The decisions around attending graduate school don’t happen linearly. It’s not that you, first, choose a school or program, enroll, and then determine how to pay for it. For many people, cost figures in much earlier; those decisions happen concurrently. 

For some, the cost can sometimes factor almost too much into the decision — so much so that ideal programs are abandoned entirely if their tuition is too high.

Don’t ditch your dream school just yet. And don't let cost influence the answer to the question, "Should I go to grad school?" Learning how to finance your graduate education is all part of the process. And lots of schools curate plenty of opportunities for savings, including the University of San Diego School of Leadership and Education Science (SOLES).

There are many creative ways to pay for graduate school. Sometimes, you’ve just got to know where to look.

It starts with the basics.

How Do People Pay for Graduate School?

Truthfully, paying for graduate school is a lot like paying for undergrad. The biggest difference might be that Pell Grants aren’t available to graduate students. Other than that, if your parents helped navigate the forms the first time around, they’ll be good resources. If not — well, that’s what we’re here for.

Regardless of which route you take to help finance your graduate school education, there’s one key form you need to fill out to get this process started: the Free Application for Federal Student Aid, or FAFSA. You need this form in order to be considered for any type of financial aid. 

Think of it this way — without a FAFSA application, neither the government nor the school will understand that you have a financial need. The FAFSA helps put your need in context across the scholarships, grants, loans, and other support options for which you apply. 

And though it may be obvious, it bears repeating: use your income and tax information when you fill out the FAFSA, not your parents’.

4 Ways to Pay for Graduate School

1. Utilize Free Aid

Take advantage of “free” money first! That means scholarships, grants, assistantships, tuition reimbursements — you name it. Generally, this is money that doesn’t have to be paid back, unlike loans. Depending on the school, your program of interest, and the types of aid, you may want to pursue more than one avenue.

• An assistantship is one type of paid academic employment for graduate students. The responsibilities, time requirement, and pay may vary depending upon school and position. But you could see yourself coordinating programs, advising students, or racking up teaching and/or training experience.
• For qualified applicants, grants can come from the college or university itself, a nonprofit organization, or the federal or state government. These are typically awarded to students for their scholarly achievements or other criteria, including recognition for personal achievements in fields outside their academic study.
• Many employers offer tuition reimbursement as a benefit. Seem surprising? These types of benefits improve employee retention. Plus, for many employers, tuition reimbursement allows them to boost the collective skill set of their employees without hiring new ones. Tuition reimbursement is an amount paid for completing coursework. It may come with specific stipulations, such as minimum GPA requirements, employment terms, or taking only specific courses that qualify. Be sure to check with your employer to confirm benefit eligibility.
• Scholarships are offered from various types of institutions (including schools), employers, individuals, companies, community organizations, and more. Most commonly, scholarships are given based on academic merit or athletic achievement, however, there are also ones available for volunteer services and club involvement, as well.

How to Get a Graduate School Scholarship

While graduate scholarships tend to be more modest than undergraduate ones, every penny counts. Not to mention — graduate scholarships are plentiful! So, how do you find scholarships?

First, check the school website. Many programs and universities have scholarships specific to them, and this is a great place to start. Next, if you haven’t already, join a few professional associations in your field of interest. As a member, you may be entitled to scholarships they’ve set aside for continuing education.

Finally, don’t forget to try an online scholarship search tool! Here are a few to get you started:

2. Apply Early and Compare Offers

Not only is more money available at the beginning of the application cycle (in most cases), but the sooner you apply, the sooner you’ll receive your financial award offer. With one or two financial packages in hand, you can “compare offers.” 

Most universities’ academic departments give out graduate aid as opposed to the central financial aid office. You can speak to a graduate admissions official or another person affiliated with your program to help sort out your options. 

What this means is — if you find that your first choice school’s aid package is less than another, you may be able to use a more generous offer from another school to request more. Some schools require requests to be in writing or show proof of financial need to help admissions officers with their decisions.

3. Fill in the Gaps with Student Loans

If you can’t cover all your graduate school expenses with free aid, it’s time to think about student loans.

Student loans get a bad rap, but nearly everyone takes one out. They’re not scary or intimidating — they’re an investment in your education, career, and future. That being said, it’s best to utilize free aid when possible and lower-cost student loans (federal ones) before turning to private lenders.

How to Take Out Loans for Graduate School

Before taking out any loans, make sure you understand how interest and repayment work. Know that you’ll need to borrow carefully! 

Start with federal loans. Compared to private student loans, federal loans usually have the lowest interest rates and most generous repayment terms.

However, you may find that you have to use private lenders to cover the rest. Remember, private lenders don’t always offer the same borrower protections as federal loans, like deferment, forbearance, and specialized repayment plans. While it’s not necessarily a bad thing, it’s certainly something to consider before signing the dotted line.

Private loans do have some advantages, though. For example, private banks offer interest rates that hinge upon your credit history. So, if you have an excellent credit score and a high income to match, you could end up qualifying for a lower rate from a private lender than the government provides on grad PLUS loans. The less your loan costs, the greater the return on your degree.

Some private lenders specialize in loans for specific graduate degrees. Do your research to find out if private lenders exist that support your particular field of study.

4. Get the (Tax) Law on Your Side

Ever heard of the Lifetime Learning Credit?

Available to all American taxpayers, the Lifetime Learning Credit provides a tax credit up to $2,000 per year — or, 20 percent of the first qualifying $10,000 of education expenses every year. This credit is available to you every year you pay for school, but it only counts for student expenses — not student debt. That’s why it’s important that you take advantage of this credit while in school.

Tax law can be a bit precarious, however. If you’re interested in the Lifetime Learning Credit, it’s worth your while to invest a bit of money in a tax software, such as Turbo Tax, or a tax accountant to help you navigate this area.

Invest in Your Future at SOLES

The University of San Diego School of Leadership and Education Sciences is rooted in social justice, led by compassion, inspired by curiosity, and driven by a shared vision. These are our values, and they’re embedded throughout our programs, our courses, our faculty, and the leaders we create. 

Our programs span the realms of education, leadership, and counseling. It’s crucial that we find ways to support the next generation of activists, counselors, and teachers by making this continuing education affordable. 

Securing financial aid for graduate school doesn’t have to be intimidating or complicated. Scholarships, grants, student loans, and other forms of financial assistance are there to support you so you can focus on what’s most important — learning to lead the world in a new direction. 

Download our resource to learn more about the types of financial aid that could fit your circumstances.