Janice Lozano
Paying for graduate school can be a daunting task, but there are several financial aid options and financing options to make the cost more manageable. This includes gift aid, work-study programs, student loans, scholarships, grants, and fellowships. Many graduate students receive some form of financial aid, and it is recommended to explore these options before taking on debt. Graduate students can also consider federal or private loans, with private loans potentially offering lower interest rates and more flexible repayment options. Additionally, some employers offer tuition reimbursement, and graduate students can also explore part-time jobs or internships to supplement their income.
| Characteristics | Values |
|---|---|
| Scholarships | Money awarded based on merit or achievement. |
| Fellowships | Money awarded to applicants with exemplary achievements. |
| Grants | Usually need-based. |
| Work-study programs | Part-time jobs, either on-campus or off-campus, where earnings are used to pay for expenses. |
| Federal or private loans | Borrowing money to pay for school, with federal loans having higher interest rates than private loans. |
| Tuition reimbursement | Some employers offer tuition reimbursement. |
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What You'll Learn
Scholarships, grants, and fellowships
Scholarships
Scholarships are less common for graduate students than for undergraduates, so you need to be strategic in your search. You can start by looking at scholarships.com, which helps you find graduate school scholarships you are eligible for. You can also apply for federal student loans if you are a part-time student. Additionally, some states offer grants to graduate students, though there may be fewer opportunities than for undergraduates. If you are an international student, some schools provide an in-state tuition waiver, which gives you lower in-state tuition. If you can demonstrate financial need, you may qualify for financial aid.
Grants
Grants are a form of financial aid that does not need to be repaid. They are often provided based on financial need, but other factors like academic performance may be considered. Generally, you must be enrolled in an accredited college or university to be eligible for a grant. Some grants are school-specific, where institutions offer grants to attract promising students to their graduate programs. Organizations and corporations also offer grants to help students get the advanced education required for their professions. Demographic factors may also play a role, with some grants provided to members of a certain race to help bridge the gap in underrepresentation in specific fields.
Fellowships
Fellowships can be university-awarded, federally funded, or offered by independent organizations. They are often targeted at specific student groups or fields of study. There are two types of fellowships: institutional and portable. Institutional fellowships are offered by a particular university and come with certain restrictions, while portable fellowships offer more freedom and funding to allow students to choose a graduate program that aligns with their interests and goals. Fellowships are usually awarded based on academic achievement and research. Graduate assistantships are also available, which are part-time research and teaching positions at universities that offer stipends and, in many cases, tuition remission.
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Work-study programs
To be eligible for a work-study program, students typically need to demonstrate financial need and maintain satisfactory academic progress. In the US, students must complete the Free Application for Federal Student Aid (FAFSA) and meet citizenship or residency requirements. International students are generally not eligible for federal work-study programs but may be able to participate in state or institutional work-study programs.
Work-study jobs can be found both on-campus and off-campus, and they may or may not be related to the student's field of study. Students can search for job opportunities through their school's financial aid office, department head, or online job boards. Once a position is identified, students typically need to go through the standard hiring process, including interviews, to secure the job.
It's important to note that work-study earnings are usually not enough to cover all expenses, and students may need to combine them with other forms of financial aid, such as scholarships, grants, or loans. Additionally, work-study programs often have earnings limits, and students should be mindful of how their earnings may impact their financial aid package or tax liability.
Overall, work-study programs offer graduate students a valuable opportunity to gain work experience, build their resumes, and earn money to help pay for their education and living expenses. By participating in these programs, students can gain financial independence and reduce their reliance on loans, setting themselves up for a more secure financial future.
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Federal and private loans
As a graduate student, you may have access to federal student loans or private student loans to help pay your bills. These loans are credit-based, so your credit history will play a role in determining your eligibility and interest rates.
Federal Loans
Federal student loans are required by law to offer flexible repayment options, including income-based repayment plans and loan forgiveness benefits. Federal loans are also available to students regardless of income, and you don't have to demonstrate financial need to qualify for a Direct Unsubsidized Loan. The interest rates for federal loans are usually fixed and set by the Department of Education. The Standard Repayment Plan is the default option, with fixed monthly payments over 10 years, or up to 30 years for consolidated loans. The Graduated Repayment Plan starts with lower monthly payments that increase every two years, mirroring a new graduate's salary progression. Income-Driven Repayment Plans are designed for borrowers struggling with high loan payments relative to their income. Federal Direct Graduate PLUS Loans are credit-based and have a higher fixed-interest rate than Federal Direct Loans.
