Best Graduate Student Loan Providers
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Returning to graduate school and earning a new degree or certification can help you increase your earning power, earn a promotion or embark on a new career. But attending grad school isn’t inexpensive. The odds are high that you’ll need financial aid to cover your costs.
That’s where graduate student loans come in. You can choose from either private student loans or federal student loans to help fund the cost of attendance when you are working your way through graduate school.
As a graduate student, your choices for federal student loans are limited. You can only apply for direct unsubsidized loans – in the form of what are known as Grad PLUS loans -- from the federal government by filling out the FAFSA (free application for federal student aid.) These loans are similar to the subsidized federal student loans that are available to undergraduate students. Unlike with federal undergraduate loans, though, you are responsible for paying the interest that they generate throughout the life of these loans.
That’s why your credit history is so important: You’ll likely qualify for lower interest rates, which will result in a lower monthly payment, if the credit check performed by your lender turns up fewer negatives. Getting the lowest rates, then, requires building the highest possible credit score.
Graduate students can only borrow a maximum loan amount of $20,500 a year in federal direct unsubsidized loans. Because of this, many must turn to private student loans originated by private lenders to cover the rest of their college costs.
Fortunately, you'll have plenty of loan options, including those that come with income-based repayment and other repayment options, with private student loans. But which private lender is right for you and how does the application process work with these private companies?
Here is a look at six private providers of graduate student loans and what you can expect when working with them.
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Comparison of graduate student loan providers
Lender | Best for |
Ascent | Graduate students worried about their income immediately following graduation. |
Sallie Mae | Those who need deferments during an internship or fellowship |
College Ave | No origination fees |
Earnest | The ability to skip a payment once a year |
SoFi | Low interest rates |
Credible | Shopping around with different lenders |
5.62% - 16.85% VARIABLE rate APRs 4.39% - 16.49% FIXED rate APRs
- Check your eligibility in just 2 minutes
- Fast application and decision-making process
- Flexible repayment options
- No fees for origination, disbursement, prepayment, or late payment
- Skip a payment once per year (once repayment period restarted)
- Covers up to 100% of the school's certified cost of attendance
- 9-month grace period (3 months more than most lenders)
Ascent
Ascent is one of the better-known private lenders offering graduate student loans with a variety of repayment terms. If you are pursuing a graduate degree, you can apply with Ascent for graduate student loans with fixed or variable interest rates, those that offer interest-only payments for a set period; and those designed for students attending medical school, pursuing an MBA or enrolling in law school.
Ascent offers loan terms of five, seven, 10, 12, 15 and 20 years. You can start making your payments up to nine months after you graduate. If you need to make lower payments, you can choose from several repayment plans, including Ascent's progressive repayment option. This option, open to students who are already making payments on their Ascent loan after graduation or are no longer enrolled at least half-time, allows you to reduce your monthly loan payments if you are struggling with cash flow. Your payment would then increase over time so that your loan debt would still be fully paid off within your original loan terms.
You can apply for an Ascent graduate student loan online. If you are approved, Ascent will handle the disbursement of funds to your school. Ascent will check your credit when you apply but does not publish a minimum credit score that borrowers need to qualify. To increase your odds of qualifying for an Ascent student loan even if you have an adverse credit history, you can apply with a creditworthy cosigner.
You'll have to meet certain eligibility criteria for an Ascent loan. You'll need to be enrolled at least half-time in school. If you are applying without a cosigner you must be a U.S. citizen, have permanent resident status or have DACA status. Students who don't meet these requirements can apply with a creditworthy cosigner who is a U.S. citizen or permanent resident.
You must apply for at least $2,001 with an Ascent loan. Maximum loan limits are up to $400,000 for a graduate school academic year. You can apply for loans with fixed interest rates, which won't ever change, or variable interest rates that can rise or fall during the life of your student loan.
Ascent also offers discounts. For instance, you'll receive an autopay discount 0f 0.25% when you sign up for automatic debit from your personal checking account for a credit-based student loan and a 1% discount if you sign up for automatic payments on a non-cosigned outcomes-based student loan.
Ascent does not charge prepayment fees or an origination fee.
