Navigating the financial side of a master’s, doctoral, or professional degree often starts with a single step — filing the Free Application for Federal Student Aid (FAFSA®). While graduate students aren’t eligible for the same grants and funding options as undergraduates, the FAFSA is still the primary gateway for securing financial support, including federal student loans, some state aid programs, work-study, and institutional aid.
To build a realistic budget, you’ll need to understand how your school calculates your total cost of attendance (COA) — the “magic number” that includes tuition, fees, housing, and books. This can help ensure you maximize your aid package and minimize out-of-pocket stress.
Here’s a closer look at how the FAFSA works for grad school, including what’s included in the cost of attendance and the types of aid available to graduate students.
Table of Contents
What Is “Cost of Attendance” in Grad School?
The cost of attendance, or COA, for graduate school is an estimate of the total amount it will cost to attend a program for one academic year. It includes both direct charges (such as tuition and fees) and indirect expenses (such as housing, food, books, and transportation).
Determined by schools, the cost of attendance sets the maximum limit for financial aid eligibility. Your total financial assistance — including grants, fellowships, and graduate student loans — cannot exceed the COA.
What FAFSA Determines vs What Schools Decide
Financial aid for graduate school is a collaborative result of federal data and institutional discretion. While the FAFSA sets the baseline for federal eligibility, individual schools determine how to bridge the remaining gaps.
The FAFSA determines:
• Federal Direct Unsubsidized Loans: These non-need-based loans can help you pay for tuition and living expenses. Effective July 1, 2026, graduate 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). Note: Graduate PLUS Loans, which previously covered the full cost of attendance, will no longer be available to new borrowers as of July 1, 2026.
• Student aid index: The student aid index, or SAI, is an eligibility number generated from the FAFSA that determines a student’s eligibility for need-based financial aid. While most graduate students do not qualify for need-based grants like the Pell grant, SAI helps schools determine eligibility for Federal Work-Study.
The graduate school determines:
• The total cost of attendance: The school calculates the “sticker price” for one academic year, factoring in tuition, fees, books, and estimated cost of living.
• Institutional aid: Each school independently decides who receives merit-based fellowships, research or teaching assistantships, and school-funded scholarships.
• The final award package: The school determines your total financial aid offer by combining federal loans, any state funding, and institutional funding. How much is ultimately offered in a financial aid award letter depends on a school’s internal policies, state regulations, and availability of funds.
The bottom line: Because federal loans for graduate students no longer provide a “blank check” to cover the full COA, more responsibility has shifted to the schools. Your institution now holds more influence in deciding how — or if — to fill the funding gaps left by the new federal borrowing caps.
Expenses Included in Cost of Attendance
Federal law determines which expenses schools can include in their official cost of attendance. To set these figures, institutions typically survey their students and analyze local market data to calculate average costs. Here is a breakdown of what usually makes up a graduate student’s budget.
Tuition and Fees
Tuition is generally the largest line item. According to the National Center for Education Statistics, the average graduate tuition for the 2024-2025 academic year varied significantly by institution type:
• Private not-for-profit university: $21,527
• Public university (in state): $12,116
• Public university (out of state): $21,698
Because public schools charge more for non-residents, they typically provide separate COA estimates for in-state and out-of-state students.
Recommended: How Much Has College Tuition Outpaced Inflation?
Books and Supplies
Graduate programs typically require textbooks, online resources, and other educational materials and supplies each year. On average, graduate students can expect to spend $500 to $1,000 per year in this category. However, programs requiring specialized software or clinical equipment may have a higher allowance for books and supplies.
Housing and Living Expenses
Living expenses cover room and board. Since many graduate students live off-campus, these figures fluctuate based on the local real estate market. Depending on the city, schools often allot between $16,000 and $22,000 annually for rent and groceries.
Transportation
The cost of attendance for graduates accounts for your daily commute and any travel required by your program, such as attending professional conferences. Note that while COA estimates typically include costs for gas and basic maintenance of a car, the purchase of a vehicle is not an eligible expense.
Health Insurance
If your program requires coverage, health insurance premiums can be included in your COA. Many graduate schools automatically enroll students in a university-sponsored plan, but this can usually be waived if you provide proof of comparable coverage. A school plan can run around $2,200 per year for individual coverage.
Costs Many New Grad Students Overlook
When budgeting for your graduate degree, the true price tag may extend beyond official estimates. Don’t forget to account for these frequently overlooked expenses:
• Application fees: Before you even arrive, you’ll likely face costs for application fees, official transcript requests, and travel for campus visits or interviews.
• Moving expenses: Relocating for graduate school can involve immediate out-of-pocket costs, including security deposits, moving services, and furnishing a new space.
• Cost of borrowing: Many students underestimate how quickly interest on graduate loans accumulates, particularly when borrowing for living expenses in addition to tuition.
• Opportunity cost: Enrolling in graduate school often means forgoing full-time employment. This “lost income” is a significant factor in the total financial impact of your education.
Adjusting Your Cost of Attendance
If your education-related expenses exceed the standard budget, you can typically request a cost of attendance adjustment by filing a formal appeal with your financial aid office.
