The Financing Gap Graduate Students Now Face
The federal Direct Unsubsidized Loan limit for graduate students is $20,500 per year. Before July 1, 2026, Grad PLUS could cover any costs above that amount, up to the full cost of attendance. Graduate students with high-cost programs could borrow the full difference through a single federal program.
That option no longer exists for new borrowers. A graduate student in a $45,000-per-year program can access $20,500 from the federal government. The remaining $24,500 must come from elsewhere.
Employer Tuition Assistance: An Underused Resource
Section 127 of the Internal Revenue Code allows employers to provide up to $5,250 per year in tax-free tuition assistance per employee. Many employers offer this benefit but few employees take full advantage of it.
For graduate students who are employed while pursuing their degree, employer tuition assistance can meaningfully reduce the private financing needed. Combined with the federal Unsubsidized cap and institutional aid, $5,250 in employer assistance brings the gap down considerably.
✦ Section 127 Benefit
Graduate Assistantships and Fellowships
Many graduate programs offer teaching assistantships, research assistantships, and fellowships that provide a tuition waiver and a modest stipend in exchange for work. At research universities, funded positions in competitive programs can cover full tuition and provide $18,000 to $30,000 per year in stipend income.
Assistantship availability varies significantly by program type. STEM and research-focused programs are more likely to have funded positions than professional programs like MBA or legal studies.
Private Student Loans for Graduate Programs
For the remainder of the gap after exhausting federal, employer, and institutional options, private student loans are the primary financing vehicle.
LoanAmerica offers Graduate and Professional Loans up to $400,000, designed for students in high-cost graduate and professional programs. Underwriting is based on cash flow analysis rather than credit score alone.
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Get Notified at Launch →Frequently Asked Questions
How can graduate students pay for school without Grad PLUS?
Graduate students can use federal Direct Unsubsidized Loans (up to $20,500/year), private student loans, employer tuition assistance, institutional fellowships or assistantships, and scholarships.
Are private student loans available for graduate programs?
Yes. Private lenders offer graduate student loans that can cover costs above the federal Unsubsidized cap. Loan amounts, interest rates, and eligibility requirements vary by lender.
LoanAmerica is not a lender and does not make credit decisions. All loans will be underwritten, approved, and funded by a participating lending partner bank. Loan products are not yet available. Information on this site is for general informational purposes only and does not constitute an offer to lend, a solicitation, or a commitment to provide financing. When available, loans will be subject to credit approval, school eligibility, enrollment verification, and program qualification. The 72-hour funding window is a target timeline, is not guaranteed, and may vary. This content does not constitute legal, financial, or tax advice. For information about existing federal student loans, contact your servicer or visit studentaid.gov.