Financial Aid and FAFSA Guide for Graduate Students
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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.
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FAFSA for Grad School
The FAFSA is an application for federal student aid. All students, whether they are in graduate school or undergraduate school, must complete the FAFSA to be considered for federal grants, work-study programs, and loans. Most colleges and universities also use the FAFSA for state aid and institutional aid.
As a graduate student, you may see higher financial offerings stemming from your FAFSA than your undergraduate peers because you are no longer obliged to report your parent’s financial status and income on the form. At this point in your educational career, you’ll be considered an “independent student,” so you’ll only need to report a spouse’s income alongside your own.
However, some schools — such as law schools or medical schools — may still request that you provide your parents’ financial information.
On average, full-time graduate students were awarded $28,300 in federal aid last year, according to College Board, while undergraduate students received an average of $15,480.
The amount of financial aid you qualify for during graduate school depends on your FAFSA results and the amount you borrowed during your undergraduate years. You can qualify for up to $138,500 total, which includes the amount you borrowed during your undergraduate studies. Students attending medical school can qualify for a maximum of $224,000 in loans.
The FAFSA does more than just qualify you for federal student loans, however. It is also widely used by public and private institutions to determine your financial need to qualify for scholarships, grants, fellowships, and other funding programs.
Financial Aid Options for Grad School
Not all graduate school financial aid comes in the form of a loan. You can also apply for scholarships, grants, fellowships, and work-study programs to secure funding.
Scholarships for Graduate Students
Scholarships can help you lower the cost of your graduate degree. Unlike loans, these merit-based awards don’t require repayment.
Scholarships are often awarded for academic or athletic excellence, to support students studying a specific field, or to help students of underrepresented backgrounds. Your best bet is to apply for awards that match your interests, expertise, and background. You can find funding opportunities in your field through your graduate school or on the websites of related professional organizations.
Grants for Graduate Students
Like scholarships, grants are a good option for graduate school because they don’t require repayment. Grants are typically awarded based on financial need — calculated, in part, by your FAFSA results.
There are several online databases that can make finding grad scholarships and grants a little easier. Take a look at these sites:
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
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.
Federal Student Loans
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.
Private Student 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.
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.
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.
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