Pell Grants Do Not Cover Graduate Degrees

Pell Grants are only for undergraduate students. If you are pursuing a master's degree, doctoral degree, or any other graduate-level program, you cannot receive a Pell Grant, regardless of your financial need or income level.

The federal government created Pell Grants specifically to help low- and moderate-income students pay for their first bachelor's degree. Once you have completed your undergraduate degree and move into graduate study, Pell Grants are no longer an option. This is a hard cutoff, not a case where additional paperwork or appeals might change the outcome.

If you are currently an undergraduate and have already received your bachelor's degree, you have exhausted your Pell Grant may be able to access. The program does not allow you to return to undergraduate study and receive Pell Grants again, even if you are taking courses toward a different bachelor's degree.

Key Takeaways

  • Pell Grants only fund undergraduate education, so graduate students cannot receive them under any circumstances.
  • Graduate students have access to different federal loans and grants, including Direct Unsubsidized Loans and Graduate PLUS Loans, which have higher borrowing limits than undergraduate loans.
  • Some graduate programs offer their own institutional aid, scholarships, or assistantships that are separate from federal Pell Grants.
  • You determine your graduate funding options by filling out the FAFSA, which opens doors to federal loans even though Pell Grants are not one of them.

What Graduate Students Can Use Instead

Graduate students have access to federal loans that are not available to undergraduates. The most common option is the Direct Unsubsidized Loan, which allows you to borrow up to $20,500 per year (as of 2024, though this amount can change). Unlike undergraduate unsubsidized loans, interest accrues while you are in school, meaning you will owe more by the time you graduate.

If you need to borrow more than the unsubsidized loan limit, you can apply for a Graduate PLUS Loan. This loan has no set borrowing cap — you can borrow up to the full cost of attendance at your school minus any other aid you receive. The interest rate is higher than unsubsidized loans, and you must pass a credit check. Graduate PLUS Loans do accrue interest while you are enrolled.

Graduate students may also be offered Federal Work-Study positions, which are part-time jobs on or near campus. These are not loans — you earn money by working — but they are typically limited to 20 hours per week during the school term. To be considered for any federal aid as a graduate student, you must complete the FAFSA (Free Application for Federal Student Aid). The FAFSA opens October 1 each year and determines your may be able to access for federal loans, even though Pell Grants will not appear as an option for you.

Institutional Aid and Graduate Assistantships

Many graduate programs offer their own scholarships, fellowships, or grants that come directly from the university, not from the federal government. These awards vary widely by school and program. Some programs fund graduate students through teaching assistantships or research assistantships, where you work for the university in exchange for tuition coverage and a monthly stipend.

Assistantships are common in STEM fields, social sciences, and humanities programs, but less common in professional programs like law or business. The amount of funding and the number of positions available depend entirely on the program and the university's budget. You typically learn about assistantship opportunities when you receive your admission letter, or you can ask the graduate program director directly whether funding is available.

How Graduate Loan Limits Compare to Undergraduate Loans

Graduate students can borrow significantly more than undergraduates over their lifetime because the aggregate limit is much higher. The Direct Unsubsidized Loan limit is the same for both ($20,500 per year as of 2024), but graduate students can access Graduate PLUS Loans with no set cap — you can borrow up to the full cost of attendance minus other aid received. The lifetime aggregate limit for graduate borrowing is $138,500 total (including any undergraduate loans), compared to $57,500 for undergraduates.

Before taking out a Graduate PLUS Loan, consider whether the additional borrowing is necessary and whether your field has salary prospects that support repaying the debt. Graduate debt can grow quickly, and unlike federal undergraduate loans, Graduate PLUS Loans do not have income-driven repayment options that cap payments based on what you earn after graduation.

Private Loans and Other Funding Sources

If federal loans do not cover your graduate school costs, you can explore private student loans from banks and credit unions. Private loans require a credit check and typically have higher interest rates than federal loans. They also lack the income-driven repayment options and forgiveness programs available to federal loans, so they are generally a last resort.

Some employers offer tuition reimbursement programs if you are working while pursuing a graduate degree. Check with your HR department to see whether your employer will cover part or all of your tuition in exchange for a commitment to stay with the company for a set period after graduation.

Professional associations, nonprofits, and foundations in your field may also offer graduate scholarships or grants. These are often smaller awards than institutional aid, but they do not require repayment. Search databases like FastWeb or Scholarships.com to find opportunities specific to your degree program and background.

Frequently Asked Questions

Can I use leftover Pell Grant money from my undergraduate degree for graduate school?

No. Pell Grants are tied to your undergraduate enrollment status. Once you graduate or stop being an undergraduate student, any unused Pell Grant funds are forfeited. You cannot carry them forward or use them for graduate study.

What if I am pursuing a graduate certificate instead of a full degree?

Graduate certificates are not covered by Pell Grants either. However, if the certificate is part of a degree-granting program (for example, a certificate within a master's degree), you may be able to use federal loans. Check with your school's financial aid office to confirm whether your specific certificate program qualifies for federal aid.

Do I have to fill out the FAFSA for graduate school even though I cannot get a Pell Grant?

Yes. The FAFSA determines your may be able to access for federal loans, work-study, and any need-based institutional aid your school offers. Even though Pell Grants will not be available to you, completing the FAFSA is the first step to accessing other federal funding for graduate study.

Can I go back and get a second bachelor's degree to receive another Pell Grant?

No. Once you have earned a bachelor's degree, you are no longer may be able to access for Pell Grants, even if you pursue a different bachelor's degree. Pell Grants are limited to students working toward their first bachelor's degree.

Are there any federal grants for graduate students besides Pell Grants?

Federal grants for graduate students are rare and program-specific. Some fields like nursing or teaching have targeted federal grants, but these are not widely available. Most graduate funding comes through loans, assistantships, or institutional scholarships rather than federal grants.