How the FAFSA differs for grad school

While enrolling in a graduate program can be an integral part of a long-term career, the cost of an advanced degree is substantial. As of 2023, you’ll typically pay between $54,000 and $73,000 for a master’s program, according to Education Data. Your expenses can also vary depending on the major, your school and the length of the program.

One way to cover some of these costs is to apply for federal aid by filling out the Free Application for Federal Student Aid (FAFSA). However, doing this as a graduate student is somewhat different from the undergraduate process. 

Here’s what you should know about how the FAFSA differs for grad school along with what types of federal aid are available for graduate students.

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Do grad students need to fill out the FAFSA?

Although submitting the FAFSA isn’t a hard requirement for graduate school, it can be financially advantageous. For the 2022-2023 academic year, the average full-time graduate student received $28,300 in federal aid, according to the College Board. 

If you previously filled out the FAFSA during your undergraduate studies, you’ll use the same Federal Student Aid (FSA) account at StudentAid.gov to submit it as a graduate student. As with undergraduate federal awards, you’ll need to fill out the FAFSA for each year that you’d like to apply for federal aid for grad school.

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How the FAFSA works for undergraduate vs. graduate school

Graduate students can reuse their existing FSA account login and submit the FAFSA at StudentAid.gov. However, there are differences in the types of federal financial aid that graduate students can qualify for.

Here’s how the FAFSA process as well as federal aid compares for undergraduate vs. graduate school:

Financial aid eligibility for grad school students

To qualify for federal financial aid, a graduate student must:

• Exhibit financial need based on their FAFSA data. 
• Be a U.S. citizen or an eligible noncitizen.
• Attend an institution that offers an eligible degree or certification program. 
• Be enrolled as a regular student as determined by the school.

Note that unlike many undergraduate students, grad students aren’t considered dependent students on the FAFSA. Instead, they’re independent students. This means that you shouldn’t use a parent’s personal and financial information on your aid application.

“A common error is that grad students who live at home, and might not have any other income, would put that they are ‘dependent’ and therefore include the financial information for the parents,” says Jack Wang, a college financial aid advisor at Innovative Advisory Group. “This is not correct. Once students are either 24 [years old] or in grad school, they are (considered to be) independent, and only their income and assets count (toward federal aid).” 

What does federal aid cover for grad school?

How much federal aid will cover for grad school depends on your financial need. If you qualify for federal aid, you can use the funds for various education expenses, such as tuition, fees, books, supplies, housing and transportation. 

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Types of federal student aid for grad school

The Department of Education offers a variety of aid options for grad students. This includes certain grant programs, student loans and the work-study program. The limits to how much you can receive are based on the specific aid program and how much you’ve borrowed over your entire postsecondary academic career.

Federal grants

Award amount per year: Up to $4,000 for a TEACH Grant and up to $7,395 for a Pell Grant 

Federal grants that are accessible to graduate students are limited compared to programs available to their undergrad counterparts. Eligible grad students who are pursuing a teaching career can receive up to $4,000 per year through the Teacher Education Assistance for College and Higher Education (TEACH) Grant. In exchange for the award, recipients must agree to a four-year service contract after leaving school. 

Grad students who demonstrate financial need and are pursuing a postbaccalaureate teaching certification might also be eligible for a federal Pell Grant in some cases, according to Federal Student Aid. Amounts that are awarded vary annually. For the 2023-2024 academic year, the maximum award is $7,395. 

Note that the Pell Grant program enforces a lifetime award limit of 12 full-time terms (or approximately six years). If you already reached your lifetime limit during your undergraduate years, you might not qualify as a grad student.

Federal student loans

Award amount per year: Up to $20,500 (or more for professional students) for Direct Unsubsidized Loans (no limit for Grad PLUS Loans) 

If you need to borrow money for grad school, there are two types of federal student loans available: 

• Direct Unsubsidized Loans: Graduate students can receive up to $20,500 per year (or more for professional students) in unsubsidized loans. The aggregate federal borrowing limit for subsidized and unsubsidized loans — including amounts borrowed during undergrad — is $138,500 for independent students. Unlike with subsidized loans, you don’t have to demonstrate financial need to qualify. However, you’re responsible for all of the interest that accrues on an unsubsidized loan.
• Grad PLUS Loans: Graduate students can receive up to their school’s reported cost of attendance (minus existing aid you’ve received) with a Grad PLUS Loan. Like with unsubsidized loans, you don’t need to demonstrate financial need to be eligible. However, you’ll need to undergo a credit check, and you can’t have an adverse credit history to qualify.

