9 Best Graduate Student Loan Options of May 2025
Graduate students should max out federal unsubsidized loans before turning to federal PLUS or private loans to cover their remaining costs.
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The federal government and private lenders offer graduate student loans. Max out federal unsubsidized loans — likely the cheapest option — before covering remaining costs with federal grad PLUS loans or private student loans.
Grad PLUS loans don't require credit and come with multiple repayment options, which will likely make them best for most borrowers. But you may pay less with a private graduate school loan if you or a co-signer has excellent credit.
Here are our picks for the best loans for graduate school, as well as information on how to choose between them and manage debt while you're in school.
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Why trust NerdWallet
- 35+ student loans lenders reviewed and rated by our team of experts.
- 10+ years of combined experience covering higher education and student loans.
- Objective, comprehensive star-rating system assessing 43 categories and 40+ data points across student loan origination and student loan refinance.
- Governed by NerdWallet's strict guidelines for editorial integrity.
Best Graduate Student Loan Options
Lender | NerdWallet Rating | Min. credit score | Fixed APR | Variable APR | Learn more |
|---|---|---|---|---|---|
5.0 /5 | None | 6.53-8.08% | N/A | ||
5.0 /5 | None | 9.08-9.08% | N/A | ||
 Ascent Graduate and Health Professions Student Loan See Offers on Credible’s website | 5.0 /5 | Low-Mid 600s | 4.39-14.21% | 6.94-14.10% | See Offers on Credible’s website |
 College Ave Graduate Student Loan See Offers on College Ave's website COMPARE RATES on Credible’s website | 5.0 /5 | Mid-600s | 3.47-14.49% | 4.44-14.49% | See Offers on College Ave's website COMPARE RATES on Credible’s website |
 SoFi Graduate Student Loan See Offers on SoFi's website COMPARE RATES on Credible’s website | 5.0 /5 | Mid-600s | 3.54-14.83% | 4.64-15.86% | See Offers on SoFi's website COMPARE RATES on Credible’s website |
5.0 /5 | 680 | 4.05-8.64% | N/A | ||
4.0 /5 | None | 12.99-15.99% | N/A | ||
4.5 /5 | N/A | N/A | 11.06-14.96% | ||
4.5 /5 | None | N/A | N/A |
Our pick for
All borrowers as a first option
Graduate students can take out up to $20,500 annually in unsubsidized federal student loans.
Federal Subsidized/Unsubsidized Loan
None
6.53-8.08%
N/A
- Key facts
Graduate school borrowers qualify for unsubsidized student loans only.
Pros- More flexible repayment options for struggling borrowers than other lenders.
- Subsidized loans do not collect interest while in school or during deferment.
- Lower interest rates than many private lenders.
Cons- You pay an origination fee.
Qualifications- No credit check or minimum income is needed to borrow.
- Loan amounts for undergraduates: $5,500 year one, $6,500 year two, $7,500 year three and thereafter, up to a total of $31,000
- Independent students and graduate students have higher loan limits.
- Undergraduate interest rate fixed at 3.73%, while grad students get higher 5.28% rate
Available Term Lengths10 to 25 years once repayment begins, depending on the repayment plan.
Our pick for
Borrowers without credit or a co-signer
Graduate PLUS loan interest rates aren't based on your credit score: All eligible borrowers receive the same fixed rate.
- Key factsBest for graduate students who need to borrow beyond the federal unsubsidized loan limit.Pros
- More flexible repayment options for struggling borrowers compared with private lenders.
- All borrowers who attend a school authorized to receive federal aid can qualify.
Cons- May have higher interest rates compared with private lenders.
- You pay an origination fee.
- You can’t see if you’ll qualify without a hard credit check.
Qualifications- Grad PLUS loan borrowers must not have adverse credit history.
- Borrowers with adverse credit history can still receive a grad PLUS loan by enlisting a co-signer without adverse credit history or documenting extenuating circumstances for their credit history.
