Pell Grants do not cover graduate school

Pell Grants are limited to undergraduate study. If you are pursuing a master's degree, doctoral degree, or other graduate-level credential, you cannot receive a Pell Grant, regardless of your financial need or income level. The federal government created Pell Grants specifically for students working toward a first bachelor's degree or certain certificate programs at the undergraduate level.

This is a hard boundary in the program rules. The U.S. Department of Education does not make exceptions based on circumstances. Once you have earned a bachelor's degree and move into graduate coursework, Pell Grant funding stops.

Key Takeaways

  • Pell Grants end when you begin graduate school, even if you have financial need.
  • Graduate students can borrow through federal Direct Unsubsidized Loans and Direct PLUS Loans, which have higher borrowing limits than undergraduate loans.
  • Some graduate programs offer institutional aid, scholarships, or assistantships that reduce what you need to borrow.
  • Your FAFSA still matters for graduate school because it determines your may be able to access for federal loans and some need-based aid.

What funding sources exist for graduate students instead

Graduate students have access to different federal loan programs. The main option is the Direct Unsubsidized Loan, which allows you to borrow up to $20,500 per year (the exact amount depends on your program and whether you are a dependent or independent student). Unlike subsidized loans, interest accrues while you are in school, but you do not have to demonstrate financial need to may have access to.

If you need to borrow more, you can also take out a Direct PLUS Loan for graduate students. This loan has no annual borrowing cap — you can borrow up to the full cost of attendance minus other aid you have received. PLUS Loans do require a credit check, and the interest rate is higher than Unsubsidized Loans.

Beyond federal loans, graduate funding often comes from the school itself. Many graduate programs offer tuition waivers, scholarships, teaching assistantships, or research assistantships that cover part or all of your costs. These vary widely by program and institution, so you should ask your graduate program directly what funding they have available.

How to find out what aid your graduate program offers

Start by contacting the graduate program's financial aid office or admissions office directly. Ask what scholarships, assistantships, or tuition support the program typically provides to incoming students. Some programs fund most or all of their students; others offer little to no aid. This information should be available before you enroll.

You will also need to complete the FAFSA (Free Application for Federal Student Aid) to determine your may be able to access for federal loans. Even though Pell Grants do not apply to graduate study, the FAFSA still calculates your financial need, which some graduate programs use to award their own aid. The FAFSA also determines your loan limits.

Some employers offer tuition reimbursement or assistance programs for employees pursuing graduate degrees. If you are working while in school, check whether your employer has this benefit. Professional associations in your field may also offer scholarships or grants specific to graduate students in that discipline.

The difference between graduate loans and undergraduate loans

Graduate students can borrow more per year than undergraduates. An undergraduate can borrow up to $5,500 to $7,500 per year in Direct Unsubsidized Loans (depending on dependency status), while a graduate student can borrow up to $20,500 per year. Graduate students also have access to PLUS Loans with no annual cap, whereas undergraduate PLUS Loans are capped at the cost of attendance.

However, graduate loans come with higher interest rates and accrue interest while you are in school. Graduate students also cannot receive subsidized loans, which means you pay interest from the moment the loan is disbursed. The trade-off is that you have more borrowing power if you need it.

What happens if you were receiving a Pell Grant as an undergraduate

Your Pell Grant ends when you complete your bachelor's degree or when you enroll in graduate coursework, whichever comes first. If you are still an undergraduate but have already earned a bachelor's degree from another institution, you may not receive a Pell Grant for your second undergraduate degree either — the program is designed for first bachelor's degrees only.

If you are pursuing a graduate certificate or diploma that does not lead to a degree, check with your school about whether you remain may be able to access for Pell Grants. Some certificate programs at the undergraduate level do may have access to, but this depends on the specific program and how your school classifies it. Your school's financial aid office can tell you whether your certificate program counts as undergraduate or graduate-level study.

Frequently Asked Questions

Can I use a Pell Grant if I am getting a second bachelor's degree?

No. Pell Grants are for first bachelor's degrees only. If you already have a bachelor's degree and are pursuing another one, you are not may be able to access for Pell Grants, even if you have financial need. You would need to rely on loans, scholarships, or other funding sources.

Do I have to fill out the FAFSA for graduate school?

You should, even though Pell Grants do not apply. The FAFSA determines your may be able to access for federal loans and calculates your financial need, which some graduate programs use to award their own aid. Completing it takes time, but it unlocks funding options you might otherwise miss.

What if my graduate program costs more than I can borrow?

You can explore private student loans, employer tuition assistance, payment plans through your school, or part-time work. Some graduate programs also allow you to defer part of your tuition or spread payments over a longer period. Talk to your school's financial aid office about options specific to your situation.

Can I get a Pell Grant for a graduate certificate?

It depends on how your school classifies the certificate. If it is an undergraduate-level certificate program, you may be may be able to access. If it is graduate-level, you are not. Contact your school's financial aid office to find out whether your specific certificate program qualifies for Pell Grants.