FAFSA covers master's degrees, but with different rules than undergraduate aid
Yes, FAFSA can help pay for a master's degree. The same form you used for undergraduate school works for graduate programs too. However, the types of aid available change, the income calculations work differently, and some programs have stricter limits on how much you can borrow.
The key difference: graduate students cannot receive Pell Grants (the assistance programs part). You can take out federal loans, and you may may have access to for subsidized or unsubsidized Direct Loans depending on your program and school. Some graduate programs also may have access to for PLUS Loans, which have higher borrowing limits but require a credit check.
Key Takeaways
- FAFSA determines your may be able to access for federal loans at the graduate level, but Pell Grants end after your bachelor's degree.
- Graduate students can borrow up to $20,500 per year in Direct Loans (unsubsidized), plus additional amounts through PLUS Loans if the school certifies the program.
- Your Expected Family Contribution is recalculated for graduate school and treats you as an independent student, regardless of your parents' income.
- Some master's programs, particularly in business and law, may have different loan limits or may not may have access to for certain federal aid programs.
- You must complete a new FAFSA for each academic year you attend graduate school, even if you completed one for undergraduate.
How FAFSA calculates aid for graduate students
When you file FAFSA for graduate school, the form treats you as an independent student. This means your parents' income and assets do not count, even if you are under 24 or they still claim you as a dependent on their taxes. The calculation looks only at your own income, assets, and household size.
Your school uses this information to determine your Cost of Attendance (the total price of tuition, fees, books, living expenses, and transportation). They subtract what they think you can pay from your own resources, and the remainder is your financial need. Federal loans fill that gap up to the annual and lifetime limits.
Graduate students are also considered independent for purposes of the PLUS Loan application, which means you do not need a co-signer based on your parents' credit.
Federal loan types available to master's students
Direct Unsubsidized Loans are the most common option. You can borrow up to $20,500 per academic year, and interest accrues while you are in school. You do not have to make payments while enrolled at least half-time, but the unpaid interest gets added to your balance when repayment begins.
Direct Subsidized Loans are rare for graduate students. Only certain master's programs in specific fields (primarily teaching and nursing) may have access to. If your program does, the government pays the interest while you are in school, which saves you money.
Direct PLUS Loans let you borrow the full Cost of Attendance minus any other aid you received. There is no annual cap, but your school must certify that your program qualifies. PLUS Loans require a credit check, and if you have recent defaults or delinquencies, you may be denied or required to find an endorser.
The lifetime borrowing limit for graduate students across all Direct Loans is $138,500 in unsubsidized loans, plus any subsidized loans you took as an undergraduate.
Programs that do not may have access to for federal aid
Not every master's degree program qualifies for FAFSA aid. Your school must be accredited by a recognized agency and the program must be at least one academic year long. Most traditional master's programs meet these requirements, but some do not.
Certificate programs, non-degree programs, and programs at schools without proper accreditation will not show up on FAFSA. If you are considering a program and unsure, contact the school's financial aid office directly and ask whether it is Title IV may be able to access — that is the term for programs that may have access to for federal student aid.
Some schools also have their own restrictions. For example, a few business schools do not allow federal loans for their MBA programs and instead require private loans or out-of-pocket payment.
How to file FAFSA for graduate school
Use the same FAFSA form at fafsa.gov that you used for undergraduate school. You will need your FSA ID (the username and password you created before), your Social Security number, and your tax information from the prior year. Most schools have a priority deadline in January or February, though you can submit FAFSA later and still receive aid if funds remain.
When you fill out the form, you will select your master's program as your school of choice. If you have not decided which school yet, you can add it later — FAFSA lets you list up to 10 schools, and you can change them anytime before submitting.
After you submit, your school's financial aid office will receive your Student Aid Report (SAR). They use this to build your financial aid package, which may include loans, grants (if the school offers them from its own funds), and work-study. You will receive this package by email or through the school's student portal.
What happens to undergraduate loans when you start graduate school
Your undergraduate federal loans do not automatically go into repayment just because you enrolled in graduate school. If you are enrolled at least half-time in a graduate program, you can request an in-school deferment, which pauses your payments. Interest on unsubsidized loans still accrues during this time.
You must request the deferment through your loan servicer — it does not happen automatically. If you do not request it and miss a payment, your loan will be reported as delinquent even though you are still in school.
Some graduate students choose to continue paying their undergraduate loans while in school to avoid the interest buildup. Others defer and focus on graduate school expenses. Either choice is permitted.
Private loans and school-specific aid for graduate students
If federal loans do not cover your full cost, you can take out private student loans from banks and online lenders. These loans have variable or fixed interest rates set by the lender, and they typically require a credit check. Interest rates are often higher than federal loans, and the terms are less flexible — for example, most private lenders do not offer income-driven repayment plans.
Many schools also offer their own graduate scholarships or grants. These are separate from FAFSA and come from the school's endowment or donor funds. Ask your financial aid office what is available for your specific program. Some programs, particularly in STEM fields, offer tuition waivers or assistantships in exchange for teaching or research work.
Frequently Asked Questions
Do I have to report my parents' income on FAFSA for graduate school?
No. Graduate students are treated as independent for FAFSA purposes, so you report only your own income and assets. Your parents' financial situation does not affect your federal aid may be able to access, even if they still support you financially.
Can I use FAFSA to pay for a part-time master's degree?
Yes, as long as you are enrolled at least half-time (usually six credit hours per term). If you are taking fewer than six credits, you lose may be able to access for most federal loans and your undergraduate loans may enter repayment. Check with your school about what counts as half-time for your specific program.
What if I already have a lot of undergraduate debt?
You can still borrow for graduate school, but your total lifetime limit across all federal loans is $138,500 in unsubsidized loans (plus any subsidized loans from undergraduate). If you are close to this limit, you may not be able to borrow the full amount needed. Private loans or school-based aid become your other options.
Does FAFSA cover online master's degrees?
Yes, if the school is accredited and the program is Title IV may be able to access. Many online master's programs may have access to for federal aid. However, some schools restrict federal loans for online programs, so confirm with the financial aid office before enrolling.
Can I change my FAFSA after I submit it for graduate school?
Yes. You can log back into fafsa.gov anytime and make corrections or add schools. If you need to update information because of a life change (marriage, job loss, etc.), you can file an amended FAFSA. Your school's financial aid office can also make corrections on your behalf if you contact them.