Earn another degree, advance your career, and make more money. Sounds great, right? According to the National Center for Education Statistics (NCES), individuals with a master’s degree or higher earned a median salary of $70,000, while those with a bachelor’s degree earned just $55,700 a 26% difference.
Unfortunately, there’s a catch: graduate school can be expensive. So, let’s ask the real question, “Does the FAFSA cover masters and grad programs?” The answer is yes! The Free Application for Federal Student Aid (FAFSA) works a bit differently than the application you submitted for your undergraduate degree. Here’s what you need to know to maximize your financial aid options for graduate school.
Completing the FAFSA for Graduate School
With the higher earning potential that comes with a master’s degree, more people are considering going to graduate school. The Council of Graduate Schools found that the number of people applying to graduate schools increased by 7.3% in 2020.
While graduate school can be a worthwhile investment, you should be prepared for some sticker shock: graduate school can be pricey. On average, graduate school tuition and required fees costs $19,314 per year. That number doesn’t include room and board or other expenses like transportation, so your total cost of attendance could be significantly higher.
How do you cover the cost? A common misconception is that graduate students aren’t eligible for financial aid, but that’s not the case. In fact, the NCES reported that 58% of graduate students received some form of financial aid. To qualify for that aid, you need to complete the FAFSA.
How to Fill Out the FAFSA for Graduate School
If you’re preparing to fill out the FAFSA, you should know that the application for graduate school is very similar to the application for your undergraduate degree. The major difference is your dependency status; while most undergraduate students are dependent for the purposes of financial aid, graduate students are considered independent. That means you don’t need to submit your parents’ financial information. Instead, you just need to provide the following details about yourself:
- Your Federal Student Aid (FSA) ID
- Your Social Security number
- Tax return information
- Account balances for your bank and investment accounts.
- If you are married, you may be required to provide your spouse’s information.
You can complete the FAFSA online in less than an hour.
What is the Deadline for the FAFSA?
The FAFSA deadline is the same each year, whether you’re an undergrad or grad student: June 30th. However, submitting your FAFSA as early as possible, starting on October 1st, is your best bet – this is best practice for both graduate school and undergrad. Some financial aid is awarded on a first-come, first-served basis, so the sooner you apply, the better your chances for scholarships, grants, and other financial support. Don’t wait, submit your FAFSA early to maximize your opportunities for graduate school.
Frequently Asked Questions About the FAFSA and Grad School
1. Does the FAFSA cover masters and all associated costs?
When you fill out the FAFSA, the college or university will use the information you provided to determine your financial aid package. How much aid you receive is dependent on your income, assets and family size.
It’s possible to get enough financial aid to cover the total cost of attendance, but you likely will need to pay for some of the cost. Check out College Ave’s Graduate Loans for closing those gaps.
2. Do grad students qualify for more financial aid?
In general, graduate students don’t receive as much in grants and scholarships as undergraduate students. Grad students can apply for Federal Unsubsidized Direct Loans (up to $20,500) annually until they reach the lifetime aggregate limit. In addition, they can borrow up to the cost of attendance, minus any other financial aid they have, through the Federal Grad PLUS program or private student loans. However, Federal Grad PLUS loans will be eliminated effective July 1, 2026, in accordance with the “One Big Beautiful Bill” passed in July 2025.
3. What kind of financial aid is available for graduate school?
As a graduate student, there are multiple forms of financial aid available, including:
- Grants
- Scholarships
- Fellowships
- Work-study Programs
- Federal Student Loans
4. What is the FAFSA limit for grad school?
As mentioned, graduate students can borrow up to $20,500 annually through the Federal Direct Unsubsidized Loan program. There’s an aggregate limit of $138,500 for Direct Unsubsidized and Subsidized loans, which includes any loans from undergraduate studies.
5. Can you get a Pell grant for grad school?
Pell Grants are not available for most graduate students. These grants are primarily for undergraduate students demonstrating financial need. However, there are specific exceptions, like some postbaccalaureate teacher certification programs, where graduate students may qualify for a Pell Grant.
If your financial aid award isn’t enough to pay for school, grad students might explore private student loans as an option to cover the remaining costs.
5 Types of Alternative Financial Aid Available for Graduate School
As listed earlier, there are multiple forms of financial aid. As a graduate student, you may be eligible for aid in the form of grants, scholarships, fellowships, work-study programs and student loans. Here are some ways to pay for graduate school:
1. Grants
In graduate school, you may qualify for grants that are awarded based on your financial need. They’re a form of gift aid and typically don’t have to be repaid. Grants are more common than you think; according to the NCES, approximately 26% of grad school students received grants, with an average award of $10,400 per student.
Grants can come from the federal government, state agencies, non-profit organizations and schools, and they use the information from the FAFSA to determine your eligibility. For graduate school, federal grant options include the Pell Grant or Teacher Education Assistance for College and Higher Education (TEACH) Grant for those pursuing a degree in education.
2. Scholarships
Scholarships for graduate school are a form of gift aid. Scholarships are usually granted based on merit rather than financial need, but some organizations will take your financial circumstances as represented on the FAFSA into consideration when evaluating your application.
3. Fellowships
Fellowships are similar to scholarships in that they’re based on merit rather than financial need. They’re usually short-term awards that provide you with a stipend to pursue your field of study or complete additional research. In general, fellowships are awarded on your potential, while scholarships are awarded based on past achievements.
4. Work-Study Programs
Completing the FAFSA for graduate school may allow you to qualify for a work study program. If your school participates in the federal work-study program, you’ll get a part-time job in your field of study and use your income from that role to offset some of your expenses. The number of hours you can work is calculated based on your course load and financial need.
5. Student Loans
When it comes to student loans, 48% of graduate school students take on education debt. When you fill out the FAFSA for grad school, you may be eligible for federal student loans, or you may need to apply for private student loans. Graduate school students can qualify for the following types of loans:
- Federal Direct Unsubsidized: Graduate students can borrow up to $20,500 per year in Direct Unsubsidized Loans. An aggregate limit of $138,500 applies, which includes any loans from your undergraduate degree.
- Federal Grad PLUS: Unlike Unsubsidized Loans, Grad PLUS Loans don’t have a borrowing limit; you can borrow up to the total cost of attendance. The interest rate and origination fee are higher than Federal Direct Unsubsidized loans. However, Grad PLUS loans are being eliminated for new borrowers as of July 1, 2026 due to legislation passed in July 2025 (commonly known as the “One Big Beautiful Bill”). Graduate students who have Grad PLUS loans will be grandfathered into this program until graduation.
- Private graduate student loans: If you need more money to pay for school, private graduate student loans can cover the difference. With private student loans, you can usually borrow up to the total cost of attendance. If you have good credit or a co-signer, you may qualify for a loan with lower rates or a longer loan term than Federal Grad PLUS loans offer.
Paying for Graduate School
So, let’s recap. Does FAFSA cover masters and graduate programs? Yes! Filling out the FAFSA for graduate school is a critical first step in finding out what financial aid opportunities are available to you. Depending on your situation, you may be eligible for gift aid, work-study programs or federal student loans.
If you need to borrow money to pay for graduate school, check out College Ave’s graduate loans. You can choose between fixed and variable interest rates and have up to 15 years to repay your loan. Use our student loan calculator to see what your monthly payments might look like and you can check what rates you qualify for without affecting your credit score.
