Congratulations – you’ve taken an exciting step toward your graduate education! Now it’s time to explore the best ways to fund your degree. Smart planning now can maximize your opportunities—and potentially save you thousands.
Getting Started
1. Complete the FAFSA
The Free Application for Federal Student Aid (FAFSA) opens on October 1 each year. You must complete this form every year to receive federal, state, or college money, and some scholarships and grants require it as well.
2. Review Award Letters
Along with your acceptance letters from colleges, you will receive an award letter that details how much you are expected to pay and any financial support you are eligible for. The award letter is sent following the submission of the FAFSA and your application to attend a college or university.
3. Select Your Aid
Your award letter provides a list of the aid for which you qualify. You will let the school know which pieces of your financial aid package you wish to accept. (Hint: take the free money first!)
Three Types of Financial Aid: Free, Federal, And Private Student Loans
1. Use Free Money First
First you should take advantage of scholarships and grants, which cost you nothing and do not have to be repaid as long as you meet their conditions. In other words, these equal FREE money for college. Some may be included in your college award letters, while others can be found on your own.
- Scholarships are awards based on merit, talent, or specific achievements. They do not need to be repaid and can be offered by universities, private organizations, or professional associations.
- Grants are need-based awards, often funded by federal or state governments, institutions, or foundations. Like scholarships, grants do not need to be repaid.
- Fellowships are competitive awards that provide financial support for graduate study, research, or professional development. They do not need to be repaid and may include stipends, tuition coverage, or research funding.
- Graduate assistantships are positions offered by universities that combine work and education. Students typically work as teaching, research, or administrative assistants in exchange for a stipend and/or tuition remission.
- Work-study programs provide part-time employment for students with financial need, allowing them to earn money to help pay education expenses while enrolled in school.
2. Look To Federal Student Loans
Your next consideration should be federal student loans, which come with benefits not available from other types of loans. These are typically offered within your award letter from your college.
- Graduate PLUS Loans – No requirement for financial need. Borrow up to the cost of attendance minus other financial aid received. Important note: Grad PLUS will no longer be available for graduate students beginning a program on or after July 1, 2026.
- Direct Unsubsidized Loans – No requirement for financial need.
Grad school limits for unsubsidized loans:
Before July 1, 2026: $20,500 per year/$138,500 lifetime max (includes undergraduate loans)
After July 1, 2026: $20,500 per year/$100,000 lifetime max ($50,000 per year/$200,000 lifetime for some professional degree programs)
3. Private Student Loans
When scholarships, grants, and federal student loans aren’t enough, you may need to consider private student loans. Private loans are made by private organizations such banks, credit unions, and state-based or state-affiliated organizations, and have terms and conditions that are set by the lender. Because offerings will vary, it’s important to review the rates, terms, and conditions before applying for a private student loan.
