Graduate Student Loans April 2025 – Federal vs. Private Options Compared

With graduate student loans, your student loan options are similar to those of undergraduate student loans, the difference being that graduate student loans often have higher loan amount limits. There are three main sources for graduate student loans: federal graduate student loans, private graduate student loans, and graduate student loans that are specific to the program of study.

Compare Graduate Student Loan Options

When to Use Federal Loans for Grad School

Federal loans are usually the first and best option for graduate students. They offer fixed interest rates, income-driven repayment (IDR) plans, and access to loan forgiveness programs like Public Service Loan Forgiveness (PSLF). Even if you have good credit, starting with Unsubsidized or Grad PLUS loans ensures access to federal protections that private lenders don’t offer.

What Are Graduate Stafford Student Loans

Much like undergraduate Stafford student loans, Graduate Stafford student loans are Federal student loans, the difference being that for a graduate student the borrowing limits for the Stafford student loan are going to be higher to compete with the inflated cost of graduate school. Since Graduate Stafford student loans are federally regulated student loans, most students choose to exhaust the amount they can get from these student loans before they apply for private student loans. Graduate Stafford student loans come in two different types, subsidized and unsubsidized.

Difference Between Subsidized And Unsubsidized Stafford Graduate Loans

The main difference between a subsidized Federal Stafford Graduate Student Loan and an unsubsidized Federal Stafford Graduate Student Loan is who pays the interest on the loan while you are attend college. With unsubsidized Federal Stafford Student loans the borrower is responsible for all of the interest that accrues on the loan while you are in school. Once you graduate, all of the deferred interest that has been accruing while you were attending school will then be added to the principle of the loan. For subsidized Federal Stafford Graduate Student Loans, the federal government will pay the interest on the loan while you attend college, and during the deferment period(s).

Am I Eligible For A Federal Stafford Graduate Student Loan

To be eligible for a Federal Stafford Graduate Student Loan the government requires that the college student be enrolled at least as a part time student in a program of study. In order to apply for the Federal Stafford Graduate Student Loan you must first complete a FAFSA at www.fafsa.ed.gov. After you have completed your Free Application for Federal Student Aid (FAFSA) your college will notify you regarding your eligibility for a Federal Stafford Graduate Student Loan. Once your eligibility is confirmed you are going to have to complete what is called a Master Promissory Note plus any other documents your particular school requires. After your eligibility for your Federal Stafford Graduate Student Loan has been confirmed by your school, it is best to contact your schools Financial Aid Department so you can find out your schools exact requirements for the completion of your Federal Stafford Graduate Student Loan.

What Are Graduate PLUS Student Loans?

Federal Graduate PLUS Loans are federal student loans specifically designed for graduate and professional students who need to borrow beyond the limits of Federal Direct Unsubsidized Loans. These loans can be used to cover the full cost of attendance — including tuition, fees, books, and living expenses — minus any other financial aid received.

Graduate PLUS Loans are part of the federal student loan program, which means they come with fixed interest rates and access to federal repayment protections. However, unlike most federal student loans, they require a credit check to qualify. Approval is based on the absence of adverse credit history, not a minimum credit score.

Eligibility Requirements for Graduate PLUS Loans

To qualify for a Graduate PLUS Loan, you must:

• Be enrolled at least half-time in an eligible graduate or professional degree program
• Be a U.S. citizen, U.S. national, permanent resident, or eligible non-citizen
• Pass a credit check (no adverse credit history)
• Submit the Free Application for Federal Student Aid (FAFSA)

Key Features of Graduate PLUS Loans (2024–2025)

• Fixed Interest Rate: 8.05% for loans disbursed between July 1, 2024, and June 30, 2025
• Loan Limit: Up to the full cost of attendance, minus other aid received
• Origination Fee: Approximately 4.228% deducted from each disbursement
• Repayment Options: Eligible for all federal repayment plans, including Income-Driven Repayment (IDR) and Public Service Loan Forgiveness (PSLF)

Graduate PLUS Loans are a good option if you’ve exhausted your Federal Direct Unsubsidized Loan limit and still need funding to cover your grad school costs. Just remember that because of their higher interest rate and origination fee, it’s important to borrow only what you need and consider repayment strategy early.

When Private Student Loans Might Make Sense

Private student loans can be a smart option for graduate students in certain situations — especially when federal aid doesn’t fully cover the cost of attendance. These loans are offered by private lenders (such as banks, credit unions, or online financial companies) and are credit-based, meaning approval and interest rates are determined by your creditworthiness or that of a cosigner.

When to Consider a Private Loan

You might want to explore private loans if:

• You’ve reached the annual or lifetime limits on federal loans
• You have excellent credit or a strong cosigner and may qualify for a lower interest rate than federal Grad PLUS loans
• You’re enrolled in a high-cost program (like law, business, or medical school) and need more funding than federal loans allow
• You plan to repay your loan quickly and won’t need long-term federal benefits like income-driven repayment or forgiveness

Advantages of Private Graduate Loans

• Potentially lower interest rates: Especially for borrowers with strong credit
• Customizable terms: Choose between fixed or variable rates and different repayment lengths (5–20 years)
• Higher borrowing limits: Some lenders offer up to $300,000 for graduate and professional degrees
• Fast approval process: Many lenders offer instant prequalification with no impact to your credit

Important Trade-Offs to Consider

• No federal protections: Private loans are not eligible for income-driven repayment plans or loan forgiveness programs like PSLF
• Credit-dependent: Interest rates and approval depend on your credit or cosigner
• Less flexible repayment: Most private lenders do not offer generous deferment or forbearance options

If you’re confident in your ability to repay your loans and want to minimize interest costs — and especially if you don’t qualify for PSLF or other federal benefits — private loans could be a cost-effective option. Just be sure to shop around and compare offers before committing.

What Are Graduate Student Loans for Specific Fields of Study?

Graduate student loans for specific fields of study are private loan programs designed to meet the unique financial needs of students pursuing advanced degrees in specialized areas. These loans often come with features tailored to the earning potential, program structure, and licensing timelines of specific careers.

While federal loans apply broadly to most graduate programs, some private lenders offer targeted loan products for fields such as:

• MBA Loans: Tailored for business school students with flexible repayment options and deferment during internships
• Medical School Loans: Designed for med students with higher borrowing limits, extended grace periods, and interest-only options during residency
• Dental School Loans: Account for high tuition and longer program lengths, often with specialized forbearance options
• Law School Loans: May include extended in-school deferment and bar study loan options
• Nursing School Loans: Tailored repayment terms and lower minimum borrowing amounts for accelerated BSN and graduate nursing degrees
• Health Professions Loans: Includes physical therapy, pharmacy, veterinary, and other programs with high-cost tuition

Key Benefits of Field-Specific Graduate Loans

• Higher borrowing limits than traditional private loans
• In-school deferment and post-graduation grace periods tailored to program length
• Options for interest-only payments while in school or residency
• Cosigner release and flexible repayment plans for creditworthy borrowers

These loans are only available through private lenders, so they don’t include federal benefits like income-driven repayment or loan forgiveness. However, for students in high-cost, high-earning programs — like medicine, law, or business — they can be a smart financing solution when federal loan limits fall short.

Tip: Before applying, compare field-specific loan programs side-by-side to understand terms, interest rates, deferment options, and whether a cosigner is required.