How to Afford Grad School: 5 Essential Financing Strategies

In the current economic climate, graduating from college has become a privilege. Many students can’t afford to pay tuition fees and if they do, they’re saddled with debt for the next several years.

The Education Data Initiative reports that student loan debt reached $1.753 trillion in 2023. About 91.2% of the U.S. federal loan balance accounts for student loan debt. It’s a dangerous debt cycle to be caught in with many graduates entering the job market on an uneven keel.

So, what’s the solution to financing grad school without coming out of pocket? Below, we’ll discuss a few strategies on how you can afford to graduate college and walk away debt-free.

#1. Research or Teaching Assistantships

Many private and public schools offer research and teaching assistant roles. Students typically work part-time to balance their jobs with their studies.

They receive full tuition reimbursement and a living stipend by teaching a class or conducting research. Graduate assistantship can vary, from teaching, research or administrative, depending on your study scope.

#2. Scholarships

Students who excel in academics are sought-after by colleges and universities. If you’ve been accepted into a program, inquire whether the school offers merit-based scholarships.

These scholarships are more inclusive in their grading systems and take a holistic approach to a student’s lesser achievements. All students, no matter their GPA, should apply for merit scholarships.

Master of Business Administration (MBA) applicants often grapple with rising tuition costs because it is one of the most expensive programs.

Investopedia explains that MBA programs from private business schools can accumulate $100,000 to $200,000 in debt in just over two years. And yet, an MBA degree is the gold standard for many companies employing people in executive roles.

Financial strain shouldn’t be the end of the road for graduate students.

In its guide to getting an MBA scholarship, a university says graduate business students shouldn’t be dissuaded from applying for business school scholarships. There are different ways of categorizing MBA scholarships that don’t exempt everyone from qualifying for an MBA program.

#3. Accelerated Programs

Some degrees offer accelerated programs, meaning you can complete your coursework in less or half the time. Many colleges provide accelerated programs for both undergraduate and graduate studies.

The biggest advantage is that graduates can enter the workforce faster and save money. Some institutions charge less because of the shorter time to complete the programs. Others charge tuition fees by credit.

When researching this study pathway, ensure you meet the admission requirements that sometimes differ from traditional programs.

#4. Tuition Reimbursement

Many companies have study incentives to encourage employees to develop their skills and increase staff retention.

Tuition reimbursements vary from business to business. You may have to pay upfront and your employer reimburses you after you’ve completed the course.

Companies sometimes include a study allowance in salary packages ranging from $5,000 to 7,000 annually. This gives you the time to take part-time classes while working.

However, the certification will take longer to finish, but you’ll graduate with no student debt while earning a salary.

Ask your HR department about the specifics and policies on tuition reimbursements. Often, companies require that you work more than a year for them before qualifying for the perk.

#5. Fellowships

Similar to scholarships, fellowships are awarded to students for exemplary academic achievements. These programs require research in exchange for tuition costs.

Fellowships are short-term opportunities that can last a few weeks or years. The programs are normally sponsored by associations, organizations, institutions or governments and require students to travel out of state or country.

It’s a great opportunity to immerse yourself in a different culture and expand your professional network. Because of their research, some students are offered full-time jobs within the organization.

Final Thoughts

The cost of grad school places enormous anxiety on students. Hopefully, one of the above pathways will enable you to complete your studies with little or no debt. Another option is to delay enrollment and save towards your degree while working full-time.

Make it a priority to save and follow the 50/30/20 rule. When writing your budget, look at your monthly take-home salary after tax. Allocate 50% to needs, 30% to wants, and 20% to savings or debt goals.

Consider these numbers as a starting point rather than strict rules. You may need to adjust your budget for necessities or wants.

Remember, “It does not matter how slowly you go as long as you do not stop.” Wise words from Confucius. Keep them in mind when financial barriers keep you from reaching your educational goals. It might take you a while but eventually, you’ll get there.