5 Best Graduate Student Loans

As a graduate student, you can take out federal, private, or Graduate PLUS loans.

You can get the lowest interest rate and flexible repayment options with federal direct unsubsidized loans.

Although federal student loans are generally cheaper than private loans, some graduate students need to borrow more than $20,500 annually.

We have listed the best graduate student loan options based on various features, such as their ease of application and repayment options.

For those looking to pursue a master’s degree in fields such as law, medicine, or business administration, numerous loan programs are available from different lenders.

This article covers low-interest graduate student loans and the five best student loans.

Table of Contents

5 Best Graduate Student Loans (Low-Interest Graduate Student Loans)

The following are some of the lowest-interest graduate student loans in the country:

1. Federal Direct Unsubsidized Loan

One low-cost graduate student loan option is the federal direct unsubsidized loans.

Unlike other types of loans, this type of loan doesn’t require a co-signer and doesn’t have a credit-based structure. All eligible graduate students can get the same rate regardless of their credit history.

Although there’s a chance that most creditworthy borrowers can get a lower interest rate on a private loan, they will need help to take advantage of various consumer protections that are available with federal student loans.

With federal direct unsubsidized loans, borrowers can make income-driven repayment plans.

Unlike private student loans, direct unsubsidized loans don’t have an annual fee. In most cases, the low-interest rate and the loan benefits are enough to outweigh the cost.

2. SoFi

SoFI is best known for its student loan refinance services, but they also give loans to other types of students, such as graduate students, parents, and law students.

Its undergraduate loan product comes with various industry-standard features, such as no late fees and a 0.125% discount for customers who use another SoFi product.

SoFi’s Unemployment Protection Program allows customers to stop their payments for up to a year if they’re laid off.

Another program is available for those experiencing other economic hardships, such as medical expenses.

With either of these programs, borrowers can take up to 12 months of total forbearance.

3. Federal Graduate PLUS Loan

Although the federal Graduate PLUS loan has various benefits, it’s less than the direct unsubsidized loans.

Since the borrowing limits are higher for these types of loans, they’re also an option to cover any gap that emerges after exhausting all of their direct unsubsidized loans.

The interest rate on the Graduate PLUS loan is higher than the unsubsidized one, and the fee derived from the loan amount is much higher.

PLUS loans are the only type of federal loan that requires a credit check, and it’s possible to get one even if one has an adverse credit history.

Forbearance is available for up to three years, depending on the circumstances.

With income-driven repayment plans, monthly payments can be lowered, and loan forgiveness can occur after around 20 to 25 years.

4. Citizens Bank

With Citizens Bank, graduate student loan borrowers and their co-signer can receive a 0.25% loyalty discount on their bank account if they have an existing account with the institution.

These accounts are only available in certain regions, such as Connecticut, Massachusetts, New Hampshire, New Jersey, Ohio, Pennsylvania, and Vermont.

Citizens Bank also makes loans to international students, but co-signers must wait longer to be released from the loan than other lenders provide.

5. Rhode Island Student Loan Authority

The Rhode Island Student Loan Authority is a nonprofit organization that provides student loans to the state.

It offers two types of loans to undergraduate students: One requires immediate repayment, and the other allows borrowers to defer payments until graduation.

At the same rate, everyone who qualifies for one of these types of loans can easily compare the RISLA loans with other options.

The RISLA is one of the few private student loan organizations that provide income-driven repayment plans. This plan caps monthly payments at 15% of an individual’s income for 25 years.

Conclusion

Now you know the top 5 graduate student loans you can take out.

We also highlighted that you could get the lowest interest rate and flexible repayment options with federal direct unsubsidized loans.