Federal work-study program

Award amount per year: Varies

Grad students might also be eligible for the federal work-study program. This allows students with financial need to earn money by working a part-time job to help pay for school expenses. Available work-study options can be on or off campus, and they’re usually related to students’ areas of study (if possible).

With a work-study position, you’ll earn at least the federal minimum wage. You might be paid hourly or by salary, depending on the role. However, your hours and earnings are restricted to the maximum award you’ve been offered for the school year.

How to fill out the FAFSA for grad school

After you’ve been accepted to an eligible graduate program, you can complete a FAFSA application online at StudentAid.gov. You can also submit a paper FAFSA by printing out the PDF online or requesting it at 1-800-433-3243.

If you’re ready to fill out the FAFSA for grad school, follow these steps:

1. Gather your personal and financial information. You’ll have to provide both personal and financial details on your grad school FAFSA. For example, you might need your driver’s license, Social Security number or Alien Registration number as well as a copy of your most recent tax return, bank statements, asset records and other reports of untaxed income. In some cases, you might be able to use the IRS Data Retrieval Tool to automatically populate your financial details from a previously filed tax return. 
2. Identify your school. You’re allowed to include up to 20 schools when submitting an online FAFSA for grad school (up to 10 for a paper application). To do so, you’ll need to find your institution’s Federal School Code, which typically can be found on your school’s financial aid website. 
3. Ensure you have an FSA login and ID. If you submitted a FAFSA during your undergraduate study, you likely already have an FSA login and ID, which you’ll use to sign your FAFSA. If not, you can register at StudentAid.gov.
4. Submit your FAFSA as soon as possible. Many financial aid awards are provided on a first-come, first-served basis, so filing your FAFSA as early as possible is ideal. The FAFSA is typically available by October 1 of the previous year (Dec. 31, 2023, for the 2024-2025 academic year). You have until June 30 at the end of the academic year to submit the FAFSA. 
5. Track your application. After your graduate FAFSA is filed, you can track its progress at StudentAid.gov. Keep an eye on updates and notifications about your application as you might need to supply missing signatures or provide supporting documents.
6. Get your financial aid award letter. Once your school receives your FAFSA, it will send you a financial aid award letter detailing the federal aid you qualify for. You can then decide which aid to accept.

Keep in mind: “Graduate students may have to submit records of fellowships, assistantships or any other institutional aid that may have come as part of the graduate program they are in (when they apply for federal aid),” says Carlos Jiménez, CEO at Peak Education, a nonprofit organization in Colorado that supports low-income students in their pursuit of college. 

Each individual school a student applies to may require additional forms or financial information to confirm eligibility for aid, so it’s important to check requirements outside of what is immediately required from the FAFSA.”

Other ways to pay for grad school

If you have exhausted your federal aid options or don’t qualify, here are some other types of aid that could help you pay for grad school:

Private grants and scholarships 

In addition to filling out a FAFSA for grad school, apply for third-party gift aid. Your own institution as well as private companies and professional associations offer lucrative grant and scholarship programs to graduate students. 

Tip: You can use sites like Fastweb and Scholarships.com to search for awards that you could be eligible for.

Fellowships and assistantships 

Another alternative to federal aid is a fellowship or assistantship. Fellowships are similar to grants in that they don’t need to be repaid, and they can be used for tuition, fees, housing and more. 

Assistantships are research or teaching opportunities within a student’s area of study. This is similar to a work-study arrangement in that assistantships pay for some or all of tuition and might also include other perks.

Employer tuition assistance 

If you’ve already entered the workforce and want to enroll in a graduate program, your employer might offer education assistance. 

Tip: Consider working for a company that pays for college, or see if your current employer is willing to offer this perk.

Private student loans 

Unlike federal student loans, private student loans are offered by private lenders, including community and national banks, credit unions, online lenders and even some schools. These loans can have fixed or variable rates, and they usually require good credit — though eligibility can vary between lenders. 

Note that private student loans don’t provide the benefits and protections that federal loans do. For example, you won’t have access to income-driven repayment (IDR) plans or forgiveness programs. Because of this, it’s usually best to rely on scholarships, grants and federal student loans first before using private loans to fill any financial gaps left over. Also be sure to borrow only what you need to avoid excessive student loan debt.

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