What are Student Loans for Graduate School?

By Patrick Smith

A University of Mississippi student speaks to an advisor.

What is FAFSA and How Do I Apply?

FAFSA, the Free Application for Federal Student Aid, is a form provided by the U.S. Department of Education to connect students with financial assistance.

This assistance can take the form of grants, scholarships, work-study programs, and student loans.
You’ll fill out the form through the official FAFSA website.

If you’re an undergraduate student looking at continuing your education, it’s likely you’ve filled out the FAFSA before. To be connected with potential aid for graduate school, you’ll need to fill out the form again.

Be aware that there are some key differences between undergraduate and graduate FAFSA forms.

How is FAFSA Different for Graduate Students?

Graduate student loans work differently from loans for undergraduate students in a number of ways: some financial opportunities are no longer available to you, and those that are might accrue interest in a way you aren't used to.

Here's how FAFSA is different for grad students:

Graduate students are automatically considered financially independent. You may have reported your parents’ income as an undergraduate. As a graduate student, you'll only report your (and possibly your spouse’s) financial information.
Unlike undergraduate students, graduate students can't use Federal Pell Grants in most cases.
Unlike undergraduates, graduate students can't access subsidized loans. Instead, grad students are eligible for Direct Unsubsidized Loans. Unsubsidized loans accumulate interest while you are in school.
However, graduate student federal loans have a fixed interest rate, which means you’ll pay the same rate of interest. This can be a helpful benefit in comparison to a private loan (more on that below).

Do I Fill Out FAFSA If I’m an International Student?

In most cases, no. For international students, federal student aid is generally unavailable to those on temporary visas. Some non-citizens, such as green card holders or refugees, are eligible.

Your university, however, may ask you to fill out the FAFSA regardless, so they can try to match you with institutional financial aid.

Be sure to contact your university’s financial aid office to make sure you’re taking the correct steps.

What Kinds of Private Loans Are Available to Graduate Students?

There are several private loans available to graduate students, depending on your field of study. Private loans for graduate students can include MBA loans, medical school loans, and dental residency loans (among others).

Private loans for graduate students are tailored to specific fields because graduate programs differ in cost, length, and outcomes.

If you are unable to meet your financial needs through FAFSA, you may want to consider applying for a private student loan.

Unlike federal loans, private loans often do not have a fixed interest rate. The rate will depend on factors such as your credit history. Pay attention to the fine print and make sure the loan you’re agreeing to won’t put you in a tough financial position down the road.
Some states manage programs that offer private loans for residents. These programs often feature lower rates or other benefits for residents. These benefits differ between states, so be sure to visit the website of your state’s financial aid office, or reach out for more information.
For-profit companies, such as Sallie Mae, offer loans that can help you close gaps that federal assistance can not meet. These loans can differ depending on the degree you’re pursuing, with some programs, such as an MBA, having a unique structure.

Are Private Student Loans Available to Graduate Students?

Yes, private loans are available to international students. Depending on your program, you may be required to have a co-signer who is a U.S. citizen or permanent resident.

Loans without a co-signer are generally given to students in programs with a higher future earning potential and will offer more favorable interest rates.
Loans with a co-signer will factor in your credit history and ability to pay back the loan.

Whichever loan you take out, make sure to consider the terms very carefully. And make sure to explore all your financial aid options before committing to a loan.

Finding an Affordable Graduate School

While a student loan can certainly help make going to graduate school a reality, the University of Mississippi offers many other pathways to help you pay for school.

Read our article on the many different financial aid options the University of Mississippi Graduate School offers, and be sure to contact UM's Office of Financial Aid, so they can offer personalized assistance.