"Graduate students have a leg up on the financial aid process.

Most are no longer student loan novices. They have perfected the art of filling out the Free Application for Federal Student Aid, or FAFSA, they understand terms like Expected Family Contribution, or EFC, and they know the differences between subsidized and unsubsidized Stafford loans. But while the process and the terms may be familiar, financial aid for graduate students comes with its own quirks and nuances.

Here are four key differences between federal financial aid for graduate students and undergraduates," writes Yahoo! Finance.

"-- FAFSA for graduate school: Grad students are typically considered independent students.

-- Less financial aid for graduate school.

-- Interest rates for graduate students are higher.

-- Borrowing limits for graduate students are higher.

The process for obtaining federal financial aid starts similarly for graduate and undergraduate students with the FAFSA, but the options available can vary.

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2. Less Financial Aid for Graduate School

Low-income students who qualified for need-based Pell Grants as undergrads will be disappointed to learn that those funds are typically not available at the graduate level. The Pell Grant may be available to graduate students enrolled in a postbaccalaureate teacher certification program. However, students who relied on Pell Grant funding as undergraduates may need to take on debt to pursue a master's or professional degree.

"On the graduate side, there tends to be less subsidy," says Justin Draeger, president and CEO of the National Association of Student Financial Aid Administrators. "You're just going to see larger amounts of loans and potentially some work-study."

Federal loans available to grad students include unsubsidized Stafford and Graduate PLUS loans.

Students need to pass a credit check to take out a PLUS loan, and those with a bankruptcy, foreclosure or an account in collections may be denied."

NASFAA's "Notable Headlines" section highlights media coverage of financial aid to help members stay up to date with the latest news. Inclusion in Today's News does not imply endorsement of the material or guarantee the accuracy of information presented.

Publication Date: 6/20/2019