With 65% of seniors graduating from college with student loan debt, you likely want to find financial aid for grad school. After all, there is no need to add to your stack of student loans if you can avoid it.
The good news is that funding your graduate degree does not need to be expensive. With many options available for financial aid for graduate students, you might even be able to avoid student loans altogether.
How to get financial aid for grad school
Whether you’re looking for financial aid for your master’s degree or another advanced degree, there are a number of opportunities available to you. Check out the options below before resorting to expensive student loans.
- Apply for a fellowship
- Search for scholarships
- Ask about tuition reimbursement
- Research nonprofits for help
- Find work-study opportunities
- Get hired in an assistantship role
- Seek out aid
- Fill the gap with federal loans
- Consider private student loans
If you’re looking to enter a specific field, a fellowship can be an excellent way to secure funding for your education. Fellowships are merit-based grants that can not only cover your tuition but also your room and board, and other living expenses.
Fellowships can come from a variety of places. You can apply for them through your school for what’s called an institutional fellowship, through federal funding and from outside organizations.
Not only can these fellowships help keep your educational costs low, but they can also help you hone your skills in the field and build your resume. For example, the work you do in your fellowship might tie directly into the work you hope to earn a living for someday, such as teaching or research in a particular area. These are as much educational opportunities as financial ones, so be sure to do your research on fellowships for which you could be eligible.
You can do this easily by signing up for sites such as ProFellow, which offers a searchable database of fellowships as well as application tips to help you in the process. You can also search for fellowships with the help of a database maintained by UCLA.
Another way to get money for graduate school is through grad school scholarships. This is a great option because you don’t have to repay the funds. There are a wide variety of ways you can earn a scholarship.
For example, you might find scholarships based on merit, field of study, location and even your heritage. Don’t leave any stone unturned in your search for scholarships you might be eligible for.
Below are a few tools to help you find scholarships specifically for graduate study:
For more scholarship resources, check out Student Loan Hero’s guide to scholarship search tools to aid in your hunt.
If you already have a job and plan to keep working while you are in grad school, then check if your employer offers tuition reimbursement. Many large companies offer this benefit to their employees who choose to pursue higher education.
Some companies set limits on the amount that you can be reimbursed for tuition each year, while others may have an unlimited policy. Talk to your human resources department to find out what your company has to offer.
Some prospective students are surprised to learn that they can look for financial aid from nonprofits. What you want here is a nonprofit that helps fund education for people like you — whether that’s based on how much income you have, where you come from, or even the field of study you’re interested in.
This could take a little more digging than the previous options, but you can get started by looking at resources like QuestBridge, which helps low-income students gain access to education.
Another way to find financial aid for grad school is to look for work-study opportunities. Federal work-study programs are awarded based on need and are available for both graduate and undergraduate programs.
These programs vary by school and are offered on a first-come, first-served basis. If you’re interested, then hurry up and fill out your Free Application for Federal Student Aid (FAFSA), which you can do for the next school year as early as the fall of the previous year.
You are awarded a certain amount based on your level of financial need, your school’s funding and when you apply. Graduate and professional students can be paid by the hour or on salary, and that pay would go directly to you. However, you can choose to have your paycheck fund your school expenses.
As for the kind of work you can do with work-study, that will depend on the program you’re in. There might even be cases when you work off-campus if your school has a partnership with a private company in an industry relevant to your degree.
Many grad students turn to assistantships to help fund their education and life while in school. However, these roles, either as a teaching assistant or research assistant, tend to be a lot of work.
The average assistantship position requires 20 hours of work per week of teaching undergraduates, conducting lab work for your professor or similar tasks. And that time commitment can add up fast when paired with a challenging course load.
Although assistantships are common, they can be limited in number. Reach out to your school as soon as possible to see what’s available and apply soon to make sure you don’t come up empty-handed.
