How to pay for grad school

Whether you want to move up in your field, switch careers or learn new skills, knowing how to pay for grad school can help you reach your goal.

The good news is that you have more than one way to pay for grad school. Scholarships, fellowships, grants and assistantships can help lower your out-of-pocket costs. Employer tuition assistance and military benefits may also help reduce what you need to pay or borrow. Student loans can fill any remaining gaps.

This guide walks you through the main ways to pay for grad school and how to put them together into a funding plan that works for your budget.

How can you pay for grad school without borrowing?

Ways to pay for grad school without borrowing include scholarships, fellowships, grants and other funding opportunities that don’t need to be repaid. These resources can lower your school costs and help you borrow less.

Some of the most common options include:

• Scholarships. Often awarded based on merit, including grades, leadership or other achievements, scholarships may help pay for tuition, fees and other education costs.
• Fellowships. Typically awarded for a specific area of study or research, fellowships may assist with tuition, living expenses or both.
• Grants. Many universities offer school-funded grants, tuition waivers or other aid for graduate students.
• Field-specific funding. Schools, professional associations and industry groups may offer awards to students pursuing a particular field of study.

You can find these opportunities through your school’s financial aid office or academic department, as well as professional organizations and online scholarship databases.

Should you fill out the FAFSA for grad school?

Even if you don’t think you’ll qualify for need-based aid, it’s worth filling out the Free Application for Federal Student Aid (FAFSA). Many schools use it to decide who qualifies for grants, work-study programs and federal student loans. Skipping it could mean missing out on funding you didn’t know you could get. Before you apply, check federal, state and school deadlines and gather the financial information you’ll need to complete the FAFSA.

Explore assistantships for graduate students

Graduate assistantships can help you pay for school while giving you hands-on experience in your field. Some assistantships include a tuition waiver, a stipend to help with living expenses or both. These benefits can reduce what you need to borrow.

Assistantships generally fall into 2 categories:

• Teaching assistantships (TAs) tend to support undergraduate courses. You might lead discussions, grade papers or help a professor manage a class.
• Research assistantships (RAs) involve working with professors on research projects. They can be a good fit if you’re interested in a research career, whether in academia or industry.

Most assistantships last for a semester or school year. Because spots may be limited, start looking early. Before applying, review the time commitment, eligibility requirements and whether the assistantship includes tuition support, a stipend or both. Many departments post opportunities on their websites or share them with students before classes begin. It’s a good idea to check with your department or program coordinator as soon as you’re accepted.

Take advantage of employer tuition reimbursement

Some employers offer tuition assistance that can help lower the cost of grad school. This benefit may apply to courses that relate to your current job or career goals. 

Before using an employer tuition benefit, make sure you understand:

• How employer tuition assistance works. Some employers pay your school directly, while others reimburse you after you complete a course. Benefits are often capped at a set amount each year. 
• Who qualifies for employer tuition assistance. Whether you qualify may depend on how long you’ve been with them, your job performance or how closely your degree relates to your work. Some employers may only cover certain schools or programs.
• What employers may expect in return. Many tuition assistance programs require you to stay with your employer for a certain period after completing your degree. If you leave earlier, you may have to pay back some or all of the benefit.

Talk to your HR or benefits team about how the benefit works, how much it covers and whether you need approval before you enroll.

Military and Veteran benefits for graduate programs

Military education benefits can help pay for graduate school and may reduce how much you need to borrow. Eligible Servicemembers and Veterans may have access to programs that can help lower the cost of tuition, fees, housing and other education expenses. Common options include:

• Post-9/11 GI Bill. Eligible Veterans and Servicemembers may receive assistance with tuition and fees. They may qualify for a monthly housing allowance while enrolled in a graduate program.
• Yellow Ribbon Program. This program may help reduce out-of-pocket costs at participating schools when Post-9/11 GI Bill benefits don’t cover the full amount.
• Active Duty tuition assistance. If you’re on Active Duty, tuition assistance may help cover the cost of eligible classes.

Federal student loans and financial aid

After you’ve explored funding that doesn't need to be repaid, federal student loans may be one option to consider. They may offer repayment options and protections that aren’t available with private loans.

Federal student loan options for graduate students may include:

• Direct Unsubsidized Loans. Available to graduate students regardless of financial need, these loans don’t require a credit check. Interest starts accruing while you’re in school. 
• Grad PLUS Loans. Depending on when you start your program and current federal loan rules, Grad PLUS Loans may help cover education costs not paid for by other funding sources, up to your school’s cost of attendance. A credit check may be required.

Federal student loans can be a useful tool when scholarships, grants, assistantships, employer benefits and military education benefits don’t cover all your costs. The goal is to borrow only what you need after exploring other funding sources first.

Before you apply for a loan, take time to determine how much you actually need to borrow. You may be offered more than you need. Borrowing less now can mean paying back less later. Before accepting a loan, review your repayment options and learn how interest works.

When to consider private student loans

After you’ve explored other funding sources and federal loans, private student loans can help cover any remaining gaps. Private loans come from banks, credit unions and other lenders, and it helps to shop around before choosing one.

When comparing lenders, consider:

• Interest rates. Rates may be fixed or variable and often depend on your credit history. When comparing federal and private student loans, review current interest rates, fees, borrower protections and repayment options for each.
• Repayment options. Some lenders offer more flexibility than others, such as the ability to pause payments during financial difficulties.
• Borrower protections. Look for features such as deferment options or loan discharge if a borrower dies or becomes disabled.
• Co-signer release. If you need a co-signer to qualify, ask if there are conditions that allow the co-signer to be removed from the loan later.

Getting prequalified with a few lenders can give you a clearer picture of your options and may not affect your credit score. Then, review each offer carefully before choosing a loan.

How to build a grad school funding plan

Once you’ve explored your options, the next step is putting them together into a plan. Using funding sources in a thoughtful order can help you make the most of them and see what costs are left to cover.

Step 1: Start with funding you don’t have to repay

Look for scholarships, fellowships, grants and other awards before considering loans.

Step 2: Use assistantships and education benefits

Graduate assistantships, employer tuition assistance and military education benefits can help lower your costs.

Step 3: Consider federal student loans

Federal student loans can help cover costs that remain after you’ve explored other options.

Step 4: Use private student loans to fill any gaps

If you still have costs to cover, compare private loan options carefully before borrowing.

Remember: Every funding plan is different. Start early, keep track of deadlines and compare offers to find the option that works best for you.

Other ways to reduce grad school costs

Beyond scholarships, benefits and loans, your program choice can also affect what you pay for grad school. Choosing a program that fits your budget can lower your costs and help you borrow less.

• Compare program costs carefully. Tuition, fees, program length and living expenses can vary widely from one school to another.
• Consider part-time, online or hybrid programs. These formats may allow you to keep working while earning your degree, helping offset school costs.
• Explore service-based education awards. Programs such as AmeriCorps offer education awards that may be used toward tuition or existing student loans.

Researching schools and programs before you enroll can help you find opportunities to lower costs and reduce borrowing.

Focus on the degree, not the dollars

Earning a graduate degree is a big financial commitment, but there are many ways to lower the cost. Start planning early, keep track of deadlines and compare your options carefully as you build your funding plan.

When you’re ready to fill any remaining funding gaps, Navy Federal’s student loan resources can help you explore your options and take the next step.