Editor’s Note: This article contains general information and is not intended to be a substitute for professional advice. Please consult a professional advisor before making decisions about financial issues.
More and more employers are seeking employees with advanced degrees. But with the average cost of a master’s hovering just over $70,000, you might be wondering how to pay.
Graduate students took home some $64 billion in educational grants, loans, tax breaks, and work-study dollars during the 2022-2023 school year. This figure includes public and private scholarships and other financial aid.
Filling out your Free Application for Federal Student Aid, or FAFSA, for grad school is typically the first step to securing funding. We’ll walk you through filling out the FAFSA as a graduate student, as well as your other financial aid options for graduate school — like scholarships, grants, fellowships, and work-study opportunities.Loading…Loading…
Graduate school can be an expensive investment, with tuition and living costs quickly adding up Fortunately, the Free Application for Federal Student Aid (FAFSA) can help graduate students access financial aid to cover their education costs. In this comprehensive guide, we’ll break down exactly how much money you can get from FAFSA and other sources when attending grad school.
FAFSA Basics
The first step to getting financial aid for graduate school is completing the FAFSA. This free government application opens the door to federal grants, loans, and work-study funds.
To qualify you must be a U.S. citizen or eligible non-citizen enrolled at least half-time in an eligible degree program. Graduate students are considered independent, so you won’t need to provide parent info.
You can submit the FAFSA form annually starting October 1st for aid in the upcoming school year. Be sure to meet all deadlines set by your intended graduate school.
Types of Aid for Grad Students
When you submit the FAFSA, you’ll be considered for the following federal aid programs:
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Federal Direct Loans – These are government-issued student loans with options like Direct Unsubsidized Loans and Direct PLUS Loans for grad students.
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Grants – The TEACH Grant provides up to $4,000 a year for teaching students. Grad students in certain programs may qualify for other federal or state grants.
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Work-Study – The Federal Work-Study Program funds part-time campus jobs to help cover expenses.
Your FAFSA data is also used by grad schools to determine eligibility for their own financial aid, like scholarships and assistantships.
How Much Can You Borrow in Federal Loans?
Most graduate students rely heavily on federal student loans from the Direct Loan program. Here’s how much you can borrow:
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Direct Unsubsidized Loans – Up to $20,500 per year, with a lifetime limit of $138,500 including any loans from undergrad. The interest rate is currently 7.08%.
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Direct PLUS Loans – You can borrow up to the full cost of attendance, minus any other aid received. The current interest rate is 8.08%. A credit check is required.
Graduate PLUS loans allow you to cover any gap between your cost of attendance and other aid awarded. There are no set borrowing limits.
Maximum Aid from FAFSA
The amount of aid you can get from FAFSA depends on factors like:
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Cost of attendance at your grad school
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Expected Family Contribution (EFC) calculated from your FAFSA
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Year in school and enrollment status
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Other scholarships, grants, savings, or income to put towards school
On average, grad students receive around $11,300 in grants and $26,000 in federal loans from FAFSA per year. But many tap into other sources to supplement this aid.
The annual limit on federal loans is $20,500 in unsubsidized loans plus the full cost of attendance in PLUS loans. So a typical graduate student could get $30,000 or more in federal aid through FAFSA.
Additional Funding Sources
Besides federal aid from FAFSA, graduate students can apply for financial assistance from other sources:
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Private student loans – Non-federal loans from banks and online lenders can provide extra funding but have higher interest rates.
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Scholarships – Look for national, school-specific, professional, and private scholarship opportunities.
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Employer tuition assistance – Some companies offer tuition benefits for graduate study.
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Assistantships/fellowships – These programs provide a stipend or tuition waiver in exchange for teaching, research, or other work.
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Grants from foundations, nonprofits, and state agencies – Do thorough research to uncover funding from organizations aligned with your graduate program.
With federal aid and other sources combined, most grad students are able to cobble together $20,000 to $50,000 in assistance per year, fully covering costs at many schools. But funding takes effort – applying early and casting a wide net is key.
Tips for Getting the Most Aid
Follow these best practices to maximize financial aid for your graduate degree:
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Submit your FAFSA as close to the October 1st open date as possible. Earlier is better!
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Research and apply for scholarships, grants, work-study, and assistantships offered by your intended grad school.
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Only borrow up to your absolute need. Graduate PLUS loans allow heavy borrowing, but excessive debt can be crippling.
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Make your FAFSA school list only the colleges you are seriously considering. More schools won’t get you more aid.
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Maintain at least half-time enrollment and good academic standing to keep receiving federal student aid.
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Update your FAFSA with current info each year and meet all deadlines for your renewal aid.
The Bottom Line
FAFSA unlocks federal grants, loans, and work-study funds that provide a good chunk of funding for graduate school. By combining aid from FAFSA, private loans, school resources, scholarships, employers, and other avenues, most grad students can get upwards of $30,000 per year. With strategic planning, you can reduce the costs of your graduate degree and graduate with manageable student loan debt.
