Graduate School Student loans

Grad PLUS Changed. Here’s How to Compare Graduate Loans the Right Way.

For 2026–2027, Graduate PLUS has changed. Under the One Big Beautiful Bill Act:

• Most graduate students are now subject to a $25,000 annual limit and $100,000 lifetime aggregate limit
• Medical and law school students are now subject to a $50,000 annual limit and $200,000 lifetime aggregate limit

Graduate PLUS also currently carries an 8.94% interest rate and a 4.228% origination fee.

If your program costs exceed these new federal caps, or if you have a strong credit profile, private graduate loans may be worth a close look. Rates currently start under 5% and often come with no fees.

But the best borrowing choice is not always the one with the lowest advertised rate. It also depends on APR, fees, repayment flexibility, borrower protections, the ability to refinance later, and how the loan fits into your overall funding plan for the full program.

CAP’s Recommended Borrowing Order

Step 1: Maximize Your Federal Unsubsidized Direct Loan First

For most grad students, start by maximizing the Federal Unsubsidized Direct Loan first ($20,500/year) before considering private loans or Graduate PLUS.

Step 2: Apply through College Ave to get your rate. 

• Apply in 3 Minutes
• Soft Credit Pull
• Reputation for rewarding high FICO scores 

Step 3: Apply through Earnest to get your rate.

• Apply in minutes
• Soft Credit Pull
• Reputation for rewarding high FICO scores

Step 4: Apply through Sallie Mae to get your rate

• Apply in minutes
• Hard Credit Pull
• Reputation for highly competitive rates. 

Step 5: Compare Your Best Private Loan Option

• Before moving forward, compare your best private loan offer against Graduate PLUS
  
  

• Rates starting at 2.84%
• No application, origination, or prepayment fees
• Checking rates will not affect your credit score
• Apply in less than 3 minutes