The 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 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, 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.

On the other hand, 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.

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. 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.

Here are the top 10 best lenders for graduate student loans

Sallie Mae is a financial services company that offers a range of educational loans, including graduate student loans. Sallie Mae offers both federal and private student loans, and it is one of the largest providers of private student loans in the United States. Sallie Mae’s graduate student loans are designed to help students pay for the costs of a graduate degree, including tuition, fees, and living expenses. The company offers a range of loan options, including fixed- and variable-rate loans, as well as loan refinancing options for borrowers who want to consolidate their loans or adjust their repayment terms

Pros of Sallie Mae:

• Wide range of loan options segmented per graduate program
• Favorable loan refinancing options
• Excellent customer service
• Several borrower benefits, including interest rate reductions

Cons of Sallie Mae:

• Fewer repayment options as compared to other private loan providers
• Offers fewer borrower protections

Eligibility Requirements:

• Be a U.S. citizen or permanent resident
• Must be at least a half-time graduate student at an eligible school
• Meet the lender’s credit and income requirements
• Must not have any student loan in default

Repayment Details:

• Fixed and variable interest rates are available 
• Borrowers have a 6-month grace period after graduation before commencing repayment
• Repayment terms of up to 15 years

College Ave Graduate Loans are a type of private student loan offered by College Ave Student Loans, a lender that specializes in providing education financing options for undergraduate and graduate students. These loans are designed to help students pay for the costs of a graduate degree, including tuition, fees, and living expenses. College Ave Graduate Loans are available to students who are enrolled in an eligible program of study and meet the lender’s credit and income requirements. It offers flexible repayment terms and multiple repayment plan options, including interest-only and deferred repayment.

Pros of College Ave:

• Flexible repayment terms
• Quick and easy application process 
• No origination fees
• Available to international students 

Cons of College Ave:

• Strict credit and income requirements

Eligibility Requirements:

• Must be enrolled in an eligible program of study at an accredited school 
• Must be of good credit standing
• Must have sufficient income to support the loan payments
• Must be a U.S. citizen, a permanent resident, or an international student with a U.S. social security number  

Repayment Details:

• Full, flat, deferred, and interest-only repayment plans available 
• Repayment terms spanning from five to 15 years
• Applicants can select between fixed or variable interest rate loans.

Earnest is a private student loan lender that offers financing options for graduate students. Founded in 2013, Earnest has helped thousands of students pay for the costs of their education by providing competitively-priced loans with flexible repayment terms. In addition to traditional student loans, Earnest also offers refinancing options for students who have already graduated and are looking to consolidate or refinance their existing student loan debt. By working with Earnest, graduate students can find a financing solution that fits their needs and helps them achieve their academic and career goals.

Pros of Earnest:

• Flexible repayment options 
• Quick and easy mobile-based application process
• No origination fees, disbursement, or late repayment fees
• Available to international students with U.S. co-signers

Cons of Earnest:

• Available to students enrolled in certain graduate programs at select universities

Eligibility Requirements:

• Must be enrolled in an eligible program of study at a Title-IV school 
• Must be of good credit standing
• Must be of age of majority in their state 
• Must be a U.S. citizen, a permanent resident, or an international student with a U.S. social security number and physical address  

Repayment Details:

• Up to four repayment options available 
• Nine-month grace period
• Borrowers can skip a payment once a year without incurring a penalty 

Ascent is a private student loan lender that offers financing to students who are pursuing a graduate degree. Ascent offers a range of loan products specifically designed for graduate students, including Ascent Cosigned and Non-Cosigned loans. These loans are designed to help students cover the costs of tuition, fees, and other expenses associated with a graduate degree. Ascent loans may have variable or fixed interest rates and may require a cosigner, depending on the borrower’s credit history, financial situation, and citizenship.

Pros of Ascent:

• Several loan products, including fixed- and variable-rate loans 
• Borrowers benefit a 0.25% interest rate reduction for enrolling in automatic payments.
• Easy online application process
• Cosigner released after 12 repayments.

Cons of Ascent:

• Higher interest rates as compared to the competition

Eligibility Requirements:

• Be a US citizen, permanent resident, have a Deferred Action for Childhood Arrival (DACA) status, or non-U.S. citizen with a creditworthy co-signer 
• Be at least half-enrolled in an approved graduate degree program at a participating school
• Meet the credit and income requirements for the loan product for which you are applying
• Must not have any student loan in default   

Repayment Details:

• Flexible repayment periods running to 15 years
• Fixed and variable interest rates for graduate loans 
• Several repayment options, including full repayment, interest-only payments, and deferred repayment

SoFi is a personal finance company that offers a range of financial products, including graduate student loans. SoFi graduate student loans are designed to help students finance the costs of a graduate degree, including tuition, fees, and living expenses. These loans are available to students who are enrolled in an approved program of study and meet the lender’s eligibility requirements. SoFi graduate student loans offer competitive interest rates and flexible repayment terms, and may be a good option for students who are looking for a private student loan to help pay for their education.

