Advancing your education through graduate school takes commitment — but it also requires a solid financial plan. With total costs often exceeding $45,000 per year (and significantly more for some professional programs), many students rely on a combination of funding sources to pay for graduate school.
Below, we’ll walk you through how to use the Free Application for Federal Student Aid (FAFSA®), what happens after you file, additional funding opportunities, and key timelines to keep in mind.
Table of Contents
Key Points
• The FAFSA is the essential first step for graduate financial aid, but it rarely covers the full cost of a degree.
• Graduate students should seek out scholarships, fellowships, and assistantships to supplement federal aid.
• Federal student loans for graduate students are unsubsidized, meaning interest accrues immediately.
• Private student loans can bridge a funding gap but lack the federal borrower protections of federal loans.
• Start the FAFSA, scholarship, and fellowship application process early to maximize your funding opportunities.
Why the FAFSA Is Only the First Step
While graduate students have fewer grant options than undergraduates, the FAFSA remains the essential first step for federal aid. It unlocks federal student loans and potential Federal Work-Study opportunities. In addition, many institutions and state agencies use FAFSA data to determine eligibility for their own aid programs.
However, the FAFSA is just a starting point. It doesn’t guarantee full funding or cover every available resource. To bridge the gap, you’ll likely want to explore graduate fellowships, assistantships, and private scholarships alongside personal income. If a deficit remains, you might use private student loans as a final resource to fully fund your degree.
Understanding Your Financial Aid Offer
Each school you list on your FAFSA receives your information and uses it to build a financial aid package. To make an informed enrollment decision, you’ll want to carefully review and compare these offers.
Grants vs Loans vs Work Study
Graduate funding typically consists of grants, loans, and work-study. Here’s a look at how they differ.
• Grants: Graduate-level grants are relatively limited but may be available through universities and state or federal government programs. These awards may be merit- or need-based and often focus on specific fields like education, healthcare, or research. Unlike loans, they do not need to be repaid.
• Graduate loans: Federal loans for graduate students are unsubsidized, meaning they begin accruing interest at dispersal. However, you are not required to begin repayment until after you graduate. Private student loans are available through banks and credit unions, but they generally require a credit check and may or may not require you to make payments during school.
• Federal Work-Study. This need-based program provides part-time employment, often on campus or in roles related to your field of study. Earnings are paid directly to you and can help offset day-to-day expenses.
In general, minimizing the amount you borrow can reduce long-term financial strain after graduation.
Recommended: Financial Aid vs Student Loans: Similarities and Differences
Listed Cost of Attendance vs Actual Cost
A school’s cost of attendance (COA) is an estimate of the total cost of attending for one academic year. It typically includes:
• Tuition
• Campus fees
• Books and supplies
• Housing and food
• Transportation
• Health insurance (if required)
• Personal expenses
It’s important to understand that COA is not your exact bill. Instead, it acts as a standardized figure for financial aid offices to determine aid eligibility, encompassing both direct charges (tuition and fees) and indirect costs (like books and living expenses).
Your actual cost will depend on how much financial aid you receive, your housing choices, and how you manage variable expenses like food, transportation, and discretionary spending.
Building a Funding Stack After the FAFSA
After submitting the FAFSA, the next step is to assemble a complete funding plan. Because graduate students have fewer federal grant options, most rely on multiple sources of support.
Scholarships, Fellowships, and Assistantships
Federal grants are limited for graduate students. The primary federal grant available at the grad level is the TEACH Grant, which provides up to $4,000 per year to students who commit to teaching in high-need fields and locations. If the service requirement is not fulfilled, the grant converts into a loan.
Other major funding sources for graduate school include:
• Scholarships: Graduate scholarships are available through universities, professional associations, nonprofit organizations, and private companies. Many scholarships are merit-based, while others are awarded based on financial need, field of study, background, or career goals. You can find opportunities through professional organizations, your school’s financial aid office, your academic department, and by using online search tools.
• Assistantships: Graduate assistantships are positions for graduate students that provide financial support — typically a stipend, tuition waiver, and sometimes health insurance — in exchange for working on research, teaching, or administrative tasks. You can find positions through your department and by networking with faculty and exploring your school’s job portal after you are admitted.
• Fellowships: Graduate fellowships are often merit-based awards funded by universities, foundations, or government agencies. They may cover a significant portion — or even all — of your educational costs and usually do not require a work commitment, making them highly competitive.
Recommended: The Differences Between Grants, Scholarships, and Loans
Savings, Income, and Employer Assistance
Many graduate students supplement financial aid with personal or family savings and/or income from part-time and summer jobs.
In addition, some employers offer tuition assistance or reimbursement programs for eligible employees. If you plan to work while you’re enrolled in graduate school, check with your employer’s HR department to see what benefits might be available.
