How to Pay for Graduate School
One of the most daunting pieces for students pursuing a graduate degree is the task of paying for it.听Several factors can affect how much you should plan to set aside or borrow. Variables include the desired school to attend, whether or not you are in-state or out-of-state, will live on campus or off campus, transportation听costs, living expenses in the neighborhoods near the school, books, additional fees charged by the institution, and more. Here are some tips to help you get started:听
1.听Get Your Employer to Pay
If you, like many graduate students, are also a working professional, start your search for financing by investigating your company鈥檚 tuition benefits. Numerous companies offer tuition benefits to encourage their talent to further their education and thereby benefit the company itself. The degree or certificate generally must be related to the employee鈥檚 role at听work to qualify and the grade earned in the course must be a 鈥叠鈥 or better. Some student employees may be fortunate enough to have 100% of the tuition covered, while other programs may reimburse only a certain amount annually. Most companies reimburse tuition after proof of the grade earned, so student employees will need to pay the initial听costs.听
2.听Scholarships and Grants
Although a bit tougher to obtain with economically forced cutbacks to many traditional sources of free money for graduate students, with some research into specific departments at a school, you might discover scholarships based on merit or even needs-based funding (e.g. FAFSA). The earlier you apply, the better your chances of receiving aid鈥搒ince programs typically like to nab outstanding candidates early.
3.听Work for the School
If you are not already a working professional, you might听want to look into job opportunities at the school you would like to attend.听Similar to scholarships and grants, these positions are available through specific departments. The key is to be highly aware of the specific topic you would like to study in depth and then seek out those programs and instructors that might be willing to offer you an assistantship. Often, there are more of these positions available for doctoral students than for those earning a master鈥檚 degree.
There are also organizations, both in the private and public sector, that offer fellowships. Be aware this can be a highly competitive applicant pool.听
Many schools also offer work-study, need-based financial aid that allows students to work on-campus or with an approved off-campus agency.
4.听Tax Credits & Deductions
A tax deduction, which reduces the amount of income subject to tax, can be used to deduct qualified education expenses. You might qualify for a business expense deduction if you need a graduate degree to keep your job or to maintain or gain new skills required for your current job.
Look into the to see if you qualify.
Check with the for more information.
5.听 Savings
As with any large financial commitment, it is best to start saving and cutting back expenses as early into the planning phase as possible. If you think that your start date for attending grad school is a couple of years in the future, now is the time to start saving. It鈥檚 less expensive to save than to borrow and your money works for you!
The U.S. government allows a withdrawal from your IRA (individual retirement account) penalty-free as long as the money is used for education.
6.听Borrow Wisely
If you are paying for your own or for your child鈥檚听higher education (including grad school) you and other family members, friends, and even employers can contribute to a 529 plan that you establish. Every dollar contributed can be deducted from state taxable income and the earnings grow federal and state tax-free!
Check out听 to see if you qualify for additional funding.听
Some loan options include Perkins loans, Stafford loans, and Graduate PLUS loans.听
Keep in mind that private loans may be tempting, especially with low variable interest rates to start, but with variable rate private loans interest rates could sky rocket before your final payment. Private loans may also have higher upfront fees and fewer repayment options. Think carefully before selecting private loans to finance your education.
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