What is Financial Aid Refund?

While any basic research will provide the answer, generally, financial aid refunds are those monies that remain after a learning institution is paid the tuition and any other associated costs for attending that organization.

These may originate from federal grants, any need-based aid awarded, and even school loans, but typically will be generated from any private grants or scholarships a person receives. Most need-based awards do not offer extra money, so the latter are often better at providing refunds.

It’s an easy math formula to determine whether someone will receive a financial aid refund. Simply subtract the total bill from the school from the total amount of aid one has been granted. For example, if a post-secondary establishment’s final billing is $15,000 and a student has been awarded $16,500, once the bill is paid, that student will receive a financial aid refund of $1,500.

Bear in mind that it can be returned if a person qualifies for more money than they need to cover post-secondary expenses. This, in effect, will lessen the amount needed to be paid back in student loans after completing schooling (unless it is grant money that does not need to be paid back) which means less interest compounding during one’s educational involvement.

How Do You Know if You are Eligible for a Refund?

In a world that sometimes provides over-communication, it is quite easy to find out how much you may have been rewarded. Most schools now provide an online portal that allows students to check the details of their bill and any financial aid (scholarships, awards, etc.) that has been credited to them. Also, depending on whether parents or students directly applied for the awards, letters and emails will be generated to inform the recipients of the numbers and possible refunds.

Again, depending on where students may receive their funds, the online FAFSA portal will give some information individually. Logging into the account, navigate toward the “My Activity” section and details will be available. Students can also call their institution’s financial aid office or registrar’s office to learn more, though they may direct students back to online accounts.

Keep in mind that all schools may have different disbursement time periods. Several schools work within a 30-day period, so students must plan carefully if they rely on those funds to live and operate.

What Are the Different Types of Financial Aid That Can Contribute to a Refund?

1. Many opportunities abound for receiving money toward post-secondary learning, but some require time-consuming, focused directives.

Federal grants are one method of gaining oft-needed financial assistance. These will vary based on four-year colleges, community colleges, and technical career schools. As long as a person is in need and remains in the program for which they received the necessary money, these grants don’t need to be paid back. The most recognizable grant is the federal PELL grant for undergraduate students. Completing the FAFSA will make one eligible to qualify.

Lesser-known grants may be awarded to those who have served in the military, such as a service grant for members who went on deployment. Some institutions participate in supplemental grants to enhance amounts for individual students. With the national teacher shortage occurring, numerous grants and incentives exist to help build teacher graduate programs, such as the Teacher Education Assistance for College and Higher Education (TEACH) grant.

In addition to grants, the federal government offers opportunities to earn money through its work-study programs (not available at all schools) and federal student loans.

2. For those students who have acquired high academic success prior to enrollment in a post-secondary life, scholarships are another form of earning financial support through merit-style awards. These do not usually require repayment and are often bestowed according to academic achievement.

As always, depending on the school and chosen career programs, these will differ in amounts, especially with private schools. These can often be awarded based on special career pathways at the school or offered as sibling discounts if there is a family tradition toward attendance.

3. Finally, school loans are those funds that must be paid back. They are characteristically low-interest loans that build during the time one spends at the institution and take effect at some point shortly after graduation. Both students and parents can apply for these types of federal loans to support finances for attendance in post-secondary schooling. And depending on the amounts disbursed, these can also help qualify for financial aid refunds.

How Do You Receive Your Financial Aid Refunds?

Receiving refunds is easy overall. Most funds can be deposited directly into personal bank accounts, making the money instantly accessible. Some individuals may desire the paper check for physical record-keeping and would simply require signatures and a deposit into a bank account. Either way, this credit balance can be used for college texts, additional club fees, or simply money to help with living expenses.

One of the most important actions is to ensure one has a direct deposit set up for these refunds, especially if it is the only option for a return of funds. These require specific information depending on the bank. Some of the most common include the bank’s address and phone number, the type of account (checking or savings), the specific account’s routing number, and the specific account number.

This can be completed online or in the bank through paper forms. If for some reason, one changes banks or deposit information, it is imperative to keep this information up to date in order to receive any future refunds or significant money transactions.

Doing due diligence in research and preparation for entrance into a post-secondary institution and earning scholarships, grants, and school loans will certainly enhance any college experience and provide some relief in handling financial questions.

Financial aid refunds are extremely important to understand and acquire as one enters the career landscape. Students must continue to explore the incredibly different ways to invest in their education, while doing it in a fiscally responsible way, as it affects them for the remainder of their lives.

Educators never stop learning; check out our available graduate degree programs  to hone your skills and promote lifelong learning and academic excellence.

The post Everything You Need to Know About Financial Aid Refund appeared first on Graduate Programs for Educators.

The PSLF program forgives the remaining balance on direct loans for those who meet their requirements.

This may seem too good to be true, and for some, it is. While it’s not hard to apply for this program, only qualifying applicants will be eligible. Read on to find out whether your loans may be forgiven through this program.

General Eligibility 

Do you qualify for Public Service Loan Forgiveness (PSLF)? 

