FAFSA and financial aid for graduate school

Embarking on a journey to pursue a graduate level education is a big step up from undergraduate studies. It can also be quite overwhelming and daunting, as navigating graduate school involves several challenges such as work-life balance, time management, and finances. In this blog, we will explore how the graduate school Free Application for Federal Student Aid (FAFSA) differs from undergraduate FAFSA, and explore the different financial aid opportunities available to graduate students.

• Is filling out the FAFSA required for grad school?
• How does financial aid work for grad school?
• What are the FAFSA differences for grad school compared to undergrad?
• What are the FAFSA eligibility requirements for grad school?
• What financial aid options are available for graduate students?
• What is the most common financial aid for graduate students?
• What’s next after filling out your FAFSA as a graduate student?
• Conclusion

Is filling out the FAFSA required for grad school?

Filling out the FAFSA for Grad school is optional and not required, though can be highly beneficial as the costs of grad school can range from $5,000 to over $40,000 depending on program type and school. The good news is that the process of filling out the application is no different than the one completed during your undergrad. Even if you don’t believe you qualify for need-based aid, it’s a good idea to try to secure all financial aid opportunities that could help you during graduate school.

The FAFSA application is on a first come, first serve basis and typically opens on October 1st for the following academic year. The deadline is often on or around June 30 or the end of the academic year, but these deadlines also vary by state – it’s best to check with your financial aid office for more information.

How does financial aid work for grad school?

As with undergraduate financial aid applications, the FAFSA process has the following steps:

1. FAFSA Completion: The first step is filling out and completing the FAFSA application. You will need to gather your required documents such as your Social Security number, W-2 Forms, bank statements, etc… and create an FSA ID through the Federal Student Aid Portal. From there, you will provide other personal information and list the colleges (up to ten) you are applying to. After inputting the information, you can review it to ensure all information is correct and submit the application.
2. Eligibility Determination: After completion of the FAFSA, the information you provided will be used to calculate your Expected Family Contribution and determine your eligibility for federal financial aid. The main difference between financial aid for Undergrad and Grad students is that grad students are usually considered independent, therefore parent information is not required.
3. Financial Aid Offer and Loans: Once you’ve been admitted to a graduate program and your FAFSA has been processed, the financial aid office at your institution will send a financial aid offer with details regarding the amount and types of aid you are eligible to receive. These types of aid include work-study programs, federal loans, and possibly scholarships or grants.
4. Accepting Financial Aid: After reviewing your financial aid offers, you will need to make a decision and accept the aid that is best for you. You are not required to accept all aid that is offered and you can also decide to borrow less than the amount offered.
5. Repayment: If you decide to accept federal student loans, you will be required to repay the loans along with interest once you graduate. The repayment process typically begins six months upon graduation, though there are options such as income-driven repayment if you experience financial challenges.

As you can see, the FAFSA process and options for grad school are very similar to the undergrad FAFSA process. However, there are some key differences in eligibility and other aspects that you need to know.

What are the FAFSA differences for grad school compared to undergrad?

While the FAFSA process for graduate school is relatively the same as undergraduate, there are key differences between the two in how aid is awarded:

1. Dependency Status: A major difference between FAFSA for graduates and undergraduates is the usage of dependency status. The majority of undergrads are considered dependent and are required to provide parental financial information when filling out the FAFSA while graduate students are typically considered independent and aren’t required to provide parental financial information on the FAFSA.
2. Aid Program Eligibility: A few federal student aid programs, such as the Pell Grant, are available only to undergraduate students. Graduate students are typically not eligible for Pell grants or other undergraduate-focused aid programs, but they can be eligible for other forms of aid such as direct loans and grad PLUS loans.
3. Loan Limits: Graduate students typically have a higher maximum annual loan limit in comparison to undergraduate students. Graduate students can borrow up to a specific amount each academic year in the form of direct loans.
4. Expected Family Contribution: The calculation of the expected family contribution, which is used to determine a student’s eligibility for need-based financial aid, may be different for graduate students compared to undergraduate students.
5. Cost of Attendance: Graduate programs typically have a higher cost of attendance in comparison to undergraduate programs. The overall cost of attendance takes into account fees, tuition, books and supplies, transportation, room and board, and other miscellaneous expenses.
6. FAFSA Deadline: The deadline for completing the FAFSA varies for both undergraduate and graduate students and typically, grad students must complete the form much earlier. It’s important to check the application deadline with your institution to ensure you will receive a financial aid offer in time.

These are the major FAFSA differences for both undergrad and grad students, but the process still remains similar. Both are required to provide financial information, prospective institutions, and other personal information to determine their eligibility for federal financial aid.

What are the FAFSA eligibility requirements for grad school?

