Best Graduate Student Loans: Compare Best Lenders for October 2025

by Alex Hillsberg , MA

Student Finance & Loan Expert

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With the average cost of a master’s degree reaching $59,684, many students struggle with paying out of pocket. There are various forms of aid available including scholarships and grants. However, many degree seekers rely on student loans to cover their degree. According to the Education Data Initiative, about 60% of master’s degree holders owe student loan debt.

Student loans, unlike other forms of aid, must be repaid. This is why choosing a lender with affordable rates and loan terms is crucial. We have identified private lenders with the best offerings for graduate student loans and share information you must know when taking out a loan.

Key Things You Should Know About Graduate Student Loans

• Federal and private lenders are the popular sources of financial aid.
• Federal loan options come with fixed rates, but private lenders have options for fixed and variable rates.
• Banks, credit unions, and online institutions offer private loans.
• Private loans are awarded based on factors like creditworthiness and your school’s cost of attendance.

Table of Contents

1. What type of student loans can graduate students get?
2. Top Graduate Student Loan Lenders for October 2025
3. Understanding Graduate Loan Repayment Options
4. What is the average interest rate for graduate student loans for 2025?
5. What is the average loan amount for graduate students?
6. What are the eligibility requirements for a graduate student loan?
7. Common Mistakes to Avoid When Taking Out Graduate Student Loans
8. What factors should I consider when comparing graduate student loans?
9. How to Apply for a Graduate Student Loan
10. Is Online Graduate Education More Affordable?
11. Tips for Getting the Best Rates on Graduate Student Loans
12. Could Accelerated Degree Programs Reduce My Dependency on Graduate Student Loans?
13. How Can I Apply for Graduate Student Loans Without Parental Involvement?
14. Alternatives to Graduate Student Loans
15. What Should I Consider When Choosing a Graduate Program to Minimize Debt?
16. What Are the Long-Term Financial Implications of Graduate Student Loans?
17. Is Refinancing My Graduate Student Loan a Viable Option?
18. How Can Graduate Student Loans Influence My Career Opportunities?
19. What Rights and Protections Do Graduate Student Loan Borrowers Have?
20. What Are the Risks of Defaulting on Graduate Student Loans?
21. Other Things You Should Know About the Best Graduate Student Loans

What type of student loans can graduate students get?

Graduate students have many forms of aid available, including grants or scholarships for online students. Still, student loans are common. According to the latest reports from the National Center for Education Statistics (NCES), nearly half (48%) of graduate students take out loans to fund their degrees.

There are two primary sources for graduate student loans: federal and private lenders. The U.S. Department of Education offers federal loans, which typically come with lower interest rates and flexible repayment plans than private loans. The government weighs factors like citizenship, enrollment status, and academic standing when determining the loan amount and rates you receive.

If federal loans fall short of covering your educational costs, private lenders can provide additional funding. Banks, credit unions, and online institutions offer private graduate student loans. However, terms and interest rates can vary considerably among private lenders. 

Top Graduate Student Loan Lenders for October 2025

Students often lament the question of why does tuition increase every year but continue to pay the rising costs to earn their degrees. To help you find a loan that fits your budget, our team has compiled a list of the best and most affordable private lenders based on rates, loan terms, and discounts.

1. Ascent

Ascent gives borrowers the most flexibility, with some of the lowest fixed loan rates and terms up to 20 years. You can also get a 0.25% discount by setting up automatic payments.

• Fixed Interest Rate: 4.29%-15.96% 
• Variable Interest Rate: 6.23%-16.34%
• Loan Terms: Five, seven, 10, 12, 15, or 20 years
• Discounts: Up to 0.25%

2. Citizens Bank

Graduate students can get up to 0.50% worth of discounts for student loans from Citizens Bank. You can get a 0.25% interest rate reduction by setting up autopay and another 0.25% off in loyalty discounts. To qualify for the loyalty discount, you or your co-signer must have an existing account with the bank when you apply for a graduate student loan.

