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A Guide to How to Pay for Grad School

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$76,620. That’s a solid chunk of money. Going to graduate school can be an excellent way to increase your career prospects, advance your career, and boost your salary. 

But that number isn’t a salary. That number you just read is the average debt balance among graduate students with federal student loans in 2023, according to the Education Data Initiative. 

Is a grad school education worth that much debt? Maybe. It truly depends on the degree and the demand for the skills you attain during your studies. 

Here’s some good news: you may not need to take out any student loans to go to graduate school. In fact, loans should be your last resort. 

Want to know how to pay for grad school without going deep into student loan debt? This guide is your key.

Specifically, you’ll learn about:

  • How to find grants, fellowships, and scholarships to help pay for grad school

  • How to get your graduate studies fully funded by PhD programs

  • Employers with tuition reimbursement and education assistance programs

  • The best types of part-time jobs for graduate students 

  • If you should consider using your savings to pay your grad school tuition 

  • How to choose the best graduate student loans (if needed)

Let’s begin.

 
 

Grants to help pay for grad school

Grants do not need to be repaid, making them an attractive option for funding your graduate school expenses. 

However, grants tend to be need-based. That means competition for them can be fierce. Availability of grants may also vary depending on the field of study and the institution. 

You’ll need to submit the Free Application for Federal Student Aid (FAFSA) to determine your eligibility for grants. More on that later in this guide. For now, start looking into the following types of grants.

Federal grants for grad students

The federal government has several grant programs for graduate students to consider, such as:

  • TEACH Grant—The Teacher Education Assistance for College and Higher Education grant provides funding for graduate students who commit to teaching in high-need fields at schools serving low-income students.

  • Fulbright Grants—Fulbright Grants offer opportunities for graduate students to engage in international research, study, or teaching in over 140 countries worldwide.

  • Iraq and Afghanistan Service Grants—This federal grant program provides some funding to students who lost a parent or guardian as a result of military service performed in Iraq or Afghanistan after the events of 9/11.

State grants for grad students 

You may also be eligible to receive grants from your state’s government. For example, the Colorado "Critical Career" Graduate Grant awards up to $7,000 in need-based funding for Colorado residents enrolled in a graduate program focusing on a “critical career” field. 

University grants for grad students 

Many graduate departments also have their own need-based grants for qualifying students. For example, the Department of Comparative Studies at the University of Ohio offers several grant programs for graduate students. Be sure to check with the school’s your applying to regarding potential grants.

Private organization grants for grad students 

Private organizations may also offer grants to graduate students who meet specific criteria related to the student’s background and academic field. 


For example, the American Academy for Jewish Research (AAJR) Graduate Research Funding grant provides up to $4,000 to graduate students in any field of Jewish studies at a North American university for dissertation research (while also meeting additional criteria).

Fellowships to help pay for grad school

Fellowships are similar to grants but are often awarded based on merit or specific research interests. They can help cover your graduate school tuition, living expenses, or research costs. 

Like grants, fellowships do not require repayment and can be highly competitive. You can find and apply for graduate student fellowships through your graduate university and private organizations. 

University fellowships for graduate students

Fellowship programs help universities and graduate departments attract talented grad students. 

Here are a few examples:

Private organization fellowships for graduate students 

Many private organizations offer fellowships to talented grad students, depending primarily on the student’s academic field and research interests.

Here are a few examples:

We’d highly recommend dedicating some time to exploring potential fellowships related to your specific field.

Ways to find grad school scholarships

Grad school scholarships can help offset the cost of tuition and other expenses. While some scholarships may be need-based, others may be merit-based or tied to specific research or career goals.

Here are some ways to find grad school scholarships.

Institutional

Many universities have exclusive scholarships for their graduate students. You can find these scholarships by exploring the university’s financial aid website or speaking to someone directly in the financial aid department. 

