How to Pay for Grad School

Grad school is costly, but you can get your desired degree without spending a fortune thanks to government aid, state and university scholarships, and loans. Let’s talk about the safest loans, scholarships, and other options for funding your education programs.

How Much Does Grad School Cost?

As the COVID-19 pandemic continues, millions worldwide have applied for unemployment benefits, complicating the labor search for students who have just gotten their undergraduate degrees. Because of this, continuing on to attain a graduate degree may appear to be an attractive choice for gaining skills and improving career opportunities, but potential students must first decide whether or not graduate school is worth the toll it takes on their bank accounts.

Arguably, the expense of an undergraduate degree has received a lot of federal and congressional scrutiny.

According to this article, on average, a medical degree costs about $200,000 at a private college and $128,000 at a public university, a law degree costs around $45,000 a year, and an MBA costs $150,000 on average for a top graduate. However, some two-year, full-time grad degrees will cost over $100,000 in overall fees, with a doctorate or advanced programs costing much more.

Apart from tuition fees, students might also take out mortgages to pay for their living expenses. As a result, prospective grad students could find it challenging to make informed financial choices about which program to pursue.

How to Pay for Grad School

There is no need to stress by assuming you can’t afford graduate school and postponing your college and career goals. It is possible to pay for college with patience, planning, and ingenuity. Here is how to do it.

Cost-Benefit Analysis

As we mentioned earlier, graduate school is costly. Add up all of your degree costs (including tuition), books, housing, family spending, meals, health care costs, loan repayments, and all other periodic expenditures to get a detailed outline of your spending.

Deduct the funds you will get from scholarships, fellowships, work research, and other sources. Finally, compare this figure to your projected earnings in the future. This will give you a rough estimate of how much debt you will have and how long it will take to pay it off.

Obviously, certain occupations necessitate a degree, but the only cost barrier you could have is the college you want to attend.

Start With Money You Don’t Have to Pay Back

Personal savings

Savings may be used to help prepare for graduate school. When you do, make sure you can cover your monthly bills and put money together for any unexpected expenses. Make a budget to figure out your monthly costs, such as rent or lease, phone bills, and auto payments. If you have any concerns, you should speak with a financial planner.

Graduate School-Based Fellowships, Grants, and Scholarships

For college students, several institutions offer fellowships, grants, and scholarships. Grants are generally dependent on financial need, while scholarships may be based on performance or financial need. Graduate fellowships and internships are mostly merit-based, so you might be qualified if you have a high GPA.

Apply for Federal Student Loans

On top of looking at grants and fellowships, the Free Application for Federal Student Aid (FAFSA) might help you pay for your graduate degree. You may be qualified for one or more of the following:

Federal Direct Unsubsidized Loans

Also known as Stafford Loans, these have a fixed interest rate and are unsubsidized, meaning you are liable to pay all of the interest on it.

Federal Direct Graduate PLUS Loans

Credit-based Direct Graduate PLUS Loans have a higher fixed-interest rate than Federal Direct Loans.

School-Funded Aid

Additional financial assistance such as Federal Work-Study opportunities may be available at your school, enabling students to work part-time on campus to help pay for living expenditures. The type of assistance offered will differ, and you will need to register for each one individually.

After earning a work-study certificate, you would likely look for a career that is related to that field. Many schools have online career directories where students can search for and apply for positions.

Financial assistance is typically awarded on a first-come, first-served basis. Still, the sooner you submit your FAFSA, the more likely you are to receive work-study as a component of your financial aid package.

For further details, contact the financial aid office at your school.

State Aid

You could also be eligible for government assistance. You will find out if you’re eligible for funding in your state when you fill out your FAFSA application. You should also look for openings on the official website of your state.

Look Into Private Loans

Banks and credit unions may provide private student loans for graduate school. Getting one of these loans is typically dependent on whether you have a good enough credit score. The interest rates provided on these types of private loans can differ based on many factors, from the current market rate to your credit score or history. These loans can also be fixed or variable.

Other Options to Pay for Grad School

Employers

Many businesses that want to improve their workforce without recruiting can pay for all or half of a graduate student’s education via tuition reimbursement. Most employers demand that the coursework be related to the employee’s job function. Some businesses often ask employees to stay at the company after school for a set amount of time or pay back a portion of their tuition. Tuition aid of up to $5,250 counts as a tax-free bonus.

Becoming an In-State Resident

If you’re returning to grad school after spending a couple of years off, you might be shocked by how much things have changed in terms of prices. Grad students planning to attend a public university will likely save tens of thousands of dollars by attending one in their home state.

States have their own eligibility conditions, so if you’re thinking about migrating for grad school, make sure you research the requirements for the school you’ll be attending.

Credit Unions

People are increasingly turning to credit unions for their banking needs, including student loans, because they provide competitive interest rates and superior customer support.

If you’ve exhausted all your other options and require a private student loan, credit unions might have a decent deal for people with good credit and good grades. Student Choice and CU Student Loans collaborate with various credit unions to provide you with the best student loan interest rates.

Working for the University

Working as a research or teaching assistant can usually cover some tuition as well as provide a regular salary.

Read More

• 65 Questions to Prepare for the F1 Visa Interview
• The Top 100 Best Physical Therapy Schools in the U.S.
• Top 10 Biggest Colleges in the U.S.
• F1 to Green Card: Everything You Need to Know
• Top 100 US Universities in Computer Science
• Top 15 Universities in the U.S. with Day 1 CPT

Conclusion

While paying for grad school may be difficult, it is worthwhile and by no means impossible. By obtaining an advanced degree, you will have the opportunity of being marketable, have more career opportunities, and likely earn more money.

However, it is necessary to keep in mind that not all graduate programs are created equal. Spend ample time considering what you want to do in the long term when you plan to make this investment toward your future. This would help you protect your savings by putting you on the right track to achieve your objectives.

Frank Gogol

I’m a firm believer that information is the key to financial freedom. On the Stilt Blog, I write about the complex topics — like finance, immigration, and technology — to help immigrants make the most of their lives in the U.S. Our content and brand have been featured in Forbes, TechCrunch, VentureBeat, and more.

See author's posts