How Much Does FAFSA Cover for Graduate School?
Navigate federal student aid for graduate school. Learn how FAFSA determines funding amounts, available loans, and the application process for your advanced degree.
The Free Application for Federal Student Aid (FAFSA) is essential for graduate students seeking federal financial aid. Completing it allows consideration for federal student loans and other aid to cover advanced degree costs. FAFSA information helps institutions determine eligibility and financial aid packages.
Types of Federal Student Aid for Graduate School
Graduate students primarily access federal student aid through loan programs, unlike undergraduate grants. Main federal loan options are Direct Unsubsidized Loans and Direct PLUS Loans (Grad PLUS Loans); FAFSA completion is necessary.
Direct Unsubsidized Loans are available to eligible graduate students regardless of financial need. Interest accrues from disbursement (even while in school, during grace periods, or deferment), and the borrower is responsible for all accrued interest. Subsidized loans, with government-paid interest, are generally unavailable to graduate students.
For borrowing beyond Direct Unsubsidized Loan limits, Grad PLUS Loans offer an additional federal option. These unsubsidized loans accrue interest from disbursement and require a credit check. They can cover educational costs up to the student’s cost of attendance, minus other financial aid. Graduate students apply for Grad PLUS loans; parents cannot take out Parent PLUS loans.
Federal Pell Grants, a gift aid not requiring repayment, are typically unavailable for graduate students. Primarily for undergraduates with exceptional financial need who have not earned a bachelor’s degree, a rare exception exists for students in specific post-baccalaureate teacher certification programs not leading to a graduate degree.
How Graduate Student Aid Amounts Are Determined
Federal financial aid for graduate students is primarily determined by their institution’s Cost of Attendance (COA) and federal loan limits. The COA represents the maximum total aid a student can receive per academic year, including direct costs (tuition, fees) and indirect costs (room, board, books, supplies, transportation, personal expenses). Aid cannot exceed this amount.
Eligible graduate students can borrow up to $20,500 per academic year in Direct Unsubsidized Loans. An aggregate (lifetime) limit of $138,500 applies to graduate and professional students, including federal undergraduate loans. Reaching either limit requires exploring other funding, like Grad PLUS Loans.
Grad PLUS Loans allow graduate students to borrow up to their institution’s full Cost of Attendance, after other financial aid, including Direct Unsubsidized Loans. There is generally no aggregate limit, enabling students to cover significant educational expenses within their COA. Eligibility requires a credit check; adverse credit history may impact approval, though options like an endorser or documenting extenuating circumstances exist. Unlike undergraduate aid, EFC or SAI does not directly determine federal unsubsidized or Grad PLUS loan eligibility. Graduate aid focuses on COA and loan limits.
The FAFSA Application Process for Graduate Students
Completing the FAFSA for graduate school involves specific steps for accurate reporting and timely federal aid consideration. Before applying, gather:
Federal Student Aid (FSA) ID (digital signature and access key)
Social Security number
Relevant tax year returns
Bank statements or investment account records
Graduate students are generally independent for FAFSA, reporting their own financial information without parent data. If married, provide spouse’s financial information.
Once prepared, complete the FAFSA online. Select the correct student status (graduate or professional). The application prompts for personal, demographic, and financial details determining federal aid eligibility. Submit electronically after filling sections.
After submission, the student receives a Student Aid Report (SAR), summarizing FAFSA information and indicating their Student Aid Index (SAI). Review for errors and correct if necessary. FAFSA data is transmitted to listed schools, where each institution’s financial aid office uses this information, with COA and federal loan limits, to construct a financial aid offer. This offer, typically an award letter, details eligible federal loans. Students respond by accepting or declining aid through their university’s financial aid portal.