📋 Table of Contents
Graduate Student Loans Guide
Graduate students have access to distinct federal loan options with different terms than undergraduate loans, plus private loan alternatives for funding gaps.
Federal Graduate Loan Options
| Loan Type | Key Feature |
|---|---|
| Direct Unsubsidized Loans | Available regardless of financial need, interest accrues during school |
| Grad PLUS Loans | Higher borrowing limits, credit check required |
Grad PLUS vs. Private Graduate Loans
Grad PLUS loans offer federal protections (income-driven repayment, forgiveness eligibility) at a fixed rate, while private graduate loans may offer lower rates for borrowers with excellent credit but without those same protections.
Interest Accrues During School
Unlike subsidized undergraduate loans, graduate loans typically accrue interest while you're still in school — some borrowers choose to make interest-only payments during school to avoid capitalization at graduation.
Common Mistakes
Not considering the total cost of a graduate program relative to expected post-graduation income — graduate debt can be substantial, and career earnings potential should factor into borrowing decisions.
Frequently Asked Questions
Direct Unsubsidized loans have lower borrowing limits but don't require a credit check; Grad PLUS loans allow borrowing up to the full cost of attendance but require passing a credit check.
Making interest-only payments during school can prevent that accrued interest from capitalizing (being added to principal) at graduation, potentially reducing your total repayment amount.