• Fixed Interest Rate: 4.39%-15.45%
• Variable Interest Rate: 5.99%-16.48%
• Loan Terms: Five, 10, or 15 years
• Discounts: Up to 0.50%

3. College Ave

College Ave offers the lowest possible fixed rate for borrowers with excellent credit, as well as a 0.25% rate discount for borrowers on autopay. Loan terms go up to 20 years for borrowers pursuing a healthcare degree and 15 years for all other borrowers.

• Fixed Interest Rate: 4.17%-16.69%
• Variable Interest Rate: 5.59%-16.85%
• Loan Terms: Five, eight, 10, 15, or 20 years
• Discounts: Up to 0.25%

4. Custom Choice

Custom Choice offers a wide range of interest rates for their graduate student loans. They offer a 0.25% discount for borrowers on autopay and loan terms of up to 15 years.

• Fixed Interest Rate: 4.43%-14.04%
• Variable Interest Rate: 5.38%-15.56%
• Loan Terms: Seven, 10, or 15 years
• Discounts: Up to 0.25%

5. Education Loan Finance

Education Loan Finance is another popular lender for graduate students. This lender caters to people with various credit scores, with rates between 4.50% and 14.22%. There are long and short-term repayment periods available.

• Fixed Interest Rate: 4.50%-14.22%
• Variable Interest Rate: 6.00%-14.22%
• Loan Terms: Five, seven, ten, or 15 years
• Discounts: N/A

6. INvested

INvested has the narrowest range of interest rates, which means you may qualify for an affordable interest rate even if your credit score is not the best. Loan terms go up to 15 years and borrowers can get a 0.25% discount with autopay.

• Fixed Interest Rate: 4.56%-8.34%
• Variable Interest Rate: 7.75%-11.79%
• Loan Terms: Five, 10, or 15 years
• Discounts: Up to 0.25%

7. Mefa

Unlike the other private lenders on our ranking, Mefa does not offer loans with variable interest rates. Their fixed rates begin on the high end, but their range is more narrow, meaning it is a good option for borrowers with less-than-perfect credit scores. Loan terms are longer, with only 10 or 15-year options available.

• Fixed Interest Rate: 5.75%-8.95%
• Variable Interest Rate: N/A
• Loan Terms: 10 or 15 years
• Discounts: N/A

8. Nelnet Bank

You can expect interest rates between 4.49% and 15.51% when you take out a graduate student loan from Nelnet Bank. Loan terms go up to 15 years, and you can qualify for a 0.25% rate discount when you set up automatic payments.

• Fixed Interest Rate: 4.49%-15.47%
• Variable Interest Rate: 6.29%-15.51%
• Loan Terms: Five, 10, or 15 years
• Discounts: Up to 0.25%

9. Sallie Mae

With the lowest possible variable interest rate of 5.37% and a 0.25% discount for autopay users, Sallie Mae is one of the best lenders for borrowers with excellent credit. Graduate student loans are payable within 15 years.

• Fixed Interest Rate: 4.99%-14.48%
• Variable Interest Rate: 5.37%-14.97%
• Loan Terms: 15 years
• Discounts: Up to 0.25%

Things Students Who Took Graduate Loans Say

"My credit score wasn't the best after undergrad, but a private loan helped me bridge the gap for my Master's in Computer Science. I’m glad I put in the work to get a competitive interest rate." - Jude

"My private student loan gave me just enough to fund my final semester, which allowed me to graduate on time. With my new job, I expect to repay the loan quickly." - Michael

“Paying for my MBA was tough without scholarships, but my low-interest private loan was a big help. I secured funding despite my credit score." - David

Understanding Graduate Loan Repayment Options

Choosing the right repayment plan for your graduate student loan is a critical part of managing your financial future. Both federal and private lenders offer various repayment options, but understanding these choices can help you reduce interest costs and pay off your loan more efficiently.

