Graduate school is a serious investment. Whether you’re heading into law, medicine, business, or a master’s program, tuition costs can add up fast, and most students need some form of financing to make it work. The good news? There are solid options out there. Here’s a breakdown of what loans are available for graduate students and how to figure out which path makes the most sense for you.
Key Takeaways
- Federal Direct Unsubsidized Loans are the primary federal option for graduate students.
- Private graduate student loans can fill funding gaps beyond federal limits.
- Federal Grad PLUS Loans have been eliminated for new borrowers as of July 2026.
Federal Student Loans for Graduate Students
When it comes to paying for grad school, federal loans should be considered before private loans. They’re funded by the U.S. Department of Education and offer federal borrower benefits that private loans don’t, including access to federal repayment options and potential eligibility for Public Service Loan Forgiveness (PSLF). To get started, you’ll need to file the FAFSA, which determines your eligibility for federal aid.
Federal Direct Unsubsidized Loans
This is the main federal loan available to graduate students, and it comes with a few key advantages:
- No credit check required. Eligibility isn’t based on your financial history.
- Fixed interest rate. Your rate stays the same for the life of the loan.
- Flexible repayment. These loans qualify for income-driven repayment plans and PSLF.
For new graduate borrowers beginning July 1, 2026, the annual Direct Unsubsidized Loan limit is $20,500, with a $100,000 aggregate limit for graduate study. Professional students may qualify for higher limits of up to $50,000 per year and a $200,000 aggregate limit. A separate $257,500 lifetime maximum also applies across federal student loans for undergraduate, graduate, and professional study.
What Happened to the Grad PLUS Loan?
Here’s something important to know if you’ve been researching federal options: the Federal Direct Grad PLUS Loan was eliminated for new borrowers as of July 1, 2026. This is a significant shift. Previously, graduate students could borrow up to their full cost of attendance through Grad PLUS after maxing out their Unsubsidized Loans. That door is now closed for most new borrowers.
Students who had already borrowed a federal loan in their current program before July 1, 2026 may qualify for a grandfather exception — allowing continued access to pre-OBBBA limits for up to three additional years or until program completion, whichever comes first. But for everyone starting fresh, the math has changed. The federal PLUS program changes may lead some graduate students to explore additional financing options, including private student loans.
Private Graduate Student Loans
So what happens when federal loans don’t cover everything? That’s where private graduate student loans come in. These are offered by banks, credit unions, and online lenders, and they can cover up to 100% of your school-certified cost of attendance.
A few things to keep in mind:
- Private loans require a credit check. If your credit history is limited, applying with a cosigner can improve your approval odds and help you land a better rate.
- Interest rates can be fixed or variable, depending on the lender and your financial profile.
- Most private lenders charge zero origination fees, which means more of your loan goes toward your actual education.
- Private loans are not eligible for federal forgiveness programs or income-driven repayment plans.
The trade-offs are real, but for students who need more than $20,500 per year, private loans are often a practical and necessary part of the financing picture. Understanding how student loan interest works before you borrow can help you compare offers and make a smarter decision.
What to Look For in a Private Graduate Loan
Every lender is a little different, so it pays to shop around. Here are the features worth comparing:
- Interest rates: Look at both fixed and variable options and consider your timeline.
- Repayment terms: Most private lenders offer terms ranging from 5 to 15 years.
- Fees: Origination fees can quietly add to your total cost. Many lenders charge none.
- Cosigner release: Some lenders allow you to remove a cosigner after a period of on-time payments.
- Borrowing limits: Make sure the lender will cover your full funding gap.
Loans by Degree Program
One thing that surprises a lot of grad students: some lenders offer loan products specifically designed for certain fields of study. If you’re in a specialized program, it’s worth looking into options built with your degree in mind.
- MBA students can explore financing tailored for business school programs and working professionals.
- Law students have access to loans designed around the multi-year cost of a J.D.
- Medical and veterinary students often face the highest borrowing needs and can find medical school loans with higher limits to match.
- Dental students can access dedicated financing for the full length of their program.
- STEM and health professions students have options too, with loans built around graduate-level science and healthcare programs.
Degree-specific loans may offer features designed around the structure and expected length of certain professional programs, so compare them with general graduate student loans to determine which option best fits your needs.
Federal vs. Private: A Side-by-Side Look
Still weighing your options? Here’s a quick comparison to help frame the decision:
| Feature | Federal Direct Unsubsidized | Private Student Loans |
|---|---|---|
| Credit Check | None | Required |
| Interest Rate Type | Fixed | Fixed or variable |
| Origination Fees | Yes | Rarely, but check each lender |
| Annual Borrowing Limit | $20,500 for graduate students; up to $50,000 for eligible professional students | Varies by lender and may extend up to the school-certified cost of attendance |
| PSLF Eligible | Yes | No |
| Repayment Plans | Income-driven options available | Lender-specific |
Federal and private loans can serve different purposes. Eligible students may want to review available federal aid first because of its federal borrower protections and repayment options, then compare private loans if additional funding is still needed.
Common Questions About Graduate Student Loans
What type of loans can graduate students get?
Graduate students currently have access to Federal Direct Unsubsidized Loans and private graduate student loans. The Grad PLUS Loan is no longer available to new borrowers as of July 2026.
What loans can you get as a master’s student?
For new borrowers beginning July 1, 2026, eligible master’s students can borrow up to $20,500 per year in Federal Direct Unsubsidized Loans, subject to a $100,000 aggregate graduate loan limit and the broader federal lifetime borrowing limit. If federal aid and other resources don’t cover the full cost of attendance, private student loans may be another option for the remaining gap.
How much would a $70,000 student loan be monthly?
It depends on your interest rate and repayment term. A longer term means lower monthly payments but more interest paid overall. Plugging your numbers into a loan payment calculator is the fastest way to see what different scenarios actually look like.
Is it hard to get loans for graduate school?
Federal Unsubsidized Loans are available to most enrolled graduate students with no credit check involved. Private loans do require a credit review, and applying with a cosigner is a common way to strengthen an application.
Ready to Cover Your Grad School Costs?
Now that you know what loans are available for graduate students, the next step is finding the right fit for your program and budget. College Ave offers graduate student loans with repayment terms from 5 to 15 years, no origination fees, and options built for specific degree paths. Check your rate in minutes without affecting your credit score by getting prequalified today.
