Best Graduate School Loans

Graduate school can be a game-changer for your career, but let’s be real – it’s also a wallet-crusher. With tuition costs often hitting six figures, financing your education can feel overwhelming. The good news? Plenty of loan options are designed specifically to help you tackle this investment in your future. Whether you’re aiming for the low-interest safety of federal loans or looking at private lenders for some flexibility, you’ve got choices. 

Let’s dive into the top loan options for grad students and determine which one might be your ticket to that next degree. And keep reading to the end to see personal loan offers through MoneyLion that can help you tackle higher education and your other needs as well.

10 Best graduate school loan options

From federal options to private lenders, here are some of the best loans available for grad students.

1. Best for low interest rates: Federal Direct Student Loans

Federal Direct Student Loans, or unsubsidized loans, are often the first stop for grad students. These loans come with the government’s fixed interest rates, usually lower than private loan rates. There’s no need to demonstrate financial need, so most grad students qualify. To apply, you must fill out the FAFSA (Free Application for Federal Student Aid).

• Pro: Lower fixed interest rates compared to many private loans
• Con: There are borrowing limits, which may not cover your full tuition

2. Best for covering all expenses: Federal Grad PLUS Student Loans

If Federal Direct Loans don’t cover all your costs, Grad PLUS loans can bridge the gap. These loans are also federal but offer the ability to borrow up to the full cost of attendance (minus any other financial aid). They require a credit check, but there’s no strict income requirement. You must complete the FAFSA and apply directly through your school’s financial aid office.

• Pro: Can borrow up to the full cost of attendance
• Con: Higher interest rates compared to unsubsidized loans

3. Best for flexible repayment options: Sallie Mae® Graduate School Loan

Sallie Mae’s Graduate School Loan offers competitive fixed and variable interest rates, with flexible repayment options that fit different financial situations. You can make interest-only payments while in school or defer payments entirely. Sallie Mae also offers benefits like free study resources for exams such as the GRE or GMAT.

• Pro: Flexibility in repayment terms and options
• Con: Co-signer requirements can be strict if your credit history isn’t strong

4. Best for customizable terms: Ascent Graduate Student Loans

Ascent offers co-signed and non-cosigned loans, giving you options based on your financial situation. They offer flexible repayment terms, including interest-only payments while in school and a grace period after graduation. Ascent also stands out by providing financial wellness tools to help borrowers manage their debt responsibly.

• Pro: Offers both co-signed and non-cosigned student loan options
• Con: Higher interest rates for non-cosigned loans

5. Best for international students: Prodigy Finance Graduate Loans

Prodigy Finance specializes in loans for international students attending grad school in the U.S. or other select countries. They don’t require a co-signer or credit history, focusing on your post-graduation earning potential. The interest rates can be higher than what domestic students might find through other lenders.

• Pro: Designed specifically for international students
• Con: Higher interest rates compared to domestic loan options

6. Best for high loan amounts: College Ave Graduate Student Loans

College Ave offers graduate loans with flexible repayment options, including the ability to choose your repayment term (5 to 15 years). Their loans cover up to 100% of the school-certified cost of attendance. College Ave also offers prequalification with a soft credit check, so you can see your rates without affecting your credit score.

• Pro: Customizable repayment terms and high loan amounts
• Con: No autopay discount, which many competitors offer

7. Best for no fees: Citizens Bank Graduate Student Loans

Citizens Bank offers graduate loans with no application, origination or prepayment fees. They provide multiyear approval, meaning you can secure funding for your entire degree program with one application. This can save you time and avoid repeated credit checks each year.

• Pro: No fees and multiyear approval for easier financing
• Con: Requires a good credit score or a co-signer for the best rates

8. Best for quick approval: Earnest Graduate School Loans

Earnest offers personalized loan options with a quick and simple application process. They provide competitive rates, a wide range of repayment terms and no fees. One unique feature is the ability to skip one payment per year if needed, which can be a lifesaver in tight financial situations.

