Can You Get Financial Aid for Graduate School?

Can You Get Financial Aid for Graduate School?

Financial aid for graduate students comes in various forms, including federal student loans, grants and work study programs.

To qualify for financial aid for graduate school, you typically need to demonstrate financial need, which is assessed through the Free Application for Federal Student Aid (FAFSA). The FAFSA is required for federal financial aid options. Additionally, you also must be a U.S. citizen or eligible noncitizen and be enrolled or accepted for enrollment in an eligible degree or certificate program.

Using FAFSA for Graduate School

Students in the U.S. can complete the FAFSA to apply for government financial aid to help pay for graduate school. The FAFSA can be submitted online or via the myStudentAid mobile app and requires information about your income and assets. If you’re classified as a dependent student, you’ll also need your parents’ financial details. Complete the FAFSA by the deadline to ensure eligibility for financial aid in the upcoming academic year.

Here are some of the financial aid options you’ll see on a financial aid award letter after completing the FAFSA.

Federal Student Loans

You may be offered federal student loans as part of your financial aid package. You may be eligible for two types of loans:

• Direct unsubsidized loans: Eligible graduate students can borrow up to $20,500 each year. Interest will accrue while you’re enrolled in school.
• Grad PLUS loans: If you need more funds than the unsubsidized loan limit, grad PLUS loans are an option for covering additional costs. This loan does require a credit check.

Learn more >> Can I Apply for FAFSA With Bad Credit?

Grants

Grants are a form of financial aid that doesn’t need to be repaid. A limited number of grants are available for graduate students.

• Teacher Education Assistance for College and Higher Education (TEACH) Grant: Graduate students pursuing a teaching career can receive up to $4,000 per year. To qualify, you must take specific courses and commit to teaching for at least four years (within eight years of completing your degree) in a high-need field in a low-income school. If you fail to meet the requirements, the grant may be converted to a loan you need to repay.
• Federal Pell Grant: While typically reserved for undergraduate students, graduate students enrolled in a teacher certification program may qualify for Pell Grants. The grant amount varies each year.

Work-Study Programs

Work-study programs provide financial aid through part-time employment, allowing you to use your earnings to cover education-related expenses. Employment opportunities can be on- or off-campus and may be related to your field of study. As a graduate student, you’ll either be paid either hourly or with a salary. You’ll earn at least the federal minimum wage, with the potential to earn more depending on the job and your skills.

How to Get Financial Aid for Graduate School

Completing the FAFSA is crucial for securing financial aid for graduate school. This is how you’ll receive needs-based financial aid offers and access federal student loans.

1. Determine how much you’ll need. Estimate the total cost of attending graduate school including tuition, room and board, books and other expenses. Subtract any savings from this total cost to determine the amount of financial aid you’ll need.
2. Complete the FAFSA. Submit your application early since some types of aid are awarded on a first come, first served basis.
3. Contact your school’s financial aid office. Ask about specific requirements and deadlines that your school requires.
4. Review your financial aid offers. If you’re accepted and eligible, your graduate school will send you a financial aid offer, including your expected contribution.
5. Apply for scholarships and other financial aid. Many organizations and foundations offer scholarships for graduate students. Check out Fastweb or Scholarships.com for some starting points.
6. Fill in the gaps. After receiving your financial aid award letter, identify any remaining costs and consider options like private student loans and income from a part-time job to make up the difference.

Learn more >> How to Pay for College When Financial Aid Isn’t Enough

Private Student Loans for Graduate School

The FAFSA can help you get financial aid in the form of federal student loans, grants and work-study, but that may not fully cover your costs. If you’ve exhausted these options and still have unmet financial needs, you can apply for a private student loan through a bank or credit union to fill the gap.

Private student loans are given based on your creditworthiness rather than financial need. If your credit history isn’t strong enough to qualify for a private student loan on your own, you can apply with a qualified cosigner. Having a cosigner with good credit can help you secure a lower rate than you might receive on your own.

Pros and Cons of Private Student Loans

Private student loans can help you supplement other financial aid, but they come with their own set of pros and cons.

Pros

• Higher borrowing limits: Private lenders often allow you to borrow more than federal loans, which are subject to aggregate loan limits that include any loans you took out for your undergraduate degree.
• Not need-based: You don’t have to complete a FAFSA or demonstrate financial need for private student loans.
• Flexible enrollment requirements: You can borrow a private loan while being enrolled full time, half time or less.

Cons

• Higher interest rates: Private graduate loans typically have higher interest rates compared to federal loans.
• Credit check required: Private student loans require a credit check, and you may need a cosigner if you don’t have strong credit.
• Less flexible repayment options: Private student loans don’t have the income-driven repayment plans or federal loan forgiveness programs available with federal loans. Also, once you choose a repayment plan, you may be locked in for the full repayment term.

The Bottom Line

While it’s important to explore financial aid options before turning to private loans for graduate school, you should maintain good credit in case you need to borrow money to cover remaining expenses. You can check your credit score for free to see where you stand and learn how to improve it. A good credit score not only helps you qualify for student loans, it also makes it easier to rent an apartment or purchase a car while you’re in graduate school.