Federal loans, such as Direct Unsubsidized Loans and PLUS Loans, provide flexible repayment plans. Standard repayment plans allow you to pay off the loan in 10 years with fixed monthly payments, while income-driven repayment (IDR) plans adjust monthly payments based on your income, with potential forgiveness after 20 or 25 years of qualifying payments. It’s important to remember that extending the loan term through an IDR or other extended repayment plan often results in paying more in interest overall.

Private lenders, however, typically offer less flexibility in repayment. Borrowers often choose between fixed and variable interest rates, and repayment periods can range from 5 to 20 years, depending on the lender. You may also find that some lenders offer interest reductions for setting up autopay or choosing shorter repayment plans upfront.

Additionally, for those entering specialized fields like healthcare, specific repayment programs can target these professions. If you're studying nursing and looking for targeted financial aid or ways to secure money for nursing school, exploring dedicated student loans or scholarships for healthcare fields may provide a viable alternative. Federal options like the Nurse Corps Loan Repayment Program are worth considering for partial loan forgiveness in exchange for service in high-need areas. 

Ultimately, choosing the right repayment option involves assessing your post-graduation income potential, employment stability, and financial goals. Make sure you communicate with your lender and explore all available tools to optimize your repayment journey.

What is the average interest rate for graduate student loans for 2025?

Federal direct unsubsidized loans come with a fixed interest rate set annually by the Department of Education. As of October 2024, the interest rate for these loans is 8.08%. Federal Direct PLUS Loans for graduate and professional students also have a fixed interest rate, currently set at 9.08% in October 2024.

Private lenders offer both fixed variable interest rates for graduate student loans. Unlike fixed-rate loans, the interest for variable-rate loans can change over time. Private loan rates are typically higher than federal rates and are determined by your creditworthiness. Interest rates range from around 4% to 18%, with a lower credit score generally resulting in a higher interest rate.

The interest rate you pay on your graduate student loan will depend on the loan you take out. The table below compares the interest rates for federal loans and select private loans.

What is the average loan amount for graduate students?

Because the United States tops the list of the average cost of university by country, it is common for students to graduate with substantial debt. Graduate students typically carry debt from both their graduate and undergraduate degrees.

According to NCES reports, the average graduate school student took out $26,000 in loans in 2019-2020. Interest and fees add to the repayment cost. In the same academic year, the graduate students held $77,300 in just graduate student loan debt.

The levels of student loan debt vary significantly between disciplines. Master of arts graduates have the highest average debt among master’s degree holders, while master of education graduates hold the lowest. The following chart compares the average student loan debt by graduate degree type as reported by the NCES.

What are the eligibility requirements for a graduate student loan?

The eligibility requirements for graduate student loans differ depending on whether you apply for a federal or private loan. Federal loans generally have more requirements than private, including a requirement to maintain satisfactory academic progress as defined by your school. Private loans are assessed based on your creditworthiness and the cost of attendance for your school. 

You must satisfy the following requirements to qualify for graduate student loans from a private lender:

• Meet the lender's creditworthiness criteria, which may include your credit score, debt-to-income ratio, and employment history
• Be enrolled at least half-time in a degree-granting program at an eligible school
• Declare other forms of financial aid you receive, like federal student aid or an
• Have a co-signer if your credit score is not strong enough to qualify on your own

Common Mistakes to Avoid When Taking Out Graduate Student Loans

Taking out a graduate student loan is often a necessity, but failing to plan adequately can lead to financial setbacks. Here are common mistakes students make and how to avoid them:

