Best Private Graduate Student Loans in 2021-2022
July 15th, 2021
Sometimes, savings just aren’t enough to pay for postgraduate studies. Some people are fortunate enough to get partial or full grants to help ease the financial burden. Others are lucky enough to find employment that pays the bills and the tuition fees. Sadly, not everyone gets that lucky — and the next best thing you can do may be to take out a private student loan.
Nobody likes having to take out loans, but sometimes it’s just a matter of necessity. Investing in your future doesn’t have to saddle you with unreasonable, unpayable debt after you finish your studies.
That’s why it’s important to secure a loan from a reputable lender that offers reasonable repayment terms and interest rates. And if you have to take out a loan, then you might as well make sure you’re getting the best deal possible!
Key Elements to Look for When Choosing Graduate Student Loans
A lot of people who look into student loans for graduate school might find themselves overwhelmed or confused in the process.
For many, it’s not always that easy to figure out financing, especially when the information about it is full of confusing jargon.
If you’ve never really sought financing before, what exactly should you look for when you choose your graduate school loans?
Payment Flexibility
Good grad school loans will offer flexibility in terms of payment plans. Selecting a payment plan that works best for your situation can help set you up for future success. Payment flexibility also helps to make things easier in the short term. For example, if you can’t afford to make full loan payments while you’re studying, you can opt for a loan that allows for interest-only payments until you finish your studies. That way, additional interest won’t accrue and inflate your loan later on.
Rate Discounts
Some lenders may offer ways for qualified borrowers to get reduced interest rates on their payments. For example, some lenders may give a 0.25% interest rate reduction to borrowers who set up automatic payments. Over time, you might be able to save thousands of dollars from these types of discounts.
Ability to Release Cosigner
Some borrowers might not be able to take out a loan by themselves because their credit history or rating is lacking. If you are in this boat, then you’ll most likely need to find a cosigner to help you secure a loan. It’s a good idea to choose a reputable lender that will let you free your cosigner from their obligations once you’ve established your credit history by making the required number of payments on time.
Grace Period to Find Employment
Some student loans for graduate school provide borrowers with a grace period after finishing their studies. This grace period means that you won’t have to make full payments for your loan right away. The lender will give you a certain amount of time (usually six months) to find employment and get yourself squared away first.
Best Private Graduate Student Loans in 2021-2022
| Interest Rate Discounts | Repayment Terms | Monthly Repayment Options | Cosigner Release | Grace Period | ||
|---|---|---|---|---|---|---|
 |
0.25% discount for enrollment in automatic debit | 7, 10, 12, 15 or 20-years | In-School interest only, Deferred, and $25 minimum payment | Yes | 9 Months | Visit AscentView Loan Disclosure |
 |
Auto-Pay (0.25%) | 5,8,10, or 15-years | Flat Payment (In-School), Full (principal & interest), Deferred, & Interest-only | Yes | 9 months | Visit CollegeAveView Loan Disclosure |
 |
0.25% autopay discount | No | Deferred Payment, Fixed $25 Payment, Interest-Only Payment, Principal & Interest Payment | Yes, after 24 payments of P&I | 6 months | Visit SoFiView Loan Disclosure |
 |
0.25 percentage point deduction for auto-debit | No | Pay now or later: Make interest payments, pay a fixed $25 payment, or defer payments until after school. | Yes | 6 months | Visit SallieMaeView Loan Disclosure |
What Makes These Graduate School Loans the Best?
The Gradcafe has carefully vetted each of the lenders on this list and has researched, analyzed, and compared them in just about every metric possible.
Here’s what we’ve looked at:
- Any possible discounts
- Rate competitiveness
- Fees
- Penalties
- Repayment terms and options
- Reputation, solvency, and history
- Customer service approach
Are You Eligible for a Graduate Student Loan?
There’s no doubt lenders know that there are risks involved when offering graduate student loans. To minimize their risk, lenders will thoroughly vet potential borrowers to see whether they’re qualified. But how exactly do you know if you’re eligible for grad school loans?
