The Best Graduate School Student Loans
Updated On March 7, 2022
Editorial Note: This content is based solely on the author's opinions and is not provided, approved, endorsed or reviewed by any financial institution or partner.
Let's explore our top picks for the best graduate school student loans.
If you're in graduate school or considering graduate school, then you know it's a considerable investment. The average graduate school student graduates with over $60,000 in student loans. That said, graduate school can lead to higher lifetime income compared with those who do not earn a graduate school degree. When funding your graduate degree, it's likely that you will consider both federal student loans and private student loans. Depending on the cost of your program, you may need to borrow both federal and private student loans.
Federal student loans come with certain benefits. This includes, among others:
- Income-driven repayment
- Student loan forgiveness
You can apply for federal student loans for graduate school by completing the Free Application For Federal Student Aid (FAFSA). Generally, you should borrow the maximum amount of federal student loans before borrowing private student loans. The disadvantage of federal student loans is that you may pay a higher interest rate. Why? Every federal student loan borrower gets the same fixed interest rate regardless of their credit score. So, if you have a high credit score, you may be overpaying for your federal student loans.
In contrast, private student loans are based on your credit score, income and other factors. Generally, the interest rate on a private student loan is lower than the interest rate on a federal student loan. The good news is that there are several private student loan lenders who can offer competitive rates on your graduate school student loans.
If you are applying to graduate school or already have been admitted, congratulations! If not, it is never too early to start planning for your graduate school student loans.
Learn your new graduate school student loan interest rate in a matter of minutes.