- If you plan to attend graduate school, it's important to understand the costs up front.
- Grants, scholarships, and fellowships help pay for school without unnecessary loans.
- Other options to pay for school include an assistantship or a part-time job.
Free money first: grants and scholarships
You may be considering graduate school to further your education. But the high costs to attend grad school might make you think twice about committing to more classes.
The good news is that grad students have plenty of options to cover those costs. However, the best options are funds you don't have to repay.
Research is key
Grants, scholarships, and fellowships are all forms of gift aid — meaning they allow you to fund grad school without having to pay the money back.
In general, students who qualify for state or federal grants will access the funds by filling out the Free Application for Federal Student Aid (FAFSA). In contrast, scholarships are often targeted at specific groups, like athletes or women in STEM. Most scholarships require you to submit a unique application to share your qualifications for the award.
Finally, fellowships are typically awarded by schools and other organizations to students on a merit basis. Many fellowships go beyond covering your tuition to provide a stipend for living expenses.
"Utilizing grants, scholarships, and fellowships as financial aid options enables students to substantially minimize or even completely eradicate the necessity for student loans," says Trinity Owen, NFEC Certified Financial Education Instructor and owner of The Pay at Home Parent.
As a graduate student, relying on grants, scholarships, and fellowships is better than taking out loans to pay for school. When you graduate from your program, repaying your student loans can have a substantial negative impact on your financial situation. Graduating without any debt — or with a smaller debt burden — can lead to a more comfortable life after graduation.
Types of grants and scholarships
Need-based
The first step is to fill out the FAFSA. Depending on your financial situation, you may qualify for need-based financial aid. Even if you didn't qualify for this type of aid as an undergraduate, a change to your dependency status or a lower income could have a big impact on your access to gift aid.
Merit-based
Merit-based scholarships are often awarded for academic or other achievements, often pertaining to the field you're going into.
Subject-specific
Subject-specific fellowships are usually merit-based opportunities to study a particular subject. The length of a fellowship might range from a few months to several years. Typically, you'll get a stipend for living expenses on top of your tuition costs.
Comparing school costs with and without aid
Paying for graduate school is often not as simple as finding a single grant to cover the entire cost. Instead, you might piece together smaller grants and scholarships to make your graduate school experience financially feasible.
The reality is that any free money you obtain will have a positive impact on your financial future. Below we will explore how much you stand to save if your entire graduate education costs $50,000:
| With no grants or scholarships | With $5,000 in grants or scholarships | With $10,000 in grants or scholarships | With $30,000 in grants or scholarships | With $50,000 in grants or scholarships | |
| Loan amount required | $50,000 | $45,000 | $40,000 | $20,000 | $0 |
| Monthly loan payment (10 year term, 7% interest rate) | $581 | $522 | $464 | $232 | $0 |
| Total cost education, including loan interest | $69,665 | $62,699 | $55,732 | $27,866 |
Employer assistance and fellowships
Employer tuition reimbursement
Many large companies offer educational assistance to their employees. While you might have to go to school at a different pace, getting through school debt-free might be worth it.
Graduate assistantships
Many graduate programs offer assistantships to their students. In exchange for teaching classes or conducting research, the school may waive your tuition and possibly provide a living stipend. You can find out more about these opportunities directly from the administrator of your program.
Fellowships
Fellowships are usually merit-based opportunities to study a particular subject. The length of a fellowship might range from a few months to several years. Typically, you'll get a stipend for living expenses on top of your tuition costs.
Federal student aid
Start with the FAFSA
File the Free Application for Federal Student Aid, or FAFSA, to determine eligibility for federal loans and work-study. The FAFSA is a form that determines what types of student aid you qualify for. You'll need to provide various documents to determine how much financial aid you'll receive.
Types of federal loans
Direct unsubsidized loans: With direct unsubsidized loans, you are responsible for the interest that accrues during all periods.
Direct PLUS loans (for graduate or professional students): A Direct PLUS Loan is the federal option for parent loans. PLUS stands for Parent Loan for Undergraduate Students. You can use them to pay for expenses not covered by other financial aid offered by your child's school.
Private student loans
You can find scholarships available through countless organizations targeted to specific groups. Consider using a scholarship search engine, like Big Future by College Board, to find opportunities.
Before committing to a loan, shop around for the best rates and repayment options — not all private loans are created equal. For borrowers with limited credit history or lower credit scores, consider having a cosigner on your loan.
Other options
TEACH grants
If you are planning to pursue a career in teaching, you can tap into up to $4,000 per year in grants. At the end of your education, you must teach in a high-need field as a full-time teacher at a school that serves low-income students for at least four years. If you don't meet the service obligation, the grant will be converted into a loan.
Fulbright grants
Fulbright grants allow U.S. citizens to pursue graduate school abroad.
State-sponsored grants
Many states offer grants to students based on financial need or to those pursuing education in a specific field. Your school's financial aid office can highlight any state-sponsored grants you may qualify for.
Organizational grants
Many organizations offer grants to their members. If you or your family is part of an organization, find out if they have grants available for graduate students.
FAQs
If you can't afford grad school, don't give up! Explore all options, consider part-time programs, or research schools with lower tuition.
Make sure you remain cautious of taking on too much debt. Borrow only what you need and research affordable programs.
Yes, there are some student loan forgiveness programs for graduate school, such as Public Service Loan Forgiveness (PSLF) and certain state-based programs.
Paying for grad school: Conclusion
Paying for graduate school requires careful planning and research. By exploring multiple funding options, prioritizing free money and lower-cost loans, and managing your finances wisely, you can reduce your debt burden and focus on your academic goals.
