Best Graduate Student Loans of 2024

Graduate school is a major investment in your future career, but it can also be expensive. The average graduate tuition and fees for the 2023-24 academic year was $30,970 for master's students and $49,660 for doctoral students who attended private colleges according to the College Board.

Graduate student loans can provide a practical solution if you need financial support to continue your education. This article explores the best graduate student loans, including how they work and what to consider when applying.

Compare graduate student loan rates

8 best graduate student loans

Other graduate loans to consider 

Federal graduate loans 

If you’re thinking about borrowing money for your graduate studies, federal student loans are often the best place to start. Federal student loans come with flexible repayment options and fixed interest rates that aren’t based on your credit score. 

Direct Unsubsidized Loans are available to all undergraduate and graduate students, although there are limits to how much you can borrow. Grad PLUS loans are tailored to graduate and professional students and can cover your total cost of attendance. However, interest rates on grad PLUS loans are higher than unsubsidized loans, and you’ll need to pass an adverse credit check to qualify. 

SoFi graduate loans 

SoFi is another private lender known for its competitive rates and multiple repayment plans, and it offers repayment terms that range from five to 15 years. SoFi’s graduate student loans can cover your full cost of attendance, minus any other financial aid you receive. Borrowers can also take advantage of interest rate discounts, referral bonuses, and free access to financial advisers. Loan options are also available for law school degrees, MBA degrees, and future health care professionals. 

Related: 7 Ways To Pay for Graduate School 

Methodology

Credible evaluated these student loan lenders based on interest rates and origination fees, loan amounts, loan terms, discounts, whether cosigners are accepted, and more. Credible’s team of experts gathered information from each lender’s website, customer service department, directly from our partners, and via email support. Each data point was verified by a third party to make sure it was accurate and up to date.

Federal vs. private graduate loans

Graduates can choose between federal and private student loans (or both). Federal student loans from the U.S. Department of Education have fixed interest rates. Private student loans, on the other hand, are offered by banks, online lenders, and other financial institutions. Their rates and terms can vary widely.

Here is a look at the pros and cons of each. 

Federal loan pros and cons

For most graduate students, it makes sense to start with federal loans first because of the unique borrower benefits they offer. 

Pros 

• Flexible repayment options: The Department of Education offers various repayment plans, including income-driven ones that base your monthly payment on your income and family size.
• Loan forgiveness programs: Federal student loans can be eligible for loan forgiveness programs, including Public Student Loan Forgiveness (PSLF) and forgiveness through income-driven repayment.
• Deferment and forbearance options: Federal student loans allow you to postpone payments if you face financial hardship or want to return to school.

Cons

• Credit requirements: Some federal graduate student loans, like grad PLUS loans, require a credit check. Having an adverse credit history can make you ineligible.
• Higher interest rates: Federal graduate loans typically have higher interest rates compared to federal undergraduate loans.

Related: Can I Get a Student Loan With Bad Credit?

Private loan pros and cons

Once you’ve exhausted your federal student loan options, private graduate loans can help you cover any remaining higher education expenses. But they have advantages and disadvantages.

Pros

• Higher borrowing limits: Private student loans can offer higher graduate loan limits, potentially covering the total cost of your graduate education.
• Competitive interest rates: If you have good credit, you may qualify for a lower interest rate than you can get with federal loans.

Cons

• Variable interest rates: Private student loans can have fixed or variable interest rates. Variable interest rates can be risky because your loan payments have the potential to increase.
• Lack of federal benefits: Private student loans typically don’t offer the same benefits as federal loans, such as loan forgiveness options or income-driven repayment plans.
• Credit and income requirements: Approval and terms depend on your credit score and income, and you might need a cosigner to qualify. A cosigner is someone who agrees to make loan payments if you can’t.

