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Student loans may allow people to bridge the gap between what they can afford for college and the overall cost of an education. If you’ve already used your “free money” (scholarship, grants, and your savings) to pay for college and still find that you’re unable to pay for school, a student loan could be a good option.
When considering your options, federal student loans should always take precedence over private ones. Federal loans have the lowest interest rates and come with a level of protection that private lenders don’t offer.
Take the Biden administration’s move to cancel federal student loan debt. If the plan survives court challenges and is implemented, the Department of Education will forgive $10,000 in student loans for borrowers making less than $125,000 per year, and as much as $20,000 for Pell Grant recipients. Federal loans will qualify for forgiveness, but private loans won’t.
Graduate students don’t qualify for all types of federal loans, but they are able to take out Direct Unsubsidized loans and Direct PLUS loans.
Here are some of the best options for graduate students looking to take out loans.
Best graduate student loans
Editor’s Rating
Regular Annual Percentage Rate (APR)
Undergraduates: 4.99%, Graduate and professional students: 6.54%
Editor’s Rating
Regular Annual Percentage Rate (APR)
7.54%
Editor’s Rating
Regular Annual Percentage Rate (APR)
Variable: 6.31% – 15.32%, Fixed: 5.62% – 16.43% (varies by program)
Editor’s Rating
Regular Annual Percentage Rate (APR)
Variable: 3.99% – 12.99%, Fixed: 4.24% – 12.99%
Editor’s Rating
Regular Annual Percentage Rate (APR)
Variable 4.49% – 11.99%, Fixed 4.49% – 13.95% with AutoPay
Editor’s Rating
Regular Annual Percentage Rate (APR)
Variable: 5.50% – 15.10%, Fixed: 5.25% – 14.48%
Editor’s Rating
Regular Annual Percentage Rate (APR)
Variable: 5.16% – 13.75%, Fixed: 3.65% – 12.47%
Learn more
On Federal Direct Unsubsidized Loan’s website
Federal Direct unsubsidized loan
Federal Direct Unsubsidized Loan
Regular Annual Percentage Rate (APR)
Undergraduates: 4.99%, Graduate and professional students: 6.54%
Federal Direct Unsubsidized Loan
Regular Annual Percentage Rate (APR)
Undergraduates: 4.99%, Graduate and professional students: 6.54%
On Federal Direct Unsubsidized Loan’s website
Details
Regular Annual Percentage Rate (APR)
Undergraduates: 4.99%, Graduate and professional students: 6.54%
Pros & Cons
Highlights
Federal Direct PLUS loan
Fees
4.228% origination fee
Regular Annual Percentage Rate (APR)
7.54%
Fees
4.228% origination fee
Regular Annual Percentage Rate (APR)
7.54%
On Department of Education’s website
Details
Regular Annual Percentage Rate (APR)
7.54%
Fees
4.228% origination fee
Pros & Cons
Highlights
Ascent graduate student loans
Ascent Graduate Student Loans
Regular Annual Percentage Rate (APR)
Variable: 6.31% – 15.32%, Fixed: 5.62% – 16.43% (varies by program)
Ascent Graduate Student Loans
Regular Annual Percentage Rate (APR)
Variable: 6.31% – 15.32%, Fixed: 5.62% – 16.43% (varies by program)
Details
Regular Annual Percentage Rate (APR)
Variable: 6.31% – 15.32%, Fixed: 5.62% – 16.43% (varies by program)
Ascent Student Loans are funded by Bank of Lake Mills, Member FDIC. Loan products may not be available in certain jurisdictions. Certain restrictions, limitations; and terms and conditions may apply. For Ascent Terms and Conditions please visit: www.AscentFunding.com/Ts&Cs. Rates are effective as of 11/14/2022 and reflect an automatic payment discount of either 0.25% (for credit-based loans) OR 1.00% (for undergraduate outcomes-based loans). Automatic Payment Discount is available if the borrower is enrolled in automatic payments from their personal checking account and the amount is successfully withdrawn from the authorized bank account each month. For Ascent rates and repayment examples please visit: AscentFunding.com/Rates. 1% Cash Back Graduation Reward subject to terms and conditions. Cosigned Credit-Based Loan student must meet certain minimum credit criteria. The minimum score required is subject to change and may depend on the credit score of your cosigner. Lowest APRs require interest-only payments, the shortest loan term, and a cosigner, and are only available to our most creditworthy applicants and cosigners with the highest average credit scores.
