Financial aid for students plays a vital role in helping them manage the rising cost of higher education at every degree level, including undergraduate, master’s, and PhD programs. This student financial assistance comes in many forms, i.e., loans, grants, scholarships, fellowships, research assistantships (RAs), and teaching assistantships (TAs), each designed to reduce out-of-pocket expenses and support academic achievement. Financial aid programs also vary depending on degree level, nationality (domestic or international), and, in many countries, the eligibility of Indigenous and Aboriginal students, such as those in Australia and the USA, who receive dedicated support sources. This article explores some financial aid options for students at different academic stages and diverse backgrounds across multiple countries.
Definition of Each Financial Aid Type
Loans are borrowed funds that students must repay with interest, whereas others provide financial assistance that does not require repayment. Scholarships offer need-based, merit-based, or criteria-based funding, and at the PhD level, scholarships, grants, and fellowships generally function the same, despite variations in naming across countries and universities. Fellowships often “ring a bell” for postdoctoral researchers, who receive them to pursue advanced independent research. RAs support students through paid research work under faculty supervision, while TAs provide funding in exchange for instructional duties within departments and schools. In countries such as Australia, TA roles assigned to current PhD students or postdocs are commonly referred to as tutoring.
Type of Financial Aid by Degree Level
Financial aid varies significantly across degree levels, with certain programs designed exclusively for specific stages of study. At the undergraduate and course-based master’s levels, government-funded loans remain a primary option. Likewise, for master’s students in Europe, the Erasmus Mundus scholarships provide full funding. Professional doctoral positions that provide funding are funded on non-research scholarships or fellowships. At the research-based master’s and PhD levels, RA and TA funding become a central form of financial aid through research and teaching duties. PhD research funding is known by different names worldwide, including PhD studentships in UK, RA funding in USA, and PhD scholarships in Australia. Postdoctoral researchers typically rely on prestigious fellowships, such as the Marie Curie or the Newton International Fellowships.
Financial Aid for Students by Nationality and Ethnicity
Some financial aid programs are restricted to domestic students only, for example, US Federal Direct Subsidized and Unsubsidized Loans, while others are specifically designed for international applicants, such as the Paller Scholarships. Many competitive awards, including Australia’s RTP Scholarships, accept both domestic and international candidates. In countries like Australia, New Zealand, Canada, and the USA, certain funding opportunities are allocated exclusively to Aboriginal and Indigenous students.
Examples of Governmental Loans for Domestic Students
(i) US Federal Direct Subsidized and Unsubsidized Loans
These loans are core components of the US government’s financial aid programs, designed to help US-citizen students cover the higher education and student living costs in USA. To apply, you must complete the Free Application for Federal Student Aid (FAFSA) each academic year. Your school’s financial aid office will determine your eligibility and the loan amounts you can receive. For the period from July 1, 202(n) (e.g., year 2025 if n = 5), to June 30, 202(n+1) (e.g., year 2026 if n = 5), the fixed interest rate is 6.53% for Undergraduate Subsidized and Unsubsidized Loans, and 8.08% for Graduate Unsubsidized Loans.
Direct Subsidized Loans
- Eligibility: Available to undergraduate students who demonstrate financial need.
- Interest: The US Department of Education pays the interest while you are enrolled at least half-time, during the six-month grace period after leaving school, and during periods of deferment.
- Loan Limits: Annual limits range from $3,500 for first-year students to $5,500 for third-year and beyond. The aggregate loan limit for subsidized loans is $23,000 for undergraduate students.
Direct Unsubsidized Loans
- Eligibility: Available to both undergraduate and graduate students, and financial need is not required.
- Interest: Interest accrues from the time the loan is disbursed and continues during all periods, including while you are in school and during grace and deferment periods.
- Loan Limits: Annual and aggregate limits vary depending on your year in school and dependency status. For example, dependent undergraduate students can borrow up to $31,000 in total, while independent undergraduates have a limit of $57,500. Graduate or professional students can borrow up to $138,500, which includes any undergraduate loans.
(ii) UK Maintenance Loans for Master’s Students
To mitigate the financial burden of student living costs in UK, some respite has been provided by the 3.1% increase in government assistance in 2025-2026, such as maintenance loans for master’s students. In 2025–2026, maintenance loans for British master’s students can total up to £12,858 if their course starts on or after 1 August 2025, a 3.1% increase over the previous year. Although it does not cover everything, this helps lower the pressure of studying and living expenses. Household income determines eligibility. Therefore, those with lower incomes are given preference. You must be under 60 on the first day of the first academic year of your course.
