Pay for Grad School

Paying for a graduate or professional program can be challenging. Federal grant options are more limited than they are for many undergraduate students, but scholarships, fellowships, assistantships, employer education benefits, Federal Work-Study, federal student loans, state or institutional aid, and other resources may be available.

Your best resource to navigate all your financial aid questions will be your school’s financial aid office. For graduate and professional degrees, you should also reach out to your graduate or professional program office. They can help you understand your options, including institutional aid, campus-based aid programs, grants, scholarships, and fellowships.

FAFSA

Filing the Free Application for Federal Student Aid (FAFSA) is the first step in applying for federal student aid. Many states and institutions also use FAFSA information when determining eligibility for their own grants, scholarships, and other aid.

The FAFSA is free and usually takes less than 30 minutes to complete. Without the FAFSA, you may leave free financial aid on the table and pay more than necessary for college or training.

Before you begin the FAFSA, you will need to create an FSA ID, which is your FAFSA username and password. Whether you are a student, parent, or borrower, you will need to create your own account to fill out the FAFSA and manage your federal student aid. You will need your Social Security number (if you have one) and your own email address.

Keep your FAFSA ID in a safe place so that you can use it every year when you fill out the FAFSA.

After you have your FAFSA ID, you can begin completing the FAFSA application at StudentAid.gov.

Never pay to complete the FAFSA. Free help is available from your school, EFC members, and other trusted organizations. Find an EFC member.

Scholarships, grants, and fellowships can reduce the amount you need to pay or borrow because they generally do not have to be repaid, provided you meet the program requirements. Aid on your financial aid offer may come from the federal government, state programs, the institution, or other sources.

Grants are generally awarded based on a student’s financial situation (need-based aid) as determined by their FAFSA (and other financial aid applications).

Scholarships are often awarded based on merit (merit-based aid) based on the achievements or skills of the student, but not always.

Federal Aid

There are several types of federal student aid that may be available to help you pay for your education, including grants, scholarships/fellowships, work-study, and federal student loans. The types and amounts of aid you may be eligible to receive depend on a variety of factors, including your financial need, program of study, enrollment status, and other eligibility requirements. Your school’s financial aid office will determine your eligibility for federal student aid and explain the aid available to you. You can also learn more about federal student aid at StudentAid.gov.

Federal Pell Grants and Federal Supplemental Educational Opportunity Grants (FSEOG)—Are grants generally not available to students enrolled in programs that lead to graduate or professional degrees or other graduate credentials. Limited Pell Grant exceptions exist for certain eligible postbaccalaureate teacher-certification programs and, beginning July 1, 2026, certain eligible workforce programs that do not lead to a graduate credential.

Workforce Pell Grants—Effective July 1, 2026, are grants for approved short-term eligible workforce programs and are not available for programs that lead to a graduate degree or credential. A student who previously earned a bachelor's degree may be eligible for Workforce Pell if the program and student meet all federal requirements and the student has not earned and is not working toward a graduate degree or credential. Check with your school's financial aid office to confirm program eligibility.

TEACH Grant—A federal grant that may be used for an eligible master's degree program at a participating institution. The program must be designated as TEACH Grant-eligible, and recipients must satisfy the program's teaching service obligation. If a recipient does not complete the required service, the TEACH Grants received are converted to a federal Direct Unsubsidized Loans that must be repaid with interest. TEACH Grants are not available for doctoral or professional degree programs.

Federal Work-Study (FWS) Program – a campus-based program that is not a grant or a scholarship but does not have to be repaid. It provides part-time employment opportunities to help eligible students earn money to pay educational expenses while enrolled in school. It is available to undergraduate, graduate, and professional students who demonstrate financial need as determined through the FAFSA. The college determines eligibility and awards based on its federal allocation and institutional policies. If you are interested in FWS, ask your financial aid office if they award FWS to graduate/professional students and how to indicate on your FAFSA or financial aid application that you want to be considered for it.

Federal Scholarships/Fellowships

Federal scholarships and fellowships are federal funding for graduate and professional education that is separate from the standard FAFSA grant and loan programs. Most require a separate competitive application, while others are awarded through participating universities or graduate departments.

They generally do not have to be repaid provided you comply with the program’s requirements. Some will have a service-based requirement and may carry consequences if you accept the funding then fail to complete the service requirement.

A federal scholarship usually pays a combination of tuition, fees, books/educational expenses, and sometimes even a living stipend.

A federal fellowship is often more focused on advanced study, research, or doctoral training. A fellowship may provide you with a stipend for living expenses and provide your university with money toward tuition or educational costs.