- Loan amounts: Total cost of attendance minus other financial aid.
Available Term Lengths10 to 25 years once repayment begins, depending on the repayment plan.
Our pick for
Borrowers with good credit or a co-signer
Private loans may cost less than federal options if you or a co-signer has good or excellent credit.
Ascent Graduate and Health Professions Student Loan
Low-Mid 600s
4.39-14.21%
6.94-14.10%
- Key factsBest for graduate students who want flexible payment options.Pros
- Forbearance of 24 months is longer than many lenders offer.
- Grace period of 9 months is longer than many lenders offer.
- You can see if you’ll qualify and what rate you’ll get without a hard credit check.
Cons- You must be enrolled at least half-time to qualify.
Qualifications- Typical credit score of approved borrowers or co-signers: Not available.
- Minimum income: Not available.
- Loan amounts: up to $400,000.
Available Term Lengths7, 10, 12 or 15 yearsDisclaimerAscent’s undergraduate and graduate student loans are funded by Bank of Lake Mills or DR Bank, each Member FDIC. Loan products may not be available in certain jurisdictions. Certain restrictions, limitations, terms and conditions may apply for Ascent's Terms and Conditions please visit: AscentFunding.com/Ts&Cs. Annual Percentage Rates (APRs) displayed above are effective as of 2/1/2025 and reflect an Automatic Payment Discount of 0.25% for credit-based college student loans and 1.00% discount on outcomes-based loans when you enroll in automatic payments. The Full P&I (Immediate) Repayment option is only available for college loans (except for outcomes-based loans) originated on or after June 3, 2024. For more information, see repayment examples or review the Ascent Student Loans Terms and Conditions. The final amount approved depends on the borrower’s credit history, verifiable cost of attendance as certified by an eligible school, and is subject to credit approval and verification of application information. Lowest interest rates require full principal and interest (Immediate) payments, the shortest loan term, a cosigner, and are only available for our most creditworthy applicants and cosigners with the highest average credit scores. Actual APR offered may be higher or lower than the examples above, based on the amount of time you spend in school and any grace period you have before repayment begins. 1% Cash Back Graduation Reward subject to terms and conditions. For details on Ascent borrower benefits, visit AscentFunding.com/BorrowerBenefits. The AscentUP platform is only available to eligible Ascent borrowers and subject to terms and conditions.
College Ave Graduate Student Loan
Mid-600s
3.47-14.49%
4.44-14.49%
- Key factsBest for graduate students who'll need extra time before starting repayment.Pros
- You can see if you’ll qualify and what rate you’ll get without a hard credit check.
- International students can qualify with a co-signer.
- Nine-month grace period is longer than other lenders offer.
Cons- You must be at least halfway through your repayment term before you can request a co-signer release.
Qualifications- Typical credit score of approved borrowers: Mid-700s.
- Minimum income: $35,000 per year.
- Loan amounts: $1,000 up to the total cost of attendance.
Available Term Lengths5, 8, 10 or 15 yearsDisclaimerCollege Ave Student Loans products are made available through Firstrust Bank, member FDIC, First Citizens Community Bank, member FDIC, or M.Y. Safra Bank, FSB, member FDIC. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply. (1)All rates include the auto-pay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. If a payment is returned, you will lose this benefit. Variable rates may increase after consummation. (2)As certified by your school and less any other financial aid you might receive. Minimum $1,000. (3)This informational repayment example uses typical loan terms for a freshman borrower who selects the Flat Repayment Option with an 8-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 7.78% fixed Annual Percentage Rate (“APR”): 54 monthly payments of $25 while in school, followed by 96 monthly payments of $176.21 while in the repayment period, for a total amount of payments of $18,266.38. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary. Information advertised valid as of 3/3/2025. Variable interest rates may increase after consummation. Approved interest rate will depend on creditworthiness of the applicant(s), lowest advertised rates only available to the most creditworthy applicants and require selection of the Flat Repayment Option with the shortest available loan term.
