If you’re heading to grad school, you’ve probably noticed that the financial aid landscape looks quite different from your undergrad days. From fewer grant options to higher borrowing limits, understanding how financial aid changes at the graduate level can help you plan smarter and avoid unnecessary debt.
In this post, we’ll break down what changes when you apply for financial aid as a graduate student – and how to make the most of the options still available to you.
1. FAFSA Still Matters (But It’s a Little Different)
Yes, grad students still fill out the FAFSA (Free Application for Federal Student Aid) – but there’s a twist. When you’re in grad school, you’re considered an “independent student,” which means you won’t need to report your parents’ income. That can sometimes make you eligible for more aid.
However, the aid you qualify for is mostly loans, not grants.
2. Work-Study Is Still an Option
Some graduate students qualify for Federal Work-Study, depending on your FAFSA results and your school’s funding. If you’re eligible, it’s a great way to earn money without taking on more debt – especially in roles tied to your field of study.
3. Assistantships & Fellowships: Your Best Friends
Many graduate programs offer teaching or research assistantships that provide tuition remission and a living stipend in exchange for part-time work. Others offer fellowships that come with no work requirements at all.
These are often awarded by departments, so check with your program early and ask about deadlines, eligibility, and competitiveness.
4. Private Scholarships for Grad Students
It’s a myth that scholarships are just for undergraduates. Many private organizations offer scholarships exclusively for graduate students – especially those in high-need fields like health care, education, and public service.
Red Kite can help you uncover these hidden gems and streamline your search. We’ve compiled over $27 BILLION in financial aid – including scholarships, grants, loans, and more.
5. Tax Benefits for Graduate Students
Don’t overlook the tax advantages available to help offset education expenses. Some grad students may qualify for:
-
Lifetime Learning Credit (LLC): You can claim up to $2,000 per year for qualified tuition and fees, even if you’re only taking one course.
-
Tuition and Fees Deduction: Though currently expired, this deduction has been extended in the past – worth keeping an eye on in future tax years.
-
Student Loan Interest Deduction: Once you’re repaying your loans, you can deduct up to $2,500 per year in interest – whether your loans are federal or private.
If you’re receiving tuition assistance from your employer, up to $5,250 of it may be tax-free each year. Check with your HR department and a tax advisor to take full advantage.
Grad school is an investment in your future. With the right strategy, you can avoid going into debt in order to make your dreams happen.
Understanding the differences in financial aid can help you build a funding plan for your postgraduate career. Red Kite is here for you every step of the way.
Click the link below to start focusing on your future, not your finances.