You may be eligible for Public Service Loan Forgiveness (PSFL) if you work for a government or not-for-profit organization. There is a list of eligible employers on the Federal Student Aid website, and you must be working full-time for one of them.

You can use this tool to search for your employer to determine if they meet the eligibility criteria. In general, any U.S.-based government agencies, including the military, will qualify, as will organizations considered not-for-profit and listed as 501C according to the IRS. Some other not-for-profit organizations that don’t qualify as 5013C will also meet the requirements; see the list here.

When you submit your form for PSLF, you must be working for an eligible employer. That means you should submit it every year or every time you change employers to avoid having to track down past employers many years after you stopped working for them. This will also force you to check each time to determine whether your employer is eligible for loan forgiveness.

What types of federal student loans are eligible for PSLF?

Any loan received under the William D. Ford Federal Direct Loan (Direct Loan) Program qualifies for PSLF.

Some examples are:

• Direct Subsidized Loans
• Direct Unsubsidized Loans
• Direct PLUS Loans
• Direct Consolidation Loans

In addition to working for an eligible employer, you’ll also need to have made 120 qualifying monthly payments through one of the following accepted repayment plans:

• Saving on a Valuable Education (SAVE) Plan—formerly the REPAYE Plan
• Pay As You Earn (PAYE) Repayment Plan
• Income-Based Repayment (IBR) Plan
• Income-Contingent Repayment (ICR) Plan

These are all income-driven repayment plans (IDR), meaning that they base your monthly payment cost on your income and your household size.

Keep in mind that not all borrowers will qualify for these IDR plans, and some might even increase your monthly repayment cost. Also, depending on how much you borrowed and your income, there’s a possibility that your loans could be paid off before you’ve reached 120 payments. It will take a minimum of 10 years to make this many payments.

The Federal Student Aid website offers this helpful loan simulator for those who want to explore their various repayment options.

Application Process

 When should you apply for PSLF?

After you have determined that you are working for an eligible employer, you are free to submit your PSLF form. You will not immediately receive loan forgiveness, however. It would help if you were still forgiven, but you do not need to make these payments in order to fill out the form. As we stated above, the government recommends that you fill out the form yearly or every time you change employers so that you don’t have to submit forms for all your employers at once.

After you submit your form and the PSLF servicer confirms that you work for an eligible employer and that your loans qualify, your loans will transfer to the PSLF servicer, and you’ll receive a letter in the mail telling you how many qualifying payments you’ve made. This number will be updated every time you submit a new form, which is why it’s easier to submit the forms annually than wait until the last minute. The government will keep track of your payments as you submit each new form.

The servicer will forgive your remaining loan balance once you receive a letter stating that you’ve made 120 payments.

Step-By-Step Guide to Submitting the PSLF Application

There are two ways to submit the PSLF form:

• Manually, by downloading and printing a paper copy
• Digitally, using the PSLF help tool

Both the paper application and the tool should take approximately 30 minutes to complete. All you need to get started is a recent W2 from your employer(s) or their Federal Employer Identification Number (EIN)

Regardless of which option you choose, after you fill out the form, you’ll need to send it to your employer(s) for their signature(s) to verify your employment. Then you’ll need to either electronically submit the form, or send the paper application to MOHELA, ED’s federal loan servicer for the PSLF Program.

Maximizing Benefits 

How could the recent PSLF program improvements benefit you?

The PSLF Waiver opportunity previously stated, “allowed borrowers to receive credit for past periods of repayment that would otherwise not qualify for PSLF. This opportunity was announced on Oct. 6, 2021, and ended on Oct. 31, 2022. Beginning Nov. 1, 2022, the normal program requirements for PSLF and TEPSLF resumed.”

Although the waiver has ended, many of its benefits have been continued through the IDR Account Adjustment, which the Biden Administration announced in 2023. The Account Adjustment expands the loan parameters much like the waiver opportunity did, so that “prior periods of repayment, as well as certain past periods of deferment and forbearance, can count, as can periods before loan consolidation.” This means that more people will be eligible for PSLF, so these benefits are expected to benefit millions of borrowers.

If you are currently repaying student loans or considering taking them out, I highly recommend looking into the PSLF program to see if you qualify for loan forgiveness. Don’t let student loan debt keep you from pursuing a career you’re passionate about!

Educators never stop learning; check out our available graduate degree programs  to hone your skills and promote lifelong learning and academic excellence.

The post How Educators Can Apply for Public Service Student Loan Forgiveness appeared first on Graduate Programs for Educators.

For this author, this article is not only to potentially help you in your pursuit of your graduate or doctorate degree, but it may also help me in how I proceed toward my doctorate.

I, too, have been looking at different doctoral options for a couple of years (stop me if you have heard this before), and if I can get the money right, I will likely get my doctorate degree.

A typical Ed. D. program requires 60-66 credits. This gives us an average range of roughly $21,000 to $55,000, depending on where we go to get the degree. At this point in most of our lives, we have jobs, families, and other items in life that we are involved in, so finding the money for this degree is not ‘easy.’ It may require tightening our belt in some areas or saving money over time for these costs.

