While applying for financial aid as an undergraduate may be second nature to you, doing so as a graduate student can involve some changes. Even though you feel confident completing applications for grants, loans, scholarships, and other types of financial assistance at this point, it’s crucial to understand the distinctions between graduate and undergraduate funding.
It’s no secret that your tuition costs may increase as a graduate student, and some grad students may even be frustrated to know that there are fewer funding options for them. So, how much financial aid do graduate students get compared to undergraduate students?
But it becomes evident that graduate students still have some advantages when it comes to obtaining financial aid when you consider the variations in lending limits. Keep reading to find out all you need to know about financial aid for graduate students.
Although obtaining a master’s degree can lead to increased pay and career advancement, many aspirant students may find graduate school to be prohibitively expensive. Fortunately, you can take advantage of numerous financial aid opportunities to help defray the cost of your education by completing the Free Application for Federal Student Aid (FAFSA).
Here’s what you need to know about the FAFSA for graduate school and how to maximize your financial aid options:
1. Who Can Apply for the FAFSA for Graduate School?
Anyone planning to pursue a graduate degree can apply for the FAFSA, regardless of their age or previous education level However, unlike undergraduate students, most graduate students are considered independent for financial aid purposes. This means you don’t need to provide your parents’ financial information on the FAFSA
2. What Types of Financial Aid Are Available for Graduate Students?
The FAFSA can open doors to various financial aid options for graduate students, including:
- Grants: These are gift aid that you don’t need to repay. Federal grants for graduate students include the Pell Grant and the Teacher Education Assistance for College and Higher Education (TEACH) Grant for those pursuing a degree in education.
- Scholarships: Similar to grants, scholarships are gift aid awarded based on merit or specific criteria. Many scholarships are available for graduate students, offered by schools, government agencies, and private organizations.
- Fellowships: Fellowships are short-term awards that provide stipends for research or study in a specific field. They are typically awarded based on merit and potential.
- Work-Study Programs: If your school participates in the federal work-study program, you can qualify for a part-time job to earn income and offset some of your expenses.
- Student Loans: Federal and private student loans are available to graduate students to help cover the remaining cost of attendance after considering other financial aid options.
3. How to Fill Out the FAFSA for Graduate School
Although there are some significant distinctions, the graduate school FAFSA is comparable to the undergraduate application. You can complete the FAFSA online at studentaid. gov. Here’s what you’ll need:
- Your Federal Student Aid (FSA) ID
- Your Social Security number
- Tax return information
- Account balances for your bank and investment accounts
4. Filling Out the FAFSA Early Matters
The FAFSA opens on October 1st of the year before your program begins. It’s important to submit your FAFSA as soon as possible to increase your chances of receiving the maximum amount of financial aid because some federal aid is given out on a first-come, first-served basis.
5. Frequently Asked Questions About the FAFSA and Grad School
a) Can the FAFSA pay for all of graduate school?
While the FAFSA can help you secure significant financial aid, it may not cover the entire cost of graduate school. Your financial aid award will depend on your income, assets, family size, and the cost of attendance at your chosen program.
b) Do grad students qualify for more financial aid?
Graduate students typically receive less grant and scholarship aid compared to undergraduates. However, they can access federal loans like Unsubsidized Direct Loans (up to $20,500 per year) and Grad PLUS Loans (up to the cost of attendance minus other financial aid). Additionally, private student loans can help bridge the gap if needed.
c) What kind of financial aid is available for graduate school?
As mentioned earlier, graduate students can access various financial aid options, including grants, scholarships, fellowships, work-study programs, and federal and private student loans.
6. Paying for Graduate School: A Multi-Pronged Approach
Filling out the FAFSA is a crucial first step in exploring your financial aid options for graduate school. Depending on your individual circumstances, you may be eligible for a combination of grants, scholarships, work-study programs, and student loans to help make your graduate education more affordable.
7. Explore Private Student Loan Options
If you need additional funding beyond federal aid, private student loans can help cover the remaining cost of attendance. Consider comparing different lenders and loan options to find the best rates and terms that fit your budget and financial goals.
8. Remember, Investing in Your Education is an Investment in Your Future
Graduate school can be a significant financial investment, but it can also open doors to higher earning potential and career advancement. By exploring all available financial aid options, including the FAFSA, you can minimize the financial burden and maximize your chances of success in your chosen field.
Additional Resources:
- FAFSA website: https://studentaid.gov/
- College Ave’s Guide to Graduate School Financial Aid: https://www.collegeave.com/articles/fafsa-for-graduate-school/
- National Center for Education Statistics (NCES): https://nces.ed.gov/
By taking advantage of the FAFSA and exploring other financial aid options, you can make your dream of pursuing a graduate degree a reality. Remember, investing in your education is an investment in your future. So, take the first step and fill out the FAFSA today!
A Few Facts About Federal Student Aid
Finding out more about graduate-level financial aid is essential to knowing where to look and how to apply for loans and grants. Here are a few things you should know:
- The Federal Student Aid Department distributes more than $120 billion in financial aid each year to eligible students through the FAFSA program.
- The FAFSA form is available for free online at fafsa.gov. gov.
- It’s possible that you qualify for a Pell Grant, which is not repaid like a loan. You must be enrolled in a teacher certification program in order to qualify.
- Other federal initiatives for student assistance exist, including the TEACH grant and the William D. Ford Federal Direct Loan Program, and the Federal Work-Study Program. You can learn more about them here.
- In addition to applying for federal assistance, you ought to look into financial aid provided by your state, company, neighborhood foundations, or school.
Financial Aid for Undergraduate Students vs. Graduate Students
It’s clear to see that undergraduate students typically have better options when it comes to financial aid. It can be more difficult for graduate students to find sufficient financial aid options without having to take out personal loans.
For instance, the maximum Pell Grant amount of $6,345 is given to approximately 7 to 9 million undergraduate students annually. Sadly, graduate students are not eligible for most Pell Grants; the only exception is for graduate students enrolled in post-baccalaureate teacher certification programs.
Additionally, interest rates are higher for graduate students. Undergraduates typically pay an average of 4.66% interest rates on their student loans, while graduate students pay around 6.22% on theirs.
That being said, graduate students are able to borrow more than undergraduates. Graduate students are eligible for $20,500 in annual federal loans, while undergraduates are limited to approximately $12,500.