Returning to school for a graduate or professional degree is a big decision, and one that more and more people are choosing. In fact, the National Center for Education Statistics reported that approximately three million students were enrolled in graduate programs in 2019.

Graduate school can be expensive, but many students don’t realize there is financial aid available. Besides loans, you can use grants, assistantships and work-study programs to finance your degree.

To access those forms of financial aid, you have to complete the Free Application for Federal Student Aid (FAFSA)—the same form you filled out during undergrad. However, the FAFSA works differently for graduate students. Here’s what you need to know about filling out the FAFSA for grad school.

Do I Need to File a FAFSA for Grad School?
Earning a master’s degree can help accelerate your career, but you may be worried about the high cost of graduate school—and with good reason. The average annual cost of tuition and fees is nearly $20,000 for full-time graduate students.

However, you may not have to cover that full cost on your own. Many people don’t realize that there are many financial aid opportunities available. But to access them, you have to fill out the FAFSA.

Submitting the form, which takes most people about an hour, could result in major savings. Consider these figures from the National Center for Education Statistics:
• 58% of graduate students receive some form of financial aid
• 26% of graduate students get grants, averaging $10,400 per student
• 3% of graduate students get assistantships
• 41% of graduate students loans qualify for federal student loans

If you skip the FAFSA as a graduate student, you could miss out on valuable financial aid, including gift aid that doesn’t have to be repaid.

How the FAFSA for Grad School Works
The FAFSA for grad school is pretty similar to the FAFSA for undergraduate students. You’ll be required to submit the following information:
• Your Federal Student Aid (FSA) ID
• Social Security number or Alien Registration Number
• Account balances for your checking and savings accounts
• Information about investment accounts
• Federal income tax returns
• Records of untaxed income

However, the FAFSA for graduate school differs in several key ways:
• Dependency status: All graduate students are considered independent for financial aid purposes. That means you only have to enter information about your own income and assets, rather than your parents’ information.
• Aid options: Graduate students have different loan and aid options than undergraduate students. As a graduate student, you are ineligible for direct subsidized loans. The only loans you can qualify for are direct unsubsidized and grad PLUS, so you’re responsible for all interest that accrues on your loan. Most grad students are also ineligible for Pell grants, though you may qualify for other types of grant aid.
• Borrowing limits: Undergraduate student loans have annual and aggregate borrowing limits. Graduate unsubsidized loans have borrower caps, but grad PLUS Loans have no borrower maximum. You can borrow up to the total school-certified cost of attendance.

Grad School FAFSA Eligibility
As with undergraduate students, graduate school applicants are only eligible for federal financial aid if they meet the following requirements:
• Are U.S. citizens or eligible noncitizens
• Are planning to attend an accredited university in an eligible degree program
• Demonstrate financial need for most programs

In general, any degree you pursue after earning a bachelor’s degree is considered graduate school from a financial aid perspective. Graduate school financial aid includes financing for master’s degree, business school and doctorate programs, as well as law, medical or dental school.

1) Financial Aid Options for Grad School
There are several forms of federal financial aid you can receive as a graduate student, based on the information you include on your FAFSA:
• Student loans: The government uses the FAFSA to determine your eligibility for federal student loans, which tend to have lower rates and more repayment options than private student loans for graduate school.
• Grants: You may be eligible for federal, state or local grants based on your FAFSA information. Grants are a form of gift aid and don’t need to be repaid. For federal grants, graduate students pursuing an education degree may be eligible for the Teacher Education Assistance for College and Higher Education (TEACH) Grant.
• Work-study: Another federal program available to graduate students, the work-study program helps you get a part-time job related to your field to offset your education expenses.

2) Grad School Loan Limits and Fees
If you’re like most graduate students, you’ll borrow some money to pay for your degree. On average, borrowers took out about $25,000 to pay for grad school. For federal loans, there are two borrowing options:
• Direct unsubsidized loans: Direct unsubsidized loans for graduate students have an interest rate of 5.28% for the 2021-22 school year. The annual debt limit is $20,500 and lifetime limit is $138,500; any federal loans you took out for your undergraduate degree also count towards the lifetime maximum.
• Grad PLUS loans: Unlike direct unsubsidized loans, PLUS loans don’t have an annual or aggregate limit. You can borrow up to the total cost of attendance in your program. However, PLUS loans have the highest interest rate of all federal loan options, at 6.28% for the 2021-22 school year. They also have an origination fee of 4.23%.

What to Expect After You Submit Your Graduate FAFSA
Submit your FAFSA as soon as you can after the application opens each year on October 1. After you submit it, you will receive your federal Student Aid Report (SAR). The SAR summarizes the information on your FAFSA and explains your eligibility for financial aid.

Contact your intended school’s financial aid office to see if there are any other steps you need to complete. Some universities have their own financial aid applications you’ll have to submit, or you may have to send in additional information to be considered for scholarships or other institutional aid.

The university will review your FAFSA information and other documents to determine your financial aid awards. They will send you a financial aid award letter detailing what grants, scholarships and student loans you’re eligible for and what steps you must complete to accept.

Once you’ve received your financial aid offer from the university and are enrolled at least half-time, any federal student loans you have from your undergraduate studies should be automatically deferred. If they’re not, you can request an in-school deferment for those debts by contacting your loan servicer.

Planning for Graduate School
If you’re planning on pursuing a master’s or another professional degree, filling out the FAFSA is an essential first step in paying for grad school. While the FAFSA for grad school has slightly different requirements than it does for undergraduate students, it can help you qualify for grants, work-study programs and federal student loans. To get the maximum amount of financial aid you deserve, apply as early as possible.

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