Sallie Mae
Sallie Mae is one of the larger providers of undergraduate loans and graduate student loans, and it offers a variety of types of loans for students pursuing graduate degrees. Like many large providers, Sallie Mae also offers loans for undergrad students.
You can cover 100% of your school's cost with a Sallie Mae loan, including covering expenses such as tuition, fees, books, housing, meals, travel and even the purchase of a laptop. Sallie Mae sets itself apart by offering up to 48 months of deferment on student loan payments if you are working an internship or fellowship. You won't have to make your student loan payments during this deferment period.
You'll have up to 15 years to repay your Sallie Mae graduate student loan. But you'll get a six-month grace period, meaning that you won't have to make any payments until six months after you graduate.
Sallie Mae offers several repayment plans and flexible repayment options. Not only can you qualify for a fixed-rate loan, with an APR of 4.15% to 14.48%, or a variable-rate loan, with rates ranging from 5.37% to 14.97%, you can also qualify for graduate student loans that let you tweak your monthly payments and benefit from lower interest rates.
For instance, you can apply for the deferred repayment option in which you make no payments while you're in school and during your grace period, or the fixed repayment option, in which you pay $25 every month even while in school. If you choose this option, you'll receive an interest rate that is .25 percentage points lower than the deferred repayment option and you'll end up paying less for your loan overall. You can also choose the interest repayment option, in which you pay your loan's interest every month you're in school and during your grace period. You'll receive an interest rate that is .50 percentage points lower with this option.
You can qualify for a 0.25 percentage point interest rate reduction when you sign up for automatic payments. Sallie Mae charges no origination fees or prepayment penalties. Sallie Mae does charge late fees of 5% of the past-due amount up to $25. If you borrow with a cosigner, you can apply for a cosigner release after you graduate and make 12 on-time payments. This means your cosigner will no longer be on the hook if you miss your payments.
To qualify for a Sallie Mae student loan, you must be a U.S. citizen or permanent resident or apply with a cosigner who is. You must borrow at least $1,000. Sallie Mae will check your credit but does not disclose a minimum required credit score. Like other private student loan lenders, Sallie Mae does not list any income requirements for a graduate student loan. Sallie Mae also does not refinance existing student loans.
College Ave
College Ave says it offers graduate student loans that cover the costs of postgraduate, masters, doctoral and professional degrees. It also offers flexible repayment options and charges no origination fees. And because College Ave does most of its business online, you can typically apply for a graduate loan from the company in only three minutes and receive an instant credit decision.
Graduate student loan rates from College Ave vary, ranging from 5.59% to 14.49% APR for variable APR loans and 4.22% to 14.49% APR for fixed-rate loans. College Ave charges no application fees.
You can choose from a variety of repayment plans, too. If you want to pay at least some money while you are in college, you can choose the full principal and interest payments option, in which you start repaying your principal and interest immediately. This will save you the most in interest payments. You can also choose the interest-only payment option, in which you'll only pay interest charges each month during your enrollment in school, or the flat-payment option, in which you make $25 payments each month while in school.
If you don't want to make any payments while you are in school, you can choose the deferred payment option. You won't make any payments while enrolled in school, but you will pay more in interest over the life of your loan.
Graduate students must be a U.S. citizen or permanent resident to apply for a College Ave student loan. College Ave says that you can borrow up to 100% of the school-certified cost of attendance each year. Your lifetime borrowing limit for graduate student loans, though, will vary based on your creditworthiness and choice of degree.
College Ave says that it requires a minimum FICO credit score in the mid-600s for students applying without a cosigner. There is no minimum credit score for students signing with a cosigner, though the cosigner must have a credit score in the mid-600s. You can choose a term of five, eight, 10 or 15 years for a graduate student loan. College Ave charges no prepayment penalties.
Earnest
Don't like fees? You might consider a graduate student loan from Earnest. On its website, Earnest says it charges no late fees, origination fees or disbursement fees. It also offers a quick online or mobile application that you can complete in minutes.
What else helps set Earnest apart? The lender says that you can skip a payment once a year without suffering any penalties. Earnest also provides an autopay discount of 0.25% if you enroll in the company's Auto Pay feature and never miss a payment. Once you graduate, you'll have a nine-month grace period during which you won't have to make any payments, longer than the typical six-month grace period offered by most other private student lenders.