Finding Federal Scholarships and Fellowships

There is no central search site for federal scholarships and grants – here are some helpful hints for your search.

• CareerOneStop – Sponsored by the U.S. Department of Labor, you may search thousands of scholarships, fellowships, grants, and other awards. Filter the education level to Graduate Degree, then narrow the field and award type.
• Graduate Department – Check with your graduate department and not just the financial aid office. This is important because some federal funding is awarded to the university who then selects the students who receive the funds. That selection process may be performed at the specific graduate department and not the financial aid office. Ask your graduate department if they have any federally funded fellowships, traineeships, research grants, or scholarships for graduate students, or any other agency-funded programs.
• Narrow your scholarship search criteria – don’t just search for graduate scholarships, also search using terminology such as fellowship, traineeship, studentship, research fellowship, institutional training grant, service scholarship, stipend, or graduate research program.
• Search the federal agency associated with your profession. For example, search for fellowships or scholarships for graduate programs available through the National Institutes of Health (NIH), a list of programs should be provided.

State Grants/Scholarships

Many EFC Members offer and/or administer scholarships and grants, and many provide links to free scholarship search sites.

You can also visit the Department of Education’s state index to find your state’s higher education website and learn more about their options.

Institutional Grants/Scholarships

Reach out to your college or university’s financial aid office, as well as your graduate department to discuss any scholarship or grant programs they offer.

Private Scholarships/Fellowships/Grants

There are thousands of organizations that provide private scholarships to students, and these are usually tailored to specific needs, interests, and programs. These can come from nonprofit organizations, associations, community groups, companies, and other types of organized groups. They each have their own applications process and their own eligibility criteria.

There are many free ways to find scholarships. Never pay to find scholarships!

Here are some reputable websites that provide free scholarship search tools. Specify the graduate or professional program you are entering to narrow your search to those that are available for these advanced degrees.

• Bold.org
• College Board
• Peterson’s
• Red Kite
• Unigo

If you are employed, check whether your employer offers education benefits that can help you pursue a graduate or professional degree or certificate. Employer programs vary widely, so review all available benefits before deciding how you will finance our education. Depending on your employer, benefits may include:

• Tuition Reimbursement/Assistance—Your employer pays eligible education expenses directly to the school or reimburses you for some or all your eligible expenses.
• Full or Partial Program Sponsorship—Your employer pays a substantial portion, or occasionally all, of the cost of an eligible degree or certificate program. You may be required to remain with the employer for a specified period.
• Student Loan Repayment—Your employer makes payments toward your eligible education loans or provides funds to help you repay them.
• College and University Partnerships—Your employer may have arrangements with certain colleges and universities that provide employees with tuition discounts, scholarships, or other educational benefits.
• Paid Educational Leave—Your employer provides you with time away from work for education or training while retaining some or all your salary/benefits.
• Employer-Funded Scholarships/Fellowships—Your employer offers scholarships, fellowships or other educational awards to eligible employees.
• Licensing and Exam Support—Your employer may pay eligible costs associated with professional licensing or certification, including examination fees, preparation courses, or study materials.
• Internship/Rotation Arrangements—Your employer may provide opportunities to gain experience in positions related to your field of study while you complete your program.

Before using an employer education benefit, carefully review the program’s terms and conditions. Pay particular attention to the eligibility requirements, covered expenses, academic or performance requirements, payment or reimbursement procedures, tax implications, and any requirement to remain employed for a specific period. Also determine whether you could be required to repay some or all of the benefit if you leave your employer, change positions, withdraw from your program, or do not meet other requirements.

If you are interested in also receiving federal student aid or other financial assistance, tell your school’s financial aid office about your employer education benefits that you are receiving. The school can explain whether and how those benefits affect your financial aid eligibility.

If you have exhausted your options for scholarships, fellowships, and grants and still need money to cover the cost of tuition and living expenses, student loans may help bridge the gap.

It is important to know that education loans are borrowed money that must be repaid with interest over time. The interest rate and repayment options, as well as deferment and forgiveness opportunities, will vary based on the type of loan you choose. Carefully review all the conditions of the loan and understand the terms before signing.

Your best resource to navigate the different federal loan options will be your college or university’s financial aid office. They will be able to explain your options and how to apply for different loans.

Federal Student Loans

For new graduate and professional borrowing beginning July 1, 2026, the primary federal student loan available is the Direct Unsubsidized Loan, which is not based on financial need. You must complete the FAFSA and meet federal eligibility requirements. Interest begins to accrue when the loan is disbursed. Payments are generally not required while you are enrolled at least half-time and there is a six-month grace period before payments are due after you graduate, leave school, or drop below half-time enrollment.

