Before You Apply to Grad School, Read This
If you're planning to pursue a master's degree, there's a critical change you need to know about: the federal government no longer offers Grad PLUS loans for graduate students.
This changes everything.
What You've Lost
The old Grad PLUS loan program offered:
Unlimited borrowing amounts
Minimal credit requirements
No co-signer needed
Relatively low interest rates (historically)
That safety net is gone.
The New Reality: Private Loans Only
Now, graduate students must turn to private lenders like:
College Avenue
Sallie Mae
Credible
Earnest
The catch? These loans require:
Full credit checks
Co-signers (students are 4x more likely to be approved with one)
Higher interest rates
Stricter qualification standards
If you don't have established credit history, you'll likely need a parent or other co-borrower to qualify—meaning they're on the hook for your debt.
What Master's Degrees Actually Cost
The average master's degree runs $62,820, but many programs cost far more:
Master of Education: $44,000
Master of Science: $61,380
MBA: $60,000-$100,000+
Private universities (USC, etc.): $100,000-$200,000
For detailed breakdowns, see: Typical Master's Degrees: Cost of Tuition
Graduate schools have historically offered minimal financial aid to master's students. The unlimited federal loans allowed tuition to skyrocket because schools knew students could simply borrow more.
Now that borrowing is limited and more difficult, the question becomes: Is it worth it?
Consider Alternatives
Before taking on massive private debt:
Work first. Build credit history and figure out what you actually want to study
Find an employer who'll pay. Many companies offer tuition assistance for employees
Stay local. CSU master's programs are affordable enough to work through while employed
Question the ROI. Will your increased earnings justify the loan payments?
The days of easily financing any master's degree you want are over. Plan accordingly.