How To Pay For a Master's Degree | Grad School Payment Options

Pursuing a master's degree is a significant investment in your future and is sometimes necessary for certain career fields. But figuring out how to pay for it can feel overwhelming.

In this guide, we'll explore various financial strategies to help you fund your graduate education. From financial aid options and federal student loans to grants, scholarships, and work-study programs, there are numerous ways to cover your grad school bills.

Ways To Pay For Graduate School

Paying for a graduate degree can be challenging, but with the right planning and knowledge of available resources, you can manage the costs effectively. The following financial aid options can help you fund your graduate education.

1. FAFSA (Free Application for Federal Student Aid)

The first step in securing financial aid for your graduate studies is filling out the online FAFSA form. This application determines your eligibility for federal financial aid, including grants, work-study opportunities, and federal student loans.

Many institutions also use FAFSA data to distribute their own need-based aid, so it's essential to complete it even if you're unsure about your eligibility. Filling it out early can increase your chances of receiving aid since some funds are limited.

2. Grants

College grants are funds that don't have to be repaid. The Department of Education, state governments, institutions, and private organizations award them based on financial need, academic merit, or specific fields of study. Research grants are common for graduate programs, especially in STEM fields, where the funding supports specific research projects.

3. Scholarships

Scholarships are another excellent way to fund your graduate degree because they also don't require repayment. Many universities, private organizations, and professional associations offer scholarships based on academic achievement, leadership, community service, or even unique talents and interests. It's essential to research and apply for as many scholarships as possible to help reduce your educational costs.

4. GI Bill

For military service members and veterans, the GI Bill provides substantial financial support for education. The Post-9/11 GI Bill covers all tuition and fees at public schools, offers a monthly housing allowance, and provides a stipend for books and supplies.

For private institutions, the GI Bill covers a maximum of $28,937.09 for tuition. However, if students participate in the Yellow Ribbon Program, the college will waive some of the leftover tuition. Usually the Department of Veteran Affairs will match how much the college waives to further reduce your tuition costs.

Learn more: Complete Overview of Military Education Benefits

5. Employer-Paid Tuition Assistance

Many employers offer tuition assistance programs to help employees further their education. These programs can cover part or all of your tuition costs and are often available to full-time employees. Some employers may require you to stay with the company for a certain period after completing your degree, so it's essential to understand the terms before enrolling.

6. Work-Study Programs

The federal work-study program provides part-time employment opportunities for graduate students with financial need. These jobs are often related to your field of study, which helps you enhance your resume and provides networking opportunities within your academic or professional field. Work-study earnings can help cover living expenses or reduce the amount you need to borrow in student loans.

7. Federal Student Loans

Federal student loans are a common way to finance graduate education. They offer several advantages over private loans, including lower interest rates, more flexible repayment options, and the possibility of loan forgiveness programs.

The two primary types of federal loans for graduate students are Direct Unsubsidized Loans and Grad PLUS Loans. Direct Unsubsidized Loans have borrowing limits, while Grad PLUS Loans allow you to borrow up to the cost of attendance minus any other financial aid. It's advisable to explore all other funding sources before resorting to loans to minimize debt.

How Much Does a Master's Degree Cost?

The cost of a master's degree can vary widely depending on the program, institution, and location. According to Education Data Initiative, the average tuition for a master's program in the United States ranges from $56,000 to $75,000.

However, public university and college tuition is far below the average; it costs, on average, $48,690. A private school's tuition averages $64,440. Keep in mind that additional costs such as fees, books, and living expenses can add thousands more to the total cost.

Does FAFSA Cover Graduate School?

Yes, FAFSA does cover graduate school. By filling it out, graduate students can qualify for federal financial aid, including Direct Unsubsidized Loans and Grad PLUS Loans.

While Pell Grants are generally not available to graduate students, some may qualify for federal work-study programs or other forms of need-based aid.

FAQs About Paying For Your Master's Degree

Below, we've answered some frequently asked questions about paying for grad school.

How Do I Apply for Financial Aid for Graduate School?

To apply for financial aid for graduate school, start by completing the FAFSA to determine your eligibility for federal loans, work-study programs, and some grants. Submit it as early as possible because some funds are limited.

Additionally, research and apply for scholarships and grants offered by your university, professional organizations, and private foundations. Be sure to check deadlines and specific application requirements for each aid source.

Are There Payment Plans for Graduate School Tuition?

Many universities offer payment plans that allow you to spread out tuition payments over the academic year. This can make it easier to manage costs without taking on additional loans. Check with your institution's financial aid office for available options.

How Can I Minimize Student Debt While Attending Graduate School?

To minimize debt, explore all available grants, scholarships, and employer tuition assistance. Consider part-time work or work-study programs. Borrow only what you need and prioritize federal loans with lower interest rates and flexible repayment options.

Read more: 6 Tips for Paying for College Without Student Loans

What Grants Can You Get for Graduate School?

Graduate students can access various grants to help fund their education. Federal grants like the TEACH Grant are available for those pursuing teaching careers in a low-income district in a high-demand teaching field.

Some states offer grants based on financial need or specific fields of study. Universities often provide institutional grants, especially for research-based programs. Additionally, private organizations and foundations may offer grants targeting specific demographics, disciplines, or research projects.

What Scholarships Can You Get for Graduate School?

Graduate students can apply for a wide range of scholarships based on academic merit, professional achievements, or specific fields of study. Some scholarships of note are listed below.

• Sallie Mae scholarship: a $2,000 scholarship available to any who apply. One applicant is chosen per month.
• Thurgood Marshall College Fund | Bridging the Dream scholarship: a $10,000 scholarship awarded to 10 students a year. The applications encourages that candidates be diverse based on (gender, disability, ethnicity, etc.).
• FOARE Scholarship Program: a conglomerate of 12 different scholarships at $5,000 each

Universities often offer scholarships tailored to graduate programs, while private organizations and professional associations provide scholarships for students pursuing careers in particular industries. Additionally, scholarships are available for underrepresented groups, veterans, and those with unique talents or experiences.