FAFSA covers graduate school, but the process and aid types differ from undergraduate

Yes, FAFSA helps with graduate school, but you file a different form and the money works differently than it does for a bachelor's degree. Graduate students can borrow federal loans through FAFSA, but grants (money you don't repay) are rare. Most graduate aid comes from loans, scholarships from the school itself, or employer sponsorship — not from federal grant programs.

The key difference: undergraduate FAFSA opens the door to Pell Grants and other need-based aid that doesn't require repayment. Graduate FAFSA does not. Instead, it determines your may be able to access for federal student loans, which you will repay with interest. Some graduate programs offer their own scholarships or assistantships, but those are separate from FAFSA.

Key Takeaways

  • Graduate students file the FAFSA to borrow federal loans, not to receive grants like undergraduates do.
  • Federal loans available to graduate students include Unsubsidized Direct Loans and Graduate PLUS Loans, which have higher borrowing limits than undergraduate loans.
  • Your school's financial aid office determines how much you can borrow based on your cost of attendance minus other aid, not on financial need alone.
  • Graduate scholarships and assistantships come from your school or employer, not from FAFSA, though you still file FAFSA to be considered for federal loans.
  • Private student loans are another option if federal loans don't cover your costs, but they typically have higher interest rates and fewer protections.

What form graduate students file instead of the standard FAFSA

Graduate students still file the Free Application for Federal Student Aid (FAFSA), but the form treats you differently than it treats undergraduates. You answer the same questions about income and family situation, but the result is not a package of grants and loans — it's a information of how much you can borrow.

You must file FAFSA every year you're in graduate school and want to borrow federal loans. Your school's financial aid office uses your FAFSA information to calculate your cost of attendance (tuition, fees, books, living expenses) and then subtracts any other aid you've received. The remainder is what you're allowed to borrow through federal loan programs.

Federal loans available to graduate students

Unsubsidized Direct Loans are the main federal loan option for graduate students. The interest rate is set by Congress and changes each year; for the 2024–2025 school year, it was 6.53 percent. You can borrow up to $20,500 per year, and interest accrues (builds up) while you're still in school. You don't have to make payments while enrolled, but the interest gets added to your balance.

Graduate PLUS Loans let you borrow additional money beyond the Unsubsidized limit. There is no annual cap — you can borrow up to your full cost of attendance minus other aid. The interest rate is higher (8.05 percent for 2024–2025), and you must pass a credit check. You can defer payments while in school, but interest still accrues.

Both loan types require you to file FAFSA first. Your school's financial aid office will tell you how much of each type you're allowed to borrow based on your enrollment status and program length.

How graduate school costs affect how much you can borrow

Your school calculates a cost of attendance that includes tuition, fees, books, supplies, room and board, transportation, and personal expenses. This number varies widely by program and school. A one-year master's degree might cost $30,000 to $80,000; a PhD program might cost $15,000 to $40,000 per year if the school covers tuition and provides a stipend.

Your borrowing limit is your cost of attendance minus any other aid you receive — scholarships from the school, employer tuition reimbursement, assistantship stipends, or grants. If your school gives you a $10,000 scholarship and your cost of attendance is $50,000, you can borrow up to $40,000 that year through federal loans.

This is why filing FAFSA matters even if you don't expect to receive grants. Your school needs the FAFSA information to calculate your aid package and tell you how much you can borrow.

Scholarships and assistantships are separate from FAFSA

Many graduate programs offer scholarships, fellowships, or teaching and research assistantships that pay part or all of your tuition and provide a monthly stipend. These come from the school's own funds or from outside organizations — not from FAFSA. You apply for them through the graduate program's admissions or financial aid office, usually at the same time you apply to the program itself.

If you receive an assistantship, the school typically covers your tuition and pays you a salary for the work (usually 10 to 20 hours per week). You still file FAFSA, and it still determines your loan may be able to access, but the assistantship reduces how much you need to borrow. Some schools also offer need-based scholarships to graduate students; again, you file FAFSA so they can assess your financial need, but the scholarship money comes from the school, not from a federal grant program.

Private loans and employer tuition benefits as alternatives

If federal loans don't cover your costs, you can borrow private student loans from banks or online lenders. Private loans typically have higher interest rates than federal loans (often 6 to 12 percent, depending on your credit), and they don't offer the same protections — no income-driven repayment plans, no forgiveness programs, and no deferment options if you face hardship.

Many employers offer tuition reimbursement or sponsorship programs for employees pursuing graduate degrees. These vary widely: some cover full tuition, others reimburse a set amount per year, and some require you to stay with the company for a certain period after graduation. Check with your employer's human resources department before taking out loans.

Repayment and what happens after graduation

Federal loans taken out as a graduate student have a six-month grace period after you graduate or drop below half-time enrollment. During that time, you don't have to make payments, but interest on Unsubsidized Loans and Graduate PLUS Loans continues to accrue. After the grace period ends, you must begin repayment.

Graduate students can use income-driven repayment plans, which tie your monthly payment to your income. Plans like SAVE (Saving on a Valuable Education) can result in lower monthly payments, especially if you have a high loan balance relative to your income. However, income-driven plans extend your repayment period, which means you pay more interest over time. Federal loans also have forgiveness programs — for example, Public Service Loan Forgiveness forgives remaining balance after 120 may have access to payments if you work for a government agency or nonprofit.

Frequently Asked Questions

Do I have to file FAFSA for graduate school if I'm paying out of pocket?

No, you only need to file FAFSA if you plan to borrow federal loans or if your school requires it to determine merit scholarships. If you're paying tuition in full without borrowing, you don't have to file. However, filing takes about 30 minutes and opens the door to federal loans if your situation changes, so many students file anyway.

Can I get a Pell Grant as a graduate student?

No. Pell Grants are only for undergraduate students. Graduate students can only borrow loans through FAFSA, not receive grants from federal programs. Your school may offer its own graduate scholarships or grants, but those are separate from FAFSA.

What if my graduate program is only part-time?

You can still file FAFSA and borrow federal loans as a part-time graduate student. Your borrowing limit may be lower than for full-time students, and your school calculates your cost of attendance based on your actual enrollment. Ask your financial aid office how part-time status affects your loan may be able to access.

Do graduate loans have the same interest rates as undergraduate loans?

No. Graduate Unsubsidized Loans and Graduate PLUS Loans have higher interest rates than undergraduate loans. For 2024–2025, the graduate Unsubsidized rate was 6.53 percent and the Graduate PLUS rate was 8.05 percent, compared to 5.50 percent for undergraduate Unsubsidized Loans. Rates change each year.

Can I defer my graduate loans if I go back to school?

Yes. If you enroll in another degree program at least half-time, you can request deferment on your graduate loans, which pauses your payments. Interest on Unsubsidized and Graduate PLUS Loans still accrues during deferment. Once you leave school again, the grace period restarts, and then repayment begins.