How to compare graduate loans

It’s important to find the right type of student loan for your specific needs and circumstances. Here are a few key factors to consider when comparing graduate student loans:

• Interest rates: The loan’s interest rate determines how much you’ll pay on top of the amount you borrow. Lower rates mean a lower cost of borrowing. Compare fixed rates (which stay the same) with variable rates (which can change over time).
• Repayment options: Look at the flexibility of the loan’s repayment plans. Some loans offer multiple repayment options while you’re in school and during your grace period. For example, you may be able to choose between interest-only, immediate, or deferred payments. 
• Loan terms: The loan term, or how long you have to pay it back, can impact both your monthly payments and the total amount of interest you pay. Longer terms usually mean lower monthly payments but more interest over time.
• Fees: Origination fees, late fees, and other charges can add up. Compare these fees across different loans as they can impact your total cost of borrowing.
• Cosigner requirements and release options: Private loans may require a cosigner if you don’t have good credit or enough credit history. Check if there are options to release the cosigner after a certain number of on-time payments.
• Customer service and lender reputation: The lender’s reputation for customer service can be critical, especially if you encounter issues or need assistance.

How to qualify for a low interest rate

Getting the lowest possible rate on your graduate student loans can significantly reduce the overall cost of your education and make your financial situation more manageable.

Here are some strategies to help you secure the best rates:

• Improve your credit score: Private student loan lenders view a high credit score as an indicator of financial responsibility, and they offer the lowest rates to these borrowers. Improve your credit score by paying your bills on time, keeping your credit utilization low, and disputing errors on your credit reports.
• Have a stable income: A steady income demonstrates to lenders that you can repay the loan. If you’re working while attending grad school, this can help you secure a lower rate.
• Consider a cosigner: If your credit history is limited or less than ideal, a cosigner with good credit can help you qualify for a lower interest rate.
• Look for rate discounts: Some private student loan lenders offer interest rate discounts for setting up automatic payments or other reasons. 

How much should I borrow?

Determining how much to borrow for graduate school can be tricky. Borrowing too much can strain you financially while borrowing too little may hinder your ability to fully commit to your studies.

Here are some factors to consider when deciding how much to borrow:

• Your future earning potential: Research the typical starting salaries in your chosen field after graduation. This will give you a realistic idea of your future income and how much you’ll have available to repay your loans.
• A common rule of thumb: Try not to take on more student debt than you expect to make as a starting annual salary when you graduate. That amount includes any debt from your undergraduate education. For example, if your expected starting salary is $50,000 per year and you already have $25,000 in student debt from your undergraduate degree, you probably shouldn’t borrow more than $25,000 for grad school.
• Your current financial situation: Take stock of your cost of living. If you live in an area with expensive housing and other costs, you may want to take on less student debt so you can put more of your money toward rent, food, and transportation.
• Your long-term financial goals: Consider your long-term financial goals, such as buying a home, starting a family, and saving for retirement. Keeping these goals in mind can help you borrow more responsibly.

Before taking out loans, look for scholarships, grants, fellowships, and work-study programs designed for graduate students. This can reduce the amount you need to borrow. Additionally, ask your employer whether they offer any tuition assistance or reimbursement programs. 

Graduate student loans FAQ

What is the average student loan debt for a graduate degree?

The average student loan debt for graduate students varies by degree. In the 2019-20 academic year, 57% of professional degree recipients and 13% of master’s degree and doctoral degree recipients borrowed $100,000 or more in student loans, according to College Board. This includes undergraduate student debt. 

Can I get student loans for a master's degree?

Yes, you can get federal and private student loans for a master’s degree. Federal loans, such as Direct Unsubsidized Loans and Direct PLUS Loans, are common options, and private student loans are available from banks, credit unions, and online lenders.

Is it worth it to take out student loans for graduate school?

That depends on several factors, including your career goals and salary potential in your chosen profession. Generally, if a graduate degree significantly improves your career prospects and earning potential, it can be a worthwhile investment. However, it’s important to borrow responsibly and not take on more debt than you can reasonably afford to repay.