For example, the Urban Educators Impact Scholarship at NYU Steinhardt is a partial scholarship for current or former teachers from urban school districts who are interested in pursuing full-time graduate study toward a master's degree, advanced certificate, or diploma program.

Within your field

Many organizations offer scholarships to graduate students pursuing degrees in fields related to the organization’s mission and values. 

For example, the Ventana Ocean Conservation Scholarship awards a minimum of $3,000 to students studying a field related to ocean conservation.

You can find grad school scholarships within your field using scholarship search tools like Bold.org, Unigo, or Scholly. 

By demographics

You can also find scholarship organizations looking to award students from underserved demographic backgrounds. 

For example, the ABA Legal Opportunity Scholarship awards $15,000 of financial aid over three years to law school students of an underrepresented racial and/or ethnic minority (e.g., Black/African-American, Native American, Hispanic American, Asian/Pacific Islander).

Another example is the Erin Aaberg Givans Memorial Scholarship, which awards $5,000 to full-time female students pursuing a Master’s degree in public policy, public administration, or public health at a California University.

By state

Some graduate student scholarships are exclusively available to a particular state’s residents. You may be able to find these types of grad school scholarships by exploring your state’s department of higher education website or through a Google search.

For example, the New Mexico Higher Education Department awards a graduate student scholarship of up to $7,200 per year for New Mexico residents with financial need. 

Federal funding 

There are also federal need-based and merit-based scholarships available for graduate studies. 


For example, the CIA’s Graduate Scholarship Program is a financial need-based scholarship providing tuition assistance of up to $25,000 per calendar year for tuition, mandatory fees, and books.

Some grad programs are mostly or fully funded

If you plan to pursue a PhD, you may be eligible for partial or full funding. Yep, that’s right. Many PhD programs offer graduate students full funding to cover tuition and fees. 

PhD students in these programs can also receive monthly stipends to cover living expenses and health insurance.  

For example, Boston University PhD students in good standing receive five years of stipend support, a 100% tuition scholarship, and a health insurance credit.
Similarly, doctoral students at the Ross School of Business at the University of Michigan receive total funding for five years of tuition, health insurance, and a generous stipend.

 

Tuition reimbursement or assistance from employers

Are you planning to work while in grad school? Your current employer may have a tuition reimbursement or education assistance program. 

These programs help employees pursue further education, including graduate school, by covering a percentage of tuition expenses. Check with your company's HR department to see if this type of program is available. 

For example, the following companies have tuition reimbursement programs for employees pursuing graduate studies:

  • Home Depot—Salaried, full-time, and part-time hourly associates can obtain an associate's, bachelor’s, master’s, doctoral, or technical degree at a discounted rate at several partnership universities. 

  • Deloitte—Participants in Deloitte’s Graduate School Assistance Program can receive full tuition reimbursement after two years of employment at Deloitte following graduate school.

Work part-time during graduate school

Balancing full-time work with graduate studies isn’t always feasible. Still, part-time work can be an excellent way to earn income to cover living expenses and graduate school fees. Some part-time jobs can also help you build transferable skills relevant to your post-graduation career aspirations.

Consider the following types of part-time jobs to help pay for grad school.

Graduate student internships—These opportunities provide valuable hands-on experience in your field of study while also offering some financial compensation. For example, a graduate student pursuing a master's degree in environmental science might secure an internship at a wildlife conservation organization.

On-campus work-study jobs—Many universities offer work-study programs allowing students to work part-time while enrolled in classes. These jobs can include positions in the university library, administrative offices, or academic departments.

Teaching/research assistantships—These positions are often available within graduate departments and provide financial support in exchange for assisting professors with teaching or research responsibilities. For example, a PhD student in biology might serve as a teaching assistant for an undergraduate lab course.

Freelance jobs—Freelancing can give graduate students opportunities to work on a flexible schedule and take on projects that align with their skills and interests. For instance, a graduate student pursuing an MFA in Graphic Design might freelance as a logo designer for small businesses.