Common allowable adjustments include increased costs for:
• Computer purchases
• Child care or dependent care during class and study time
• Disability-related expenses
• Housing
• Professional license or certificate if required by a program
• Study abroad or other required travel
• Unreimbursed medical expenses
Filling Funding Gaps Responsibly
If your graduate financial aid package doesn’t cover the full cost of attendance, several strategies can help bridge the gap:
• Apply for assistantships and fellowships: While many universities consider applicants for these merit-based awards during admission, others require separate applications, early deadlines, or direct inquiries to departments. These opportunities typically offer stipends, tuition remission, and sometimes health insurance.
• Negotiate financial aid: If a competing institution offers you a more generous package, you might ask your preferred school to reconsider your award. They may be willing to match a rival offer to secure your enrollment.
• Apply for external scholarships and grants: Many professional associations, nonprofit organizations, foundations, and private companies offer scholarship opportunities for graduate students. These grants may be awarded based on merit, financial need, research interests, or an underrepresented background.
• Utilize employer benefits: Many companies offer tuition reimbursement or direct payment programs to foster staff development. Note that these often require the degree to be career-related and may include a “work-back” agreement, requiring you to stay with the company for a set period after graduating.
• Explore private loans: Once you’ve maximized federal student loans, you might look into private education loans from banks, credit unions, and online lenders. You can typically borrow up to the full COA of a graduate program minus any financial aid received. Just keep in mind that private loans do not offer federal benefits such as income-driven repayment and loan forgiveness programs.
The Takeaway
Navigating the financial landscape of graduate school begins with the FAFSA, which establishes eligibility for federal loans and institutional aid. While graduate students have more limited federal aid options than undergraduates, the cost of attendance (COA) is the key figure, as it sets the maximum limit for all financial assistance, including federal loans and any necessary private student loans.
By understanding your school’s real cost of attendance — from tuition and fees to living expenses and overlooked costs — you can more effectively budget, negotiate institutional aid, and responsibly fill any funding gaps to complete your advanced degree.
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
Does FAFSA pay for living expenses?
Yes, indirectly. For graduate students, the free application for federal student aid (FAFSA®) establishes eligibility for aid, including federal student loans and institutional aid. The full amount of your reward is capped by your school’s official cost of attendance (COA), which includes estimated living expenses like housing, food, and transportation.
If the amount of your federal loans and any other aid (like scholarships) exceeds your direct charges (tuition and fees), the remaining money is typically disbursed to you. You can use these funds to cover any of the COA components, including your living expenses.
Can the cost of attendance be increased?
Yes, the cost of attendance (COA) can typically be increased. If you have educational expenses that exceed the standard estimates used by your school, you can request a COA adjustment by filing a formal appeal with the financial aid office.
This appeal typically requires documentation for increased, necessary costs such as computer purchases, child care, disability-related expenses, required professional license fees, or higher-than-average housing costs. If approved, the higher COA may increase the maximum amount of financial aid you can receive.
Why does “cost of attendance” differ between schools?
The cost of attendance (COA) can differ significantly between schools because it is determined by the institution and must reflect the local economic reality.
COA includes variable expenses such as:
• Tuition and fees: These vary based on whether the school is public or private.
• Cost of living: Schools calculate estimated costs for housing, food, and transportation based on surveys and the local market.
• Program requirements: Specialized graduate programs may have different allowances for books, supplies, or required travel, leading to different COAs.
Is “cost of attendance” the same as tuition?
No, the cost of attendance (COA) is not the same as tuition, though tuition is the largest part of it. COA is the total estimated price to attend school for one academic year and includes much more than just tuition and fees.
The COA is a comprehensive budget that factors in both direct and indirect costs. Direct costs are billed by the school (e.g., tuition and fees), while indirect costs are estimated living expenses (such as housing, books, food, transportation, and miscellaneous personal expenses).
The COA is critical because it sets the maximum limit for all financial aid you can receive, including federal student loans, as well as how much you can borrow from a private lender.
photocredit: iStock/fizkes
SoFi Private Student Loans
Terms and conditions apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. SoFi Private Student loans are subject to program terms and restrictions, such as completion of a loan application and self-certification form, verification of application information, the student's at least half-time enrollment in a degree program at a SoFi-participating school, and, if applicable, a co-signer. In addition, borrowers must be U.S. citizens or other eligible status, be residing in the U.S., Puerto Rico, U.S. Virgin Islands, or American Samoa, and must meet SoFi’s underwriting requirements, including verification of sufficient income to support your ability to repay. Minimum loan amount is $1,000. See SoFi.com/eligibility for more information. Lowest rates reserved for the most creditworthy borrowers. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change. This information is current as of 4/22/2025 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).
SoFi Bank, N.A. and its lending products are not endorsed by or directly affiliated with any college or university unless otherwise disclosed.
Please borrow responsibly. SoFi Private Student loans are not a substitute for federal loans, grants, and work-study programs. We encourage you to evaluate all your federal student aid options before you consider any private loans, including ours. Read our FAQs.
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
SOISL-Q126-074