Frequently Asked Questions About Financial Aid for Graduate Students
Grants and scholarships are funds given to students to pursue higher education with no need for repayment as long as the student is meeting the terms set forth by the funder.
Grants are typically need-based and field-specific, whereas scholarships tend to focus more on academic excellence and merit.
Fellowships are short-term funding opportunities to allow students to conduct more specific research or gain on-the-job training. Fellowships often include stipends for living expenses or supplies.
Graduate students can receive as much as $138,500 in federal student loans and up to $224,000 for medical school. Amounts vary depending on financial need and the amount borrowed during undergraduate school.
The federal government’s Student Aid Estimator can help you understand all of the financial aid options available to you.
Pell Grants are reserved for undergraduate students. However, there are other federal programs intended to support graduate students with financial need.
The TEACH Grant, for example, supports students studying education who want to work in high-need schools. Fulbright Grants are also available for graduate students seeking to add an international component to their current field of study.
Submit your FAFSA as soon as possible, following the financial aid deadlines of your preferred schools and any state-specific financial aid timelines. Typically, these deadlines are in early February.
The 2024-2025 FAFSA form is open until June 30, 2025. The 2025-2026 FAFSA opens on October 1, 2024, and is open until June 30, 2026. Within 1-3 days of applying, you will receive a FAFSA Submission Summary. At that time, you can review your application and make any necessary changes.
There are many opportunities to receive financial aid as a graduate student. In addition to a plethora of grants, scholarships, and fellowships available for advanced study, graduate students may qualify for more federal student aid than undergraduate students.
Your parent’s income is usually no longer considered when you fill out your graduate school FAFSA. As a result, financial need is usually greater, which can lead to a more robust federal financial aid package.
Note: The insights on this page were reviewed by an independent third party compensated for their time by BestColleges. Page last reviewed July 18, 2024.
Fellowships, Assistantships, and Work-Study
Graduate students also can become more specialized and gain experience by working part time in their field in exchange for funding.
- Fellowships are grant funding tied to specific research or fieldwork. They are awarded by universities, as well as by other public and private institutions.
- Assistantships are typically awarded by universities in exchange for work as a teacher’s assistant or research aid.
- Work-study programs allow students to work on or off campus at jobs that offer a public benefit or align with a particular course of study.
How you spend the aid is usually less restricted with these options. Money can often be spent on a variety of education-related expenses, including housing, books, and food. Recipients are also occasionally eligible for employer-paid benefits like health care.
Tuition reimbursement is also a popular way to fund your graduate degree. Many graduate students are already working in their fields, and large employers like Apple, Amazon, Google, and Disney are willing to reimburse employees for a portion of their tuition costs.
This benefit allows you to upskill and become more specialized. Pay close attention to any corporate policy, however. Many employers will only reimburse funds for approved programs and will often require a certain GPA.
While money that doesn’t have to be repaid is always the better option, the rising costs of tuition make it increasingly difficult to graduate without student loans. Some 60% of graduate degree holders went into debt to pay for their education, according to the Federal Reserve.
The federal government offers two types of loans, often with more favorable terms than private options.
- Subsidized loans don’t accrue interest as long as you are enrolled in school full-time.
- Unsubsidized loans start accumulating interest immediately after they are issued, regardless of enrollment status.
Both types of loans offer a six-month grace period before the repayment cycle begins. However, graduate students are only eligible for unsubsidized loans.
Lastly, private student loans can be a financial lifeline if you have exhausted all scholarship, grant, and federal loan options. Though they don’t always have as favorable terms as federal student loans, they can provide access to the funds you need to pursue your educational goals.
There are several private lenders that offer graduate school funding, including College Ave, Sallie Mae, and Ascent. Borrowers typically need a qualifying credit score or a co-signer.
Does FAFSA offer aid for graduate programs?
FAQ
Does FAFSA give money for grad school?
Is the financial aid application process the same for graduate school as it was for undergrad? The answer is, yes — by using the Free Application for Federal Student Aid (FAFSA).
What is the maximum FAFSA payout?
- Up to $22,895 per year for dependent students.
- Up to $27,895 per year for independent students.
- Average aid awarded: $16,360.
- Average grants awarded: $4,883.
How much money can I get for grad school?
Federal graduate loan limits
Direct Unsubsidized Loans: You can borrow as much as $20,500 per academic year in Direct Unsubsidized Loans. The total lifetime limit, including any undergraduate student loans, is $138,500. These loans accrue interest while you’re in school and don’t require a credit check or a cosigner.
How much federal aid is available for graduate students?
Graduate students are eligible to borrow up to $20,500 per academic year, provided they fill out the Free Application for Federal Student Aid.