Federal Student Loans
Graduate students have access to Federal Direct Unsubsidized Loans, which are non-need-based. For the 2026-27 academic year, grad students may borrow up to $20,500 annually ($100,000 total). For those pursuing professional degrees, the limits increase to $50,000 annually ($200,000 total).
Graduate PLUS Loans, which previously covered the full cost of attendance, will no longer be available to new borrowers as of July 1, 2026.
Federal student loans offer important borrower protections, including income-driven repayment, deferment and forbearance options, and potential eligibility for loan forgiveness programs.
Private Student Loans
Private student loans serve as the final funding option once you have tapped all scholarships, grants, fellowships, and federal loans. Provided by banks, credit unions, and other private lenders, these loans typically cover up to the school’s total cost of attendance minus any existing aid.
Rates, terms, and eligibility requirements vary by lender. Typically, lenders will evaluate your credit score, income, and career path to determine your ability to repay. If your credit history is limited, you may need a cosigner to qualify. Notably, private loans do not qualify for federal relief programs, such as income-driven repayment or loan forgiveness.
Planning Your Timeline From FAFSA to Tuition Payment
Once you’ve submitted your application for federal student aid, here are general timelines and FAFSA next steps for graduate school students.
Award Letter Timeline
1. Submit your FAFSA: The FAFSA typically opens on October 1 the year prior to your enrollment. Aim to file as soon after it opens as possible. While the federal deadline is June 30 of the following year, schools and states have much earlier deadlines — often by late winter/early spring — and often distribute financial aid on a first-come, first-served basis.
2. Check your FAFSA Submission Summary. You’ll receive this after your FAFSA is processed, which can take one to three days. Review your summary for accuracy and respond promptly to any requests for additional documentation.
3. Receive financial aid offers. Schools typically send financial aid packages for graduate school around the time of admissions decisions. However, assistantships and fellowship offers may arrive separately and sometimes later.
Loan Certification and Disbursement
If you accept a federal loan, the school will certify the loan amount with the lender. You’ll then need to complete entrance counseling to confirm that you understand your loan responsibilities, and sign a master promissory note.
Financial aid, including loan amounts, will be disbursed directly to your school. Tuition and fees typically are prioritized, followed by any school-based obligations like on-campus housing or meal plans. Any remaining funds are returned to you to use for other eligible education-related costs.
Common Mistakes New Grad Students Make
Avoid these common pitfalls when planning your graduate school finances:
• Missing deadlines. FAFSA and institutional aid deadlines may differ. Missing your school’s internal deadline can reduce your eligibility for aid.
• Delaying scholarship applications. Applying to scholarships and fellowships requires significant preparation. Starting early increases your chances of success.
• Overborrowing. It can be tempting to borrow up to the maximum allowed, but maintaining a realistic budget can help minimize long-term debt.
The Takeaway
Funding graduate school requires careful planning and a proactive approach. The FAFSA is a critical first step, but it’s only part of the process.
By combining federal aid, scholarships, assistantships, personal income, and (if needed) private loans, you can build a comprehensive funding plan that supports your academic goals while minimizing financial stress.
Start early, stay organized, and pay close attention to deadlines to make the most of every funding opportunity available to you.
If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.
FAQ
What happens after submitting the FAFSA?
After you submit the FAFSA, it is processed, and you receive a FAFSA Submission Summary. The schools you listed receive your information and use it to determine your eligibility for federal, state, and institutional financial aid. They will then send you a financial aid offer (award letter) outlining the grants, Federal Work-Study, and federal loans you qualify for, allowing you to compare options and build your final funding plan.
Does FAFSA cover full tuition?
The FAFSA® (Free Application for Federal Student Aid) does not directly “cover” tuition like a scholarship. Instead, it is the application used to determine your eligibility for federal aid, including federal student loans and work-study. While schools and state agencies also use your FAFSA data to award grants and scholarships, this “free money” rarely covers the full cost of tuition on its own.
When should I apply for additional funding?
While the FAFSA® is the starting point, you should begin applying for scholarships, fellowships, and assistantships at the same time as you are applying to graduate school. Deadlines vary widely, but applying early is key, as many awards are distributed on a first-come, first-served basis. For private loans, wait until you know the full cost of attendance and have exhausted all “free money” and federal loan options.
Can I change my FAFSA® after submission?
Yes, you can change your FAFSA form after submission, but only after it has been processed, which usually takes a few days. If you made a mistake in what you reported on your form or want to add or remove schools, you can make the change by logging into your StudentAid.gov account, navigating to the “My Activity” section on your dashboard, and selecting “Make a Correction.” If you receive a FAFSA Submission Summary that indicates a need for correction, you should make those changes promptly.
photocredit: iStock/Jelena Stanojkovic
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