Yes, financial aid can cover a master’s degree, but the types and amounts differ from undergraduate aid. Most graduate students rely on federal student loans, while grants and scholarships are more limited. Understanding your options helps you plan how to pay for graduate school without unnecessary debt.
What Financial Aid Is Available for Master’s Degrees?
Financial aid for graduate school includes federal loans, work-study, and sometimes grants or scholarships. Unlike undergraduate aid, the Free Application for Federal Student Aid (FAFSA) is still required for most federal programs. However, the main source of federal aid for master’s students is the Direct Unsubsidized Loan and the Direct PLUS Loan for graduate students.
Federal grants for graduate students are rare, but some states and schools offer need-based grants. Scholarships are often merit-based and may come from professional organizations or your university. Private loans are also an option, but they usually have higher interest rates than federal loans.
Federal Student Loans for Graduate School
Graduate students can borrow up to $20,500 per year in Direct Unsubsidized Loans. These loans are not based on financial need, and interest accrues while you are in school. The interest rate for graduate unsubsidized loans is fixed and set each year by the government.
For additional funding, graduate students can apply for a Grad PLUS Loan. This loan requires a credit check and can cover the remaining cost of attendance after other aid is applied. The interest rate is higher than the unsubsidized loan, and an origination fee is deducted from the loan amount.
Remember that all federal student loans must be repaid, even if you do not finish your degree. Use the loan calculator on the Federal Student Aid website to estimate your monthly payments.
Grants and Scholarships for Master’s Students
Grants are typically need-based and do not need to be repaid. For master’s students, federal grants are almost nonexistent, but some states offer grants for graduate study in high-demand fields like teaching or nursing. Check with your state’s higher education agency.
Scholarships for graduate students are often offered by universities, professional associations, and nonprofit organizations. These are usually merit-based and may require essays or recommendations. Search early and apply to as many as possible.
Here are some actions to take when looking for graduate school funding:
- Fill out the FAFSA as soon as it opens on October 1 each year.
- Contact your university’s financial aid office for school-specific aid.
- Search for scholarships using free databases and your department’s website.
- Ask your employer if they offer tuition reimbursement for graduate courses.
Work-Study and Assistantships
Federal Work-Study provides part-time jobs for students with financial need, and graduate students can qualify. However, funds are limited, and not all schools participate. More common for master’s students are graduate assistantships, which provide a stipend and often cover tuition in exchange for teaching or research work.
Assistantships are competitive and usually require a separate application. They may include a tuition waiver and a monthly salary. Check with your academic department for available positions.
How to Apply for Financial Aid for a Master’s Degree
Start by completing the FAFSA. You will need your tax information and your school’s federal school code. Submit the FAFSA as early as possible, as some aid is first-come, first-served.
After you receive your financial aid award letter, review it carefully. The letter lists the types and amounts of aid you qualify for. You can accept or decline each part.
If you need more funds, consider the Grad PLUS Loan, but only borrow what you absolutely need. Also, research private scholarships and employer tuition benefits.
Comparing Aid Options for Master’s Students
| Aid Type | Need-Based? | Repayment Required? | Typical Amount |
|---|---|---|---|
| Direct Unsubsidized Loan | No | Yes | Up to $20,500/year |
| Grad PLUS Loan | No (credit check) | Yes | Up to cost of attendance |
| Graduate Assistantship | No (based on merit) | No (work required) | Stipend + tuition waiver |
| Scholarships | Sometimes | No | Varies |
Tips for Maximizing Your Financial Aid
Apply for aid every year, even if you think you won’t qualify. Your financial situation can change, and you might be eligible for new aid. Also, keep your FAFSA information updated if your income changes.
Reduce your borrowing by working part-time or choosing a less expensive school. Consider in-state public universities or online programs, which can be more affordable. Always compare the total cost of each program before you decide.
Summary
Financial aid does cover master’s degrees, primarily through federal loans and work-study. Grants and scholarships are harder to find but worth pursuing. Complete the FAFSA, explore assistantships, and borrow only what you need to keep your debt manageable.
Frequently Asked Questions
Can I get financial aid for a master’s degree?
Yes, you can get federal student loans and sometimes work-study for a master’s degree, but grants are rare.
Does FAFSA cover master’s degree?
The FAFSA is required for federal loans and some state aid for graduate students, but it does not guarantee grants.
Are there free grants for master’s degree students?
Very few federal grants exist for graduate students, but some states and schools offer small grants for specific fields.
How much financial aid can I get for a master’s degree?
You can borrow up to $20,500 per year in federal unsubsidized loans, plus a Grad PLUS loan up to your cost of attendance.
Do I have to pay back financial aid for a master’s degree?
Yes, loans must be repaid, but grants and scholarships do not need to be repaid.