After some research and discussion with a couple of universities, all things financial assistance starts with the FAFSA (Free Application for Student Aid). You will need the following information for your FAFSA: Federal Student Aid (FSA) ID to sign into StudentAid.gov, Social Security number or Alien Registration number, account statements for checking and savings accounts, information about investment accounts, federal income tax returns and record of untaxed income.

There are some differences for the FAFSA for graduate students. First, your dependency status is different now that you are in graduate school so you will have to enter your own income and asset information rather than your parents’ information from when you were an undergraduate.

The only loans you qualify for are direct unsubsidized loans and grad PLUS, so you’re responsible for all interest on your loans. Also, most grad students are ineligible for Pell Grants unless they are pursuing a teaching certification. However, most of the people reading this article have obtained this certification.

Thirdly, unsubsidized graduate loans have borrower caps, but grad PLUS loans have no borrower maximum; thus, you can borrow up the total school-certified cost of attendance.

Grad School FAFSA Eligibility has three elements:

1) you are a US citizen or eligible non-citizen

2) are planning to attend an accredited university in an eligible degree program

3) demonstrate financial need like grants and work-study,

Essentially for graduate school your three main financial aid options are student loans, grants/scholarships (largely dependent on the place you want to attend), and work-study. The work-study option is harder for most people in graduate school due to being already in the workforce.

Remember there is a yearly borrowing limit on direct unsubsidized loans at $20,500 per year, so if you are going to a very expensive grad school, watch the price. Grad PLUS Loans have no such cap.

Turns out there is no actual income limit that qualifies you for money in the FAFSA formula. FAFSA points out that the average full-time graduate student received $28,300 in federal aid; what kind of aid that was (grants vs. loans) was unspecified.

USA Today and StudentAid.gov answered the question of how much aid graduate students qualify for with the PELL Grant up to $7,395 (for those pursuing a teaching certification only), TEACH Grant up to $4000, the aforementioned Direct Unsubsidized Loan, and the GRAD PLUS loans.

Other Ways to Pay for Grad School

In researching this article, some other grad student options came up to help offset the cost of your doctorate program.

Most universities will have private grants or scholarships available.  You need to talk to financial aid about these options. Anything to offset the cost will be great but even better in this case you are not paying back a loan when you still might have some loans from your undergraduate work.

Some universities have fellowships or assistantships available. Depending on what is happening in your life at this time, this could be an option as most of the money can be used for tuition, fees, and housing. For many of us with families and in the workforce, making time for this could be difficult.

Does your employer offer any tuition assistance?  Every option would help here. Everywhere I have worked in Texas this has not been an option, but I would think there are some educational institutions out there where assisting someone toward their doctorate would come in a financial form other than a raise in pay.

As someone who tries to avoid loans, I suggest trending towards a university where I can get some scholarships and grants to help me offset the cost of my final degree.

Teachers never stop learning; check out our available graduate degree programs  to hone your skills and promote lifelong learning and academic excellence.

The post Can You Get Financial Aid for Doctoral Programs? appeared first on Graduate Programs for Educators.

This includes both federal and private loans. In today’s global market, obtaining an education is important both for individuals and for families. Finding effective solutions to cut costs and pay for graduate school out of pocket is crucial to reducing stress and being proactive with finances and professional development.

Understanding the graduate school financial aid process is important for finding resources and analyzing which situation is best for the student. Paying for graduate school out of pocket can come from personal cash reserves, obtaining a scholarship, or a grant. School is a lifetime investment, and the student should consider their degree an investment to pay off over time.

According to the Bureau of Labor Statistics, graduates with a master’s degree make up to $1,800 per week, while those with professional degrees above a master’s or doctorate earn at least $2,000-$2,200 per week. Additionally, the Social Security Administration reports that men with graduate degrees make over $1.6 million and women make over $1.1 million dollars over their lifetime. In order to get the most beneficial return on investment it is important to know the most effective ways to pay for graduate school out of pocket.

How to Pay for Graduate School Out of Pocket

Finding Affordable Graduate Programs

When looking for graduate programs, it is essential to find a program that will give the student practical knowledge and skills to be an asset in their career field but also affordable. Often, prospective students go for degrees from schools with a high national reputation, but at an even higher price. Usually, the end result is the student obtaining a large amount of debt whether the degree is completed or not.

The solution to finding affordable graduate programs is finding programs that are low cost or that pay for the student on a tuition-free basis. Oftentimes, instead of pursuing a master’s, some programs provide free tuition or pay a significant amount of fees when the student pursues a doctorate degree. In the US and World News Report article 7 Strategies to Pay for Graduate School,  the article details multiple ways to find affordable programs and programs that can be paid for by an employer, graduate school scholarships or fellowships.

In addition to these programs, students can take a more traditional route to pay for graduate school as well. Additionally, some students have joined the military in order to pay for schooling. For many military personnel, the G.I. Bill provides a way for students to serve their country and have the U.S. government help pay for school. Finding affordable programs comes from the combination of personal goals, having a structured support system, and planning for the long term.