In particular, you may want to explore what options you have under the Federal Work-Study Program (and your state may also work-study programs).

Using savings for grad school

Your personal savings can be another option to fund your graduate studies. But be wary of relying entirely on your savings. 

While using personal savings can help reduce reliance on loans, it's essential to consider the long-term implications. 

Will you have enough funds to cover expenses throughout the grad program? Will you still have enough money set aside in case of an emergency? 

If not, it’s wise to explore additional funding options such as scholarships, grants, or part-time work to supplement your savings and ensure financial stability throughout your graduate program.

Loans for grad school

After exhausting all of the funding options we’ve shared so far, you may consider taking out student loans. We know this isn’t ideal. But don’t fret.

Depending on your degree's potential return on investment (e.g. the ROI on an MBA), student loans can still be a strategic option for funding your grad school education. You just need to approach this decision with care.

Federal student loans

Start by exploring your options for federal student loans before turning to private loans. Federal loans often offer more favorable terms, including fixed interest rates, income-driven repayment plans, and forgiveness options.

You can take out up to $20,500 annually in unsubsidized federal loans for graduate studies. If that is not enough, you can also take out a PLUS loan amounting to the cost of attendance (determined by the grad school) minus any other financial aid received.

Private student loans

Private loans may be a viable option if you still need more money to cover your graduate education after reaching the maximum limit on federal loans. However, keep in mind that private loans often come with higher interest rates and less flexible repayment terms.

Understanding the potential return on investment in your graduate degree is even more critical if you take out private student loans. 

Research carefully the job prospects and salaries for graduates from your grad program and across professionals already in the field. 

 

FAQ on how to pay for grad school

Does the FAFSA cover graduate school?

Yes, the Free Application for Federal Student Aid (FAFSA) is used to determine eligibility for various types of financial aid, including federal grants, work-study opportunities, and student loans, for both undergraduate and graduate students. 

While some federal aid programs are limited for graduate students compared to undergraduates, completing the FAFSA is still crucial in accessing federal financial assistance for your graduate education.

How can I minimize loans for grad school?

Minimizing loans for grad school involves exploring all available funding options, such as grants, fellowships, and scholarships.

Additionally, consider part-time work or internships to supplement income and reduce reliance on loans. Researching programs with lower tuition costs or full funding is also a good idea. You may seek out employers offering tuition reimbursement benefits as well. 

Living frugally and following a budget can also help stretch available funds.

Where and how can you find grad school scholarships? 

To find scholarships specifically for graduate students, start by researching scholarship databases, such as Fastweb and Scholarships.com. 

Additionally, explore opportunities offered by professional organizations, foundations, and corporate sponsors related to your field of study, demographic background, or career goals. 

You can also contact your university's financial aid office or academic department for information on scholarships available specifically for graduate students.

Final thoughts on how to pay for grad school

Pursuing a graduate degree can be costly and potentially put you in debt. Luckily, it doesn’t have to.  

You have many options for funding your grad school education without relying on your personal savings or student loans. Explore all the options in this guide to give yourself the best chance at making grad school affordable. 

If you're seeking additional guidance throughout the graduate school application process, consider consulting with our graduate school admissions experts. We can provide personalized assistance in crafting a standout statement of purpose and application that showcases your strengths and aligns with your goals.

If you want to explore options for support with the grad school admissions process, schedule a consultation and begin taking the next step in your grad school journey!

 

Special thanks to Ameer Drane for writing this blog post.

Ameer is a freelance writer who specializes in writing about college admissions and career development. Prior to freelancing, Ameer worked for three years as a college admissions consultant at a Hong Kong-based education center, helping local high school students prepare and apply for top colleges and universities in the US. He has a B.A. in Latin American Studies from the University of Chicago and an M.A. in Spanish Linguistics from UCLA. When he’s not working, Ameer loves traveling, weight lifting, writing, reading, and learning foreign languages. He currently lives in Bangkok, Thailand. 

Top values: Growth / Diversity / Empathy