Show more
Pros & Cons
Highlights
College Ave graduate student loans
College Ave Graduate Student Loans
Regular Annual Percentage Rate (APR)
Variable: 3.99% – 12.99%, Fixed: 4.24% – 12.99%
College Ave Graduate Student Loans
Regular Annual Percentage Rate (APR)
Variable: 3.99% – 12.99%, Fixed: 4.24% – 12.99%
Details
Regular Annual Percentage Rate (APR)
Variable: 3.99% – 12.99%, Fixed: 4.24% – 12.99%
Pros & Cons
Highlights
Earnest graduate student loans
Earnest Graduate Student Loans
Regular Annual Percentage Rate (APR)
Variable 4.49% – 11.99%, Fixed 4.49% – 13.95% with AutoPay
Earnest Graduate Student Loans
Regular Annual Percentage Rate (APR)
Variable 4.49% – 11.99%, Fixed 4.49% – 13.95% with AutoPay
Details
Regular Annual Percentage Rate (APR)
Variable 4.49% – 11.99%, Fixed 4.49% – 13.95% with AutoPay
Pros & Cons
Highlights
Sallie Mae graduate student loans
Sallie Mae Graduate Student Loan
Regular Annual Percentage Rate (APR)
Variable: 5.50% – 15.10%, Fixed: 5.25% – 14.48%
Sallie Mae Graduate Student Loan
Regular Annual Percentage Rate (APR)
Variable: 5.50% – 15.10%, Fixed: 5.25% – 14.48%
Details
Regular Annual Percentage Rate (APR)
Variable: 5.50% – 15.10%, Fixed: 5.25% – 14.48%
Pros & Cons
Highlights
Custom Choice graduate student loans
Custom Choice Graduate Student Loans
Regular Annual Percentage Rate (APR)
Variable: 5.16% – 13.75%, Fixed: 3.65% – 12.47%
Custom Choice Graduate Student Loans
Regular Annual Percentage Rate (APR)
Variable: 5.16% – 13.75%, Fixed: 3.65% – 12.47%
On Custom Choice’s website
Details
Regular Annual Percentage Rate (APR)
Variable: 5.16% – 13.75%, Fixed: 3.65% – 12.47%
Pros & Cons
Highlights
Other graduate student loans we considered
- Citizens Bank private student loans. Citizens Bank offers good rates, but there are fewer repayment options through this lender, as Citizens doesn’t give the option to pay while you’re still in school.
- Discover private student loans. While the lender has no fees, you can find more competitive APRs elsewhere.
- Credible private student loans. Credible doesn’t directly make student loans. Rather, it is a marketplace that makes loans through the lenders listed above and more. Credible works with Ascent, Citizens Bank, College Ave, and Sallie Mae, for example.
Which lender is the most trustworthy?
We’ve only selected student loan lenders with no public controversies in the last three years. We’ve also compared each institution’s Better Business Bureau score.
The BBB, a non-profit organization focused on consumer protection and trust, evaluates companies by judging a business’s responses to consumer complaints, honesty in advertising, and clarity about business practices. Here is each company’s score:
Of our top private lender picks, only Custom Choice is not currently rated an A- or higher by the BBB. The BBB doesn’t have a rating for Custom Choice. That said, this doesn’t necessarily reflect Custom Choice’s trustworthiness, and you should ask others about their experiences with the businesses before deciding against borrowing from the companies.
Methodology
Personal Finance Insider’s mission is to help smart people make the best decisions possible with their finances. To do that, we looked through many student loan companies, comparing interest rates, terms, and fine print so you don’t have to. We looked for several factors in determining the best student loans, including:
- Interest rates: The lower the interest rate the better, and we prioritized lenders with the lowest interest rates for graduate students.
- Nationwide availability: We searched for student loans available in all or most US states.
- Flexibility of repayment plans: There are four main options for repayment offered by most lenders: defer payments until after school; interest-only payments in school; small, fixed payments in school; and full monthly in-school payments. We looked for lenders with the most ways to pay.
- No or few fees: We prioritized lenders that didn’t charge fees, like origination fees or prepayment penalties.
See our full ratings methodology for student loans >>
Frequently asked questions
Your choice depends on your financial situation and the value you place on your education. You may consider alternatives such as a less expensive school, scholarships, or a side job to bring in more cash. Whatever your decision, make sure you fully understand the terms of your loan before making a commitment.
Keep in mind that interest will still accrue while you’re in school, so it may be beneficial to make your interest payments each month or set aside a certain amount of money for monthly payments.
Paying either the principal of your student loans or the interest could be a good idea, because when your loan goes into repayment, any unpaid interest will capitalize. This means it will become part of the principal balance of your loan, which ups the loan. Interest is then determined using this new, higher loan balance.
Every lender is different when it comes to your repayment choices while you’re in school. Some allow you to pay down your monthly debt in full every month, others offer interest-only or flat payments, and you may be able to defer all costs until after you graduate.
As you’ll likely be repaying your student loans over a longer period, you’ll want to know your options for your term length. You may want an extended length to spread your costs out, but be aware that you’ll pay more in overall interest this way. Some lenders, like Sallie Mae, set your repayment term for you.
Federal student loans have a number of protections that private student loans don’t. The loan forbearance during the coronavirus pandemic and recent student loan forgiveness are some examples.
Similarly, income-based repayment plans are only available for federal student loans, and help to lower payments to a percentage of a person’s income. That’s a protection not available to private student loan borrowers that could make a big difference.
It’s a good idea to use all of your available federal loan options first to take advantage of these protections.
Yes, interest will accrue during the six-month grace period after you graduate, similarly to how it does while you are in school. Private lenders may have suspended this practice during the pandemic, but they are under no obligation to do so.
Fixed-interest rates stay the same for the life of the loan. Variable interest rates are exactly what they sound like — they have interest rates that change based on interest rate indexes, like the LIBOR or prime rate, plus a margin. When that index rate increases, the amount of interest you owe increases, along with your monthly payment.
On variable-rate loans, interest rates and payments change over time. So, it’s important to remember that what goes up must come down, and vice versa. There’s a chance that interest rates will increase before a long loan (like a student loan) is paid off, and your interest rate and payment may not always be as low as it is now.
The best choice for you depends on your financial situation and which way you believe the market is headed.
Unfortunately, private student loans are not eligible for any federal forgiveness programs. However, if you have federal student loans, you may be eligible for forgiveness if you are under a certain income threshold or if you work a certain job.
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