Personal Cash Reserves

When looking at school as an investment it is important to use the money wisely to support the personal educational business. For example, parents can contribute to what is called a 529 College Savings Plan. This is a plan where parents put money into an account to save for when their children attend college in the future. This plan is tax-free and offers benefits to parents who save.

Another way to save money is to stay at home with a parent or an extended family member. Instead of paying for room and board or for extra tuition expenses, many students who have been successful at paying for school out of pocket have saved money for the long term or save money by paying as they go through school while staying at home with family.

Scholarships and Grants 

Actively seeking out scholarships and grants is important for paying for school out of pocket. Many graduate programs offer scholarships and grants to pay for school. These are programs where institutions, universities, and non-profits provide funding to students who have financial hardships when it comes to paying for graduate school. In a video provided by Dave Ramsey’s, describing How to Pay for College, the Dave Ramsey team describes ways to go to college debt-free.

The video describes how to use scholarships and grants to pay for college. Furthermore, learning how to make a proper college choice is essential to obtaining a degree without any debt. Identifying which major is profitable for the student is important. Researching degree programs that make an impact on the student personally and professionally, but also others, will be most beneficial.

Do Your Research

Researching which schools and degree paths are best for the student is important. Taking time to research and analyze affordable programs, have a positive career outlook, and have opportunities for funding will help cut costs. Considering why to go to graduate school is important in determining the outcomes of the graduate program. Understanding the need for a graduate degree, the impact on the student personally, and the value the degree will bring to the career and family life are all factors to consider.

With proper research, focusing on affordable programs, and seeking out extra funding, there is a path to obtaining a debt-free degree. This will allow the graduate to learn more about personal finance, educational opportunities, and how to show others how to live and learn debt-free.

Educators never stop learning; check out our available graduate degree programs  to hone your skills and promote lifelong learning and academic excellence.

The post Tips on How to Pay for Graduate School Out of Pocket appeared first on Graduate Programs for Educators.

There are various funding opportunities for students, and each has its own benefit depending on the needs of the student. The federal government may offer loans, while many schools provide the opportunity for fellowships and scholarships. Setting a plan for research funding, analyzing degree programs and future career opportunities can help make sound decisions.

FAFSA 

The Free Application for Federal Student (FAFSA) gives families and students resources when seeking financial aid. There are questions you should ask yourself before applying to graduate school. These include what career aspirations do you have after completing graduate school, which type of funding can you receive for graduate school, and which concentration do you want to major in? There are a few differences in filing for financial aid for graduate school as compared to undergrad. Furthermore, funding opportunities include grants, scholarships, tuition reimbursement, and loans.

Planning out the finances for a specific degree program and comparing which universities and schools will support your goals is vital. Identifying funding through FAFSA will determine which option is best for you. Additionally, speaking to colleagues and peers who have moved past the undergraduate level to the graduate level can help determine the best course of action. Knowing how FAFSA differs for graduate school comes with knowing the difference between grants and fellowships and how tuition reimbursement, loans, and fellowships will make the most effective impact on your future.

Grants 

Obtaining a grant is a great way to fund the college process. There are different types of grants depending on the need. When it comes to graduate school students can benefit from grants. An example is when an individual student receives a grant to take specific classes or temporary funding for a research program. Another example of how a graduate student can benefit from a grant is when the college or university has a fellowship or assistantship offered through a program. Both a fellowship and assistant provide funding opportunities to graduate students, but they differ in the manner of the aid to the student. Scholarships are the most well-known method of supplying students with funds in undergrad and graduate school. There are scholarships that vary depending on a student’s race, gender, geographic location, or academic field.

Scholarships 

Knowing how to find scholarships for graduate school can make the difference between having financial struggles or having most, if not all, of a graduate degree program paid for. Multiple scholarship programs provide support systems to graduate students on both the masters and doctoral levels. The PhD Project is a system of universities and organizations designed to enhance diversity within the business field. With the Ph.D. Project, women, minority students, and students of color can get funding, mentorship, and resources to obtain a Ph.D. in a business field. For graduate students who want to pursue a Doctor of Education, the Carnegie Project on the Education Doctorate (CPED) collaborates with over 130 schools of education to provide resources, research, support in the dissertation phase, and funding opportunities to students who want to pursue a Doctor of Education in the areas of K-12, higher education, and teacher development.

Funding for graduate school also comes in the form of fellowships and assistantships. However, knowing the difference between a fellowship and assistantship is important. Students who are given the opportunity to receive a fellowship are given funds for costs that students incur during school. This can include books, housing, tuition, and academic support. With an assistantship, students are given funds to support the student in exchange for working a certain amount of hours. The work done by the student is tied to the major the student is working. For example, graduate students with education majors may work as grad assistants or contribute to a think tank and support research.

Fellowships/Assistantships 

Funding for graduate school also comes in the form of fellowships and assistantships. However, it is important to know the difference between a fellowship and assistantship. Students who are given the opportunity to receive a fellowship are given funds for costs that students incur during school. This can include books, housing, tuition, and academic support. With an assistantship, students are given funds to support the student in exchange for working a certain number of hours. The work done by the student is tied to the major the student is working.