Graduate PLUS Loans—Beginning July 1, 2026, Direct PLUS Loans are no longer available to graduate or professional students for new borrowing. A limited exception may apply if you were enrolled in the program as of June 30, 2026, borrowed a Direct Loan for that same program before July 1, 2026, and remain continuously enrolled in the same program at the same school. Ask your financial aid office whether you qualify for this exception.

Loan Limits—Beginning July 1, 2026, there are new federal loan limits for the amount graduate and professional students may borrow per year as well as aggregate and lifetime borrowing limits. Your school may set lower program-level federal loan limit. The federal classification of a professional degree determines which loan limit applies to your program of study. Be sure to confirm your program’s classification and your remaining eligibility for federal student loans with your financial aid office.

IMPORTANT NOTE: Before considering a private education loan, use grants, scholarships, fellowships, assistantships, employer benefits, campus-based aid, and other resources that do not have to be repaid, then consider your available federal Direct Unsubsidized Loan eligibility.

Private Education Loans

Private education loans are offered by banks and other for-profit lenders, credit unions, and nonprofit or state-based lenders. Depending on the loan, the student may borrow alone or with a cosigner; some lenders also offer parent loans. Eligibility, rates, and terms commonly depend on creditworthiness and may also consider income, field of study, expected earnings, or other underwriting factors.

If you are looking for a private education loan, here are some things to consider:

• Shop around. Compare loan offers from multiple lenders, including at least one nonprofit or state-based lender, before choosing a loan.
• Do not base your decision on an advertised minimum rate alone. Your actual rate will depend on the lender's underwriting criteria, including your credit profile and, when applicable, your cosigner's credit. Some lenders offer prequalification using a soft credit inquiry, which generally does not affect your credit score; confirm the lender's process before authorizing a credit check.
• Depending on your credit score and your income, you may need a cosigner. Even if a cosigner is not required, it is possible that having a cosigner will qualify you for a lower rate. Make sure that your cosigner understands that they are equally obligated as you are to pay back the loan.
• There may be fixed and variable interest rate options. Know what you are applying for and what rate you will receive.
• Use caution when reviewing “best lender” lists from web and AI searches, shopping sites, and press articles. A fee or commission is often paid by the lender to be listed, and the rate advertised may not be the rate you will receive.
• Ask about repayment options and other benefits that may be offered.

Consider Nonprofit and State-Based Loans

If you are considering a private student loan to fill the gap between total cost of attendance and your financial aid, explore education loans offered by nonprofit or state-based higher education finance organizations. These programs prioritize affordability, transparency, and borrower protection over profit maximization.

Some nonprofit and state-based lenders serve only residents of a particular state or students attending school there, while others offer regional or national loan programs.

Nonprofit and state-based lenders are generally guided by public-purpose missions focused on helping students and families finance education. EFC members follow Guiding Principles designed to promote transparency, affordability, and borrower protections.

Nonprofit/state-based lenders may offer you the lowest interest rate with the most benefits, such as flexible repayment plans, interest rate reductions, and cosigner release options.

Tips Before You Borrow

• Before considering a private education loan, use available grants, scholarships, fellowships, assistantships, employer benefits, and other federal, state, and institutional aid, then consider your available federal Direct Unsubsidized loan eligibility. Use private education loans only for a remaining funding gap after comparing costs, terms, and borrower protections.
• Compare lenders and know your interest rate, fees, and repayment terms before you borrow.
• Importantly, only borrow what you need, not necessarily the maximum amount that you are eligible to borrow.
• Keep track of how much you are borrowing from both federal and private sources – not just each year, but in total. Know what you owe!

All these tips can make a big difference in how much you pay over the life of the loan, and an informed choice may save you thousands of dollars.

School Financial Aid Office

Your best resource to navigate all your financial aid questions will be your school’s financial aid office. For graduate and professional degrees, you should also reach out to your graduate or professional program office. They can help you understand your options, including institutional aid, campus-based aid programs, grants, scholarships, and fellowships.

Nonprofit and State-Based EFC Members

EFC members across the country are ready to help you with the college process. Get free, expert help with filing your FAFSA, college planning, understanding your financial aid offer, repaying your student loans, and more!

Learn more and find the nonprofit/state-based lender in your state.

Additional Resources

Federal Student Aid: Manage and Repay Your Federal Student Loans–This site includes information to help you manage and repay your student loans as well links to general information regarding how financial aid works.

CFPB: Your Financial Path to Graduation –Will help you estimate how much you will owe in student loans and how much you will need to make to repay those loans.