Choosing between private graduate school loan options
Private graduate student loans can be useful if you need additional funding to pay for school. Like Grad Plus loans, private loans require a credit check and usually offer a borrowing limit of the cost of attendance.
When comparing loan offerings from private student loan lenders, consider the following factors to determine which is best for you:
- Interest rates and fees: Shop around to find low interest rates and fees. Many lenders allow you to view estimated rates with no impact to your credit score.
- Repayment terms: Private graduate student loans have various repayment terms, typically ranging from five to 15 years.
- Loan amounts: Most private student loans let you borrow up to the cost of attendance, but some might impose minimums or maximums. Ensure these amounts align with your needs.
- Eligibility requirements: Your credit score typically determines your private student loan terms, with the best interest rates going to borrowers with the best scores. You might also be required to be in school at least half time.
- Discounts: You might get an interest rate discount on your private student loan. Some lenders offer discounts for being a return borrower or enrolling in automatic payments.
- Customer experience: Evaluate a loan servicer’s general experience by sourcing customer reviews from Trustpilot or the Better Business Bureau.
Types of graduate student loans
The federal government currently offers two types of graduate student loans: Direct Unsubsidized Loans and Direct Plus Loans.
Federal Direct Unsubsidized Loans
Graduate students should typically start with Direct Unsubsidized Loans because they do not require a credit check and offer a lower interest rate than Direct Plus Loans. The downside is that unsubsidized loans have annual and aggregate limits—$20,500 and $138,500, respectively. The aggregate limit for graduate unsubsidized loans includes any federal loans you received for your undergraduate education, making it easier to max out quickly.
Beginning July 1, 2026, the aggregate limit for unsubsidized loans for graduate students will be reduced to $100,000, while professional students can borrow up to $200,000 under the OBBBA.
Federal Direct Plus Loans
Direct Plus Loans have a higher borrowing limit than unsubsidized loans. Students who qualify can borrow up to the cost of attendance.
Direct Plus Loans require a credit check. You might qualify with an adverse credit history if you use a cosigner or provide documentation of extenuating circumstances. It could include proof that you made repayment arrangements on a defaulted loan or proof of debt consolidation and on-time payments.
Grad Plus Loans will not be available to new applicants as of July 1, 2026.
Private student loans
Private graduate student loans are available to students who are not eligible for or need to supplement federal aid. Some private student loans are tailored to specific graduate and professional degree programs. For instance, private medical school loans might offer deferment during your residency and fellowship or a longer grace period before repayment begins.
International students who do not qualify for federal student loans also might be able to secure a private student loan to finance their graduate education.