Earnest offers flexibility when it comes to repayment plans, too, offering four repayment options for students working toward a graduate degree. You can make $25 automatic monthly payments while in school or monthly payments while enrolled that cover accrued interest only. You can also make full payments while in school or wait to make any payments until nine months after you graduate.
Earnest offers student loans with variable and fixed interest rates. Rates for fixed-rate loans start at 4.56% while those with variable rates start at 6.14%. Earnest private student loans cover 100% of certified college costs, including tuition, room-and-board, transportation, dependent care, electronics and more. You can apply for loan terms of five, seven, 10, 12 or 15 years. You must borrow a minimum of $1,000.
To qualify for a cosigned Earnest student loan, your cosigner must have a minimum FICO score of 650, at least three years of credit history and minimum income of $35,000 a year. Both you and your cosigner must not have a bankruptcy on your credit reports.
5.62% - 16.85% VARIABLE rate APRs 4.39% - 16.49% FIXED rate APRs
- Check your eligibility in just 2 minutes
- Fast application and decision-making process
- Flexible repayment options
- No fees for origination, disbursement, prepayment, or late payment
- Skip a payment once per year (once repayment period restarted)
- Covers up to 100% of the school's certified cost of attendance
- 9-month grace period (3 months more than most lenders)
SoFi
Like other lenders on this list, SoFi offers graduate student loans with a variety of terms and repayment options. But unlike the other lenders here, SoFi will provide you with a cash bonus if you earn good grades. If you earn a grade-point average of 3.0 or better for a full academic term, you could get $250 in cash for a full-year loan or $100 for a single-semester loan. The SoFi Good Grades program lets students earn one of these bonuses each year.
You can qualify for a SoFi graduate student loan with variable rates from 5.74% to 15.86% APR or fixed rates of 4.74% to 14.83%. You'll qualify for the lowest interest rates if you sign up for the company's autopay program.
SoFi charges no origination, late or insufficient funds fees on any private loans for grad school. The company says that you can get a quote for a loan within three minutes of filling out your online application. You can choose from loan terms of five, seven, 10 or 15 years.
You have choices, too, when it comes to repayment plans. You can choose the deferred plan, in which you start making payments six months after you graduate; interest-only, in which you make only interest payments when in school; the partial payment plan, in which you make a $25 fixed monthly payment while you're in grad school; or the immediate payment plan, when you start making principal and interest payments while you are attending graduate school classes.
To qualify for a SoFi graduate student loan, you must have an undergraduate degree, be enrolled at a degree-granting institution and be attending the school at least half time. You can add a cosigner to your application to boost your chances of approval. You must borrow a minimum of $1,000 and you can borrow up to the certified cost of attendance of your school. You must also be a U.S. citizen, permanent resident or non-permanent resident alien.
Credible
Credible is different from the other providers listed in this story. The company is not a lender and does not originate graduate student loans or any loans at all. Instead, Credible is an online marketplace that you can use to search for graduate student loans.
By using Credible, you can compare offers from private student loan lenders. This lets you search for a graduate student loan with the lowest interest rates and fees and the most flexibility when it comes to term lengths and repayment options.
To start your search, visit Credible’s graduate student loans page here. Credible partners with student loan lenders including College Ave, Ascent, mefa, Education Loan Finance, Nvested and Sallie Mae.
How does Credible work? First, you fill out an online form with such information as your name, age, current address, school you are attending, how much you pay each month in housing costs and what your salary is if you are employed.
Once you submit this form, Credible will send you offers from student loan lenders. You might, for instance, receive an offer for a variable-rate student loan at an interest rate of 5.99% and a fixed rate loan at an interest rate of 6.7%. Once you receive your offers, you'd compare them and choose the best one for your academic and financial needs. You can also choose from several repayment plans that allow you to hold off on paying until you graduate or those that let you make payments while you are attending school.
Once you select an offer, you'll then work with that private lender to officially apply for your graduate school loan. Credible will not be involved in this part of the process. Credible is a matchmaker, partnering borrowers with lenders. Once you move forward on an offer, you'll work only with the lender that sent the offer.