A clinical social worker-turned-blogger and entrepreneur, Andrea Imafidon used her role as a graduate assistant to gain a higher degree without incurring too much debt. With the help of the financial aid office at her school, Imafidon found a 20-hour-per-week post as a graduate assistant, which helped her avoid additional debt and earn a decent living as a student.
“I made more than enough money to live on, travel and save money with,” Imafidon said. “My graduate assistantship was one of the highest-paying gigs on campus … [and] covered my tuition, out-of-state fees, books and housing.”
After you’ve scouted out your fellowship, work-study and assistantship options, the next thing to look for is aid. Two places that might offer aid are your state and your school.
First, find out if your state offers financial aid for grad students by contacting the state grant agency. Even if you are considering an out-of-state school, you should reach out to that state agency to find out if they can offer you aid. The Department of Education has a map to help you find the contact information for various agencies in each state.
Besides state aid, your school might offer financial aid. Most schools offer some form of financial aid, so it is important to find out if yours does. And if you find aid for which you could be eligible, be mindful of turning in your application on time.
If you’ve exhausted all other options, look to federal student loans to fill the gap in your financial aid for grad school. Remember to complete your FAFSA early so you can have access to the most funds possible.
The FAFSA can unlock access to more than just loans (since it can also lead you to work-study opportunities and aid such as grants), but it’s also the only way to obtain federal student loans. This is important to know because these loans come with more repayment flexibility than private loans, as they offer advantages like access to income-driven repayment plans.
The Federal Student Aid office lists the options available to you as a graduate student, for which you’ll apply when you submit your FAFSA. While knowing your options ahead of time is always helpful, it’s not absolutely necessary in this scenario. That’s because submitting just one FAFSA each year enables you to see all of the programs that you can qualify for.
If you’re offered more than one type of aid, be sure to take any grants before you take on loans. At the very least, you might be able to lower the cost of the debt you have to take out. And if you don’t feel like you received enough federal funding, you can ask for more financial aid in an appeal.
If you’re completely out of all other options for financial aid for grad school, you can close the gap with private student loans.
Private student loans are a great tool for those in need of that extra bit of funding not covered by other means, but they’re still a serious financial product. Private loans don’t offer some of the protections that federal loans do, such as income-driven repayment plans or federal loan forgiveness.
What’s more, private loan interest rates can end up being higher, and those interest rates can cost you more money overall and keep you in debt for a longer period.
Still, it may be worth considering, depending on your personal financial situation. MyCorporation CEO Deborah Sweeney took out private and federal loans to supplement a scholarship she had that didn’t pay for all of her grad school — and for her, the debt was worth the investment.
“It has been a lifelong philosophy to not be afraid of taking loans for calculated reasons — to advance my education, to purchase a home and to invest in my business,” Sweeney said. “In turn, I work hard and spend carefully to pay off the loans as quickly as possible.”
If you’re thinking about using private student loans to supplement financial aid for grad school, weigh the costs and risks carefully before you proceed and then be prepared to pay them off quickly, like Sweeney did.
Take a beat before you take a leap
Grad school is the dream of many who wish for career advancement or a career change, or simply have a love of learning. But it’s not a dream that comes free, even when the tuition is covered through grants and other means.
Unless you go to school part time, the time you spend in grad school is time you won’t be working. That means losing out on your salary as well as the increases you’d have in your pay for each year of experience you gain.
That said, graduate school can also lead to a boost in your pay depending on the degree you get — and it might even open doors to careers you wouldn’t have had access to otherwise. Like all investments, there’s a list of benefits and disadvantages to evaluate. Make your own list of pros and cons before you make up your mind because grad school is not the right path for everyone.
And if you need a little help making this decision, here’s a handy guide to help you decide if grad school is worth it.
Sarah Sharkey contributed to this report.
