Financial Aid - Graduate Students

Finding funding for graduate study can be a difficult task, but, believe it or not, getting money is not nearly as confusing as you might think. The financial aid process is a little bit different for each student, the first step is checking with your school about what funding is available.

Most graduate students turn to student loans. A graduate student can borrow as much as $20,500 or for a Health Professional student, as much as $38,500 through the Federal Stafford Loan Program. You can also borrow through the Federal Grad PLUS program, however the loan is based on credit and repayment begins after the second disbursement (there are deferment programs that allow you to delay payment while you are enrolled half-time or more). Under the Federal Grad PLUS you can borrow as much as your cost of attendance minus other financial aid including other loans. There are also alternative/private loan options to help meet costs not covered by Stafford. Many lenders offer programs that allow you to defer repayment until after you graduate.

If you do have to borrow, borrow only what you need. Keep in mind your expected salary as you sign your promissory note or accept a financial aid offer.

The financial aid process is a little bit different for each student, but there are a few things that hold true for just about everyone. First, apply even if you think won't qualify. There are many variables involved in determining eligibility and there's just no way to know if you don't try.

Second, the Free Application for Federal Student Aid (FAFSA) determines eligibility for Stafford Loan programs as well as for many private grants, fellowships and scholarships. Filing the FAFSA is essential.

You should also be sure to contact both your school's graduate admissions office, and your department to inquire about the availability of assistantships, tuition remission, and/or school-specific fellowships.

For graduate students, financial aid is a fellowship, loan or assistantship program. The majority of graduate students rely on some form of financing (such as the Federal Stafford loan) to pay for their college tuition and expenses.

Filing the Free Application for Federal Student Aid (FAFSA)

The quickest way to file the Free Application for Federal Student Aid (FAFSA) is online at: FAFSA on the Web.

Complete the FAFSA as soon as possible after January 1st of the year in which you will need funding.

It will be easier to fill out the FAFSA if you have these items handy:

  • Your Social Security card and driver's license
  • Your W-2 Forms or other records of earned-income (and your spouse's, if you are married) federal income tax return.
  • Records of other untaxed income you received, including welfare benefits, social security benefits, TANF, veteran's benefits, and military or clergy allowances
  • Your current bank statements and records of stocks, bonds, and other investments
  • Your business or farm records, if applicable
  • Your alien registration card (if you are not a U.S. citizen)

Other Applications

Institutional Aid Applications
Some schools require you to complete a form they provide you. This is called an institutional aid application. On this form you will tell the school about outside scholarships you expect to receive and whether you're interested in other types of aid such as work study. Often you can also use this form to explain any special circumstances not taken into account on the FAFSA. If your school requires one of these applications, they will mail it to you.

Eligibility for Financial Aid

Colleges use the processed data from the Free Application for Federal Student Aid (FAFSA) and/or the CSS Profile to determine your eligibility for financial aid. Whether you complete the FAFSA or the Profile, the basis for determining your award is the Expected Family Contribution (EFC) determined by your household, demographic and financial data.

The EFC is a measure of your family's ability to pay for college based on student and parent income and asset information, your state of residence, household size, and number of household members in college. You can request a free copy of the EFC Formula by calling 1-800-4FED-AID and requesting the current SFA Handbook.

The school you attend establishes a Cost of Attendance (COA). The COA includes tuition, room and board, fees and estimated living expenses including books and supplies.

COA - EFC = Financial Need

Financial need is a official term for how much need-based financial aid you're eligible for. Your financial need is calculated by subtracting the EFC from the COA. In order for you to receive need-based aid, your Cost of Attendence must be greater than your Expected Family Contribution.

The financial aid office at your school will use the need-based resources they have available to try to meet your Financial Need.

Here is a sample calculation:

Sally filed her FAFSA online on January 15. On February 10, she received her Student Aid Report (SAR). The EFC on her SAR is "01200" (which means $1,200). Her school has a COA of $25,000. Using the formula above Sally figured out that her Financial Need is $23,800.

The financial aid office at Sally's school used this information to construct a financial aid package for her that looks like this:

$8,500 Federal Subsidized Stafford Loan
$12,000 Federal Unsubsidized Stafford Loan
Total aid: $20,500

Sally's need for financial aid (after subtracting the EFC) is $23,800 and the financial aid office was able to meet $20,500 of her need through loans. With any luck, some or all of the loan can be replaced with a grant award from the college Sally attends. Alternatively, Sally might be offered graduate tuition remission for work performed as a graduate assistant. If those options do not materialize, Sally may need to consider additional borrowing under the Federal Grad PLUS program or through a private loan in order to cover the remaining $4,500.

Since the Cost of Attendance included expenses beyond tuition such as room and board, Sally might also be able to find housing at a cost less than what the school has budgeted for her.

Follow-up Forms

Once the college has received your FAFSA data, they may still need additional information to complete your award. This process is called "verification". If you are selected for verification, the school will request that you fill out a Verification Worksheet, and that you provide copies of your and your parents' federal income tax returns and W-2 wage earnings statements. Warning: the college will not process your financial aid, without this additional documentation.

If you plan on accepting Stafford or Perkins loans, you will also need to complete promissory notes. The college you attend will provide you with specific information on how to complete this part of the process.

You should also spend some time searching for and applying to EVERY source of outside funding. Scholarships are a great resource for unmet need. Check out ScholarshipExperts to get started.

Read everything the college sends you carefully and respond to requests promptly. If you have questions or don't understand something, call the financial aid office and ASK! They'll be more than happy to provide a helping hand! Finally, remember, you'll have to re-apply every year.

Types of Aid

Loans are the primary source of financial aid for graduate students. Other sources include fellowships, grants, scholarships and work programs.

Loan Programs

Federal Stafford Loan (FFELP/Direct)

  • Subsidized - the government pays interest for you while you are enrolled half-time or more OR Unsubsidized - you pay the interest or defer interest until you graduate or are no longer enrolled or not in deferment. However, you are not required to pay the interest until the loan enters repayment.
  • Fixed interest rate of 6.8%
  • Up to 25 years to repay depending on total borrowed.
  • Available to Undergraduate and Graduate Students.
  • Maximum of $8,500 Subsidized and $12,000 unsubsidized for a total of $20,500. Graduate Health Professional loan limit is as much as $38,500.
  • Payment begins 6 months after you graduate or are enrolled on less than a half time basis.

Federal Grad PLUS Loan

  • Available to graduate students.
  • Fixed interest rate of 8.5%
  • Must be creditworthy.
  • May borrow up to the Cost of Attendance minus other financial aid including other loans.
  • Payment begins after the second disbursement of the loan, but may be deferred while attending school half-time or more.
  • Up to 25 years to repay if total borrowed amount exceeds $30,000. Ten years is the standard repayment term.

Work Programs

Federal Work Study

  • Generally offered to very few graduate students
  • Available to students with need
  • Net Federal Work Study Earnings may not exceed financial need
  • Award is paid directly to the student in the form of a paycheck

Institutional Assistance

Check with your school regarding availability

  • Grants
  • Tuition Remission
  • Graduate Assistantships
  • Scholarships

Corporate/Employer Benefits

Check with your employer about tuition reimbursement for employees pursuing advanced degrees.