SoFi Graduate Student Loan
Mid-600s
3.54-14.83%
4.64-15.86%
- Key factsBest for flexible repayment options and no fees.Pros
- You can see if you’ll qualify and what rate you’ll get without a hard credit check.
- Multiple in-school repayment options available, including interest-only and flat-fee, and deferred for undergrad and grad students.
Cons- Does not offer bi-weekly payments via autopay.
QualificationsAvailable Term Lengths5, 7, 10, 15 years
RISLA Private Student Loan
680
4.05-8.64%
N/A
- Key factsBest for students who may need wiggle room on payments in the future.Pros
- Income-based repayment plan available, with forgiveness after 25 years.
- You can see if you’ll qualify and what rate you’ll get without a hard credit check.
- Partial loan forgiveness for eligible internships; interest forgiveness for qualifying nurses.
Cons- Fewer repayment terms available than other lenders.
Qualifications- Typical credit score of approved borrowers: 768.
- Minimum income: $40,000.
- Loan amounts: $1,500 to $45,000.
Available Term Lengths10 or 15 years
Our pick for
International borrowers without credit or a co-signer
International students don't qualify for federal aid and have fewer private options without a co-signer who's a U.S. citizen.
MPOWER Private Student Loan
None
12.99-15.99%
N/A
- Key factsBest for international students and students with Deferred Action for Childhood Arrivals, or DACA, status.Pros
- Offers a hard-to-find option: non-co-signed student loans for international and DACA students.
- Borrowers are assigned a dedicated student loan advisor.
- Borrowers can request forbearance of up to 24 months, which is longer than many lenders offer.
Cons- Payment required while in school.
- Offers only one repayment term: 10 years.
Qualifications- MPOWER considers future income potential but does not factor in credit scores.
- Loan amounts: Minimum $2,001. Maximum loan is $100,000, limited to $50,000 per academic period.
Available Term Lengths10 yearsDisclaimerNote: Our loan does not support Canadian citizens studying in Canada. Canadian Permanent Residents and U.S. citizens are considered “international” when studying in Canada. International students, U.S. citizens, U.S. permanent residents, and DACA recipients in the U.S. or Canada. ‘International’ means you are a non-U.S. citizen or U.S. non-permanent resident studying at a university in the U.S., or you are a non-Canadian citizen or Canadian non-permanent resident studying at a university in Canada. ‘DACA’ means the Deferred Action For Childhood Arrivals Program initiated by the U.S. Department of Homeland Security in 2012. In order to qualify as a DACA Student, you must have applied for, and been granted, DACA status by USCIS. As a graduate student, you can borrow with a fixed interest rate of 12.99% (13.98% APR¹). This is the maximum rate and will not increase. However, MPOWER offers borrowers a way to qualify for a discount; a 0.25% rate discount is possible by making your loan payments through automatic withdrawal from your bank account. If you qualify for this discount, your rate will be 12.74% (13.72% APR²). ¹[International graduate student with regular interest rate] The APR is calculated using the following assumptions: A loan is approved in the amount of US$10,000 with a 5% origination fee of US$500. The student will start making payments 45 days after loan disbursement. Payments will be interest only until graduation, plus an additional 6-month grace period. The remaining months of repayment are calculated using a 120-month amortization schedule. All payments are made on-time, a forbearance is never utilized, and there is no pre-payment of any principal. At an APR of 13.98%, the monthly payment amount is US$113.66 for the first 30 months. For the next 120 months, the monthly payment amount is about $156.71. ²[International graduate student with discounted interest rate] The APRs with discounts are calculated using the following assumptions: A loan is approved in the amount of $10,000 with a 5% origination fee of US$500. The student will start making payments 45 days after loan disbursement. The borrower signs up for automatic debit immediately after the loan is disbursed and remains on it for the life of the loan, which reduces the rate by 0.25%. At an APR of 13.72%, the monthly payment is US$111.47 for the first 30 months. For the last 120 payments, the monthly amount is US$155.17. Undergraduate Students