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Last update: June 11, 2025
9 minutes read
Learn how FAFSA can fund your master’s degree and unlock state grants, employer tuition benefits, and tax deductions to reduce out-of-pocket costs for graduate school.
By Brian Flaherty, B.A. Economics
Edited by Rachel Lauren, B.A. in Business and Political Economy
Learn more about our editorial standards
By Brian Flaherty, B.A. Economics
Edited by Rachel Lauren, B.A. in Business and Political Economy
Learn more about our editorial standards
While the FAFSA remains your primary gateway to federal aid, savvy grad students know that state- and institution-based grants, employer tuition support, and tax breaks can dramatically lower out-of-pocket costs.
If you’re wondering "Can you get FAFSA for graduate school?", the answer is a resounding yes—as long as you understand how FAFSA for graduate school works, when to apply, and which programs go beyond the basics.
Whether you’re searching for FAFSA for grad school or trying to figure out "Does FAFSA pay for graduate school?", this guide will show you the top three funding pathways to minimize debt.
Yes, FAFSA covers financial aid for graduate school. The process is similar to the one undergraduates go through, with the main difference being the kind of aid and loans available to grad students.
Just like undergraduate students, graduate students fill out the FAFSA to help secure their financial aid. It's a straightforward process:
Financial aid administrators consider grad students independent from their parents. That means whether you're living with mom and dad or on your own, your parents' financials don't factor into your FAFSA form.
Interest rates are also different between grad and undergrad studies. Graduate loans carry a 7.05% rate for federal direct unsubsidized loans (2023-2024), while undergrad loans are at a cooler 5.50%.
Unfortunately, Pell Grants, a type of gift aid, are off-limits to grad students. However, post-baccalaureate teacher certification students may still qualify.
But hey, there's good news too! Grad students can apply for grants like:
When I was paying my way through school, I tried to use grants as much as possible. You should too, since grants don’t need to be paid back, unlike loans. Grants helped save me a lot of money in the long run, especially when you factor in the cost of interest and fees on a loan.
And did you know about Federal Work-Study? This bonus program funds part-time roles for cash-strapped students to cover academic expenses.
Graduate students are eligible for Direct Unsubsidized Loans and Direct PLUS Loans only, meaning interest starts accruing as soon as the loan is disbursed. Let's dive deeper.
Direct Unsubsidized Loans:
Direct PLUS Loans:
You can borrow more as a grad student than as an undergrad, but responsibility is key. Make sure you have a game plan for paying back those loans!
While federal aid via FAFSA is a cornerstone of grad-school funding, state and school programs can add thousands more to your package:
If you’re working while earning your master’s, your employer—and the IRS—can help shoulder the cost:
Graduate studies come with unique tax perks—make sure you claim everything you’re owed:
Another factor to consider is interest capitalization. That's what happens when any unpaid interest is added to your loan principal once your nonpayment period wraps up.
It's a good idea to pay down the interest while you're still in school. This strategy can help prevent a nasty surprise at the end of your grace period.
TuitionHero simplifies your student loan decision, with multiple top loans side-by-side.
Compare RatesBefore diving into the nitty-gritty of the FAFSA application for graduate studies, let's consider some do's and don'ts. These quick tips will help make sure you maximize your opportunities for financial aid and avoid common pitfalls.
Do apply early
Do report accurate financial information
Do actively seek out the available grants
Do have a plan for loan repayment
Do pay down interest while studying
Don't wait till the last minute
Don't overestimate your income
Don't limit yourself to loans
Don't borrow more than you can repay
Don't let interest capitalize unnecessarily
Applying for the FAFSA as a grad student can open doors to many financial aid opportunities. But, like most things, there are pros and cons tied to this process that you should consider.
In February 2025, the Department of Education rolled out batch‐correction capability for both the 2024–25 and 2025–26 FAFSA cycles—allowing schools to submit large files of ISIR updates via the Student Aid Internet Gateway.
By early March, it had processed over 1.5 million new 2025–26 submissions and delivered more than 7 million aid records to colleges and state agencies, significantly speeding error resolution and improving accuracy in financial aid packaging.
At TuitionHero, we simplify college finances with Private Student Loans, Student Loan Refinancing, and FAFSA assistance, helping you reach your academic goals. Grad school can be expensive, but we can help you refinance your student loans to lower your interest rates. This makes it easier to pay off your debt. Start planning your financial future with TuitionHero today!
The federal deadline for submitting your FAFSA form is June 30 of the school year you need help paying for. However, states and colleges may have their own deadlines, which can be much earlier. To make sure you get the most amount of aid possible, you should submit your FAFSA form as soon as possible after it becomes available on October 1 (this year it will be available in December).
Absolutely! In fact, graduate students with financial needs can benefit from the Federal Work-Study Program. This program offers part-time jobs, allowing students to earn money to help with school expenses.
As an independent student, you’ll apply for the FAFSA in the same way a graduate student does—by using only your financial information. At TuitionHero, we offer FAFSA Assistance to guide you through the whole process.
Yes, graduate students have many scholarship opportunities available to them. These can be based on field of study, demographic factors, academic accomplishments, and more. At TuitionHero, we can help you figure out where to find these scholarships and how to apply for them.
Yes, student loan refinancing is an option for both graduate and undergraduate students. It’s a smart move to lower interest rates and make paying back loans easier. TuitionHero has your back with our Student Loan Refinancing services to help you through it.
Pursuing a graduate degree is an investment in your future, and every dollar you secure outside of loans is that much less you’ll repay (with interest) down the road.
By combining federal FAFSA for grad school aid with state grants, institutional fellowships, employer assistance, and targeted tax breaks, you can craft a funding strategy that minimizes debt and maximizes opportunity.
Start early, stay organized, and tap into all available programs—your wallet (and peace of mind) will thank you.
Brian Flaherty
Brian is a graduate of the University of Virginia where he earned a B.A. in Economics. After graduation, Brian spent four years working at a wealth management firm advising high-net-worth investors and institutions. During his time there, he passed the rigorous Series 65 exam and rose to a high-level strategy position.
Rachel Lauren
Rachel Lauren is the co-founder and COO of Debbie, a tech startup that offers an app to help people pay off their credit card debt for good through rewards and behavioral psychology. She was previously a venture capital investor at BDMI, as well as an equity research analyst at Credit Suisse.
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