, everyone can find something as there is a plethora of them available to students coming from every background. You can even apply for multiple scholarships for more money that can go towards your tuition.
3. Work-Study: Work-study is also a federal program in which students work part-time at the campus to earn money that goes towards their tuition fees. This also requires a FAFSA.
4. Get a job: You can get a part-time job on your own and use the money you earn to pay a part of your tuition fee. Theer are many online options available too now and students can work from the comfort of their homes. These jobs are usually quite flexible and can be easily adjusted around your study schedule.