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|1.04% – 11.98%1||Undergraduate, Graduate, and Parents|
|1.13% – 11.23%*,2||Undergraduate, Graduate, and Parents|
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|2.20% – 6.17%4||Undergraduate and Graduate|
|1.05% – 11.44%5||Undergraduate and Graduate|
|1.82% – 11.32%6||Undergraduate|
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|1.15% – 11.01%9||Undergraduate and Graduate|
|* The Sallie Mae partner referenced is not the creditor for these loans and is compensated by Sallie Mae for the referral of Smart Option Student Loan customers.
1 Important Disclosures for College Ave.
College Ave Student Loans products are made available through either Firstrust Bank, member FDIC or M.Y. Safra Bank, FSB, member FDIC. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply.
Rates shown are for the College Ave Undergraduate Loan product and include autopay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. Variable rates may increase after consummation.
Information advertised valid as of 7/22/2021. Variable interest rates may increase after consummation. Approved interest rate will depend on the creditworthiness of the applicant(s), lowest advertised rates only available to the most creditworthy applicants and require selection of full principal and interest payments with the shortest available loan term.
2 Sallie Mae Disclaimer: Click here for important information. Terms, conditions and limitations apply.
3 Important Disclosures for CommonBond.
Offered terms are subject to change and state law restriction. Loans are offered by CommonBond Lending, LLC (NMLS # 1175900), NMLS Consumer Access. If you are approved for a loan, the interest rate offered will depend on your credit profile, your application, the loan term selected and will be within the ranges of rates shown. If you choose to complete an application, we will conduct a hard credit pull, which may affect your credit score. All Annual Percentage Rates (APRs) displayed assume borrowers enroll in auto pay and account for the 0.25% reduction in interest rate. All variable rates are based on a 1-month LIBOR assumption of 0.15% effective Jan 1, 2021 and may increase after consummation.
4 Important Disclosures for EdvestinU.
EDvestinU is a product of the nonprofit New Hampshire Higher Education Loan Corporation (dba The NHHEAF Network) NMLS ID#1527348.
APR range and repayment rates displayed assume a $10,000 loan disbursed in two equal disbursements. APR low assumes immediate repayment and 7 year repayment. APR high assumes deferred repayment and 15 year repayment. APR’s presented include a .50% interest rate reduction for electing to have payments automatically deducted from a bank account. The interest rate reduction for authorizing our servicer to automatically deduct monthly payments from a savings or checking account will not reduce the monthly payment, but will reduce the monthly finance charge, resulting in a lower total cost of loan. All examples are provided for educational purposes and actual terms may vary based on credit history, loan amount, applicable repayment term, and chosen repayment plan and method. Please note that the interest rate on variable rate programs may increase or decrease over time. The variable rate example assumes the same standard rate for the life of the loan. The NHHEAF Network reserves the right to modify or cancel its program at any time.
Eligibility: Dependent and independent U.S. citizen students. Currently residents of Washington and California are not eligible for EDvestinU programs.
Loan Limits: Minimum loan amount of $1,000.
Repayment: Standard or graduated repayment options available during repayment; 7, 10, or 15 year term selected by the borrower.
Cosigner Release: Cosigner release allowed if an account is in current standing, after 36 months of consecutive & on-time payments with a borrower FICO >749 for EDvestinU Private Student Loans and minimum income requirement of $30,000 with no foreclosures, repossessions, wage garnishments, unpaid tax liens, unpaid judgments or other public records having an open balance exceeding $100 during the last 7 years. The borrower must not currently be involved in bankruptcy proceeding or had any bankruptcy filings during the past 10 years and cannot have any defaults on education loans.
5 Important Disclosures for Earnest.
6 Important Disclosures for Ascent Student Loans.
Ascent Student Loans Disclosures
Ascent loans are funded by Bank of Lake Mills, Member FDIC. Loan products may not be available in certain jurisdictions. Certain restrictions, limitations; and terms and conditions may apply. For Ascent Terms and Conditions please visit: >AscentFunding.com/Ts&Cs;.
