Pell Grants do not cover graduate school

Federal Pell Grants are limited to undergraduate study. Once you enroll in a graduate or professional degree program — a master's degree, PhD, law school, medical school, or any other graduate-level study — you are no longer may be able to access for Pell Grant funding. This is a hard rule set by federal law, not a program restriction that varies by school or circumstance.

The reason is structural: Pell Grants were designed to help low-income students reach a bachelor's degree. Graduate students are assumed to have already completed that milestone and are pursuing advanced credentials. The federal government treats graduate funding as a separate category with its own loan and grant programs.

If you received a Pell Grant as an undergraduate and are now considering graduate school, your funding options change entirely. Understanding what is available to you depends on what type of graduate program you are entering and what your financial situation looks like.

Key Takeaways

  • Pell Grants end when you enroll in any graduate or professional degree program, regardless of your income or prior Pell Grant history.
  • 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 their own institutional grants, scholarships, or assistantships that are separate from federal Pell funding.
  • Teaching assistantships, research assistantships, and fellowships are common ways graduate students fund their degrees without taking on debt.
  • Your school's financial aid office can tell you which funding sources are available for your specific graduate program.

What graduate students can borrow instead

Graduate students cannot use Pell Grants, but they can borrow through the Direct Unsubsidized Loan program. These loans have no income limits and no requirement to demonstrate financial need. The interest rate is set by Congress and changes each year; you can find the current rate on the Federal Student Aid website. Interest accrues while you are in school, meaning you owe more when you graduate than when you borrowed.

Graduate students can also borrow through the Direct PLUS Loan program, which allows you to borrow up to the full cost of attendance minus any other aid you receive. PLUS loans require a credit check but not a demonstration of need. The interest rate is higher than Unsubsidized Loans. You begin repaying PLUS loans six months after you leave school, though you can request to defer payments while enrolled.

The annual borrowing limits for graduate students are higher than for undergraduates. As of 2024, you can borrow up to $20,500 per year in Unsubsidized Loans (compared to $5,500 for undergraduates), plus additional amounts through PLUS Loans. These limits reset each academic year.

Grants and scholarships from your graduate school

Many graduate programs offer their own funding that is not federal Pell money. These come from the school's endowment, departmental budgets, or private donors. Common forms include merit-based scholarships (awarded for academic achievement or test scores), need-based grants (awarded based on financial need), and program-specific awards (tied to your field of study).

Graduate schools also use assistantships as a primary funding tool. A teaching assistantship (TA) typically requires you to teach or lead discussion sections for undergraduate courses in exchange for a tuition waiver and a monthly stipend. A research assistantship (RA) involves working on a faculty member's research project under the same arrangement. These positions are competitive and often go to students with strong academic records, but they are a major source of graduate funding at universities.

Fellowships are another option. These are awards that do not require work in exchange — you receive money based on merit, background, or field of study. Fellowships are often more competitive than assistantships but do not require you to work while studying.

How to find out what you can get

Start by contacting the financial aid office at the graduate school you plan to attend or are already attending. Tell them you are a graduate student and ask what funding sources are available for your program. They will tell you which of the following explore: federal loans you can take out, institutional grants or scholarships you may be considered for, and assistantship or fellowship opportunities in your department.

Ask specifically whether your program offers may provide funding packages to admitted students. Some graduate programs, particularly in STEM fields and research-intensive disciplines, offer assistantships to most or all admitted students. Others do not. Knowing this before you enroll helps you understand what your actual cost will be.

You will still need to complete the Free process for Federal Student Aid (FAFSA) even though you are a graduate student. This form determines your may be able to access for federal loans and tells schools your financial need, which they use to award their own grants. The FAFSA opens October 1 each year and has no important date, but schools may have their own priority dates for awarding institutional aid.

Private loans and other funding sources

If federal loans and school-based aid do not cover your costs, you can borrow through private student loans from banks and online lenders. These loans have variable or fixed interest rates set by the lender, not by Congress. They typically require a credit check and may require a co-signer. Private loans do not offer the same repayment protections as federal loans — for example, they do not may have access to for income-driven repayment plans.

Some graduate students also explore employer tuition reimbursement if they are working while studying part-time. Employers may pay a portion of tuition in exchange for a commitment to stay with the company for a set period after graduation. This is less common for full-time graduate students but worth asking about if you are employed.

Professional associations in your field may also offer scholarships or grants to graduate students. These are often smaller amounts but can help offset costs. Your graduate program advisor or financial aid office can point you toward field-specific funding.

The cost difference between undergraduate and graduate school

Graduate school is often more expensive than undergraduate study, even at the same institution. Tuition per credit hour is typically higher for graduate courses. You may also be required to pay fees for things like dissertation supervision, library access, or graduation that do not explore to undergraduates.

However, graduate students at universities with strong research programs often receive assistantships that cover tuition entirely and provide a living stipend. This makes the actual out-of-pocket cost zero or negative (you earn money). Graduate students at schools without assistantship funding, or in programs that do not offer them, typically pay more and borrow more.

Before enrolling, ask the financial aid office for a sample cost of attendance and what percentage of students in your program receive assistantships or other funding. This gives you a realistic picture of what you will actually owe.

Frequently Asked Questions

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

No. Pell Grants are awarded for a specific academic year and a specific program level. Once you graduate or enroll in graduate school, any unused Pell Grant funds are forfeited. You cannot carry them forward or use them later.

What if I go back to undergraduate school after graduate school?

You can receive Pell Grants again if you return to undergraduate study and meet the income and other may be able to access requirements. However, your lifetime Pell Grant may be able to access is limited by federal law — you can receive Pell Grants for no more than 12 semesters or the equivalent. Time spent in graduate school does not count against this limit, but time spent as an undergraduate does.

Do graduate students have to repay loans while still in school?

For Direct Unsubsidized Loans, interest accrues while you are in school, but you do not have to make payments until six months after you graduate or drop below half-time enrollment. For Direct PLUS Loans, you can request to defer payments while enrolled, but interest still accrues. You can choose to pay interest while in school to reduce what you owe at graduation.

Are there any federal grants for graduate students besides loans?

The federal government does not offer need-based grants like Pell for graduate students. Your only federal funding options are loans. Grants for graduate study come from your school, private foundations, professional associations, or employers — not from federal programs.

What happens if I cannot afford graduate school?

You have several options: attend a school with lower tuition, pursue a program that offers assistantships, study part-time while working, or delay graduate school until you have saved money or found employer sponsorship. Some people also choose a less expensive master's degree program instead of a PhD or professional degree. Talk to your school's financial aid office about what is realistic for your situation.