Are you considering starting graduate school in the fall? If so, you’ve probably already done most of your research on schools, programs, and tuition. But what research have you done on funding your graduate degree?
According to the Bureau of Labor Statistics, from January 2006-July 2016 college tuition rates increased by 63 percent. The cost of a degree, whether it be a bachelor’s, master’s or Ph.D., is increasing each year.
Sure, you can take out private loans, but what most do not know is that graduate students still have the opportunity to apply for the Free Application for Federal Student Aid (FAFSA). Filing the FAFSA is an extremely smart — and sometimes vital decision — when it comes to financing graduate school.
The FAFSA helps provide financial assistance to millions of students each year, both in undergraduate and graduate school. This government program awards grants, loans, and work study opportunities to students based off of their financial need. For some students, higher education would not be possible without the assistance they receive from FAFSA.
So, where do you start? What do you need to know in order to file the FAFSA?
Read on for some information on what you need to know in order to make this process a success:
Graduates students are handled slightly different than undergraduates.
When filing the FAFSA as an undergrad, your parents more than likely took care of this because you were considered a dependent. Your parents’ financial information was a very important aspect in determining how much assistance you would receive. When applying as a graduate student, you will most likely file as an independent. This means you will NOT need your parents help or their financial information in order to complete the form, but you’ll also need to keep closer track of the materials and information required to finish the application.
You can be eligible for many of the same loans as undergrad but in larger amounts.
The FAFSA awards grants and scholarships, but these alone will not be enough to fund your education. You will also have to take out loans, many of which will look familiar. Graduate students may be eligible to receive Perkins Loans, Stafford Loans (only unsubsidized), and Direct PLUS Loans. The only difference, and something you should be cautious of, is that they are in larger amounts than what you were awarded in undergrad.
- Perkins Loan: Undergrad students can be eligible for up to $5,500 a year, capping at 27,500 that you can borrow for four years. A graduate student, on the other hand, can be eligible for $8,000 a year, capping at $60,000 total, which includes the funds you borrowed to earn your bachelor’s degree.
- Stafford Loans: While there are two types, subsidized and unsubsidized, it is important to note that graduate students only qualify for unsubsidized. Undergraduate students can borrow between $5,500 and $12,500 a year, while grad students can borrow up to $20,500 a year. Be cautious though! The Department of Education does NOT help pay the interest on this loan, so over time this loan may acquire more interest than you expected if you’re not careful.
- Direct PLUS Loans: This loan is lent to you by the Department of Education, but the amount you can borrow is determined by your school. For many, the maximum amount awarded is the cost of attending the university. If the entirety of your education is not covered, this is one option that many graduate students look into.
More documentation is needed for graduate students.
Like mentioned earlier, your parents' financial information is the most vital part of the FAFSA as an undergraduate student. As a graduate student, more likely than not, you will be filing as an independent student. With that being said, you will be required to provide more documentation than you normally would. To file as a graduate student you will need W-2 forms from the previous tax year, federal income tax returns (for yourself and your spouse, if applicable), bank statements, and other documentation of your assets, stocks, bonds, and investments. This is important to note because being unprepared can cause unnecessary headaches and delays in the approval process.
Don’t pay to file the FAFSA.
This is extremely important! Filing the FAFSA does not cost money. You may already know this from undergrad, but the FAFSA is a free form. If a website tries to charge you to file this application, that should raise a red flag. To be safe, file the FAFSA from the FAFSA website.
Stay on-top of FAFSA deadlines.
Be sure to keep track of FAFSA deadlines on a regular basis because they can change. For the 2016-2017 academic year, you must apply between Jan. 1, 2016 and June 30, 2017. For the 2017-2018 academic year, you must apply between Oct. 1, 2016 and June 30, 2018. Filing early can help you qualify for more financial aid, so don’t put it off until the last minute. You can find these deadlines and other important information on the Federal Student Aid website.
Filing the FAFSA as a graduate student can be confusing and overwhelming. Hopefully these pointers will help you successfully complete the form this academic year. Be sure to check out the Federal Student Aid website, FAFSA.gov, or speak with your school’s financial aid office regarding any questions or concerns you may have.
Are you interested in pursuing a graduate degree but are unsure of how you will finance it? Check out our new guide designed to help you figure out how to afford getting a master’s degree.