There are certain things that lenders look for in a borrower to determine their creditworthiness, such as:
- Most lenders want proof that a borrower can make their loan payments when they come due. Annual income requirements may vary from lender to lender — some have no minimums, and some only look for proof of income. Then, of course, you have lenders that require a minimum figure for you or your cosigner.
- Almost all lenders will require borrowers to be US citizens or permanent residents.
- To prove that the loan will go towards paying tuition and school-related fees, lenders may seek proof of school enrollment.
If you feel like you may not be eligible to secure a loan independently, finding a cosigner can help. Cosigners can be anyone — not just your relatives or guardians. And sometimes, getting a cosigner may be a good idea regardless since you might be able to secure a lower interest rate with one.
Eligibility Requirements for Graduate Student Loans
| Minimum Loan Limits | Maximum Loan Limits | Annual Income Requirements | US Permanent Resident/Citizen Required | Proof of Enrollment Required | ||
|---|---|---|---|---|---|---|
|
$2,001 | $200,000 | $24,000 gross annual income for cosigner | Yes | Yes | Visit AscentView Loan Disclosure |
|
$1,000 | $80,000, Up to 100% attendance cost (school-certified) | $35,000/year | Yes | Yes | Visit CollegeAveView Loan Disclosure |
|
$5,000 | Up to 100% attendance cost (school-certified) | None, but requires proof of income | Yes, after 24 payments of P&I | No | Visit SoFiView Loan Disclosure |
|
$1,000 | Up to 100% attendance cost (school-certified) | Yes | Yes | Visit SallieMaeView Loan Disclosure |
Private Graduate Student Loan Rates and Fees
| Graduate Loan Interest Rates | Fees and Penalties | ||||||
|---|---|---|---|---|---|---|---|
|
|
None | Visit AscentView Loan Disclosure | ||||
|
|
None | Visit CollegeAveView Loan Disclosure | ||||
|
|
None | Visit SoFiView Loan Disclosure | ||||
|
|
No disbursement or origination fees | Visit SallieMaeView Loan Disclosure |
In-Depth Comparison of Each Grad Student Loan Lender
Ascent differentiates itself by offering borrowers financial education, which they’ve built into the application process. They also give borrowers 1% cash back at graduation and access to exclusive tools to help with money management. Ascent is also giving away over $80,000 in scholarships to student this year.
Ascent allows grad students to customize their plans for 7, 10, 12, 15 or 20-years and choose their repayment method. Rates are competitive and affordable, with a variable APR at 1.87% - 11.10% and a fixed APR at 3.29% - 12.94% (rates effective as of 08/01/2021).
While you’re in school, you can choose between deferred payments (start payments up to 36 months after leaving school), flat $25 monthly payments, and interest-only payments. Once you finish your studies, Ascent offers a graduated repayment option that allows you to pay a smaller amount that slowly increases as you establish your career.
This lender offers an interest rate discount for graduate students of 0.25% if you enroll in automatic payments.
There are no application, disbursement, or origination fees, and there’s no penalty fee for paying your full loan early. You can easily check your rate in minutes on Ascent’s site in just 4 simple steps without impacting your credit score. See my rate.
College Ave is one of the newer names in private student loans. Their goal is to make the financing process more flexible and more transparent overall.
Interest rates are also quite competitive at College Ave, with variable APRs at 1.99% - 10.97% and fixed APRs at 4.49% - 11.98%.
One of the best reasons to choose College Ave is that they’ve streamlined the application process, making it easy to get a response in as quick as three minutes. They also allow you to customize your repayment plans, which lets you configure your loan payments in the best possible way to suit your situation.
SoFi’s interest rates are among the most competitive on the market, with variable APRs at 1.09% - 11.33% and fixed APRs at 4.13% - 10.90% with autopay.
This lender makes it easy for you to find out your personal rate in as quick as three minutes. SoFi offers flexible repayment arrangements to help borrowers find loans that fit their budgets.
With SoFi, there are no fees! You can say goodbye to origination fees, insufficient fund fees, and late fees.
SoFi offers a 0.25% discount if you set up automatic monthly payments. If you’re a SoFi member, there are exclusive rate discounts you can qualify for.
