Paying for graduate school can be a costly endeavor. However, the return on investment can be great. Many graduate students may already have a debt from undergraduate school. The Forbes article 2023 Student Loan Debt Statistics: Average Student Loan Debt details the overwhelming debt that Americans have obtained by pursuing a college degree. As of 2023, the total amount of student loan debt in the United States is $1.7 trillion.
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.