For example, graduate students who have education majors may work as a grad assistant or contribute to a think tank and support research. The non-profit Black Doctoral Network supports students who want to pursue doctorates in the Social Sciences, humanities, and in the area of Science Technology Engineering and Math (STEM). The program specializes in networking with other colleges and universities as well as business to help students find multiple support systems and funding for students. Whether it is a network of professionals or obtaining a fellowship or assistantship there are positive avenues for students seeking financial support.

Employer Tuition Reimbursement 

There are also companies that provide work incentives in the form of tuition reimbursement. This can be a great opportunity for graduate students who are working a full-time job but still need funding for school. The key to finding the right funding opportunity involves multiple aspects including career choice, family and home life, and what degree program can give a student the most effective and applicable financial support.

Loans

With the average American student debt around $30,000, knowing which loans should be used for the college experience is important. Being a responsible borrower is key to deciding how much money to borrow and how much time it will take to pay the loan back. Many students pay for school through a combination of loans, scholarships, and work-study programs. There is not one specific way to pay for school, and the necessity for financial aid depends on the student, their program of interest, and income needs. Regardless of which financial path you choose, obtaining a graduate degree can be invigorating and lead to career advancement and personal growth.

Educators never stop learning; check out our available graduate degree programs to hone your skills and promote lifelong learning and academic excellence.

The post Understanding Graduate School Financial Aid appeared first on Graduate Programs for Educators.

How Common are Graduate School Scholarships?

Graduate school scholarships are less prevalent and more accessible to receive than undergraduate scholarships. This does not mean they are impossible, however. Thousands of graduate-level scholarships are available; you just need to know where to look. Graduate scholarships are often listed on a school’s financial aid webpage, so that is a good place to start.

Here is just one list of potential scholarships available to graduate-level students. Graduate scholarships are typically awarded based on academic and professional achievements. They are separate from grants, however, which are based on financial need. Be sure to check if the scholarship(s) are available to all graduate students as opposed to only master’s students, as this is sometimes the case. You can always contact the provider directly to confirm whether you are eligible for a scholarship.

Myths and Facts about Graduate School Scholarships 

Don’t let yourself be a victim of scholarship misinformation! We’ve debunked the following common misconceptions about graduate school scholarships:

Scholarships are based on your financial status.

This is not true. Scholarships are based on achievements, as opposed to grants, which are awarded based on finances.

It’s too hard to apply for scholarships.

Each scholarship will have different requirements, so just because one requires you to jump through a lot of hoops to apply for doesn’t mean they all will be like that. And while there typically are a series of steps you must go through when filling out a scholarship application, it’s usually not more arduous than applying for graduate school. Plus, the payoff should be worth it! Just read the directions thoroughly and keep a spreadsheet to stay organized if you’re applying for more than one scholarship.

It’s not worth it to apply for small scholarships.

If someone handed you $500 on the street, would you turn it down because it’s not “enough”? A little bit goes a long way! Many people avoid the smaller scholarships because they don’t think the payoff is worth it, but it’s better than nothing! $500 can cover your books for an entire semester. Plus, sometimes smaller scholarships are easier because so many people believe they’re not worth it, so there’s less competition. Which brings me to my next myth…

Scholarships are too competitive.

There are literally over one million scholarships available. A few of them are indeed highly competitive, but the majority of them are not. Don’t let this common myth keep you from receiving free money! Do your research and follow the directions carefully; this will already set you apart from other students who rush through the application process.

Scholarships are suitable for all four years of school.

Don’t make the mistake that just because you were awarded a scholarship once means you’ll get it every year. Read the fine print; some scholarships require you to apply for them yearly. Also, make sure you continue to fit the criteria for the scholarship each year, and that you don’t do something that makes you ineligible.

How to Increase Your Chances of Getting a Graduate School Scholarship

Do your research.

We touched on this several times above, but a million scholarships are available. There’s no reason why you wouldn’t qualify for at least one, and likely more than one. Take the time to research your options, and don’t forget to check local sources. Often, community groups and organizations offer scholarships, and you’re more likely to receive them if you’re local to the community. Oftentimes, people overlook these, and then no one applies, and the money goes to waste that year! That money could be yours if you try to search for it.

Stay organized.

We recommend applying for more than one scholarship, but this can get confusing since the requirements for scholarships are generally different. Some might require you to write an essay, while others have a written application, and others might want professional references. We suggest creating a scholarship spreadsheet that lists all the scholarships you’re applying for, plus their individual requirements. Then, you can check off the boxes as you complete each requirement. You want to take advantage of a financial opportunity just because you forgot to complete part of the application.

Don’t skip the small ones.

They really do add up, and you can apply for as many as you want! A handful of small scholarships could pay for your books, your room and board, supplies, and more!

Here is another great resource to call on if you’re trying to find scholarship opportunities; enter your information and be amazed at the scholarships available! Happy hunting!

Educators never stop learning; check out our available graduate degree programs  to hone your skills and promote lifelong learning and academic excellence.

*Updated February 2024

The post Myths and Facts about Scholarships appeared first on Graduate Programs for Educators.

