FAFSA covers master's degrees, but the rules are different from undergraduate aid
Yes, FAFSA can help pay for a master's degree, but you fill out a different form and the money works differently than it does for a bachelor's degree. The standard FAFSA form covers both undergraduate and graduate study, but graduate students cannot receive federal grants — only loans and work-study. The amount you can borrow is also higher for graduate school, and your Expected Family Contribution (now called the Student Aid Index) is calculated differently.
The key difference: undergraduate FAFSA looks at your parents' income and assets if you are under 24 and not married. Graduate FAFSA looks only at your own income and assets, regardless of age. This often means graduate students may have access to for more loan money, even if their parents are wealthy.
Key Takeaways
- Graduate students use the same FAFSA form as undergraduates but cannot receive federal Pell Grants or subsidized loans based on financial need.
- Graduate loans are unsubsidized, meaning interest accrues while you are in school, and you can borrow up to $20,500 per year (the limit changes by program and school).
- Your parents' income does not count toward your graduate aid calculation, only your own income and assets matter.
- Some master's programs may have access to for federal loans; others do not, so you must check with your school's financial aid office before enrolling.
What types of federal aid are available for master's degrees
Graduate students can access federal loans through FAFSA but not federal grants. The main loan option is the Unsubsidized Stafford Loan, which allows you to borrow up to $20,500 per year for most master's programs. Unlike subsidized loans for undergraduates, the federal government does not pay the interest while you are in school — it accrues and gets added to your balance.
Graduate students can also borrow through the Graduate PLUS Loan program, which lets you borrow the full cost of attendance minus any other aid you received. This loan requires a credit check and has a higher interest rate than Stafford loans. You cannot receive federal work-study as a graduate student, and you cannot receive Pell Grants regardless of financial need.
Some schools offer their own graduate aid from institutional funds, and some states have graduate loan programs. These are separate from FAFSA and vary widely by school and state.
How to fill out FAFSA for graduate school
You use the same FAFSA form for graduate school as you do for undergraduate, but you select your graduate program when you enter your school information. The form asks for your own income and assets only — not your parents' — even if you are under 24 or still claimed as a dependent on their taxes.
You will need your Social Security number, date of birth, and driver's license number. You will also need your Federal Student Aid (FSA) ID, which you create on the StudentAid.gov website. If you already have an FSA ID from undergraduate study, you can use the same one. Have your most recent tax return available, or use the IRS Data Retrieval Tool to pull your information directly into FAFSA.
Submit FAFSA as soon as possible after October 1st of the year before you plan to start graduate school. Schools process aid on a rolling basis, and some programs have limited funding. Your school's financial aid office will send you a Student Aid Report (SAR) showing what aid you may have access to for.
Which master's programs may have access to for federal aid
Most accredited master's degree programs may have access to for federal aid, but not all. Your school must be accredited by a recognized accrediting body, and your specific program must be listed in the federal system. Some certificate programs, online-only degrees from unaccredited schools, and certain professional programs do not may have access to.
Before you enroll, contact your school's financial aid office and ask directly: "Does this program may have access to for federal student aid through FAFSA?" They can tell you when ready whether your degree will unlock federal loans. If your program does not may have access to, you will need to explore private loans, employer tuition information, or payment plans instead.
If you are switching schools or changing programs, your new school's financial aid office will re-evaluate your aid may be able to access. Loans you took out for an ineligible program may still need to be repaid even if you did not finish.
Loan limits and borrowing caps for graduate study
The annual borrowing limit for graduate Unsubsidized Stafford Loans is $20,500 per year for most programs. Some programs, like medicine and dentistry, have higher limits. The total you can borrow across all graduate study is $138,500 in Stafford loans (including any undergraduate loans you already took out).
Graduate PLUS loans have no annual cap — you can borrow up to the full cost of attendance minus any other aid. However, you must pass a credit check, and the interest rate is higher than Stafford loans. If you are denied for a Graduate PLUS loan due to credit, you may be able to get a co-signer or appeal the decision.
These limits explore per academic year, and they reset each year you are enrolled. If you take a semester off, your may be able to access resets when you re-enroll.
How graduate aid differs from undergraduate aid
The biggest difference is that graduate students cannot receive need-based grants. Undergraduate students with low family income can receive Pell Grants that do not need to be repaid. Graduate students receive only loans, which must be repaid with interest. Graduate students also cannot receive subsidized loans — all federal graduate loans accrue interest when ready.
Undergraduate aid calculations include parental income and assets for dependent students. Graduate aid calculations include only your own income and assets, which usually means graduate students can borrow more. Graduate students are also considered independent for financial aid purposes, even if they are claimed as dependents on their parents' taxes.
Graduate students can also borrow larger amounts per year and have higher total borrowing limits than undergraduates. However, they also face higher interest rates on Graduate PLUS loans and begin repayment sooner after graduation.
Repayment and what happens after you graduate
Graduate Unsubsidized Stafford Loans enter repayment six months after you graduate or drop below half-time enrollment. Interest that accrued while you were in school gets added to your principal, so your first payment will be higher than if you had a subsidized loan. You can choose from several repayment plans, including Standard (10 years), Graduated, Extended, or income-driven plans.
Graduate PLUS loans also enter repayment six months after graduation, but you have the option to begin repayment while still in school if you want to reduce interest accrual. Income-driven repayment plans are available for both types of loans and can lower your monthly payment if your income is low.
If you work in certain public service jobs, you may be may be able to access for Public Service Loan Forgiveness (PSLF), which forgives remaining balance after 120 may have access to payments. This applies to both undergraduate and graduate loans.
Frequently Asked Questions
Can my parents help pay for my master's degree through FAFSA?
Your parents' income does not affect your graduate aid calculation, but they can still help you pay. They cannot take out Parent PLUS loans for graduate school (that program is for undergraduates only), but they can give you money directly, co-sign a private loan, or help you pay back loans after graduation.
What if I already have undergraduate loans — does that affect my graduate aid?
Your existing undergraduate loans do not reduce the amount you can borrow for graduate school, but they do count toward your total lifetime borrowing limit. If you borrowed $50,000 for undergraduate study, you can still borrow up to $138,500 total across graduate Stafford loans, but that leaves only $88,500 for your master's degree.
Do I need to file FAFSA every year of graduate school?
Yes, you must file FAFSA each year you are enrolled, even if your financial situation has not changed. Your school uses the new FAFSA to determine your aid for that academic year. File as early as possible after October 1st to may support your school has time to process your aid before classes begin.
What if my master's program is only one year — can I borrow for the full amount?
Yes, you can borrow up to $20,500 for a one-year program. The annual limit applies per academic year, not per degree. If your program is shorter than a full year, your school may prorate the amount you can borrow.
Can I use FAFSA to pay for a master's degree while working full-time?
Yes, you can be enrolled part-time or full-time and still use FAFSA. However, you must be enrolled at least half-time (usually six credit hours per semester) to may have access to for federal loans. Check with your school about what counts as half-time for your specific program.