Paying For Graduate School: 7 Funding Strategies

Student loan debt has grown significantly in the last decade, with 43 million borrowers owing $1.73 trillion in the United States as of June 2024. For many, this debt is not only a financial burden but a mental burden as well—leaving many anxious or depressed about their debt. Students also report delaying or missing out on life events, such as starting a family or buying a home, as a result of their debt. With statistics like these, it’s understandable why those considering graduate school might be worried about paying for their degree.

However, many students are unaware of the numerous financial aid options available that not only are manageable but also can enhance their learning experience. The class of 2022, for instance, left $3.58 billion in Pell Grants unclaimed simply by not filling out the Free Application for Federal Student Aid (FAFSA), a free online form provided by the U.S. Department of Education.

The biggest mistake you can make is to assume you can’t afford grad school and put your educational and career dreams on hold. With time, research, and creativity, you can finance your graduate education without falling into debt.

Is it harder to get financial aid for graduate school?

Financing grad school can seem daunting, but it’s important to remember that there are plenty of resources to help you fund your education. With numerous scholarships and fellowships, there are several sources of funding that are often unexplored by students.

There’s clear financial support for graduate students. For example, in the 2022–2023 academic year, graduate students received an average of $28,300 in federal financial aid through grants, loans, and work-study programs. Private institutions also offer significant financial aid packages to students. In the 2023–24 academic year alone, Northeastern awarded over $437.5 million in scholarships and grants to its students, demonstrating a commitment to making advanced education more financially accessible.

Many graduate students return to school after gaining valuable work experience, so they often have access to tailored financial aid that considers their professional backgrounds. These diverse opportunities for funding across various programs and schools mean there are multiple avenues to explore, depending on specific academic and career goals.

By starting the financial planning process early and leveraging available resources, you can effectively navigate the landscape of financial assistance to support your studies. Here’s how to afford grad school and pursue your studies without debt.

7 types of financial aid for grad school

On top of the substantial financial support that’s likely in place through graduate school programs, there are several resources you should utilize strategically.

1. Scholarships

Start your scholarship search with online scholarship search engines, such as Sallie Mae’s Graduate School Scholarship Search and Collegescholarship.org’s Scholarship Search Engine. There is a scholarship available for virtually every graduate student.

Consider all of these options to ensure you don’t miss out on scholarship money:

• Your field of study: Whether you are studying biotechnology or earning your EdD, there are scholarships available in your field. Start by doing a web search for “[your field]” and “graduate scholarships.” Talk with the counselors in your prospective college department to find scholarships specific to your degree program.
• Your ethnicity: Some organizations offer scholarships for students of a certain ethnicity. For example, the Hispanic Scholarship Fund offers scholarships ranging from $500 to $5,000 to students with Hispanic heritage in any field of study. You can also find general minority scholarships that are available to a wide range of ethnicities and aid opportunities for certain nationalities. For example, The National Italian American Foundation offers $2,500 to $10,000 in scholarships to Italian-Americans who are members of the foundation.
• Your university connections: You may be able to earn a graduate scholarship or tuition discount by applying to your alma mater. Northeastern, for example, offers the Double Husky Scholarship, which gives Northeastern alumni a 25% discount on their graduate education in over 120 eligible programs. Parents and siblings of Northeastern undergraduate students are also eligible to receive a 25% discount on their tuition through Northeastern’s Parent and Family Scholarship.
• Your unique life circumstances: Do you live with disabilities, or have you overcome adversity in some way? There is a good chance there is a scholarship for your unique situation. For example, individuals who were in the foster care system can look for state scholarships and national scholarships that may award up to to $100,000.
• Federal aid: You can access federally funded scholarships simply by filling out the FAFSA. The online application will guide you through the process seamlessly.
• State aid: Each state has a variety of financial aid allocated for its residents. Many of these awards are designated for individuals working in public service or for degrees that are in high demand in the area in an effort to help support the state’s workforce needs. Massachusetts, for example, designates specific scholarships for residents pursuing a degree in the STEM or healthcare fields, in addition to other state-funded scholarship programs.
• Local aid: Check with your city’s chamber of commerce and local businesses to see if locally funded scholarship money is available.
• Employer-sponsored scholarships: Check with your employer’s HR department to see if scholarships are available to employees, even if you are a part-time or contract worker.

2. Grants

Grants, like scholarships, do not need to be repaid upon graduation. They are typically need based and are awarded by the federal government, state governments, individual schools, and private organizations.

• Federal grants: The federally funded Pell Grant is generally awarded only to undergraduate students; however, there are several federal grant programs available to graduate students, including the TEACH Grant and Fulbright Graduate Grants.
• State grants: State-level grants are available to residents and, in some cases, residents of nearby states. For example, both Pennsylvania and Vermont award residents grant support to attend schools in Massachusetts.
• Institutional and organizational grants: School-funded grants are given by graduate schools to encourage diversity, support field-specific research, or help graduate students with financial need. Many private organizations also offer grants to help students pursue an education in the fields they support. Take advantage of sites like GrantForward to find these hidden sources of funding.

3. Military benefits

If you spent time serving this country, your college costs might be covered. Look for Yellow Ribbon schools that will pay for most, if not all, of your tuition if you are a post-9/11 veteran. Northeastern has delivered more than $11.2 million in funding through the Yellow Ribbon Program, allowing more than 800 veterans, servicemembers, and their dependents to attend the university each year for minimal to no cost. Beyond Yellow Ribbon benefits, the post-9/11 GI Bill®  and U.S. Department of Veterans Affairs offer funds that can be used to cover any remaining tuition costs, living stipends, and books.