Examples of Governmental Grants for Domestic Students
The Federal Pell Grant, USA
The Federal Pell Grant, administered by the US Department of Education, is a need-based financial aid program aimed at helping low-income undergraduate students afford postsecondary education in the USA. Unlike student loans, the Pell Grant does not require repayment, making it a highly valuable source of funding. For the current award cycle, its maximum grant amount is $7,395 per academic year. The actual amount awarded to an individual student depends on specific criteria, including their level of demonstrated financial need, the total cost of attendance at their institution, enrollment status (whether they are full- or part-time), and the period of attendance during the academic year.
The TEACH Grant, USA
It is a federal program that provides up to $4,000 per year to students who are completing or plan to complete coursework necessary to begin a career in teaching. Unlike other federal student grants, the TEACH Grant requires recipients to agree to fulfill a teaching service obligation as a condition for receiving the grant. Available to undergraduate, post-baccalaureate, or graduate students enrolled in TEACH Grant-eligible programs at participating schools. If the service obligation is not completed, the TEACH Grant converts into a Direct Unsubsidized Loan, which must be repaid with interest accrued from the date the grant was disbursed.
Examples of Scholarships for International Students
If you are an international student, you are generally not eligible for government financial aid in the form of student loans. So, what can you do to reduce the associated cost of living? International students must rely on scholarships, fellowships, and grants allocated to foreign students, as well as assistantships (TAs and RAs). Depending on the degree level you are applying for, you may have a chance to secure partially or fully funded scholarships for international students that cover living costs abroad. They include the British Council scholarships for women in STEM, master’s scholarships in Australia, DAAD scholarships in Germany, PhD scholarships in Australia, Fulbright scholarships, Stanford Knight-Hennessy Scholarships, AAUW International Fellowship in USA, and many others.
Financial Aid for Aboriginal and Indigenous students
Australia and the US offer several dedicated financial aid sources for Aboriginal and Indigenous students, including the Indigenous Commonwealth Scholarships, Indigenous RTP Scholarships, the American Indian College Fund awards, and US Native American Research Assistantships. Australia also supports Indigenous students through the ABSTUDY program, the Indigenous Student Success Program (ISSP), and university-based awards such as the University of Melbourne’s Indigenous Bursaries. In the US, additional opportunities include the Native Hawaiian Tuition Assistance Program and the Indian Higher Education Grant Program. Canada provides strong Indigenous-focused funding through Indspire Bursaries and the First Nations and Inuit Student Support Program, while New Zealand offers Māori Education Scholarships through Te Puni Kōkiri and the Māori Education Trust.
Conclusion
Financial aid for students remains one of the most important tools for making higher education accessible across all degree levels, disciplines, and countries. Whether students apply for government-funded loans, need-based grants, merit-based scholarships, competitive fellowships, or RA/TA positions, each option plays a strategic role in reducing financial pressure and supporting long-term academic goals. Eligibility criteria differ widely based on nationality, program type, and institutional policies, especially for Indigenous and Aboriginal applicants who receive dedicated support in countries such as the US and Australia. Understanding these distinctions helps applicants identify the most suitable funding pathway. With careful research and timely applications, students can significantly lower study and living expenses.
Frequently Asked Questions (FAQs)
What is the difference between scholarships, grants, and fellowships?
Scholarships are often merit-based financial support, grants are usually need-based, and fellowships commonly support graduate or postdoctoral research; however, at the PhD level, these terms often function similarly.
Can international students apply for government loans?
Generally, no. Government loans such as US Federal Direct Loans are financial supports restricted to domestic citizens or permanent residents.
What types of financial aid are available for PhD students?
PhD students typically receive RA funding, TA positions, or full scholarships/studentships depending on the country and university.
Are Indigenous and Aboriginal students eligible for special funding?
Yes. Countries like Australia and the USA offer exclusive financial aid programs such as Indigenous RTP Scholarships and American Indian College Fund awards.
Do RA and TA positions provide enough funding to cover living expenses?
Yes, in most cases. At many universities in the USA, the UK, and Canada, RA- and TA-funded positions offer stipends that help cover tuition and partial or full living costs, though coverage varies by institution and region.
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