Top Graduate Student Loans of 2025: Leading Private Lenders

Understanding Graduate Student Loans

Graduate student loans can be a valuable resource for students who are pursuing advanced or professional degrees. These loans help cover the costs of tuition, books, and other expenses associated with higher education. There are several types of graduate student loans available, including federal and private options, each with its own set of benefits and requirements.

Federal vs. Private Graduate Student Loans

When considering financing for graduate school, experts often recommend starting with federal student loans. These loans come with various benefits and protections that are typically not available with private loans. Federal graduate student loans are eligible for income-driven repayment plans and loan forgiveness programs, which can provide significant financial relief in the long run.

There are two main types of federal graduate student loans:

Direct Unsubsidized Loans

Direct Unsubsidized Loans allow graduate students to borrow up to $20,500 per year without needing a credit check or meeting income requirements. Interest accrues from the moment the loan is disbursed. For the 2025-2026 academic year, the fixed interest rate for these loans is 7.94%. However, there is an aggregate limit of $138,500 for both undergraduate and graduate loans combined. This limit will change under the One Big Beautiful Bill Act (OBBBA), which sets a new aggregate limit of $100,000 for graduate loans if the borrower has not previously enrolled in a professional program.

Graduate Plus Loans

If students need to borrow more than the annual limit of Direct Unsubsidized Loans, they can consider Graduate Plus Loans. These loans allow borrowing up to the cost of attendance minus any other financial aid received. The interest rate for Graduate Plus Loans is 8.94%, and while credit checks are required, denials are based on adverse credit history rather than a specific credit score. However, it's important to note that Graduate Plus Loans will be eliminated as of July 1, 2026, due to provisions in OBBBA.

Private Graduate Student Loans

Private graduate student loans are offered by banks, credit unions, and online lenders. Unlike federal loans, private loans have variable rates based on the borrower's credit score. These loans may also have income requirements and varying terms. Some lenders might restrict the types of degrees they offer loans for, such as law school or MBA programs. Before applying for a private loan, it's wise to compare rates and terms from multiple lenders to find the best option.

How to Apply for Graduate School Loans

Applying for graduate school loans involves several steps. First, students should complete the Free Application for Federal Student Aid (FAFSA) to determine eligibility for federal loans. The FAFSA can be submitted through Fafsa.gov. If you already filled out the FAFSA as an undergraduate, you can use the same information to log into your account and complete the application.

Next, decide whether to apply for Graduate Plus Loans, which are still available until June 30, 2026. Applying for a Graduate Plus Loan takes about 20 minutes and includes a credit check. You can choose not to take the loan later if needed.

After exploring federal options, consider private student loans if there is a funding gap. Compare three to five private lenders to see if you qualify and what rate you might get. Gather necessary documentation, such as your name, Social Security number, date of birth, address, phone number, and information about your graduate school, and apply on the lender’s website.

Choosing a Private Student Loan Lender

When selecting a private lender, consider factors such as loan rates, rate discounts, loan amounts, repayment terms, cosigner options, in-school deferment, hardship programs, and other benefits. A lower interest rate can save money over time, and some lenders offer discounts for autopay or having other accounts with them. Ensure the lender allows borrowing up to the amount needed, and review repayment terms to find one that fits your budget.

Impact of the One Big Beautiful Bill Act

The One Big Beautiful Bill Act (OBBBA) will significantly affect graduate and professional students. Starting July 1, 2026, Graduate Plus Loans will be eliminated, and borrowing limits will change. Graduate students can borrow up to $20,500 annually, while professional students can borrow up to $50,000. There will also be differences in aggregate limits based on previous enrollment in graduate or professional programs.

Additionally, OBBBA changes how graduate students repay their loans. Borrowers will need to choose between a new standard repayment plan or the Repayment Assistance Plan (RAP). The RAP replaces current income-driven repayment plans and requires a minimum monthly payment of $10, increasing with adjusted gross income. Forgiveness of the remaining balance will occur after 30 years instead of 20 or 25 years.

Current borrowers with income-driven repayment (IDR) loans can choose to migrate to RAP after July 1, 2026, or consolidate their loans and migrate to the current Income-Based Repayment (IBR) plan before July 1, 2028. Starting July 1, 2027, there will be no more unemployment and economic hardship deferments, and the length of forbearance will be reduced from 12 months to nine months.

Frequently Asked Questions

Can I refinance my graduate student loans after graduation? Yes, if you qualify for refinancing, it’s possible to replace your graduate student loans with a new loan that has a potentially lower interest rate.

How does my credit score affect private loan eligibility? Private lenders set credit criteria for student loans. If you have a low credit score, you might not qualify for a private student loan without a cosigner.

What is the maximum amount I can borrow for graduate school? There is no set maximum amount you can borrow for grad school. Federal Direct loans are capped at $20,500 a year, and there’s an aggregate lifetime amount of $138,500 for undergraduate and graduate loans, although those limits will be changing in the future. Plus loans are limited by the cost of attendance minus other student aid received. Private lenders set their own limits.

Can grad school loans help pay for living expenses? Yes, you can use grad school loans to cover some of your living costs.