Graduate school includes any post-bachelor degree education such as a master's, MBA or doctorate program. The cost of graduate school can vary widely based on the program of study, the school and the number of credits and years taken. Funding a graduate degree can be done in a number of ways, and some students may be able to combine different sources of funding to pay for graduate school.
FAFSA
Filling out a Free Application for Federal Student Aid (FAFSA) is the first step to securing funding for graduate school. This application is free for any student, regardless of need or program of study to apply with. The application collects some basic personal information, school information and income information for the student and the student's parents (if the student is a dependent).
If a student fails to fill out a FAFSA for each and every year of college study, he or she may potentially lose out on thousands of dollars of grant money and federal loan money. The application is available at the FAFSA link provided in the Resources section.
Grants
Grants, scholarships and fellowships are available for graduate students. These kinds of funding are often provided by the school itself and do not need to be paid back. They are awarded based on academic or research excellence or financial need in some cases.
Assistantships and Work Study
An assistantship is a job role assigned to a graduate student during his or her course of study. In return, the school provides funding in the form of a stipend paid to the student or, in some cases, waives the tuition fees for some or all of the student's courses while actively in an assistantship.
These job roles vary widely, with some students working in school computer labs, offices or mail rooms to doctoral students teaching undergraduate courses or conducting research for professors. The time commitment for an assistantship varies widely from school to school.
Work-study financial aid is similar to an assistantship but may require more or less work depending on the school. Unlike an assistantship, a work-study program allows undergraduate students as well as graduate students to work for a department within the school.
Instead of receiving a tuition discount, work-study students earn a part-time paycheck by the hour or by the semester for their work. The funding comes from the federal government, and eligibility for these funds is determined by the FAFSA outcome. This type of funding is desirable for the school because the school is paying the student from a federal government budget rather than from the school's own budget.
Tuition Reimbursement
A variety of large and small U.S. companies offer their employees discounts on their higher education, and some even pay for the entire education up to a certain amount of credits per academic year. There may be requirements attached to this employee benefit such as being an employee for a certain length of time, achieving passing grades, taking courses related to one's job skills, and only taking a limited number of courses per academic year.
For employers, a tax break is given to the company for each employee enrolled in a tuition reimbursement or tuition payment employee benefits program.
IRA Withdrawals
According to Petersons.com, an online resource for financial aid information, the government allows early withdrawal of IRA funds for educational expenses and will waive the 10% penalty fee associated with early removal of IRA money. However it is important to consider that IRA funds are designed for retirement and long-term savings, so removing money now to fund expenses may leave less behind later on in one's life.
Federal Student Loans
For graduate students, federal student loans are offered through the federal government, and the limits for these federal loans are far higher than those available to undergraduate students. In 2009, for example, a graduate student in a master's program can borrow up to $20,500 in federal loan money up to $138,000 combined from undergraduate to graduate school.
Graduate students, depending on eligibility determined by FAFSA, are able to accept subsidized and unsubsidized federal loans. The key difference between these loans is that subsidized loans are based on financial need, and interest is paid on the loans by the federal government while the student is in school or during the 6-month grace period after graduation. Unsubsidized federal loans accumulate interest, which can be paid while in school or after graduation by the student and are available to any eligible U.S. citizen enrolled in an eligible school.
Private Student Loans
Private student loans are offered to students who may need additional funding for graduate school even after accepting financial aid in the form of grants, federal loans, assistantship programs or other school sponsored aid programs.
Private loans are issued by private banks and lenders such as companies such as Sallie Mae and AES. Some banks and credit card companies also offer private student loans. Private loans tend to carry a higher interest rate than federal student loans and because of this should only be used for tuition-related expenses after all other financial options have been exhausted.
Tags: graduate school, federal government, federal loans, funding graduate school, graduate students, student loans, academic year