1. Over-Borrowing: While receiving more funds than necessary can be tempting, borrowing more than you need increases your overall debt burden. Calculate your tuition, living expenses, and other essential costs carefully to avoid excessive borrowing.
2. Ignoring Interest Accumulation: For both federal and private loans, interest begins to accrue as soon as the loan is disbursed. It’s a mistake to overlook this cost. Consider making small, early payments on the interest while you’re still in school to reduce your total repayment amount.
3. Failing to Compare Lenders: Many students rush into accepting the first offer they receive. Comparing lenders is crucial for identifying the best rates, terms, and benefits. If you’re new to borrowing, researching options for students such as student loans for undergraduates with no credit history can give you insight into lenders' policies for those with limited credit profiles.
4. Overlooking Co-Signer Options: If your credit score is less than ideal, having a co-signer can unlock more favorable interest rates. However, failing to maintain on-time payments can put financial strain on both you and your co-signer.
5. Not Reading the Fine Print: Graduate student loan agreements often include clauses regarding repayment penalties, variable rates, and other terms. Failure to review these carefully may lead to unexpected costs later. Always understand the full implications of your loan agreement before signing.

By avoiding these common pitfalls, graduate students can secure loans that better align with their financial goals while minimizing unnecessary burdens.

What factors should I consider when comparing graduate student loans?

Choosing the best graduate student loans provider can seem straightforward, and many students go for the provider that offers the lowest rates. However, many other factors affect how affordable your loan is in the long run. 

Repayment period is one. Loans with shorter terms require a larger payment every month but come with lower interest rates. Loans with longer terms, meanwhile, may come with higher interest rates and lower monthly payments. Choose a repayment period that aligns with your projected future income and allows for manageable monthly payments.

It is also crucial to compare fees associated with the loans, like origination fees or late fees. Many lenders on our list do not charge an application fee, origination fee, or prepayment penalty.

Finally, look for lenders that offer incentives, like discounts. Some lenders might offer interest rate discounts for automatic payments or co-signer release options after a certain number of on-time payments. 

How to Apply for a Graduate Student Loan

Many master’s students already have experience taking out a loan by the time they reach graduate school. With debt from both undergraduate and graduate student loans, master’s holders carry an average of 23% more student loan debt than bachelor’s degree holders.

The process of applying for a student loan is not very different for graduate students. After you ask how much is online college and commit to a degree program, you can begin applying for financial aid. You can start by filling out the Free Application for Financial Aid (FAFSA). This will help you access affordable graduate student loans along with scholarships and grants.

Your FAFSA application can also be a prerequisite for taking out a private student loan. Each lender has a unique application process and requirements, but many accept applications through their website.

Is Online Graduate Education More Affordable?

Studies have shown that virtual programs may offer lower tuition and reduced ancillary expenses compared with traditional campus-based programs. Prospective students might benefit by reevaluating the overall investment, as online education can limit reliance on large student loans. For a detailed comparison of associated costs, consider whether is online college cheaper than campus in terms of tuition, fees, and other hidden expenses. This evaluation can be critical to aligning academic pursuits with long-term financial strategies.

Tips for Getting the Best Rates on Graduate Student Loans

Here are a few tips to help you secure the best rates on your graduate student loan.

• Exhaust Federal Loan Options. Federal loans, like Direct Unsubsidized Loans and Grad PLUS Loans, offer affordable fixed rates and are a good option for borrowers regardless of credit score. Consider private student loans if federal loans do not cover all school expenses.
• Compare Quotes Before Committing. Compile quotes from different lenders to clear up any confusion and learn more about their loan terms and processes for graduate student loans. 
• Look up Loan Forgiveness Options. Private lenders typically do not grant loan forgiveness, but the government might for federal student loan debt. This is usually available to borrowers pursuing degrees related to essential public services, like teaching or healthcare. If you commit to working in critical shortage areas, you may be eligible for loan forgiveness.
• Ask About Incentives. Many private lenders offer discounts for automated payments, but you can look for lenders that offer additional incentives. Citizens Bank, for example, provides a student loan rate discount for loyal customers. Qualifying borrowers can get a loyalty discount of 0.25% plus a 0.25% discount for autopay.

Could Accelerated Degree Programs Reduce My Dependency on Graduate Student Loans?

