A significant decision that more people are making is going back to school for a graduate or professional degree. Indeed, by 2031, enrollment in master’s, doctorate, and professional degree programs is expected to rise by 6%, according to the National Center for Education Statistics (NCES).
Many students are unaware that financial aid is available, despite the fact that graduate education can be costly. In addition to loans, you can finance your degree through work-study programs, grants, and assistantships.
You must submit the Free Application for Federal Student Aid (FAFSA), which you completed during your undergraduate studies, in order to be eligible for financial aid. For graduate students, however, the FAFSA operates differently.
Is an FAFSA Required for Graduate School?
Your job can advance with a master’s degree, but you might be concerned about the hefty expense of graduate school, and for good reason. According to the NCES, tuition and fees for full-time graduate students average over $20,000.
However, if you complete the FAFSA, you will have access to numerous financial assistance options.
There could be significant savings if the form is submitted, which should take less than an hour. According to the NCES’s latest recent data, the following figures apply to the 2019–2020 award year:
- Financial aid was received by 74% of graduate students.
- Grants were awarded to 43% of graduate students, with an average of $11,300 per student.
- Assistantships were awarded to 12% of graduate students, with an average value of $18,800.
- Direct unsubsidized loans were taken out by 39% of graduate students.
- Direct PLUS loans accounted for 11% of graduate student borrowing.
As a graduate student, you may lose out on important financial aid, such as non-repayable gift aid, if you choose not to complete the FAFSA.
How Does the Graduate School FAFSA Operate?
The FAFSA for undergraduate students and the FAFSA for graduate school are fairly comparable. The following details are required for the FAFSA form:
- Social Security number or Alien Registration number to access StudentAid.gov using a Federal Student Aid (FSA) ID
- Statements for your savings and checking accounts
- Details on investment accounts
- refunds of federal income taxes
- Untaxed income records
But there are a few significant differences with the FAFSA for graduate school:
- status of dependency. For the purposes of financial aid, practically all graduate students are regarded as independent. This implies that instead of entering your parents’ income and assets, you will only need to submit your own.
- Aid choices. Compared to undergraduate students, graduate students have distinct loan and aid alternatives. You are liable for all interest that accrues on your loan because, as a graduate student, you are only eligible for direct unsubsidized loans and grad PLUS. Although you might be qualified for other forms of grant aid, the majority of graduate students are also not eligible for Pell Grants.
- Limits on borrowing. There are yearly and total borrowing caps on undergraduate student loans. While graduate PLUS loans do not have a borrower maximum, graduate unsubsidized loans do. The maximum amount you can borrow is the entire cost of attendance as determined by the institution.
Graduate School Eligibility for the FAFSA
Federal financial aid is only available to graduate school applicants who fulfill the following criteria, much like undergraduate students:
- Eligible noncitizens or citizens of the United States
- intend to enroll in a degree program at an approved university.
- Show that you need the money for work-study and grant programs.
From the standpoint of financial aid, any degree you pursue after receiving a bachelor’s degree is generally regarded as graduate school. Financial help for graduate school encompasses funding for law, medical, or dentistry school, as well as master’s, business, and doctoral programs.
Options for Graduate School Financial Aid
According to your FAFSA data, you are eligible for a number of federal financial aid programs as a graduate student:
- Student debt. Your eligibility for federal student loans, which often offer lower interest rates and more repayment options than private student loans for graduate school, is determined by the government using the FAFSA.
- Grants. Based on the data from your FAFSA, you might qualify for grants from the federal, state, or local governments. Grants are a type of gift aid that is non-repayable. The Teacher Education Assistance for College and Higher Education (TEACH) award is one government award that graduate students pursuing an education degree may qualify for.
- Work-study. The work-study program, another federal program for graduate students, assists you in finding a part-time employment to help pay for your education.
Fees and Limits for Graduate School Loans
The majority of graduate students will take out a loan to cover the cost of their education. Graduate borrowers borrowed an average of $26,000 for the 2019–20 academic year. There are two ways to borrow money for federal loans:
- Direct loans without subsidies. The interest rate for graduate student direct unsubsidized loans is 7.05% for the 2023–2024 academic year. Any federal loans you took out for your undergraduate degree also count toward the lifetime maximum, which is $138,500. The annual borrowing limit is $20,500. For unsubsidized loans, the loan disbursement charge is 1.057%.
- Loans from Grad PLUS. PLUS loans have no yearly or total cap, in contrast to direct unsubsidized loans. The maximum amount you can borrow is the entire cost of attending your program. However, for the 2023–24 academic year, PLUS loans have the highest interest rate of any federal loan option, at 8.05%. They also charge a 4.228% disbursement fee.
What to anticipate following the submission of your graduate FAFSA
Every year, as soon as the application is available, submit your FAFSA. Your federal Student Aid Report (SAR) will be sent to you once it has been submitted. The SAR discusses your eligibility for financial aid and provides an overview of the data on your FAFSA. Starting with the 2024–25 award year, the FAFSA Submission Summary will take the role of the SAR.
To find out if there are any additional requirements, get in touch with the financial aid office at the institution you want to attend. To be considered for scholarships or other institutional aid, you might need to provide additional information or complete financial aid applications specific to certain colleges.
To calculate your financial aid awards, the university will examine your FAFSA data along with additional supporting documentation. A financial aid award letter outlining your eligibility for grants, scholarships, and student loans as well as the procedures you need to follow in order to accept them will be sent to you.
Any federal student debts you have from your undergraduate studies should be immediately postponed once you have received your financial assistance offer from the university and are enrolled at least half-time. If not, you should request that your current school report your enrollment so that you can receive in-school deferment.
Getting Ready for Graduate School
One of the most important first steps in financing for graduate school if you’re pursuing a master’s degree or another professional degree is completing the FAFSA. Even while the requirements for the FAFSA for graduate school change slightly from those for undergraduates, it can still help you get federal student loans, grants, and work-study opportunities. Apply as soon as you can to receive the most financial aid you are eligible for.