FAFSA eligibility requirements for graduate students are important as they ensure eligible graduate students receive access to financial aid programs to help cover the cost of their education and reduce out-of-pocket expenses. Here are the FAFSA eligibility requirements for graduate students:

1. U.S. citizenship/eligible noncitizen: In order to be eligible for federal financial aid, students must be U.S. citizens, U.S. nationals, or eligible noncitizens. A few examples of eligible noncitizens include refugees and permanent residents.
2. Eligible program enrollment: Graduate students must be enrolled in an accredited degree or program at an eligible institution to qualify for federal financial aid.
3. Satisfactory academic progress: Graduate students are required to maintain satisfactory academic progress standards set by their institution to continue remaining eligible for federal financial aid. These progress standards include meeting the minimum GPA requirements and completing a certain amount of credits.
4. No previous student loans: Graduate students can not be on any federal student loans or owe any financial loans on grants in order to be eligible for financial aid.
5. No drug offense conviction/not incarcerated: Graduate students may not be eligible for federal financial aid if they have been convicted of specific drug offenses. Grad students are also ineligible for federal financial aid if they are incarcerated in a state or federal penal institution.
6. Other general eligibility criteria: There are other general eligibility criteria that graduate students must meet in order to qualify for federal loans such as the need for certain types of aid and maintaining attendance of at least a half time.

Graduate students must review all eligibility requirements for financial aid to ensure they maximize their opportunities and financial offers. It’s also an excellent idea to check with your institution’s financial aid office for any other requirements that are specific to a program.

What financial aid options are available for graduate students?

There are various financial aid options available for graduate schools that help cover the overall costs of fees, tuition, and living expenses. Here are the most common financial aid options for graduate students:

Graduate students can qualify for federal student loans such as Direct Subsidized and unsubsidized loans. These loans are available to eligible graduate students regardless of financial need to aid students.

Several institutions offer aid in the form of grants, scholarships, assistantships, or fellowships which may be awarded based on financial need, academic merit, or a mixture of both.

1. Graduate Assistantships/Work Study

An assistantship or work-study program is a type of paid academic employment where students can receive tuition reimbursement for their work. There are part-time and full-time opportunities in both academic or administrative roles which can also relate to a graduate student’s career interest such as teaching and research.

1. Employer Tuition Assistance

Few employers offer tuition assistance and/or reimbursement programs for grad students pursuing their degrees. These programs oftentimes require students to maintain employment while attending school.

Graduate students are able to be awarded scholarships and grants from various organizations and associations by checking eligibility requirements and submitting applications.

1. Loan Forgiveness Programs

There are various loan forgiveness programs available for students. The most common type is the public service loan forgiveness that is available to those who work full-time for a qualifying public service organization. After 120 payments, the remaining balance can be forgiven.

Eligible grad students may be eligible for federal work-study programs to help cover additional educational expenses.

These are just a few of the various financial aid options available to graduate students to aid them during their educational journey.

What is the most common financial aid for graduate students?

The most common financial aid for graduate students is federal direct unsubsidized loans. This loan is the most common as they offer convenient terms such as flexible repayment options and fixed interest rates. These loans are oftentimes used by graduate students to cover additional expenses after all other financial aid offers have been exhausted. These loan programs are available on a wide scale and offer tons of benefits for students, making them the most popular choice for borrowers seeking financial assistance to cover their education.

There are four common types of loans available to graduate students to aid them during their academic journey, these include:

• Federal Direct Unsubsidized Loans: These loans are offered by the U.S. department of education and are available to graduate students regardless of financial need. The loan limit is also much higher compared to undergrad students, making this type of loan more beneficial for graduate students.
• Federal Direct Graduate PLUS Loans: These types of loans are available to graduate students to cover the remaining expenses not covered by financial aid. This type of loan requires a credit check but the credit requirements are less strict when compared to private loans and the interest rates are typically set higher than the rates for direct unsubsidized loans.
• Private Student Loans: Private loans are available through private lenders such as credit unions, banks, and online lenders. These loans oftentimes have fixed interest rates, may provide different repayment options, and usually require credit checks. The terms and conditions also vary amongst lenders.
• Institutional Loans: Few institutions offer their own distinct loan programs to graduate students. They are not as common as federal loans and are typically offered as an alternative for students who need supplemental funding or do not qualify for federal aid.

Percentage of Graduate Students who receive Financial Aid 2019-2020

Average amount of aid graduate students received in 2019-2020

What’s next after filling out your FAFSA as a graduate student?

After you have completed your FAFSA, reviewed your financial aid offers, accepted and declined aid, and developed a financial plan, you can then consider other steps to help you in your graduate school journey.

Researching and applying to supplemental scholarship and fellowship opportunities offered by your institution can continue to help reduce the need for loans. You should also consider assistantship and work-study opportunities which are typically offered by several graduate programs. These opportunities include teaching, research, and graduate assistantships that can help offset the overall expense of your education while simultaneously providing you real world work experience in your field. Evaluating your budget and assessed anticipated expenses is important to help you manage finances effectively and where to allocate funds if needed. Most important, staying organized and communicating with the institution’s financial aid office is important to help you stay on top of deadlines and additional paperwork.

Conclusion

Congratulations future graduate students! We hope this blog gives you better insight on the process behind the FAFSA and what opportunities are available upon completion of the application. While the journey of graduate school seems intimidating, there are a variety of resources available to help you succeed. Keep researching and applying to ensure you receive all financial aid options that will support you financially in the long run.

Achievable's GRE course includes endless quantitative quizzes, 10 verbal reasoning practice exams, 1,500 vocabulary flashcards, and our easy-to-understand online textbook with proven strategies to hit your target score.