Thinking about graduate school? As if figuring out what to do isn't tough enough, it's even tougher to figure out how to pay for it. Graduate school costs tens of thousands of dollars.
Even with scholarships and grants, grad students often rely on student loans to get by. Unfortunately, after graduation, student loans can be tough to manage, and graduates often realize that they might have been better off avoiding them altogether.
There are ways to get through grad school debt-free, including research or teaching assistant positions, merit scholarships, one-year programs, working while going to school, attending a public school, finding niche programs, working before going to grad school, and finding a job with tuition reimbursem*nt programs. Below, we discuss each in more detail.
Key Takeaways
- To complete graduate school without accruing debt, consider programs that offer research or teaching assistantships, or scholarships.
- Another way to save cash is to pick a shorter-term program, such as one year versus two, or a program at a public schoolversus a private school.
- Getting a job for a few years before going to graduate school or working part-time during school can help offset costs as well.
How to Get Through Grad School Debt-Free
Believe it or not, it's possible to get a graduate school education without debt. Here are eight tips that can help you get through grad school debt-free.
1. Find Programs With Research or Teaching Assistantships
Sometimes, these programs aren't very well advertised, but many private and public schools offer them. Students teach a class or conduct research in exchange for full tuition reimbursem*nt and a living stipend.
In the 2023/2024 school year at the University of Washington, for example, monthly TA salaries for pre-masters can range from $2,664 to $5,638 a month depending on the department.
2. Merit Scholarships
Schools have a strong business interest in attracting and retaining high-achieving students. When you're researching programs, keep an eye out for whether merit scholarships are available.
If you can't find anything on a school's website, call or email the admissions office to ask. Even if you're already accepted to a program, you can call and ask whether merit scholarships are available. Be sure to find out whether these scholarships are renewable.
3. Look for a One-Year Program
It's basic math. For a master's degree, one-year programs cost half as much as two-year programs, and in the end, you still get the degree. Many one-year programs are excellent bargains that can help you save substantial money.
$1.59 Billion
Total student loan debt as of Q2 2024.
4. Get a Part-Time Job
It's a well-known fact that the word "internship" tends to be synonymous with "low pay." You already have your bachelor's degree, so use it to your advantage by looking for part-time jobs. Only consider internships if they offer you enough compensation or strong networking opportunities that you don't already have.
5. Consider Attending a Public School
Don't be fooled—a public school education isn't cheap, but they are still considerably less expensive than private schools.
6. Find a Niche Program
Programs like law and business are extremely competitive; as a result, funding is competitive too. If you are thinking about graduate school and are researching programs, look into niche programs that specialize in your area of interest. A number of big-name schools feature specialized degrees that are relevant to general professional programs.
Remember that in the end, the worth of your degree depends on your ability to leverage it. Depending on your professional goals, a niche degree can be extremely marketable and can even distinguish you from your competition.
7. Work First, Learn Later
When you first come out of school, your salary will be at its lowest. For a year or two, focus on saving for graduate school. Live as economically as you can, and put away whatever money you can.
In a year or two, these savings will add up. In the end, if you get a scholarship, work while in school, or get a teaching assistant position, you may end up leaving your graduate school fund alone. Then, voilà—you have a down payment for a new house or a new car.
8. Find a Job With Tuition Reimbursem*nt
More than 80% of large employers offer some kind of tuition reimbursem*nt as a way to encourage employees to continue learning and developing their skills. How the reimbursem*nt is structured will vary from employer to employer. In some cases, you will need to pay out of pocket, and then be reimbursed by your employer.
In others, you will be able to access the funds directly to make your tuition payments. Examples of major employers that offer tuition reimbursem*nt include:
- Universities and colleges
- United Parcel Service
- Intel
- Bank of America
- Best Buy
- Home Depot
Employers that offer tuition reimbursem*nt usually offer around $5,000 to $7,000 annually. This would allow you to take graduate classes part-time while you are working. Your degree will take longer to finish than if you were a full-time student, but you can graduate without debt and continue to earn a salary at the same time.
How these programs work will depend on the specific benefits policies of the employer. Some companies will require you to have been an employee for a certain number of years, while others may offer tuition benefits immediately. In some cases, tuition benefits may only be available to full-time employees, though others will allow part-time workers to access tuition reimbursem*nt as well.
What Is the Average Graduate Student Loan Debt?
The average graduate student loan debt, as provided by the National Center for Education Statistics for the 2019/2020 school year (latest information), was $90,060 in constant 2022/2023 dollars.
Is Grad School Worth the Debt?
Whether or not grad school is worth the debt will depend on the individual, their financial circ*mstances, the debt load, and the type of job they expect to have once graduating. Graduate school can be costly, but if the job one can achieve through the graduate degree pays well, enough to cover debt payments quickly, and ensure a well-paying job with earnings growth, then grad school may be worth the debt.
Is Graduate School Debt Forgiven?
Graduate school debt may be forgiven; however, there is no specific policy that automatically forgives graduate student loans. You may be eligible for student loan forgiveness under certain programs, plans, or conditions, such as the Public Service Loan Forgiveness (PSLF) program, income-driven repayment plans (IDR), teacher loan forgiveness, state and local forgiveness, and certain occupation-specific forgiveness programs.
The Bottom Line
If you're headed to grad school, chances are you have a good head on your shoulders. Learn to apply your smarts to get through college debt-free. Although this path isn't easy, it's a real benefit to come out of school free and ready to embark on a great career path—or even a post-graduate degree—without being saddled with debt.
