Graduate school may be the right next step for you and your career. If this is true, then you may be wondering how to afford it. Maybe you will be entering graduate school right after completing a bachelor’s degree, maybe you are returning to school to advance further in your field, or maybe you’re looking to change your career. No matter what your situation is, learning how to pay for graduate school is a key component for this next step in your life.
Before You Borrow
Before borrowing, assess your savings, current income, and financial aid opportunities. Any amount you can put toward your graduate school education without taking a loan will keep costs lower than paying for school with loans that charge interest. Use savings, explore a monthly payment plan, and research scholarships. Your graduate school may offer grants and other financial assistance, so be sure to ask the financial aid office what is available.
Know Your Loan Options
Here is what we recommend as you consider your borrowing options:
- Federal Direct Student Loans* provided by the U.S. government
- State-based lenders
- Private loans
*Please note that Federal Direct Student Loans are not the same as Federal Direct Graduate PLUS Loans, and as of July 1, 2026, graduate and professional students who do not qualify (or no longer qualify) for the limited exception are not eligible to borrow Graduate PLUS Loans. Learn more here.
Federal Direct Student Loans
To have Federal Direct Student Loans available to you, you will need to file the FAFSA. You may be familiar with the process from your undergraduate years, and this is the only type of loan that is considered financial aid. You will see this loan listed on your financial aid offer. Federal Direct Loans for graduate and professional students are always unsubsidized, which means that interest will begin to accrue once funds are disbursed.
These loans are your best option because they offer a guaranteed fixed interest rate, loan consolidation, and multiple repayment options. They also do not require a credit check to be approved. Work with your college’s financial aid office to make sure you have received the maximum available in Federal Direct Student Loans. This is key, as annual and aggregate limits vary by program/discipline. General graduate and professional studies have an annual limit of $20,500, but be sure to check with your school to see if you have an authorized higher loan limit.
Be sure to take out what you need with Federal Direct Student Loans first, up to the maximum amount allowed.
State-Based Lenders
After you max out your Federal Direct Student Loans, the next options to consider are loans from state-based lenders. State-based lenders, like MEFA, may offer various types of loans, often with favorable terms. The important aspects to consider include:
- Fixed vs. variable interest rates. Fixed interest rates will remain the same through the life of the loan, meaning that your monthly payment will also remain level.
- Range of interest rates available. Your interest rate will be determined by your credit history, so even if you see a low advertised rate, be sure to consider the full range of interest rates.
- Co-borrower options. Adding a co-borrower to your loan application could increase your creditworthiness.
- Borrowing limits. Unlike the limits of Federal Direct Student Loans, state-based and private lenders may offer borrowing ability up to the Cost of Attendance (COA) minus financial aid.
- Loans based on your program type. As a graduate student, your path to a full-time career in your field may take additional time. Does your lender offer extended interest-only and/or grace periods? Be sure that your lender offers a loan that meets your needs for repayment.
Starting for the 2026-27 academic year, MEFA is expanding its graduate loan offerings to accommodate the various needs of graduate students today. If you are interested in learning more, review our Graduate Loan Programs page.
Private Loans
In addition to state-based lenders, private loans are offered by many different entities, including banks, credit unions, and for-profit lenders. You can find private loan lenders through internet searches or loan comparison websites. If you use a loan comparison website, just be aware of how interest rates may be advertised. Be sure to consider the entire range of interest rates from lenders, from the lowest to the highest possible, to get a full picture of what you might actually pay.
Borrow Only What You Need with the Right Loan for You
Remember, any loan you take out equates to money that will need to be repaid. Use loans only as a last resort. And if you do need to borrow, be sure to borrow what you need for the full year, rather than one semester. Your graduate school will split the loan into two and apply each portion to the fall and spring semesters. And remember, if you’re borrowing for the first year of graduate school, you’ll likely have to borrow for subsequent years, so multiply that loan payment by the number of years you plan to borrow. Graduate loans may offer extended interest-only periods and/or grace periods, so choose a loan that fits your graduate school needs. If you’re considering a MEFA Graduate Loan, use MEFA’s Graduate Loan Payment Calculator to estimate your projected monthly payment and total loan cost.
If you’re ready to borrow a MEFA Graduate Loan, there’s an easy, online process to apply. Follow along step-by-step here or simply click below to start the application process.
*The Annual Percentage Rate (APR) is designed to help consumers understand the relative cost of a loan and reflects MEFA’s current underwriting criteria, loan rates, and deferment period assumptions. MEFA’s lowest rates are only available to the most creditworthy applicants.
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