Can You Get Financial Aid For A Master’s Degree?

With the federal government ending the Grad PLUS loan program, it closed a major source of funding for graduate students. For many aspiring graduate students, that shift has brought on a wave of questions: What’s left? How do I pay? And is graduate school still worth it?

While the loss of the Grad PLUS loan cuts off access to some federal borrowing, several forms of financial aid and student loans remain in place.

They may require more legwork and planning, but the options include grants, scholarships, assistantships, employer benefits, and yes, student loans.

Here's what you need to know about paying for that master's degree.

Federal Aid Starts With The FAFSA

Graduate students are still eligible for federal aid, starting with unsubsidized Direct Loans for graduate students. These loans come with a yearly cap of $20,500 and accrue interest from the time they’re disbursed. They remain one of the most reliable loan options available due to their access to income-driven repayment plans and potential loan forgiveness programs.

To receive a federal loan or to qualify for any need-based state or school aid, students must complete the Free Application for Federal Student Aid (FAFSA). The FAFSA also unlocks eligibility for less well-known aid like the TEACH Grant, which offers up to $4,000 per year to students who commit to teaching in a high-need field at a low-income school after graduation (TEACH grants can be used for both bachelor's and master's degrees).

Although many graduate students are considered independent for financial aid purposes, some state and institutional grants still consider income and cost of attendance when awarding aid. Some of these programs are need-based, while others focus on academic performance or field-specific goals, such as addressing shortages in nursing, education, or social work.

Scholarships And Fellowships

Many scholarships for graduate students are field-specific and tied to academic performance, research potential, or a commitment to public service. Universities often maintain internal scholarship databases and offer awards through specific departments. Private and nonprofit organizations also fund graduate scholarships, particularly in areas such as STEM, law, health care, and public policy.

Fellowships are another source of aid that typically do not require repayment. These awards may be provided directly by a university or by third parties, such as national foundations or government agencies. They often require research, publications, or teaching assistance in return for tuition waivers or living stipends.

For example, a student entering a public health program might be eligible for a fellowship funded by the National Institutes of Health, while education students may qualify for support from the Department of Education or professional associations focused on teacher development.

Assistantships, by contrast, are usually tied to work performed for the university. Teaching assistantships and research assistantships offer tuition discounts, living stipends, or both, in exchange for part-time work related to the student’s field of study. These are more common in full-time programs, especially at public and research-oriented institutions.

Employer Tuition Reimbursement Programs

Another option that often goes overlooked: employer tuition reimbursement. According to a survey by the Society for Human Resource Management, roughly half of U.S. employers offer some kind of tuition assistance. The most common benefit is $5,250 per year, which is tax-free according to current IRS guidelines.

To qualify, employees usually must demonstrate satisfactory academic performance and remain employed with the company for a set period after receiving the benefit. Some programs pay tuition up front, while others reimburse employees after the course or semester ends. These benefits are often limited to degree programs relevant to the employee’s role or company goals.

Students interested in using employer support should speak with their human resources department before applying to graduate programs. 

Student Loans Are A Last Resort

With Grad PLUS loans off the table, student still have access to Direct loans for graduate students. Though the lower limits may be challenging for some. As such, students with financial gaps may turn to private student loans. While these loans can cover full tuition and living expenses, they typically lack the flexible repayment options of federal loans.

Private lenders base loan approvals on creditworthiness and may offer lower rates to borrowers with strong credit or a co-signer. However, repayment terms are usually less flexible, and forgiveness options are rare. Before committing, borrowers should review the interest rate, repayment term, deferment policies, and whether the lender offers income-based payment options.

Some schools offer institutional loan programs, though these are far less common and tend to come with strict eligibility requirements or limited funding pools.

People Also Ask

Can you get financial aid for a master's degree?

Yes, there are many financial aid options for master's degrees, including federal student loans, scholarships, grants, assistantships, fellowships, and more.

What types of scholarships and grants are available for master's degrees?

There are federal and state scholarships and grants available for masters degrees. Many schools and non profits also offer scholarships.

Can you still get federal student loans for graduate school?

Yes, graduate school students can borrower federal Direct student loans for graduate school.

Related Articles