The Ultimate Guide to Graduate School Financing
Pursuing your MA, MFA, MBA, Ph.D., MD or another advanced college degree is an investment in your career and future—but massive student loans can limit your options. Students typically rely on federal and private loans for graduate school funding, but enormous monthly payments don’t have to be your reality.
There are other options for paying for grad school besides repayment plans or personal loans spanning decades with sky-high interest rates. Before you come to a decision, read the below helpful tips and key resources for how to pay for a masters degree, how to afford grad school and how to get your masters paid for.
How much does a masters degree cost?
Taking into account all of the costs associated with completing a masters degree including tuition, fees, books, and living expenses, the total cost can range from about $30,000 to $100,000 or more for the entire program. This is a rough estimate and can be influenced by the specific choices you make regarding institution, program length, and location.
It’s also important to explore financial aid options and how you will find the money for graduate school , such as scholarships, assistantships, and federal loans, which can significantly offset these costs.
What does a student loan involve?
Paying for grad school using student loans is a common strategy but can leave you in debt. If you decide to take out a loan, you need to make sure you have a plan in place on how you are going to repay them and that you manage the debt effectively.
There are many different types of loans available including federal options like Direct Unsubsidized Loans and Grad PLUS Loans, which offer fixed interest rates and more favorable repayment terms compared to private loans. You can find out if you are eligible to apply for a loan on the FAFSA website.
The most important thing to consider when borrowing money is your expenses. Only take out a loan to cover what you actually need and always account for the interest rates and any fees associated with the loans when choosing which one is right for you. If federal loans don’t cover all your costs, carefully compare private lenders to find the best terms.
If you opt to take out a student loan make sure you plan ahead and budget to ensure it lasts you for the whole year.After graduation, take advantage of grace periods and explore different repayment plans, such as income-driven options, to find one that fits your financial situation. Making interest payments while in school, if possible, can also help reduce the overall cost of your loans. You could consider getting a part time job to help with this.
Finally, stay in contact with your loan servicer to keep track of your balances, repayment schedule, and any potential forgiveness programs you might qualify for, especially if you work in public service.
Why are loans not the best option?
While it can be tempting to take out a loan, it is best to avoid doing so if possible. This is because taking out a loan can leave you with a substantial amount of debt that can be difficult to pay back, especially if your post graduate income is lower than expected. Interest that accrues on student loans can mean that you end up paying more for your degree than it would have cost to begin with. Loan repayment can also restrict your financial freedom after graduation, limiting your ability to make major life decisions, such as buying a home or saving for retirement, due to the need to manage monthly loan payments.
Is it possible to pay for grad school without loans?
Yes it is possible to pay for grad school without loans and If you can avoid taking out a loan it is best to do so. Fortunately there are other options available to students who want to avoid student loans, these include scholarships and grants, assistantships,FAFSA assistance, crowdfunding and fellowships.
Does FAFSA pay for grad school?
FAFSA (Free Application for Federal Student Aid) itself does not directly pay for a master’s degree, but it is essential for accessing federal financial aid that can help cover graduate school costs. By completing the FAFSA, you become eligible for federal aid such as Direct Unsubsidized Loans, which allow you to borrow up to $20,500 per year, and Grad PLUS Loans, which can cover remaining expenses after other aid. Additionally, some graduate students may qualify for the Federal Work-Study program, providing part-time job opportunities to help with expenses, and the TEACH Grant, which offers up to $4,000 per year for those pursuing a career in education. While Pell Grants are not available for graduate students, completing the FAFSA is crucial as it also determines eligibility for institutional scholarships, grants, and assistantships offered by universities.
Funding for specific grad programs
In most academic disciplines, the top MA, MFA, and Ph.D. programs are fully funded. That means that between tuition waivers, grants, full scholarships, and teaching fellowships, students in those programs pay nothing out of pocket, and also receive modest stipends to cover living expenses during the school year. In programs that aren’t fully funded, the costs students need to shoulder can vary widely. It makes sense to apply to a number of programs and consider funding—also known as institutional fellowships—as a major factor in deciding which program to attend.
In contrast, most professional degrees such as the MD and MBA, expect students to pay tuition, in the expectation that they will be able to repay loans out of future earnings. To keep potential student debt to a minimum, look to some of the following ideas for how to pay for graduate school without loans.