Accelerated degree programs can offer a shorter academic path that minimizes overall education costs and reduces reliance on loans. These programs condense required coursework, enabling an earlier transition into the workforce with lower accrued debt. By opting for faster routes to credential attainment, such as the fastest online associate's degree, students can potentially lessen the financial strain associated with longer study durations. This approach may lead to earlier earning potential and improved financial stability without incurring high levels of graduate student loan debt.

How Can I Apply for Graduate Student Loans Without Parental Involvement?

Graduate students seeking independent financing can secure affordable loans by demonstrating strong credit history, stable income potential, and reliable financial documentation. Lenders may assess your credit score, employment status, and academic performance to determine eligibility without requiring parental guarantees or co-signatures. Research specialized lenders that focus on graduate borrowers and compare their application criteria and interest rate options. For proven strategies and detailed guidance on managing this process, refer to our guide on how to take out student loans without parents. Meticulous preparation and thorough understanding of each lender’s requirements are essential to obtaining competitive terms in today’s market.

Alternatives to Graduate Student Loans

Graduate school can be rewarding, but the cost of tuition can keep some students from pursuing their dream degrees. While graduate student loans are a common financing option, they are not the only way to fund graduate school.

If you are asking yourself how to afford an MBA on a tight budget, here are several alternatives that can help you minimize debt or avoid it altogether:

• Scholarships and Grants. These are free awards based on academic merit, financial need, or specific areas of study. Look for scholarships from your program, universities, professional organizations, and government agencies.
• Employer Assistance. Many companies offer tuition reimbursement programs for employees pursuing relevant graduate degrees. Check with your employer's human resources department to see if they have such a program and what the eligibility requirements are.
• Teaching or Research Assistantships. These positions provide financial support (tuition remission or stipends) in exchange for teaching or research work while you study. Many universities offer assistantships across various departments.
• Work-Study Programs. Some graduate schools offer federal work-study programs that allow you to work part-time on campus to earn money towards your educational expenses.

What Should I Consider When Choosing a Graduate Program to Minimize Debt?

When evaluating graduate programs with an eye toward minimizing debt, focus on factors beyond scholarship availability and loan terms. Compare overall program costs—including tuition, fees, and ancillary expenses—with the projected return on investment in your chosen field. Evaluate program duration and the potential for accelerated paths that reduce living expenses and borrowing needs. Additionally, consider alternative delivery formats such as online education; for instance, researching best and cheapest online colleges may reveal affordable options that align with long-term financial strategies. Assess the availability of employer tuition assistance, co-op or internship opportunities, and flexible learning models that can lessen reliance on high-cost loans.

What Are the Long-Term Financial Implications of Graduate Student Loans?

Graduate student loans extend beyond a simple repayment plan; they influence your credit profile, future borrowing capacity, and overall wealth-building strategy. Assessing the full cost of education should include the cumulative interest paid and its impact on long-term financial goals. Consider how sustained debt obligations may affect credit scores, mortgage eligibility, and retirement savings. Additionally, evaluate the opportunity costs associated with carrying debt when compared to alternative investment or savings options. Weighing these factors is crucial when determining whether a traditional campus program or exploring options like the quickest masters degree online aligns better with your financial future.

Is Refinancing My Graduate Student Loan a Viable Option?

Refinancing graduate student loans can offer lower interest rates and simplified payments by consolidating multiple loans into one, but it requires careful evaluation of your credit score, debt-to-income ratio, and long-term financial objectives. Refinancing may reduce monthly payments and total interest costs; however, be aware that it can also eliminate benefits tied to federal loans, such as income-driven repayment plans or potential loan forgiveness. Compare offers from various providers, including Citizens Bank student loans, and review each term carefully to ensure the refinance option aligns with your financial strategy.

How Can Graduate Student Loans Influence My Career Opportunities?