Not Applying for Scholarships and Grants

First of all, unless you are eligible for a TEACH Grant, it’s important to know that there are limited scholarships or grants for your graduate studies. This is different from your undergraduate program where grants and scholarships were the staple of any financial aid package. However, just because there are fewer of them, doesn’t mean you shouldn’t apply. In fact, it’s actually quite the opposite.

More graduate scholarships go unfulfilled annually than undergraduate scholarships, simply from the mere fact that most graduate students don’t apply for them. This means that the competition is significantly lower than at the undergraduate level for the same scholarship dollars and increases the likelihood of you being awarded the funding.

Additionally, graduate scholarships tend to be degree and major specific, so you’re only competing against a finite group of similar students pursuing the same career interests. If you spend a little time on those applications, making sure to tell a compelling story in your essay, you will have a great chance at being awarded one (or more!) of them.

Lastly, don’t shy away from applying to scholarships that might seem like a long shot. If the scholarship requires a GPA of 3.0 and yours was a 2.5, but you overcame personal obstacles and persevered, it’s worth applying for. Scholarship review committees would much rather the funding go to someone who needs it (rather than goes unclaimed) even if they don’t meet every single criterion. Furthermore, telling a story of perseverance, commitment to becoming a teacher or educator, or another compelling story demonstrates just as much strength and aptitude as a GPA might.

Not Checking Interest Rates and Loan Benefits

Another mistake to avoid is assuming that all student loans are the same. Every loan has a different interest rate and terms and conditions. To make things a bit more nuanced, oftentimes interest rates are not the primary feature to look at when determining which loans are best for you. In general, most graduate student loans can be ranked in the following ways:

Direct Unsubsidized Loan

Most of the time Direct Unsubsidized Loans are the ‘best’ option for graduate school loans. These loans do not require a credit or income check, are very competitive in interest rate, and will automatically consolidate with your undergraduate subsidized and unsubsidized loans. The consolidation benefit means that you will save money in interest and reduce your monthly payments over the long term. For current interest rates and information, check out www.studentaid.gov. The FAFSA is the only application required in order to receive a Direct Unsubsidized Loan.

Graduate Direct PLUS Loans

Graduate Direct PLUS loans require a small credit check and are applied for online. These loans have a slightly higher interest rate than an Unsubsidized Loan, but they can still be consolidated with other federal student loans that you may have. These loans do have a processing fee, which varies year to year, but it’s usually around 4%. So, for every $1,000 that you borrow in a Graduate PLUS loan, there will be a processing fee of around $40.

Alternative (aka Private) Loans

Alternative or private loans are independent student loans based exclusively on your credit, debt-to-income ratio, and annual household income. These loans are a good option for students with excellent credit and no other federal student loans. They cannot be consolidated with other student loans, so you will most likely have a higher monthly payment vs. the Direct Unsubsidized Loan and the Graduate PLUS loan. However, under the right circumstances it’s possible to receive a lower interest rate than the federal loans offer. In order to do this, you must have a strong credit score and low debt-to-income ratio and agree to a short-term repayment plan at the time of application. In order to get the best interest rate, you will most likely need to agree to a repayment plan of five years or less.

Waiting to Start Paying Off Your Loans

While we are on the topic of student loans, you should consider paying the interest on your loans while you are in school (if you can afford it). If you had a $10,000 loan at 6% interest, your monthly interest payment would be around $50 a month. While that might not sound like a lot now, if you allow that interest to accrue over 5 years it would cost you several hundred dollars in additional interest charges.

Not Working While in School

Lastly, depending on where you are in your life and your career and what type of academic commitment you want to make (enrolled full-time or part-time, for example), it’s important to consider working while you are going to school. If you are able to juggle work and school, it’s the number one way to reduce your total loan debt. At a minimum, if you can avoid borrowing student loans to pay for your rent, utilities, and other monthly expenses, you will save yourself tens of thousands of dollars.

Expecting Lifestyle to Stay the Same

However, if working while going to school is not an option for you, please consider making changes to your lifestyle so you can borrow as little in student loans as possible. Graduate school is an investment in your future, so with every good investment you want to do so wisely. If you do need to borrow student loans in order to pay your monthly living expenses, try to make those living expenses as small as possible. Perhaps you consider a roommate, carpooling to class/work, eating out less, or giving up ‘extras’ such as a latte on your way to class for the short term while you finish your degree.

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What Graduate Scholarships are Available? How Do I Apply?

You may know that at the undergraduate level there are literally thousands of scholarships from everything from academic achievements to athletic or extra-curricular activities. However, at the graduate level, scholarships are far less common and are more often based on major, degree, or even life experience.

There are typically two main categories of scholarships for graduate students, those offered by the college or university you are applying to and those that are private or ‘outside’ scholarships. The ones from your college or university are usually fairly straightforward to both learn about and apply for. In most cases your admissions application is the only application required at your school, or, in some rare cases, there is a separate scholarship application required. In either case, these should be listed on your school’s website, or your admissions or financial aid office are the best resources for knowing what particular scholarships your school may offer. While these ones are usually easier to apply for, being that they are managed by your school itself, it also means that everyone else in your program is likely applying for the same scholarship as well, so make sure to stand out and sell yourself as best you can during the admissions and/or application process.