Rates are effective as of 07/01/2021 and reflect an automatic payment discount of either 0.25% (for credit-based loans) OR 1.00% (for undergraduate outcomes income-based loans). Automatic Payment Discount is available if the borrower is enrolled in automatic payments from their personal checking account and the amount is successfully withdrawn from the authorized bank account each month. For Ascent rates and repayment examples please visit: >AscentFunding.com/Rates.
1% Cash Back Graduation Reward subject to terms and conditions, please visit AscentFunding.com/Cashback. Cosigned Credit-Based Loan student borrowers must meet certain minimum credit criteria. The minimum score required is subject to change and may depend on the credit score of your cosigner. Lowest APRs are available for the most creditworthy applicants and may require a cosigner.
7 Important Disclosures for Funding U.
Offered terms are subject to change. Loans are made by Funding University which is a for-profit enterprise. Funding University is not affiliated with the school you are attending or any other learning institution. None of the information contained in Funding University’s website constitutes a recommendation, solicitation or offer by Funding University or its affiliates to buy or sell any securities or other financial instruments or other assets or provide any investment advice or service.
8 Important Disclosures for SoFi.
UNDERGRADUATE LOANS: Fixed rates from 4.13% to 10.66% annual percentage rate (“APR”) (with autopay), variable rates from 1.12% to 11.23% APR (with autopay). GRADUATE LOANS: Fixed rates from 4.13% to 10.90% APR (with autopay), variable rates from 1.10% to 11.34% APR (with autopay). MBA AND LAW SCHOOL LOANS: Fixed rates from 4.08% to 10.86% APR (with autopay), variable rates from 1.05% to 11.29% APR (with autopay). PARENT LOANS: Fixed rates from 4.23% to 10.66% APR (with autopay), variable rates from 1.20% to 11.23% APR (with autopay). For variable rate loans, the variable interest rate is derived from the one-month LIBOR rate plus a margin and your APR may increase after origination if the LIBOR increases. Changes in the one-month LIBOR rate may cause your monthly payment to increase or decrease. Interest rates for variable rate loans are capped at 13.95%, unless required to be lower to comply with applicable law. Lowest rates are reserved for the most creditworthy borrowers. If approved for a loan, the interest rate offered will depend on your creditworthiness, the repayment option you select, the term and amount of the loan and other factors, and will be within the ranges of rates listed above. The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. Information current as of 4/1/2021. Enrolling in autopay is not required to receive a loan from SoFi. SoFi Lending Corp., licensed by the Department of Business Oversight under the California Financing Law License No. 6054612. NMLS #1121636 (>www.nmlsconsumeraccess.org).
9 Important Disclosures for Citizens Bank.
Citizens Bank Disclosures
Undergraduate Rate Disclosure: Variable interest rates range from 1.15% – 11.01% (1.15% – 10.24 APR)Fixed interest rates range from 4.18% – 11.70% (4.18% – 10.83% APR).
Graduate Rate Disclosure: Variable interest rates range from 1.89% – 10.66% (1.89% – 10.41% APR). Fixed interest rates range from 4.64% – 11.23%% (4.64% – 10.95% APR).
Business/Law Rate Disclosure: Variable interest rates range from 1.89% – 9.22% (1.89% – 8.50% APR). Fixed interest rates range from 4.38% – 10.44% (4.38% – 9.72% APR).
Medical/Dental Rate Disclosure: Variable interest rates range from 1.89% – 8.02% (1.89% – 7.72% APR). Fixed interest rates range from 4.28% – 9.24% (4.28% – 8.94% APR).
Parent Loan Rate Disclosure: Variable interest rates range from 1.97% – 7.06% (1.97% – 7.06% APR). Fixed interest rates range from 4.94% – 8.58% (4.94% – 8.58% APR).
Bar Study Rate Disclosure: Variable interest rates range from 4.44% – 9.58% (4.44% – 9.52% APR). Fixed interest rates range from 7.39% – 12.94% (7.40% – 12.83% APR).