Private Loans
Private graduate student loans are also credit-based, and a good credit history will help you secure a lower interest rate. Private loans offer both fixed and variable interest rates, and you will need to repay the borrowed amount plus interest. Private student loans are available through banks and credit unions. The Sallie Mae Graduate School Loan allows you to borrow up to 100% of your school fees each year, and you can choose to make in-school payments or defer them until after graduation.
It is important to evaluate your anticipated monthly loan payments and expected future income before considering a private student loan.
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Employer tuition reimbursement
Tuition reimbursement is when an employer agrees to cover some or all of an employee's education expenses, such as grad school. This is a benefit that can help you pay for your graduate degree, and it can be a deciding factor when considering whether to accept a job.
Many employers see tuition reimbursement as an investment in their employees. By continuing your education, you will improve your skills and, in turn, deliver better results for your employer. Some companies prepay for students' coursework, while others require you to pay upfront and submit a request for reimbursement. It's important to review the program details and eligibility requirements, as these vary by organization. For example, some companies require you to work for a certain number of years after receiving your degree.
To take full advantage of tuition reimbursement, you should understand your employer's participation requirements. This may include tapping into other funding sources, such as federal student aid programs, scholarships, and state grants. You should also check with your employer to see if they require prior approval before you enroll in a graduate program. Some employers may also require you to complete a Free Application for Federal Student Aid (FAFSA) before submitting a request for reimbursement.
Tuition reimbursement can benefit you in several ways. Firstly, it is not reported as income on your federal income tax. Secondly, it can increase your professional confidence and chances of promotion. Finally, it can help you obtain a master's degree, which often leads to a pay increase.
In addition to tuition reimbursement, there are other ways to pay for graduate school, such as scholarships, grants, fellowships, assistantships, and federal and private loans. Many schools and organizations offer scholarships and fellowships that cover a portion of graduate education costs, and this is usually money that you don't have to pay back.
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Personal savings
Housing
Firstly, consider your housing options. Many universities offer graduate student housing, which can be cheaper than living off-campus. For example, on-campus housing for a two-bedroom, one-bathroom apartment was $1186 per month, compared to $3500 per month for a similar off-campus apartment. If you prefer to live off-campus, look for cheaper options, such as renting a room in a shared house or apartment.
Scholarships, Fellowships, and Grants
Take advantage of scholarships, fellowships, and grants, which can provide money that you don't have to repay. Many schools and organizations offer scholarships and fellowships based on merit or achievement. For example, Southern Illinois University offers a graduate scholarship that waives one-third of tuition for students with outstanding academic achievement. Grants are usually need-based and can provide additional financial support.
Work-Study Programs and Part-Time Jobs
Consider enrolling in a work-study program, which allows you to work part-time on or off-campus and use your earnings to pay for your expenses. Alternatively, you can opt for a part-time job or paid internship to cover some of your bills.
Budgeting and Saving
Create a budget and save where you can. Determine a base amount you want to save each month, and move that money into a savings account as soon as you get your paycheck. Cut down on unnecessary expenses, such as buying the newest phone or fashion trend. Instead of buying coffee from coffee shops, make your own at home. If you live within walking distance of your university or workplace, walk instead of driving to save on gas and vehicle maintenance costs.
Student Loans
As a last resort, consider taking out student loans. Compare federal and private loans to find the best option for you. Evaluate your anticipated monthly loan payments versus your expected earnings after graduation. Remember to borrow responsibly and only take out the amount you need for tuition and related expenses.
Remember that personal savings should be used in conjunction with other financial aid options to cover your bills as a graduate student.
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Frequently asked questions
There are several ways to pay your bills as a graduate student. You can look into scholarships, grants, fellowships, work-study programs, or federal and private loans. Many schools offer fellowships, assistantships, grants, and scholarships for their graduate students. Grants and scholarships are usually need- or merit-based, while fellowships can require research in return for the reward. Work-study programs allow you to get a part-time job related to your field of study and use your wages to pay for a portion of your education costs.
Southern Illinois University offers a graduate scholarship program that waives one-third of tuition for admitted students with outstanding academic achievement. Prospanica, an association of Hispanic MBAs and business professionals, provides graduate scholarships for members with entrepreneurial prowess and a desire to uplift the Hispanic community. The CIA Scholarship Program allows graduate students to attend school full-time and work during summer breaks, receiving up to $18,000 per year in tuition assistance.
Before taking out a loan, explore cost-free funding options such as scholarships, grants, fellowships, and assistantships. If you still need to take out a loan, compare the interest rates and repayment options offered by federal and private loans to make an informed decision. Federal loans may have higher rates, but private loans distributed by banks and financial institutions may offer lower rates based on creditworthiness.