Graduate scholarships offered by private or ‘outside’ agencies are typically harder to find. This usually means fewer applicants and a better chance of being selected. A great place to start on your quest for private scholarships is to check in with agencies that you have worked with or even groups that you may have volunteered with or supported in the past.

It’s not uncommon to find graduate scholarships for adults who want to return to school for a new career path offered by the local or national associations. For example, if you are pursuing a graduate degree in education, local teacher’s associations, national organizations, even local YMCA’s or school districts may offer scholarships. While some may be specifically for undergraduates only, there is often some wiggle-room in there for a graduate student to receive one if the applicant pool is relatively small each year.

Additionally, many larger local foundations that manage hundreds of scholarships annually often have some scholarships for graduate students in their portfolio. However, because they are mostly marketed towards undergraduate students, it’s often the case that the graduate scholarships go un-awarded because they did not have any qualified graduate students apply. I know when I used to volunteer for a multi-million dollar local scholarship foundation, every year a dozen or more graduate student scholarships went unspent for that very reason.

What Should I Expect During the Application Process?

While each scholarship application is going to look different and have different requirements, there are some basic core elements that most applications have in common. The first is your basic demographic and/or financial information (which you can’t really do anything about), and the second is your essay. The essay is far and away the most influential part of your scholarship application.

After sitting on hundreds of scholarship review boards, I can definitively say that if it’s an ‘essay optional’ scholarship and you don’t write the essay, you have a very small chance of being awarded the funding. The scholarship reviewers want to feel like they know you and that they are helping you accomplish something important. This is your chance to sell yourself and stand out among the crowd.

Spend time on your essay, making sure to answer whatever the essay topic is thoroughly and to stick within the required word count that they give you. One of the quickest ways to go to the bottom of the pile is to write a great American novel instead of a one-page essay or to write two sentences instead of two paragraphs. In both cases the reviewers see that you aren’t following directions or taking their request seriously so they will often move on immediately to the next candidate. So pay attention to details, but also be honest and showcase yourself in the best light to ensure you stand out from the other applicants. Share personal stories or details such as how your upbringing or family or a particular event influenced your decision to pursue graduate school or a particular career.

Once you submit your scholarship application, whether it’s one at your college or university, or one from a private agency, you will need to wait to hear back until after all the applications are received and reviewed. Typically, you can expect to be notified if you are being awarded a scholarship within 30-90 days after the scholarship application deadline has passed. Depending on the number of applicants and the size of the agency, some will be able to make decisions faster than others.

In most cases you will only hear from the scholarship agency if you are a selected recipient and not if you weren’t selected. But, when you do find out you’ve been awarded a scholarship, it’s critical that you send that information to your financial aid office. The financial aid office at your school will then work on your behalf to ensure that your money is actually paid to you and will often pre-credit your bill for the amount of your scholarship. What that means is that they will often show the scholarship as pending on your bill even if the funding doesn’t come in for a few months or weeks so you are not required to pay that amount. If you don’t notify the financial aid office, the chances of you never receiving the money and/or having to pay your entire bill in full are much higher.

All in all, while the pursuit of graduate school scholarships may seem elusive at first, the truth is that your chances of finding and receiving one are higher if you are willing to do the research.

Interested in learning more about your financial aid options? Explore our comprehensive funding e-guide here, and then find your perfect graduate program here!

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The TEACH Grant is a very unique federal grant in that it is one of the few grants that students of graduate programs can receive, and it’s only for teachers. It also requires you to complete a set number of years of teaching (your ‘service obligation’) or else the grant is converted into a loan retroactively.

The TEACH Grant program provides up to $4,000 a year for highly qualified students completing a teaching degree in a high-need program of study and at a low-income school district. Upon completion of your degree you will be required to work in an eligible teaching position for a minimum of four years of the immediate eight years upon graduation. If you choose not to teach in a high-need field or at an eligible institution your TEACH Grant will be converted into a loan retroactively, and you will be required to begin making payments on it.

How Do I Qualify for the TEACH Grant?

To be eligible for a TEACH Grant, you must meet the Basic Eligibility Criteria for federal aid programs and meet certain academic achievement requirements to qualify you as a ‘highly qualified’ teacher. Generally, if you maintained a cumulative undergraduate college GPA of at least 3.25 you can qualify for the TEACH grant in the first semester you begin your graduate studies. However, if your undergraduate GPA was below a 3.25, you could qualify for a TEACH grant in your second semester of graduate school by receiving at least a 3.25 in your first term. Additionally, you must be enrolled in a school that offers the TEACH Grant and be enrolled in a TEACH grant eligible program at that school. Not all colleges and universities offer the TEACH Grant, so it’s best to ask your financial aid office before enrolling if this is an important part of your graduate school financing plan.

