Compare Graduate School Loan Options

There are several types of low-interest loans available to graduate and professional school students. Graduate student loans are similar to the undergraduate student loan programs, but often with higher annual loan limit amounts. Some loans are unique to a graduate or professional school student's academic program of study.

The most common types of low-interest loans used by graduate and professional school students include the Federal Stafford Loan, the Federal Grad PLUS Loan and private student loans. The Federal Stafford loan for graduate students and the Federal Grad PLUS loan are both unsubsidized loans. Graduate and professional students have not been eligible for subsidized Federal Stafford loans since July 1, 2012, Graduate and professional students remain eligible for the Federal Perkins loan, a subsidized loan, dependent on the college's policies.

	Federal Stafford Loan	Federal Grad PLUS Loan	Private Student Loan
Annual Limits	Up to $20,500/year	Cost of Attendance - Aid	Cost of Attendance - Aid
Cumulative Limits	$138,500 or $224,000	None	Varies by Lender Varies by Degree and Academic Major
Funds Disbursed to the School
Cosigner Required?
Credit Criteria	None	Borrower may not have an Adverse Credit History	Credit Scores Debt-to-Income Ratios No Adverse Credit History
Requires School Certification
FAFSA Required?
Lender	Federal Government	Federal Government	Private Lenders and Financial Institutions
Interest Rate Type	Fixed	Fixed	Fixed and Variable Options
Interest Rate	Fixed at 6.21% for the 2014-2015 academic year	Fixed at 7.21% for the 2014-2015 academic year	Depends on Borrower and Cosigner Credit
Rate Reduction for Auto Debit	0.25%	0.25%	Varies by Lender
Deductible Interest
Subsidized Interest
Loan Fees	1.073%	4.292%	Varies by Lender and Borrower Credit Typically, 0% to 5% of the amount borrowed
Prepayment Penalties	None	None	None
Interest Capitalization	Once at Repayment	Once at Repayment	Monthly, Quarterly, Annually or Once at Repayment
In-School and Grace Period Deferment	Immediate Repayment Full Deferment	Immediate Repayment Full Deferment	Immediate Repayment Interest-Only Payments Fixed In-School Payments Full Deferment
Forbearance Options	3 years	3 years	1 year
Repayment Term	Varies by Repayment Plan and Loan Balance 10 to 30 years	Varies by Repayment Plan and Loan Balance 10 to 30 years	Varies by Lender 5 to 25 years
Repayment Plans	Standard, Extended, Graduated, ICR, IBR, PAYER	Standard, Extended, Graduated, ICR, IBR, PAYER	Varies by Lender
Death Discharge	Yes	Yes	Varies by Lender
Disability Discharge	Yes	Yes	Varies by Lender
Public Service Loan Forgiveness
Can be Consolidated?	Yes Does Not Relock Rate	Yes Does Not Relock Rate	Varies by Lender Rate Based on Current Credit
Bar Study, Medical Residency and Relocation, and Dental Residency and Relocation Loans

How to Pick the Best Graduate Student Loans

Always start with the Federal Stafford Loan for graduate students. This graduate student loan is available to most graduate and professional students, since eligibility does not depend on the borrower's credit history. It also does not require a cosigner. The Federal Stafford Loan has a low, fixed interest rate and flexible repayment terms.

If a student has exhausted eligibility for the Federal Stafford loan, there are a couple of options for additional financing: the Federal Grad PLUS loan and Private Student Loans for graduate students.

Criteria for Comparing Federal Grad PLUS and Private Student Loans

When comparing Federal Grad PLUS and private student loans, there are several possible criteria:

• The Federal Grad PLUS loan has less strict credit criteria, making it available to more students.
• The Federal Grad PLUS loan does not require a cosigner.
• The Federal Grad PLUS loan has a low, fixed interest rate that is the same for all borrowers.
• Private student loans may offer a competitive interest rate for borrowers with excellent credit.
• Some private student loans have variable interest rates. These interest rates can increase over the life of the loan.