Graduate student debt can play a significant role in shaping career decisions and flexibility. Borrowers should consider how repayment obligations may affect their willingness to pursue roles that offer nontraditional schedules, lower starting salaries, or opportunities that require career transitions. Analyzing future income potential against debt obligations is crucial in making well-informed decisions about career paths that inherently demand investment in education. For instance, having a manageable debt load may allow graduates to explore options in sectors that align with personal goals, while a steep repayment burden could influence choices toward positions with higher immediate compensation, such as high-paying jobs for women. Evaluating these factors can help ensure that financial commitments do not compromise long-term professional growth.

What Rights and Protections Do Graduate Student Loan Borrowers Have?

Graduate student loan borrowers have legal rights and safeguards designed to ensure transparent terms, fair dispute resolution, and accountability from lenders. Federal loan programs incorporate mandatory disclosure requirements, standardized servicing practices, and access to complaint channels that protect borrowers throughout the repayment process. Private lenders, while offering competitive options, are governed by state-specific regulations that may affect consumer rights differently. Borrowers are advised to thoroughly review all loan documentation, understand fee structures, and proactively engage with their loan servicers to verify that their rights are upheld. Additionally, certain lenders offer flexibility features, such as provisions for early release of co-signers, which can substantially impact financial independence; for more details, refer to lenders offering cosigner release.

What Are the Risks of Defaulting on Graduate Student Loans?

Defaulting on graduate student loans can lead to significant negative outcomes, including a drop in credit scores, wage garnishment, and increased financial liabilities from accrued penalties and interest. Borrowers should prepare for unexpected changes in income by establishing an emergency budget and considering income-driven repayment plans as a safeguard. Exploring cost-effective education options, such as pursuing an online master 1 year, may help mitigate overall borrowing needs and reduce long-term financial risk.

Key Findings

• About 48% of graduate students take out loans to fund their degrees.
• More than half (52.8%) of master’s students have debt from graduate school.
• A majority (73.5%) of doctorate students have debt from graduate school.
• Graduate students took out an average of $26,000 in loans in 2019-2020.
• As of 2020, the average debt for graduate students was $77,300.

Other Things You Should Know About the Best Graduate Student Loans

Can parents take out loans for graduate students?

While federal student loan options don't extend to parents financing their child's graduate education, there are alternative ways for parents to contribute.

One option is a private parent loan. Many lenders offer private loans designed to help parents cover graduate school costs. Another option is for a parent to co-sign on a private student loan for their child. This can be helpful if the student's credit score does not qualify for a favorable interest rate.

Should I take out student loans for graduate school?

If your degree is likely to lead to a significant increase in income, student loans may be a worthwhile investment. However, if the projected salary increase does not outweigh the debt burden, it might be better to look for alternative funding options like scholarships, grants, or assistantships.

Will student loans be forgiven for graduate students?

Private lenders typically do not provide loan forgiveness options for graduate student loans. However, federal loans may be forgiven in some cases. The government offers loan repayment programs for public servants, teachers, and healthcare workers working at qualified organizations. They also offer income-driven repayment plans that may qualify borrowers for loan forgiveness after 20 or 25 years of qualifying payments.

References:

• Hanson, M. (2023, December 8). Average Graduate Student Loan Debt [2023]: for Master's & PhD. Education Data Initiative. Retrieved June 19, 2024, from https://educationdata.org/average-graduate-student-loan-debt  
• Hanson, M. (2024, February 27). Average Cost of a Master's Degree: 2024 Analysis. Education Data Initiative. Retrieved June 19, 2024, from https://educationdata.org/average-cost-of-a-masters-degree
• National Center for Education Statistics. (n.d.). Percentage of graduate degree completers with student loan debt and average cumulative amount owed, by level of education funded and graduate degree type, institution control, and degree program: Selected academic years, 1999-2000 through 2019-20. National Center for Education Statistics. https://nces.ed.gov/programs/digest/d23/tables/dt23_332.45.asp