Grad School 101

Are you thinking about Grad School? Twenty-seven percent of employers now require a master’s degree for jobs that in prior years only required a bachelor’s degree. However, the average student loan debt for grad school is over $71,000, compared to $25,000 for undergraduate degrees. Here is a crash course to give you a few things to consider:

Why do you want to go to grad school?

Grad school is like the cherry on top of the sundae, so the sundae should already be there. You should know what you want to do and why grad school is essential to get there. Grad school is a costly way to figure out what you want to do, and shouldn’t be the default if you don’t find an ideal job after undergrad. Even pre-pandemic it took the average grad up to six months to find a job after graduation, and over half of recent grads are not in career-path jobs. So don't be discouraged, it’s common to take a while to settle into a meaningful job.

Do you have related work and/or research experience to know grad school is essential? Do you know the specific job(s) you want to do with the degree?

Do your homework outside of the classroom. Working in the field before grad school, or at least having internships during undergrad, will give you the bigger picture. Ask coworkers, supervisors, and current grad students about their journey. You can also use your network to request informational interviews with people in your desired role. Is that role really what you want and is grad school the only way to get there? Are there a few classes you could take or a certification program you might want to consider first? Doing related work will make you that much stronger when you apply for programs and help clarify your vision.

What is the range of job options if your initial path changes after grad school?

You might have known what you want to do since you were 10, or you might have decided 10 minutes ago. Some paths stay, others change. Twenty-five percent of lawyers leave the field, which is similar in a range of fields. What other opportunities can your grad program provide if you change your initial career goal? Researching the range of what alumni do with their degrees can help inspire you even more.

Are your earning outcomes worth the debt you might accrue?

The average salary boost from grad school is around 25%, but in certain fields like Human Services and Museum Sciences, there is only a 10-15% increase. Furthermore, program rankings can greatly affect salary, especially in competitive fields like law and business, and to land elusive tenure-track college teaching positions. However, disparities still persist. Even in well-regarded MBA programs starting salaries average 16% lower for students of color. Additionally, over 70% of college teaching positions are non-tenure track, and pay an average of $3,500 per course taught. You have to decide if the money you’ll spend versus the money you’ll likely earn is worth it to you.

Have you decided grad school is right for you? Then the next question is how can you pay for it? Grad school can be very expensive, so read below for funding tips!

Grad School Funding Tips

Have you decided that grad school is right for you, but the average $71,000 price tag is daunting? Here are 10 tips to get you an “A” in keeping costs down. Remember to look into these options as EARLY as possible so you don’t miss crucial deadlines!

1. Look for scholarships

Not sure where to start finding grad school scholarships? The Federal Student Aid website will give you an overview of options, as well as the Department of Labor. All Ways Up also keeps a list of scholarships updated monthly HERE. Typically the three biggest sources of scholarships are private organizations, the university, and the individual school or program at the university.

2. Apply for Graduate Assistantships

Tuition, fees, and living expenses can be reduced or even eliminated through a combination of Teaching Assistantships, Research Assistantships, and/or working in a college office related to your program. For example, educational counseling master’s students might be able to work at the campus academic advising or multicultural center. While this is fairly common in PhD financial aid packages. For other degrees, you might need to research and ask about opportunities and selection criteria.

3. Search Graduate Fellowships

The college and specific program are good places to look for graduate fellowships, which is funding you typically don’t have to pay back. Often there are special early deadlines for fellowship applications. There are also national fellowships from private organizations. A list to get you started can be found HERE. Note that many of these deadlines are between October and January.

4. Look for programs with free or reduced tuition

While well-known programs might offer more internal grants and scholarships, they might also have the brand recognition to charge a premium and/or be more difficult to get into. Think about including some newer and lesser-known programs to your application list. These programs might have lower costs to entice qualified applicants and increase diversity. Search in your network for current and recent grad students in your field and ask them for suggestions on programs. Some programs that charge no tuition are HERE.

Additionally, many PhD programs charge reduced or no tuition. However, without a CV that includes research and publications, it might be difficult to get into a PhD program without a master’s (because you’ll be competing with applicants that already earned a master’s degree). Master’s to PhD programs are another option since there is often tuition reduction and/or you’re given preference when you apply to the PhD program.

5. Work part or full-time, and think about the summer

Many graduate students work at least part-time. Check if the program has any rules prohibiting work outside of the program. In some instances, if you are receiving special aid or if the program is employing you, there might be rules restricting additional work. Also, think about how working will impact the time it will take to complete your coursework and the additional loans you might need to borrow if you need more time to finish. Lastly, some programs give aid for the entire year, while others don’t give aid during the summer. Plan accordingly.

6. Find employers that pay for grad school or certifications

Some companies will help pay for all or part of grad school or certificate programs that are related to your job. To access this benefit, you might need to be at the company for a specific period of time before you begin a program and stay for a period of time after you have earned your degree or certificate. Check for these benefits during your job search, and/or once you’ve been at a company for a while you can consider asking about your eligibility.

7. Use all available tax credits, and find all national and local programs you might qualify for

Check to see if you qualify for a Lifetime Learning Credit on your taxes. Paying student loan interest, as well as tuition, fees, and supplies may also provide some reduction in taxes owed. In addition, check to see what local utility and food assistance programs you might qualify for. For example, graduate students can qualify for the Supplemental Nutrition Assistance Program (SNAP) if they meet certain requirements, including working at least 20 hours a week or having eligible work-study.

8. Take out loans strategically

Sometimes loans are needed, but federal grad school loans are different from undergraduate loans. Most grad school loans are unsubsidized, which means they start accruing interest the moment you take them out (versus subsidized loans that accrue interest only when you graduate or drop below half-time). Also unlike undergrad, there is relatively no cap to the amount you can borrow for graduate school. To that end, routinely review the cost of attendance and make a personal budget to decide what loan amount is best for you each term.

9. Get “Grad School Deferment” for undergrad loans, and consider paying all unsubsidized loan interest

Make sure you are in “grad school deferment” for any of your qualifying undergrad loans so your loans can be frozen and no payments will be required during grad school. Note that this might require your grad program to send enrollment confirmation each term, so check your loan servicer's website often to see the status of your loans. Also, remember that any unsubsidized loans accrue interest, even with the deferment, so consider still paying that interest while in grad school. It will save you more in the long run, potentially a lot more.

10. Understand loan repayment plans

Finally, once you graduate there is a range of options to help you find a loan repayment plan that works for you, including Income-Driven Repayment plans that set your payments based on your income. Applying for this is FREE. There are also loan forgiveness programs for certain fields like teaching, but make sure you understand all the requirements and revisit them when changing jobs.

To buttress all these suggestions, you should talk to as many current and recent grads from the field you’re interested in as possible. Once admitted, programs should also be able to connect you with other grad students to speak with. Also, make sure to clarify if any awards you receive are renewable. Sometimes a good deal the first year disappears later. Reviewing all these tips can also help if you’re deciding between multiple offers. Overall, doing your grad school homework will save you money and decrease future financial stress. Hopefully, you learned a few things from this crash course! More questions? Email: tglickman@allwaysup.org.