Sallie Mae is one of the biggest names in private education loans. They have developed a range of loans and education-related services to help students, whether undergrad or postgrad, make their dreams a reality.
This lender offers a variety of graduate student loans such as:
- General Graduate School Loans
- MBA Loans
- Medical School Loans
- Dental School Loans
- Health Profession Grad School Loans
- Law School Loans
- Bar Study Loans
- Medical Residency and Relocation Loans
- Dental Residency and Relocation Loans
Their general grad student loans have competitive interest rates, with their variable rates at 2.12% – 11.64% APR and their fixed rates at 4.75% – 12.11% APR.
Sallie Mae offers borrowers a choice between 3 repayment arrangements on a 15-year repayment term — deferred, $25 fixed repayment, and interest repayment.
Sallie Mae offers a 0.25% interest rate discount if you enroll in auto-debit monthly repayments.
Apply Now to Find Out Your Personalized Rates
Are you ready to start your post-graduate journey and fill any gaps in your tuition fees? Apply now and get your personal rates:
Graduate Student Loans FAQ
What do I need to apply for a graduate student loan?
In most cases, you can apply for a loan online in only a few minutes, provided you have the requirements and documentation handy. If you’re applying with a cosigner, you’ll need to prepare your own documents as well as theirs. Some of the things you might want to have ready are:
- Contact information
- School name and major
- Date of birth
- Social Security number
- Financial information, which includes your proof of income or recent pay stub
- Proof of rental payments or mortgage
- Any award letters for financial aid that you may have secured through grants and scholarships, as well as the total amount you have
- The total tuition cost
- Your estimated finishing date
- Employer’s contact information (if applicable)
- Personal reference(s)
What’s the difference between private grad student loans and federal grad student loans?
There are some differences between federal grad student loans and private grad student loans. As you might imagine, the federal government funds federal student loans. To apply for them, you’ll have to complete the FAFSA (Free Application for Federal Student Aid). Private grad loans come from any entity that is not the federal government.
Federal graduate loans have fixed fees and interest rates as well as a standardized repayment schedule. They also offer quite a range of assistance options, such as loan forgiveness (for those who qualify), deferments, forbearance, and pay as you earn plans that can tailor your payments to fit your current income level. Federal loans may also be subsidized depending on financial need. To secure a federal loan, however, you’ll have to meet the basic criteria set by the Department of Education.
Private grad student loans require you to meet the eligibility criteria set by the lender. Unlike federal loans, interest rates and fees for private loans can vary depending on the lender and your credit history. Depending on the lender, you might be able to secure a fixed interest rate, though many offer variable rates instead. Variable rates can make it difficult to predict monthly payments as the amount may fluctuate.
Repayment may also vary for private loans. Some offer interest-only arrangements which require you to only make interest payments for the first two years. Some have interest-plus agreements, which require you to pay interest plus an amount you decide for the first two years. Others require you to make full payments immediately.
Because federal loans usually have better rates and repayment assistance, it’s a good idea to exhaust all possible federal aid before you look into private student loans.
Does it cost money to apply?
Some private lenders charge a small, flat application fee. This fee only needs to be paid once and is non-refundable, regardless if you secured the loan or not. Luckily, fewer lenders seem to be charging application fees these days.
Some lenders may charge “origination fees.” Origination fees are separate from interest — they are fees that cover funding, administration, and maintenance of the loan. Most private lenders don’t charge origination fees unless you have a “specialty” loan like medical or dental school loans or MBA loans.
How long does it take to get approved for a private graduate student loan?
Lenders each have their process for approving loans, which means the wait won’t always be uniform across the board. In a best-case scenario outcome, you might be able to get approved in a matter of minutes. In the worst case, it could take two to three months.
Should I opt for a fixed interest rate or a variable interest rate?
If a fixed interest rate is an option, it’s almost always a good idea to go for it to save you money and stress. A fixed interest rate means it stays the same through the loan’s lifetime, and you won’t have to worry about your payment amount fluctuating. If you can find a good variable rate deal or if you expect interest rates to fall, you can opt for a variable rate loan.