Medical Residency Rate Disclosure: Variable interest rates range from 3.53% – 7.03% (3.53% – 6.76% APR). Fixed interest rates range from 6.99% – 10.49% (6.98% – 10.09% APR).
Variable Rate Disclosure: Variable Rates are based on the one-month London Interbank Offered Rate (“LIBOR”) published in The Wall Street Journal on the twenty-fifth day, or the next business day, of the preceding calendar month. As of June 1, 2021, the one-month LIBOR rate is 0.09%. Variable interest rates will fluctuate over the term of the loan with changes in the LIBOR rate, and will vary based on applicable terms, level of degree and presence of a co-signer. The maximum variable rate is the greater of 21.00% or Prime Rate plus 9.00%.
Fixed Rate Disclosure: Fixed rate ranges are based on applicable terms, level of degree, and presence of a co-signer.
Lowest Rate Disclosure: Lowest rates require a 5-year repayment term, immediate repayment, a graduate degree (where applicable), and include our Loyalty and Automatic Payment discounts of 0.25 percentage points each, as outlined in the Loyalty Discount and Automatic Payment Discount disclosures. Rates are subject to additional terms and conditions, and are subject to change at any time without notice. Such changes will only apply to applications taken after the effective date of change.
Federal Loan vs. Private Loan Benefits: Some federal student loans include unique benefits that the borrower may not receive with a private student loan, some of which we do not offer. Borrowers should carefully review federal benefits, especially if they work in public service, are in the military, are considering possible loan forgiveness options, are currently on or considering income based repayment options or are concerned about a steady source of future income and would want to lower their payments at some time in the future. When the borrower refinances, they waive any current and potential future benefits of their federal loans. For more information about federal student loan benefits and federal loan consolidation, visit http://studentaid.ed.gov/. We also have several resources available to help the borrower make a decision on our website including Should I Refinance My Student Loans? and our FAQs. Should I Refinance My Student Loans? includes a comparison of federal and private student loan benefits that we encourage the borrower to review.
Eligibility Criteria: Applicants must be a U.S. citizen, permanent resident, or eligible non-citizen with a creditworthy U.S. citizen or permanent resident co-signer. For applicants who have not attained the age of majority in their state of residence, a co-signer is required. Citizens Bank reserves the right to modify eligibility criteria at any time. Citizens Bank private student loans are subject to credit qualification, completion of a loan application/Promissory Note, verification of application information, and if applicable, self-certification form, school certification of the loan amount, and student’s enrollment at a Citizens Bank participating school.
Loyalty Discount Disclosure: The borrower will be eligible for a 0.25 percentage point interest rate reduction on their loan if the borrower or their co-signer (if applicable) has a qualifying account in existence with us at the time the borrower and their co-signer (if applicable) have submitted a completed application authorizing us to review their credit request for the loan. The following are qualifying accounts: any checking account, savings account, money market account, certificate of deposit, automobile loan, home equity loan, home equity line of credit, mortgage, credit card account, or other student loans owned by Citizens Bank, N.A. Please note, our checking and savings account options are only available in the following states: CT, DE, MA, MI, NH, NJ, NY, OH, PA, RI, and VT and some products may have an associated cost. This discount will be reflected in the interest rate disclosed in the Loan Approval Disclosure that will be provided to the borrower once the loan is approved. Limit of one Loyalty Discount per loan and discount will not be applied to prior loans. The Loyalty Discount will remain in effect for the life of the loan.
Automatic Payment Discount Disclosure: Borrowers will be eligible to receive a 0.25 percentage point interest rate reduction on their student loans owned by Citizens Bank, N.A. during such time as payments are required to be made and our loan servicer is authorized to automatically deduct payments each month from any bank account the borrower designates. Discount is not available when payments are not due, such as during forbearance. If our loan servicer is unable to successfully withdraw the automatic deductions from the designated account three or more times within any 12-month period, the borrower will no longer be eligible for this discount.