4. Work opportunities

Graduate students who fill out the FAFSA and demonstrate a financial need may be eligible for Federal Work-Study. This federally subsidized program provides part-time employment for students.

Depending on your university, there may be other opportunities to gain professional experience and a paycheck while in school. At Northeastern, forty percent of graduate programs integrate full-time co-op opportunities with industry leaders for three to eight months. These placements are carefully designed to complement your studies and accelerate your career, allowing you to apply classroom knowledge to solve real-world problems.

5. Teaching or research assistantships

Graduate students can apply for several kinds of assistantships, either upon program acceptance or at any time throughout their studies, depending on the institution. Research assistants perform research duties under faculty supervision, while teaching assistants help with direct student tasks, such as grading or holding office hours. Doctoral students can also apply for Stipend Graduate Assistantships that offer health benefits, a stipend, and tuition remission of between 50% and 100% of tuition costs.

6. Tuition reimbursement

Approximately 48% of employers offer some type of tuition reimbursement as an employee benefit, although only 2% of eligible employees take advantage of this benefit. The average tuition assistance provided by employers annually is $10,500 for graduate education, which can dramatically reduce your tuition costs. Even select part-time or contract positions offer these benefits to employees. Talk to your company’s human resources department to discover if tuition benefits are available to you and how to apply for them.

If you work for a smaller company without an HR department, arrange a meeting with your boss to discuss the possibility of tuition assistance. They might have to do more research on the matter, but mention that there are tax benefits available to them if they offer partial tuition reimbursement. Share that tuition programs boost company morale, can increase employee skills directly for the company, and can even save the business money and time with regard to retaining current employees.

7. Student loans

You’re likely familiar with the idea of student loans—federal or private funds that will need to be paid back, with interest, after graduation. Many graduate students use these loans to pay for college costs that aren’t covered by teaching assistant positions, employer tuition reimbursement, or scholarships.

Graduate students are eligible for direct unsubsidized loans from the U.S. Department of Education, meaning that they don’t have to demonstrate financial need in order to qualify. Graduate students are eligible to borrow up to $20,500 per academic year, provided they fill out the Free Application for Federal Student Aid. Students can fill out the FAFSA as early as Oct. 1 for the following calendar year, but they can also apply for a loan after the semester has started if the need arises. In that case, it’s important to let the Office of Financial Aid know.

In addition to direct unsubsidized loans, graduate students can apply for a Direct PLUS Loan. The maximum amount of this loan is the total cost of attendance (including living expenses) minus any other financial aid, including scholarships and loans. This amount will vary depending on the program in which a student enrolls. A credit check is required as part of the Direct PLUS Loan application process, but the requirements are less strict than private loans.

If you do need to take out a student loan, rest assured that you can make payments on your debt while in school, which will drastically alleviate your financial burden upon graduation.

If possible, federal student loans should be favored over private student loans. Federal student loans come with lower interest rates, lower fees, and the option of income-driven repayment, so you aren’t stuck with an excessive monthly payment after graduation.

How to ensure you get financial aid for graduate school

Treat the pursuit of financial aid as your job. Don’t rush your applications or essays, and don’t reuse the same answers for different award submissions. Instead, take your time with each submission, personalizing it to that specific prize or opportunity. The judging committees for graduate scholarships, grants, and assistantships are looking for students who are as passionate about the program as they are.

Here are three tips to increase your odds of earning interest-free graduate aid:

1. Go the extra mile.

If your scholarship or grant application allows you to answer optional questions or submit extra documents, such as a personal essay, take advantage of the opportunity. A Money article reports, “Students who answer the optional questions on online scholarship matching services tend to match twice as many scholarships as those who answer just the required ones.”

2. Apply all year long.

Be on the lookout for financial aid opportunities all year long. Some scholarships or internship opportunities open up at the beginning of the year, while others align their deadlines with the school’s fall semester. New opportunities may also open up later in the school year if another student’s assistantship falls through.

3. Stay organized.

With thousands of available financial aid opportunities, it’s impossible to keep track of the details of every scholarship or program. Use a simple planner dedicated only to scholarships, grants, and other aid opportunities. Use the planner’s calendar to track submission deadlines, and make sure to mark down when you should start working on the application. Write down essential points of each aid opportunity, such as which documents to send, essay questions to answer, and reference letters to gather. Then utilize the weekly planning pages to create an action plan that allows you to make progress on your application with the least amount of stress possible.

Why graduate school is financially worth it

Paying for graduate school can be daunting, but it’s possible—and worth it.

At Northeastern, every course, seminar, and lab is designed with your future in mind. The university’s experiential learning model prepares you for the complexities of your field, making your educational investment both practical and profitable.

Additionally, with an advanced degree, you’ll enjoy increased marketability, more available job opportunities, and higher pay. What’s more, you could even be eligible for a promotion within your current organization—meaning your degree might pay dividends sooner than you think.

It’s important to remember, though, that not all graduate programs are made equally. As you prepare to make this investment in your future, take the time to think critically about what it is you hope to achieve in the long run and how you can choose the best program to fit those needs. If you’re highly career-focused, for example, you might organize your grad school search in a way that prioritizes certain qualities like experiential learning and networking opportunities. Doing so will help safeguard your investment by setting you on a path directly toward your goals.

Discover how you can fund your Northeastern education with our diverse financial aid options. Connect with a financial aid counselor today for personalized advice, and start your journey toward a debt-free graduate degree.

GI Bill® is a registered trademark of the U.S. Department of Veterans Affairs (VA). More information about education benefits offered by VA is available at the official U.S. government website.

This article was originally published in January 2019. It has since been updated for accuracy and relevance.