A TEACH Grant eligible program is a program of study that prepares you for teaching in a high-need field and leads to a degree (master’s, certificate of advanced graduate standing or some bachelor’s degree programs). Current high-need fields include bilingual education and English language acquisition, foreign language, reading specialist, mathematics, science, and special education, as well as any other field that has been identified as high need and is included in the annual Teacher Shortage Area Nationwide Listing. Additionally, you must be employed and teach in your service area at a low-income qualified school district. To see if your current school district qualifies you can check the Teacher Cancellation Low Income Directory. While the Teacher Cancellation Low Income Directory is updated annually and school districts can be subject to change annually, it’s usually a fairly safe assumption that if the school you work at is on the list now that it will more than likely remain eligible in future years.

In order to fulfill the conditions of the grant, you must teach for a minimum of four years of the first eight years after completing your degree in a qualified school district in a high-need field. This is commonly called your ‘service obligation.’ You will need to report and certify your employment annually with your TEACH Grant servicer. The good news that most people don’t realize, though, is that if you do teach for your required four years in an eligible position, those four years also count towards your Teacher Loan Forgiveness Program if you are pursuing loan forgiveness. This means that you will be able to ‘double dip’ and both meet your service obligation for the TEACH Grant and have four years banked towards your loan forgiveness.

The TEACH Grant is an excellent opportunity for students pursuing teaching in a high-need field to help offset the costs of graduate school and should be considered a valuable resource. For more information on if your school offers the TEACH Grant, you should contact the financial aid office. As a result of the fact that this grant could convert into a loan, many schools will not award you a TEACH Grant without you submitting a written request to the financial aid office, so be sure to reach out to them if you are interested.

For more information, as well as the next steps required if you wish to receive the TEACH Grant, check out TEACH Grants on the StudentAid website.

Interested in learning more about your financial aid options for graduate school? Explore our comprehensive funding e-guide here.

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American Opportunity Tax Credit

This tax credit is specifically only for undergraduate costs, but if you are coming directly from undergraduate study (or have children of your own who are undergraduates currently) this is typically the ‘best bang for your buck’ program.

Tax credits literally work just as a credit on the amount of taxes you owe, so it’s a dollar for dollar match up to $2,500 per year. Therefore, if your tax liability was assessed at $4,000 for the year, but you had up to $2,500 in qualified undergraduate tuition, fees, books, and equipment, you would only owe $1,500 in taxes and would get a refund of the full $2,500. The American Opportunity Tax Credit can be claimed for up to four years and is eligible for tax filers whose total adjusted gross income is under $80,000 a year ($160,000 for joint filers). You can also receive up to 40% of your American Opportunity Credit as a refund, even if you earned no income or had no tax liability!

Lifetime Learning Credit

The Lifetime Learning Credit is for graduate or undergraduate costs, and there is no limit to the number of years you can claim it. This is an ideal credit for graduate students and is one of the most common types of tax incentives that graduate students take advantage of.

How it works is that you can claim up to 20% of the first $10,000 you paid in tuition and fees in 2019 for a maximum of $2,000. The Lifetime Learning Credit does not count living expenses or transportation as eligible expenses, but you can claim required books in addition to tuition and fees. You can claim the credit on your income taxes if your adjusted gross income was less than $58,000 (or $116,000 if you filed jointly) in 2019. However, the Lifetime Learning Credit is not refundable, so if you did not owe taxes or did not work during 2019, you cannot receive this back as a refund.

Tuition and Fees Deduction

Deductions work differently than credits. Credits are a direct dollar-for-dollar offset of your taxes owed, while a deduction reduces your income. This reduction to income reduces your taxable burden by approximately 15-25% of your deduction amount. So in the case of the tuition and fees deduction, you can deduct (aka reduce) up to $4,000 from your gross income for money you spent on educational expenses, which will in turn reduce your taxes by an average of $600-$1,000. You can deduct up to $4,000 in tuition, fees, books, and supplies that you paid in 2019, and you can qualify if your adjusted gross income is less than $65,000 (or $130,000 if married filing jointly). However, you cannot claim both the tuition and fees deduction and an education tax credit in the same year (it’s one or the other), so consult your tax professional for which one is best for your individual circumstances.

Scholarships and Grants

There is only one scenario in which going to school and receiving financial aid could cost you more in taxes, and that is if your scholarship and grants that you received in a given year are more than the cost of attending school. For example, if you received $10,000 in scholarships and grants (aka free money) but your total bill for tuition, fees, and books was only $6,000, the $4,000 that you received as a refund could be considered taxable income. There are many different nuances to this, so if you are in this situation it’s best for you to reach out to a tax professional directly for one-on-one advice. However, in general, it’s always best to take all the scholarships and grants each year, and if you owe a small amount in taxes, it’s still a much better deal!

College Savings Plans

All the scenarios thus far have been for students who are currently in school and had educational costs in the most recent tax year. However, there are also tax savings to be had if you choose to plan ahead. Many people opt to start a college 529 plan or other type of educational savings plan. For these accounts, the interest earned grows tax-free, as the money deposited into the account has already been taxed. Then when the money is used for qualified educational expenses, there are no tax penalties. It’s basically like a ROTH IRA, but for education costs! These accounts are special investment accounts and need to be set up by your investment specialist, but it’s another great way to curb the cost of education and ensure you are getting the most out of your money.

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