Graduate school borrowers have more federal borrowing options than undergrads (Grad PLUS loans with no annual limit) but also larger balances that make rate competition meaningful. MBA, law, and medical students often borrow $100,000-$300,000 — the lender and rate decision carries real financial weight. Here are 3 sources worth comparing for graduate school funding.
Graduate PLUS loans from the Department of Education cover up to your full cost of attendance minus other aid. Fixed rate (currently set by Congress annually). No private credit requirement — only a basic creditworthiness check. Eligible for all federal repayment and forgiveness programs. Always max your federal options before going private.
Purpose-built MBA, law, and medical school loan products with higher loan limits than general private loans. In-school deferment available. No origination fee. Co-signer not required for enrolled graduate students with income.
No origination fees + 1% cash reward on each new loan for a GPA of 3.0 or better. Competitive rates for graduate borrowers with strong credit profiles. Good complement to federal funding for the private-loan gap.
Direct Unsubsidized Loans: $20,500/year (aggregate limit $138,500 including undergrad debt). Graduate PLUS Loans: up to your full cost of attendance minus other aid (no annual cap beyond COA). Grad PLUS has higher rates than Direct Unsubsidized but the income-driven repayment eligibility can make it the better choice for borrowers who may use IDR or PSLF. Studentaid.gov is the authoritative source at studentaid.gov.
Exhaust Direct Unsubsidized first (lower rate). Then compare Grad PLUS rates vs private lender rates for your credit profile — if private rates are meaningfully lower AND you're not pursuing PSLF, private may save money. If you plan to use IDR or PSLF, keep everything federal. The 2025 Grad PLUS rate is fixed by Congress; compare against private quotes to determine which is cheaper for your situation.
Federal loans: all IDR plans (SAVE, PAYE, IBR, ICR), PSLF, standard/graduated/extended repayment. Private loans: fixed terms only (5-20 years typical), no income-driven options. For borrowers pursuing careers in public service, federal loans + PSLF can result in forgiveness after 10 years of payments. The Department of Education's repayment estimator is at studentaid.gov. The CFPB has graduate loan guidance at consumerfinance.gov. See our full guide (/blog/best-private-student-loans-2026). Reviewed by Brian's ClearValue Lending Team. Updated May 2026.