How to pay for grad school with scholarships and fellowships
Beyond funding from specific programs, you should also look at “portable” fellowships from federal programs or private organizations. The best known are Rhodes, Fulbright, Mellon, Ford, and NSA fellowships, but many other fellowships exist. These typically require students to submit an extensive application, and they’re often highly competitive. Many portable fellowships are for students in specific fields, including teaching, nursing, sociology, or astrophysics.
Next, get more specific. When exploring how to pay for a master’s degree using private funding, start by looking for scholarships and fellowships for people like you. What defines your story? Are you a single mother returning to school? A disabled veteran? A first-generation student? Get specific, and you may find a scholarship or grant that fits you perfectly.
Several websites can help you in your search for scholarships and grants. Check out GradSchools.com, GoGrad, Unigo, Fast Web, and Peterson’s.
Last but not least, turn to your undergraduate university’s financial aid office. They can cheer you on and give you support as you figure out how to get grad school paid for.
How to pay for grad school using crowdfunding
Fundraising for graduate school tuition and other school-related expenses has become a very popular option that doesn’t involve getting an expensive loan. The benefits of tuition fundraising are twofold: this type of fundraising is available to anyone, and it allows you to save your money for later on in life and plan for your future. It also gives you an efficient and effective way to rally friends and family to support your goal. It can be difficult to ask for donations at first, but once you take that initial step you will see how much people want to support you. Begin by sharing your personal story and why this masters is so important to you and be sure to thank your donors as the donations start to come in.
It’s quick and easy to set up an online fundraiser on GoFundMe. On GoFundMe, fundraising deadlines are up to you. This means you can easily renew your fundraiser each summer (or any time) for the following year’s expenses—which is a huge advantage. The prior year’s fundraiser can serve as a kind of database of your existing supporters, allowing you to easily reach out again with a new fundraiser.
Many students find that the beauty of crowdfunding isn’t simply the student aid you receive, but the emotional support. Your fundraising page becomes a place where friends and family offer words of encouragement and cheer you on.
GoFundMe also offers a wide variety of resources to help you make the most of your efforts, including fundraising tips, fundraising ideas, and how to use social media to promote your fundraiser. Our support team are on hand to answer any questions you may have and to show you how it works.
Income Sharing Agreements (ISAs)
Some institutions offer income-sharing agreements where you receive funding for your education in exchange for a percentage of your future income for a set period. This arrangement can provide financial support while you study.
Employer tuition reimbursement
If you’re already in the workforce and looking to return to school, your employer may help in paying for your education—it’s a win-win since an advanced degree makes you more knowledgeable and skilled. Even if you’re not pursuing a degree program, some employers will pay for you to take graduate-level courses at universities, extension programs, and more. Ask your HR director about how to get your master’s paid for using your company’s tuition reimbursement program.
How to pay for grad school by working at the university
Most academic grad programs expect a teaching commitment as part of graduate study. Teaching assistants(TAs), graduate assistants and research assistants (RAs) typically get a discount on their tuition, in the form of fellowships. If you’re wondering how to pay for graduate school without loans this is a great option. At some universities, assistants have formed unions to secure far better terms for their work than assistants at colleges where such unions have not yet formed. If you’re planning to TA/RA, do your homework and compare stipends for each program—it could be a deciding factor on which graduate program you choose to attend.
How to pay for grad school through military service
All US military academies, including the Air Force Academy, Coast Guard Academy, Merchant Marine Academy, West Point, and Annapolis, offer free education to students in exchange for military service.
Beyond these academies, you can find scholarships and grants available to students enrolling in any number of degree programs at public and private universities in exchange for service. Veterans can also qualify for aid to return to school under the Post-9-11 GI Bill.
Is paying for grad school worth it?
Deciding if paying for grad school is worth it is a personal decision and depends on several factors, including your career goals, the field of study, financial situation, and potential return on investment. Evaluating the cost against the benefits, exploring financial aid options, and considering alternative career paths are crucial steps in making an informed decision.
Moving on up
While you have a few solid options for how to pay for a master’s degree, crowdfunding can truly help you along your crowdfunding journey. Start your fundraising today with GoFundMe.