• Pro: Quick approval process with flexible payment terms
• Con: No co-signer release option, so your co-signer is tied to the loan until it’s fully paid off

9. Best for joint loan options: SoFi Graduate Student Loans

SoFi offers graduate student loans with competitive rates and benefits like career coaching and networking opportunities. If you don’t have a strong credit history, you can apply with a co-signer and take advantage of their co-signer release option after a set number of on-time payments. SoFi also offers unemployment protection if you lose your job.

• Pro: Offers co-signer release and additional member benefits
• Con: Interest rates may be higher without a co-signer

10. Best for no co-signer: MPOWER Financing Graduate Student Loans

MPOWER Financing offers loans for international and DACA students, focusing on schools in the U.S. and Canada. They don’t require a co-signer or credit history but assess applicants based on their academic and career potential. While interest rates are higher, MPOWER provides discounts for autopay and proof of graduation and employment.

• Pro: Designed for students without a co-signer
• Con: Higher interest rates compared to traditional lenders

How do student loans work for graduate school? 

Graduate school loans function similarly to undergraduate loans but with some key differences. Federal loans like Direct Unsubsidized Loans and Grad PLUS Loans are popular because they offer fixed interest rates and flexible repayment options. To apply for these, you must fill out the FAFSA, which determines your eligibility for federal aid.

Private student loans come into play when federal loans don’t cover the full cost of attendance or if you need more flexible repayment terms. Private loans typically require a credit check and having a co-signer can help secure a lower interest rate. Unlike federal loans, private loans often have variable interest rates and the repayment terms can vary widely depending on the lender.

How to choose the right graduate student loan

Choosing the best loan for grad school isn’t a one-size-fits-all decision. Here are a few key factors to consider:

• Check interest rates and repayment terms: Federal loans usually have lower fixed rates, while private loans offer variable rates that fluctuate. Compare both options.
• Look at loan fees and origination costs: Some loans have high fees, so be sure to factor in those costs when evaluating your options.
• Evaluate repayment options and flexibility: Consider whether you can make payments while in school or prefer to defer payments until after graduation.
• Check eligibility requirements: Some loans require a co-signer or have stricter credit requirements.
• Evaluate co-signer requirements and release options: If you need a co-signer, find out if they can be released from the loan after you’ve made a certain number of payments.

Alternatives to graduate school loans

Not ready to take on more debt? There are other ways to fund your education:

• Scholarships: Free money is the best kind of money. Scholarships are often merit-based and don’t need to be repaid. Start by researching scholarships specific to your field of study.
• Grants: Like scholarships, grants don’t need to be repaid. They’re often need-based and can come from the government, schools or private organizations.
• Work-study: Work-study programs allow you to earn money while attending school. These programs are typically offered through your school’s financial aid office.
• Income-share agreements: An Income-Share Agreement (ISA) is an alternative to taking out a traditional loan. In an ISA, you agree to pay a percentage of your income for a set period after graduation.
• Part-time job: Working part-time while in school can help you cover costs without adding to your debt. Many grad students take on assistantships or research positions that provide tuition assistance and a stipend.
• Personal savings: Using your savings can reduce the amount you need to borrow, helping you avoid excessive debt. If you have time before starting school, consider saving to cover some of your costs.

---

MoneyLion offers a service to help you find personal loan offers. You can get matched with offers for up to $100,000 from our top providers based on your information. You can compare rates, terms and fees from different lenders and choose your best offer.

---

Wrapping up the best loans for grad school

Graduate school is a big investment and finding the right loan can make all the difference in managing your debt long-term. Federal loans often offer the best starting point due to their lower interest rates and flexible repayment plans. Private loans can fill the gaps if you need more funding or specific repayment features. Explore all your options, including scholarships, grants and alternative financing, before committing to a loan that works for you.

FAQ