in the U.S. or Canada As an undergraduate student, you can borrow with a fixed interest rate of 13.99% (15.01% APR³). This is the maximum rate and will never increase. However, MPOWER offers borrowers a way to qualify for a discount; a 0.25% rate discount is possible by making your loan payments through automatic withdrawal from your bank account. If you qualify for this discount, your rate will be 13.74% (14.75% APR⁴). ³[International undergraduate student with regular interest rate] The APR is calculated using the following assumptions: A loan is approved in the amount of $10,000 with a 5% origination fee of $500. The student will start making payments 45 days after loan disbursement. Payments will be interest only until graduation plus an additional 6-month grace period. The remaining months of repayment are calculated using a 120-month amortization schedule. All payments are made on-time, a forbearance is never utilized, and there is no pre-payment of any principal. At an APR of 15.01%, the monthly payment amount is $122.41 for the first 30 months. For the next 120 months, the monthly payment amount is $162.97. ⁴[International undergraduate student with discounted interest rate] The APRs with discounts are calculated using the following assumptions: A loan is approved in the amount of US$10,000 with a 5% origination fee of US$500. The student will start making payments 45 days after loan disbursement. The borrower signs up for automatic debit immediately after the loan is disbursed and remains on it for the life of the loan, which reduces the rate by 0.25%. A forbearance is never utilized and there is no prepayment of any principal. At an APR of 14.75%, the monthly payment is US$120.22 for the first 30 payments. For the last 120 payments, the monthly amount is US$161.39.
Prodigy Private Student Loan
N/A
N/A
11.06-14.96%
- Pros
- Offers a hard-to-find option: non-co-signed student loans for international students.
- You can see if you’ll qualify and what rate you’ll get without a hard credit check.
Cons- No fixed interest rates.
Qualifications- Prodigy Finance considers future income, rather than current income or credit score.
- Loan amounts: $15,000 to $220,000.
Available Term Lengths7, 10, 15 or 20 years
Our pick for
Income share agreement
Income share agreements aren't loans, but graduate students can use them to finance their education — just make sure you understand the costs.
Stride Funding Income Share Agreement
None
N/A
N/A
- Key factsBest for health care and STEM students who’ll pay less than with a private student loan.Pros
- Payments aren’t due if you’re unemployed, or if your income drops below $30,000 to $40,000 per year.
- Lending decisions are not based on your credit score.
- Available for some non-degree granting schools, like certificate and bootcamp programs.
Cons- There’s no discount for paying off your agreement early like some lenders offer.
- Funding may not be available based on your school.
- Not available in Colorado or West Virginia.
Qualifications- Eligibility is based on factors like academic program and projected salary, not credit score.
- Loan amounts: $3,000 to $25,000 annually; $50,000 lifetime maximum.
- Payment cap: Two times the amount borrowed.
- Income share percentages: Typically 6% to 9%; lifetime max is 20%.
Available Term Lengths5 years, but can extend to up to 10 years.
What are the best loans for graduate school?
1. Federal graduate student loans
Borrowers are eligible for two types of federal loans for graduate school: unsubsidized direct loans and grad PLUS loans.
Federal direct unsubsidized loans limit the amount you can borrow to $20,500 annually and $138,500 overall, including undergraduate loans. But these loans have lower interest rates and fees than PLUS loans, so opt for unsubsidized loans before graduate PLUS loans.
Federal grad PLUS loans have higher interest rates and fees than direct unsubsidized loans, but you can borrow more money — up to your total cost of attendance, minus other aid received. Use grad PLUS loans if you’ve maxed out your federal direct unsubsidized loans and still want to use federal loans to pay for graduate school.
No one can get subsidized loans for graduate school. Certain professional students may be eligible for a federal health professions student loan as well.
You can apply for federal loans for graduate school by completing the Free Application for Federal Student Aid, or FAFSA.
