The best way to pay for grad school?

[Buzzybee34]

I have no idea how funding for grad school works. My last semester is this fall. I will be graduating with no debt due to financial aid grants that fully covered community college for the first two years, and almost completely covered the last two years at a state university. 

I have heard that those grants are not available after undergrad and that loans are the only way to pay for it. 

Are there certain companies that offer the lowest interest/ best payment terms, or is there another option I should look into? 

It appears that tuition itself will cost 26k for the full 2 years. There will of course be high materials costs, as well. It's unlikely I will not be able to pay in full at the beginning of each semester, or even make the payments for the entire semester during the semester. 

How did you all pay for grad school? What are my options?

Thanks for your help. 

Current lowest credit score is experian at 788 and my Fico 8 is 800, if that information helps. 

[Cowboys4Life]

There are graduate school scholarships out there.  A quick Google search reveals plenty of legitimate sources and links.  I would look into as many of those as possible.  Another option is to do part time grad school for year one and work part time to add to your savings or available money.  Yes, this would mean it could take 3 years to complete the masters degree but if it lowers the debt or eliminates it the extra time would be worth it.  A third option is to get hired full time at an employer who will do tuition reimbursement for grad school in exchange for an employment guarantee of remaining in the job for a specified amount of time.  Make sure you read all the terms though there are some employers who will come after you for the money they reimbursed if you don't fulfill the commitment.

You don't say what your major or career path is but are you certain grad school is necessary for a solid career and earnings path?  There are plenty of people who went ahead and did grad school immediately and after figured out they weren't really earning more but had taken on more debt to do it.  In other words do the math.  If grad school would result in even partial loans that would need to be repaid and your salary would only be marginally higher with an advanced degree right now, then delaying grad school might be financially the right move for now.

[KatzNDawgs]

I would contact your school's financial aid and your department. There are usually grants/scholarships available, and/or you can get both stipend and tuition reimbursement as a teaching assistant or research assistant. In fact, if you are going for a PhD, most good schools will bring you in with at least a stipend. Worst case, there is the Grad PLUS loan, but the current state of student loans is kinda wierd.

As others said, if you can get employment where they pay for tuition, that is also an avenue to look in to. What is your major?

[Varsity_Lu]

I went part time while working full time. No grants or scholarships, but my employer matched what I paid for tuition which helped. It took me close to 5 years, but I was able to graduate debt free while also being married with three small kids. My wife was and is a stay at home mom, so it is possible.

[Jnbmom]

My daughter got grants and scholarships for her bachelors and it was just enough to pay for her college education. Unfortunately grants for grad school is a whole different ball game , not that they are not out there but not very easily accessible. My daughter worked 2 jobs got loans and is paying them off now, it was a lot but she has made very good progress in the last 2 years .

[DakotaM]

Nice work getting undergrad completely paid for!.  I had a scholarship that paid for undergrad too. 

Med school for me was all federal student loans.  You can try to find scholarships/grants for grad school, but they are much more sparse and probably won't pay for 100% of tuition.  The federal student loans are nice cause payments are deferred while in school (interest still accumulates though).  Some private companies offer loans where payments are also deferred or it is some nominal like $100 per month payment.  I haven't looked in a while but I think the rates between federal and private are about the same.

[NoHardLimits]

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@Varsity_Lu wrote:

I went part time while working full time. No grants or scholarships, but my employer matched what I paid for tuition which helped. It took me close to 5 years, but I was able to graduate debt free while also being married with three small kids. My wife was and is a stay at home mom, so it is possible.

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I also worked full time while going to grad school at night for four years.  My employer reimbursed me for tuition, and I was not required to sign any agreement to stay for a certain period of time.

[James3]

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@Buzzybee34 wrote:

I have no idea how funding for grad school works. My last semester is this fall. I will be graduating with no debt due to financial aid grants that fully covered community college for the first two years, and almost completely covered the last two years at a state university. 

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In my case, I got a job after graduating with my undergrad degree, worked for a few years used saved money to pay for graduate school. I ultimately had a small federal loan (~7k) that I was able to pay off fairly quickly. I took out the loan in 2012 so not that long ago.

It appears that tuition itself will cost 26k for the full 2 years. There will of course be high materials costs, as well. It's unlikely I will not be able to pay in full at the beginning of each semester, or even make the payments for the entire semester during the semester. 

You should budget for living expenses also, and be specific about what "high materials costs" means. You may also consider whether you even need a graduate degree at all. Universities are great at advertising programs and convincing students that more degrees are always beneficial.

[Realist]

We had two that worked their way through a community college up until 80 credits, and transferred to a four year college.  Those extra credits were financed through a private lender, and not federal loans.   While federal loans may offer a discounted rate, it can appear to become negligible in the grand scheme of things.  Rather than deal with a dozen or two different loans, we deal with one.  At a rate that is still highly acceptable.

During this entire time, they were already interning in their fields of choice.  Earning a respectable income, and gaining experience year over year.   So while they are working within their field at a respectable rate, earning experience, they are also going to school, and paying interest on the money lent to keep payments low.  They aren't allowing the borrowed money to accumulate interest, in the form of an overall loan.

At the end of the four year degree, they're hired into their employer they've interned with, making double or more than their intern rate.  The measely $200 per month payment, is quickly offset by CD deposits monthly, to earn upwards of the same over time.  As the debt extinquishes, the valuation of the CD increases.  But, the benefit in all of this, is the overall value, the overall cash, remains in the hands of the student.    In time, they can choose to pay off the debt in full, using the power of compounded interest, or they can continue to earn on the CD, while the debt plays itself out.  At the end of the day, it's a mostly wash, to later a wash, to later a boon.

Options.  That's what it's about.  No one cares more about your financial future, than yourself - and your family.