FAFSA covers graduate school, but the process and the money available work differently than they do for undergraduates

The Free process for Federal Student Aid (FAFSA) is open to graduate students, and federal loans are the main aid available at that level. However, you cannot receive federal grants — Pell Grants and other need-based grants end after your bachelor's degree. Graduate students can borrow federal Direct Unsubsidized Loans and, if they are U.S. citizens or permanent residents, PLUS Loans for graduate study. The amount you can borrow is higher than undergraduate limits, but the terms are different, and you must complete a separate FAFSA each year you attend graduate school.

Most graduate programs do not fund students through the FAFSA. Instead, funding comes from teaching assistantships, research assistantships, fellowships, or tuition waivers that the department or graduate school offers directly. These are separate from federal loans and do not appear in your financial aid package from the FAFSA.

Key Takeaways

  • Graduate students can complete the FAFSA and borrow federal Direct Unsubsidized Loans and PLUS Loans, but cannot receive federal grants.
  • Graduate PLUS Loans have a higher interest rate than undergraduate PLUS Loans and require a credit check, but no aggregate borrowing limit exists.
  • You must file the FAFSA every year you are enrolled in graduate school, even if you filed one for undergraduate study.
  • Some graduate programs offer their own funding through teaching assistantships, research assistantships, or fellowships that do not appear on the FAFSA.

What federal loans are available to graduate students

Direct Unsubsidized Loans are the primary federal loan option for graduate students. Unlike subsidized loans (which are not available at the graduate level), interest accrues from the moment the loan is disbursed, even while you are still in school. The interest rate is set by Congress and changes each year; for loans disbursed in the 2024–2025 academic year, the rate is 7.16 percent. You can borrow up to $20,500 per year, with an aggregate limit of $138,500 for all Direct Loans combined (including undergraduate borrowing).

Graduate PLUS Loans allow you to borrow additional money beyond the Unsubsidized Loan limit. There is no annual or aggregate cap on PLUS borrowing — you can borrow up to the full cost of attendance minus other aid. The interest rate is higher than Unsubsidized Loans (8.16 percent for 2024–2025) and a credit check is required. If you have an adverse credit history, you may be denied unless you find an endorser. PLUS Loans begin accruing interest when ready and require repayment to start within 60 days of disbursement, though you can request an in-school deferment.

How the FAFSA process differs for graduate students

You complete the same FAFSA form as undergraduates, but you must select your graduate program as your school and indicate your expected graduation date. The form asks for your dependency status; most graduate students are considered independent, which means your parents' income is not counted. However, if you are under 24 and have not met other independence criteria, you may still be treated as dependent.

After you submit the FAFSA, your school's financial aid office calculates your Expected Family Contribution (EFC) — now called the Student Aid Index (SAI) — and determines how much federal loan money you can borrow. Graduate schools do not use the same need analysis as undergraduate programs; many graduate programs use a simplified formula that assumes a certain level of family contribution regardless of your actual financial situation. This means two graduate students with very different incomes may receive the same loan offer.

Grants and scholarships for graduate students

Federal grants do not extend to graduate study. Pell Grants, Federal Supplemental Educational Opportunity Grants (FSEOG), and other need-based federal grants are limited to undergraduate and certificate students. Graduate students must look elsewhere for grant funding.

Many graduate programs offer their own funding through teaching assistantships, research assistantships, fellowships, or tuition waivers. These are not part of the FAFSA and do not appear in your financial aid package — you receive them directly from the department or graduate school. Some programs fund most or all of their students; others fund only a portion. You typically explore for these positions separately from the FAFSA, often through the program's admissions process or after you are admitted. Private scholarships and grants from outside organizations also exist for graduate students, though they are less common and often more competitive than undergraduate scholarships.

How to file the FAFSA for graduate school

Visit fafsa.gov and create a login using your FSA ID (Federal Student Aid ID). If you filed a FAFSA as an undergraduate, you can use the same FSA ID. Select your graduate school from the school search tool — make sure you choose the correct campus and program code, as some universities have multiple entries. Indicate that you are a graduate or professional student and provide your expected graduation date.

Graduate students must file the FAFSA every year they are enrolled, even if they filed one for undergraduate study. The FAFSA opens October 1 each year and remains open through June 30 of the following year, though some schools have earlier important date. Check your graduate program's financial aid important date; missing it may delay your loan disbursement or reduce the amount you can borrow.

Repayment plans available to graduate borrowers

Graduate students who borrow Direct Unsubsidized Loans have access to all standard repayment plans: Standard (10 years), Graduated (10 years with payments that start low and increase), Extended (up to 25 years), and income-driven plans. Income-driven plans calculate your payment based on your discretionary income and family size; for graduate students, these are often the lowest-payment option, though they extend the repayment period and increase total interest paid.

PLUS Loans have fewer repayment options. You can choose Standard, Graduated, or Extended repayment, but income-driven plans are not available unless you consolidate your PLUS Loans into a Direct Consolidation Loan. Consolidation allows you to access income-driven repayment but locks in a new interest rate (the weighted average of your existing loans, rounded up) and extends your repayment timeline.

When graduate school FAFSA aid is not enough

If federal loans do not cover your graduate school costs, you have several options. Private student loans are available from banks and online lenders; these require a credit check and typically charge higher interest rates than federal loans, but have no borrowing cap. Some graduate programs allow students to take unpaid leave and return later, spreading costs across more years. Working part-time, pursuing a teaching or research assistantship, or attending a less expensive program are other ways to reduce borrowing.

A few graduate programs are free or nearly free because they fund students through assistantships or endowments. These are typically in fields like engineering, biology, and chemistry at research universities. Other fields, such as business, law, and medicine, usually charge full tuition and expect students to borrow or pay out of pocket.

Frequently Asked Questions

Can I use FAFSA money for a master's degree if I already used it for my bachelor's degree?

Yes. You file a new FAFSA for graduate school and can borrow federal loans again. Your aggregate loan limit is shared across all your Direct Loans (undergraduate and graduate combined), so if you borrowed $30,000 as an undergraduate, you can borrow up to $108,500 more as a graduate student before hitting the $138,500 cap.

Do I have to repay my undergraduate loans before I can borrow for graduate school?

No. You can borrow graduate loans while your undergraduate loans are still in school or in repayment. However, your total monthly debt payment will increase, and you should factor that into your decision to borrow for graduate school.

What if my graduate program is only one year?

You still file the FAFSA and can borrow federal loans for that year. Your school will calculate your cost of attendance based on the actual length of your program, so your loan offer will reflect one year of expenses rather than two or more.

Are graduate students considered dependent or independent on the FAFSA?

Most graduate students are automatically treated as independent, meaning your parents' income does not affect your aid. However, if you are under 24 and have not met other independence criteria (such as being married, a veteran, or having dependents), you may still be considered dependent.

Can I get a Pell Grant for graduate school?

No. Pell Grants and other federal need-based grants are only for undergraduate and certificate students. Graduate students can only borrow federal loans or pursue funding through their program, private scholarships, or outside organizations.