2. Ascent Graduate Student Loan
Ascent's graduate student loan is a good option if you or a co-signer has excellent credit.
While federal interest rates are historically low for the 2020-21 academic year, you still may get a better rate with a private graduate student loan. You'll almost certainly pay less in fees: Grad PLUS loans come with an origination fee of more than 4%, while most private lenders don't charge these fees.
Ascent's graduate student loan stands out due to its flexibility. The lender offers a nine-month grace period and 24 months of forbearance — both of which are longer than many other lenders provide.
3. College Ave Graduate Student Loan
College Ave is a good choice if you're working your way through graduate school. Unlike many lenders, including the federal government, College Ave offers graduate student loans if you're attending school less than half-time.
In addition to Ascent and College Ave, graduate students looking at private student loans may want to consider Discover, SoFi, RISLA and Wells Fargo. It's best to get quotes from multiple lenders before applying to ensure you get the best rate possible.
4. Prodigy Graduate Student Loan
Prodigy is a good choice for international graduate students who don't have a U.S. citizen co-signer. You can qualify for a Prodigy graduate student loan without a co-signer; lending decisions are based on your future income, rather than your current financial situation. Prodigy only offers variable-rate loans, which are riskier than fixed-rate options, and doesn't lend to borrowers in all 50 states.
5. Stride Funding Income Share Agreement
An income share agreement, or ISA, is not a student loan, but graduate students may be able to use one to finance their education. Stride Funding prioritizes lending ISAs to graduate students, particularly those in STEM and health care fields.
With an ISA, you promise to pay a percentage of your future income in exchange for upfront funding. You may repay more or less than you receive. Be sure to compare ISAs and student loans to understand their potential costs before borrowing.
Which graduate student loan is best for you?
If you need loans to pay for graduate school, the best option will likely be federal student loans. These offer protections that private graduate school loans lack, including income-driven repayment plans and loan forgiveness programs.
Those benefits can come in handy depending on how much you owe — the average graduate student debt is $82,000, including undergraduate loans — and your career plans. For example, you may want to pursue Public Service Loan Forgiveness if you plan to get a Ph.D. and work at a university.
If you won't work at a nonprofit or need federal benefits, compare private student loans to see what interest rate you'd qualify for. Many lenders have specific graduate student loan products based on the degree you're pursuing:
Most lenders won't require you to pay student loans while in graduate school, provided you're enrolled at least half-time. But depending on how much you get paid as a graduate student, making payments can save you money because all graduate school loans accrue interest, increasing the amount you owe.
Last updated on July 30, 2024
Frequently asked questions
Most students should max out federal student loans for graduate school before considering other options. But if you have excellent credit, a private student loan may be cheaper in the long run.
Grad students can get up to $20,500 annually and $138,500 overall in unsubsidized federal loans. Federal PLUS loans and private loans can cover up to your cost of attendance minus other aid received.
Interest rates and loan fees are higher with grad PLUS loans. But you can also borrow more with these loans — up to your cost of attendance — compared to other federal options.
Complete the FAFSA to qualify for all federal aid, including unsubsidized loans and graduate PLUS loans. If you want a private student loan for grad school, apply directly with the lender.
NerdWallet's Best Graduate Student Loan Options of May 2025
- Federal Subsidized/Unsubsidized Loan: Best for All borrowers as a first option
- Federal Grad PLUS Loan: Best for Borrowers without credit or a co-signer
- Ascent Graduate and Health Professions Student Loan: Best for Borrowers with good credit or a co-signer
- College Ave Graduate Student Loan: Best for Borrowers with good credit or a co-signer
- SoFi Graduate Student Loan: Best for Borrowers with good credit or a co-signer
- RISLA Private Student Loan: Best for Borrowers with good credit or a co-signer
- MPOWER Private Student Loan: Best for International borrowers without credit or a co-signer
- Prodigy Private Student Loan: Best for International borrowers without credit or a co-signer
- Stride Funding Income Share Agreement: Best for Income share agreement