Summary of graduate student loan providers
Provider | Loan terms | Interest rates | Fees |
Ascent | 5, 7, 10, 12, 15, 20 years | 4.09% to 15.71% | No origination, late or prepayment fees. |
Sallie Mae | Up to 15 years | 4.15% to14.97% | No origination or prepayment fees. Does charge a late fee of up to $25. |
College Ave | 5, 8, 10 or 15 years | 4.22% to 14.49% | No prepayment or origination fees. |
Earnest | Fixed-rate starting at 4.56%; variable-rate starting at 6.14% | 5, 7, 10, 12 or 15 years | No prepayment, origination or late fees. |
SoFi | 4.74% to 15.86% | 5, 7, 10 or 15 years | No origination, late, insufficient funds or prepayment fees. |
Credible | Your rate depends on the lender matches Credible finds for you. | Your loan term will depend upon which lender you work with. | You can find lenders that charge no fees through Credible. |
Pros & Cons
Pros
- Flexibility. You can choose your term, select from different repayment plans and decide between fixed or variable interest rates.
- Borrowing power. While federal graduate student loans do come with yearly and lifetime limits, you are free to borrow as much as you’d like with private graduate loans. Just make sure that you don’t borrow more than you can afford to pay back.
- Grace periods. You can choose a student loan that doesn’t require you to make payments until six to nine months after you graduate.
- Help from a cosigner. If your credit score or income is low, you can apply with a creditworthy cosigner to boost your odds of qualifying for a graduate student loan.
Cons
- Higher interest rates. Depending on your credit or the credit of your cosigner, you might get hit with an interest rate of 14% or higher on your graduate student loan.
- Student loan debt can add up. You will eventually have to pay back what you borrow. If you borrow tens of thousands of dollars, you will be saddled with high monthly payments after your loan’s grace period ends.
- Not everyone is accepted. Lenders will review your credit when you apply for a graduate student loan. If your credit is too low and you can’t find a cosigner? You might not qualify for the loans you need.
FAQs
Do I need a cosigner to qualify for a graduate student loan?
That depends on your credit and income. If you have a strong credit score and steady income, you can usually qualify for a student loan on your own. If your credit is weak and your income low? It might make sense to apply with a cosigner.
What eligibility requirements do I need to meet to qualify for a graduate student loan?
Most lenders require that you attend a university or college at least on a half-time basis. They also require that you are a U.S. citizen or permanent resident. Lenders, which include banks, private companies and credit unions, will check your credit, too. Most lenders don’t list the minimum credit score that they require. But if yours is low, you might need to apply with a cosigner.
How much can I borrow with a private graduate student loan?
Unlike federal student loans, there is no mandated cap on how much you can borrow with a private graduate student loan. The amount you can borrow each year varies by lender. Most lenders do require that you borrow at least $1,000. Many will let you borrow up to the complete cost of attending your school for one year.
What can I use my private student dollars on?
You can use the money from a private graduate student loan on any cost related to your education. This includes tuition, of course, but also the cost of items such as housing, meals, equipment and transportation to and from school.
5.62% - 16.85% VARIABLE rate APRs 4.39% - 16.49% FIXED rate APRs
- Check your eligibility in just 2 minutes
- Fast application and decision-making process
- Flexible repayment options
- No fees for origination, disbursement, prepayment, or late payment
- Skip a payment once per year (once repayment period restarted)
- Covers up to 100% of the school's certified cost of attendance
- 9-month grace period (3 months more than most lenders)
Why a graduate student loan could be right for you
Earning a graduate degree can significantly boost your earning power and help you rise through the ranks of your profession. Because graduate school can be expensive, you might need to take out a graduate student loan to help cover the costs of tuition. Is it worth taking on this new debt? You’ll need to look at your potential future earnings. If an advanced degree can help you earn a significant amount of extra money during your career? If these extra dollars will help you pay back what you’ve borrowed quickly? Then a graduate student loan might be the right choice for you.
The bottom line
Choosing the right graduate student loan can be a challenge. But having so many providers? It gives you the opportunity to comparison shop for the graduate student loan that comes with the lowest interest rates and fees. Start with the lenders covered in this story as you begin your search for the right lender.
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Writer
Dan Rafter is a freelance writer who has more than 20 years experience covering personal finance. He's written for the Chicago Tribune, Washington Post, Bankrate, CreditCards.com, Rocket Mortgage, NortonLifeLock and several others.
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