Federal student loans may not be enough to help fund an advanced degree — but private graduate student loans could help fill the gap.
Federal and private graduate student loans are intended to help you cover the costs of earning an advanced degree, including tuition, fees, books and supplies, room and board, and personal expenses.
Before seeking a private loan for your graduate studies, it’s critical to first use federal Direct Unsubsidized Loans, which come with key protections like income-based repayment options. While Direct Unsubsidized Loans don’t require a credit check, they come with annual and lifetime borrowing limits, and sometimes have higher interest rates compared to private loans.
If you need to supplement your graduate school funding with private student loans, comparing lenders can help you find the best option for your needs. Scholarships are also available for graduate students. View the latest listing here: New Scholarships for First-Year Graduate Students.
Selecting the best graduate student funding
Federal Aid, Grants, and Scholarships First
The best financial approach to paying for graduate school is to use federal aid, grants, and scholarships as your first sources of funding. To qualify for federal student aid:
- Complete the Free Application for Federal Student Aid (FAFSA) as early as possible. Many colleges require a FAFSA on file to determine aid eligibility.
- Consider Federal Work-Study programs, if you qualify. Your FAFSA must be submitted to be considered for a work-study job.
- Research federal graduate loan options: Unsubsidized Direct Loans, federal graduate PLUS (if available/eligible) until the cut-off date. Take note of the new limits under the One Big Beautiful Bill/Law.
- Speak to your college or university’s financial aid office about institutional deadlines and how these may impact your borrowing.
Private loans are an important options, find out more, visit Your Complete Guide for Funding Grad School.
Graduate student loans, understanding the key points
Comparison shopping is almost always a smart move, especially when you’re committing to a financial product — like a graduate student loan — that will affect your financial wellbeing for years to come. When you’re comparing lenders, key points to weigh include:
Loan types and rates: Does the lender offer variable- or fixed-rate products? Are multiple loans available, or does the lender offer specialized loans based on the degree you’re pursuing? What are the requirements for getting the best APR?
Available loan amounts: Does the lender limit how much you can borrow? Will you be able to cover all your funding needs with a single loan?
Eligibility requirements: Typically, graduate student lenders require borrowers or their cosigners to be either U.S. citizens or permanent residents. Some loans may only be available to undergraduate students. And lenders typically require borrowers or their cosigners to have good to excellent credit.
Loan repayment plans and terms: How many choices does the lender provide for repayment terms? Will you likely be able to repay the loan within the term? What are its practices around deferral, in-school payments, and post-graduation repayment?
Available discounts: A discount for enrolling in autopay is fairly standard among student loan lenders. Some lenders may offer additional discounts or incentives, such as a one-time cash reward for graduating on time.
Fees and penalties: Does the lender charge or waive common fees such as an origination fee? Is there a penalty for missing a payment or for prepaying?
Cosigner requirements and cosigner release terms: Graduate and undergraduate borrowers often need cosigners in order to qualify for a loan. What are the minimum credit score and income requirements for cosigners? How long will it be before you can ask the lender to release your cosigner from the loan?
Graduate student loan Frequently Asked Questions
How do I apply for a graduate student loan?
You have many options for applying for a graduate student loan, depending on the lender. You may be able to apply through the lender’s website. Or, you may be able to apply through a website that connects borrowers with lenders. Generally, you’ll also need to fill out the FAFSA.
What is a cosigner release?
To qualify for a student loan, student borrowers often need cosigners — a parent, other relative, friend or other creditworthy individual. A cosigner release allows your cosigner to exit the loan after you’ve demonstrated you’re able to make the payments without their help. Lenders typically specify a number of payments you must make on time before you can apply to have your cosigner released from the loan.
How do I find the best student loan rates for graduate school?
Doing your homework to understand each lender’s individual requirements, interest rates, and terms is critical to finding the best student loan for your needs.
For more information, visit Your Complete Guide for Funding Grad School.