Pros of SoFi

• Cosigner release option after 24 repayments
• No origination or late fees
• Several repayment plan options, including the option to make interest-only payments while in school
• Career support and financial planning services to SoFi members

Cons of SoFi

• Strict eligibility requirements, such as having a good credit score and a stable income

Eligibility Requirements:

• Must be at least a half-time graduate student at an eligible school
• Be a U.S. citizen or permanent or non-permanent resident
• Borrowers or their cosigners must be the age of majority in their state of residence

Repayment Details:

• Repayment periods of five, seven, 10, or 15 years 
• Fixed and variable interest rates for graduate loans 
• Several repayment options, including deferred, interest-only, partial, and immediate repayment

Citizens Bank offers a range of student loan options for graduate students. These loans can be used to cover the costs of a graduate degree, such as tuition, fees, and living expenses. Citizens Bank offers a variety of repayment options and borrower benefits for its graduate student loans, and it is important for potential borrowers to carefully compare their options and choose a loan that fits their financial situation. You can apply for a Citizens Bank loan depending on your area of study, for example, law, medicine, dental, or business administration. 

Pros of Citizens Bank

• Multi-year loan approvals after first year of study
• Simple online application process
• Helpful resources to ease loan application process
• Flexible terms, including interest rate reductions

Cons of Citizens Bank

• Higher interest rates as compared to other private loan providers

Eligibility Requirements:

• Be a U.S. citizen, permanent resident, or international student with a creditworthy cosigner
• Must be at least a half-time graduate student at an eligible school
• Be of good credit standing or have  a qualified cosigner 
• Must not have any previous student loans in default

Repayment Details:

Custom Choice graduate student loans are designed to fund 100% of an applicant’s school-certified expenses. The loans are available to students who are enrolled in an eligible institution, are at least 17 years old, and are of good credit standing. Custom Choice graduate student loans offer competitive interest rates and flexible repayment terms, and can be repaid within 15 years.

Pros of Custom Choice:

• 0.25% autopay discount
• 2% principal reduction upon graduation 
• Cosigner release after 36 consecutive monthly repayments 
• Flexible terms, including interest rate reductions

Cons of Custom Choice:

• Charges higher interest rates on variable rate as compared to fixed rate loans

Eligibility Requirements:

• Be a U.S. citizen, permanent resident, or Deferred Action for Childhood Arrival (DACA) resident
• Must be enrolled as a graduate student at an eligible school
• Be of good credit standing or have  a qualified cosigner
• Must be of age of majority in their state 

Repayment Details:

• Four repayment options: deferred, flat, interest-only, and immediate
• six-month grace period after graduation before commencing repayment 
• Repayment terms of up to 15 years

InvestEd is an Indiana-based non-profit that provides competitive private graduate loans to students. Loans are available to Indiana residents studying both within and outside the state as well as non-Indiana residents pursuing studies within Indiana. InvestEd offers loans with flexible repayment terms and interest rates. Borrowers also benefit from a 0.25% interest rate reduction for enrolling in automatic debit payments and cosigners can be released after 12 months of consecutive repayments.

Pros of InvestEd:

• Cosigner release after 12 months of consecutive repayments
• A 0.25% autopay interest rate discount
• Student loan refinancing option available to borrowers upon graduation  
• No origination fees

Cons of InvestEd:

• Favors mostly residents of Indiana

Eligibility Requirements:

• Not defaulted on any loan, whether private or government student
• No bankruptcies in the previous five years 
• Have a FICO score of 670 and above 
• Have been gainfully employed continuously over the last two years 

Repayment Details:

• Fixed and variable interest rates on loans
• Repayment terms from five, 10, to 15 years
• Borrowers, who file for bankruptcy, may still be required to repay the loan. 

MEFA (Massachusetts Educational Financing Authority) graduate loans are loans specifically designed for graduate students across the U.S. MEFA Graduate loan is a fixed-rate loan that is intended to help graduate students pay for their education expenses. The interest rate for the loan may be lower than what you would find on a traditional private loan, and a variety of repayment plans are available to meet the needs of different borrowers. The application process for the MEFA Graduate loan is similar to that of other student loans and requires a credit check and co-signer depending on credit history. 

Pros of MEFA:

• Cosigner released after 48 months of consecutive repayments
• Loan refinancing available
• Flexible repayment options 
• No loan fees, including late fees

Cons of MEFA

• Does not offer an autopay discount

Eligibility Requirements:

• Be a U.S. citizen or permanent resident
• Have no history of educational loan defaults
• Must be at least a part-time graduate student at an eligible school
• Either borrower or cosigner must meet MEFA’s credit requirements

Repayment Details:

• Only fixed interest rates on loans
• Repayment within 15 years, with a 36-month deferral 
• Borrowers can select to make interest-only or deferred payments

Which lending institution provides the best graduate student loan?

Based on this research, College Avenue offers the best graduate student loan. Specifically, its interest rates are lower on both fixed- and variable-rate loans and its repayment options and terms are flexible. The loan is also available to a wide group, including international students. 

Do credit scores impact graduate student loans?

Credit scores play a significant role, particularly, when applying for private student loans. Many private student loan lenders use credit scores within their underwriting process to determine the interest rate and other loan terms. Those with higher credit scores may be offered better terms than those with lower scores.

What is the maximum amount I can get for graduate student loans?

The maximum amount you can borrow depends on several factors, including the type of loan. For example, the federal direct unsubsidized loan offers up to $20,500 per academic year. On the other hand, many private student loan lenders will consider your credit score and income when determining your limit.