How to Pay for Grad School: 8 Ways

Key takeaways

• Options for paying for a master’s degree, doctoral degree, or professional degree include money you must repay, such as government and private loans, and money you don't have to repay, such as tuition reimbursement and scholarships.

• To pay for grad school without loans, consider grants, scholarships, savings, part-time jobs, internships, and federal service.

• To pay for grad school with no money, consider foreign or domestic service, such as the Peace Corps, AmeriCorps, and military service, or apply for grants and scholarships.

• To pay for grad school while working, ask your employer if they provide tuition assistance or reimbursement, or work part-time while attending school through a work-study program or as a teaching or research assistant.

Read on to learn proven strategies to help you pay for grad school and minimize out-of-pocket expenses.

How to pay for grad school

Graduate schools award master’s degrees and doctorates, as well as professional degrees that help students prepare for specific professions. These programs can be expensive, with a master's degree typically costing between $44,640 and $71,140 [1], the average doctorate degree costing $98,015 [2], and professional degrees costing more, such as an average of $187,380 to $360,360 for dental school [3] and an average cost of $198,788 for law school [4].

However, you have many options to help pay for grad school, ranging from scholarships and grants to employer assistance, federal service, and building up your savings. You can also explore online graduate programs, including master’s degree programs, as a more cost-effective option. Take a look at eight options to help fund your grad school degree.

1. Apply for grants and scholarships.

Grants and graduate school scholarships are often cited as a good way to pay for school because they're free money. Grants and scholarships are both forms of financial aid that typically don’t have to be repaid. Grants are generally based on financial need and provided by government programs or schools, while scholarships are typically merit-based and awarded by schools, companies, and other organizations. Spending time researching eligible grants and scholarships can be well worth the effort.

Federal and state funding: You may be eligible for federal or state funding depending on your needs and field of study. Federal TEACH Grants, for example, are available for students who intend to become teachers [5]. If you’re eligible, completing your Free Application for Federal Student Aid (FAFSA), which qualifies you for state and federal funding, should be a priority.

School funds: Universities and academic departments often offer scholarships and grants based on merit and need. Your school may have a separate financial aid application; reach out to a financial aid officer to learn what options are available.

Private organizations: Private organizations may offer scholarships based on many factors, such as field of study, ethnic heritage, status as a returning student, or geographic location. A financial aid officer at your school may be able to give you a list of scholarships that apply to your circumstances.

Read more: How to Get Scholarships for College

Does FAFSA cover graduate school?

Completing the FAFSA may make you eligible for certain types of financial aid for graduate school. In most cases, your funding considers your income, not your parents’ income, as is the case with undergraduate FAFSA applications, so that may impact your eligibility. Potential sources of aid include the William D. Ford Federal Direct Loan Program, TEACH Grant, and Federal Work Study.

2. Turn to your savings.

If you’ve been able to save before starting grad school, consider allocating a portion of that money to your schooling needs. You shouldn’t dip into an emergency fund, or money that you’ve set aside to help in case of an unexpected problem, but using money you've already set aside and therefore don’t have to repay is preferable before turning to student loans.

3. See whether your employer will pay.

Some employers offer tuition reimbursement or tuition assistance, meaning they cover a portion of your continued education costs. Employers may also be willing to help pay off student loans.

If you’re employed and believe a graduate degree will be helpful to your organization, consider asking your manager or human resources (HR) department about tuition reimbursement. Keep in mind that an employer may require a commitment of up to several years in exchange for tuition reimbursement.

Also, many universities offer full-time employees tuition remission, or the opportunity to take classes part-time for free. Consider applying for relevant roles at the university of your choice and working until you’re eligible to begin a graduate degree program. Just keep in mind that you’ll have to remain employed full-time during the length of your program in order to qualify. If your spouse, domestic partner, or parent works for a university, you might also be eligible for tuition remission at their school.

4. Defer, work, and save.

Working for one or more years can help you save money and give you real-world insight into the working world. Spending time in your desired field may also give you valuable experience that can make you a stronger candidate in school or scholarship applications and help solidify your understanding of what you need from a graduate degree.

If you’ve already been accepted into a program but want to defer your enrollment, ask the admissions officer. Deferment is typically available for a one-year period.

Alternatively, consider enrolling as a part-time or online student in order to accommodate your full-time job and using a portion of your paycheck to cover expenses. It may take longer to complete your degree, but if you graduate with fewer loans or none at all, you may ultimately be in a better financial position.

5. Work part-time during school.

Similar to working full-time while attending school part-time, you can enhance your full-time educational experience by earning an income with part-time work opportunities.

Internships: Working as an intern in your field of study can give you real-world experience and offer the flexibility to accommodate your course load. Internships can also give you the experience and connections to help you find employment after graduation.

Work-study: Your financial aid package might include work-study, which will allow you to work on campus to help with expenses. Reach out to your financial aid office or career center to see what options might be available.

Teaching and research assistants: Your university may be looking for teaching or research assistants. Since these positions are usually designed with students in mind, they can give you the needed flexibility to let you focus on your schoolwork as well.

6. Consider foreign or domestic service.

Certain government service programs allow you to help resolve issues in the US and abroad. Completing them can give you access to scholarships that can be used toward qualifying graduate programs.

Peace Corps: Completing a service assignment as a Peace Corps volunteer may make you eligible to receive full or partial scholarships to over 200 programs at more than 120 colleges and universities in the US [6]. Scholarships are available in a wide range of subjects, including law, public health, math, sciences, education, and more. Joining the Peace Corps can also bring benefits for your undergraduate student loans, such as deferment, partial cancellation, or forgiveness, depending on eligibility [7].

AmeriCorps: AmeriCorps, a network of national service programs, provides program alumni with education awards that can be used to pay for qualifying student loans or graduate programs. The award amount varies depending on the number of hours spent in AmeriCorps [8].

Military: As a US veteran, you can qualify to receive educational benefits to cover graduate school expenses under the GI Bill. In the 2026-2027 school year, the Post-9/11GI Bill will cover full tuition and mandatory fees for public in-state schools and up to $30,908.34 for private or foreign schools [9]. You can also explore additional GI Bill programs, including various Montgomery GI Bills [10]

7. Borrow smartly.

Borrowing money to finance your education is not a decision to be taken lightly. But if taken out thoughtfully, loans can provide you with the financial resources needed to complete your education.

Federal loans first: Loans from the government tend to have lower interest rates than loans from private loan providers such as banks. Federal loans may also have other perks, including income-based repayment programs or loan forgiveness for select professions [11, 12].

Private loans: Once you’ve exhausted your federal loan options, you can look into private student loans. Compare several lenders. While private lenders tend not to offer perks such as income-based repayment options, many do provide deferment programs for periods of hardship.

8. Look into online degrees.

Online degrees may cost less than in-person schools, even when they're offered by the same institution. Additionally, earning your degree online can make it easier to continue working while enrolled.

The Master of Computer Science from the University of Illinois, offered on Coursera, for example, costs $19,840 to $25,376 for the full program in 2026. Compare this to the overall average cost of a master’s degree, which is between $44,640 and $71,140 [1].

Online degrees also offer other benefits, such as scheduling flexibility and access to programs at geographically distant schools. Online schools may also accept and offer financial aid.

How are you supposed to pay for grad school?

As you consider your options and figure out what makes the most sense for you, remember to seek out grad school payment options in this order:

1. Money you don’t have to repay: A good standard is to start with money that you don’t have to return. Think grants, scholarships, personal savings, a portion of your salary, tuition reimbursement by your employer, or federally funded service programs.

2. Federal and state loans: Student loans provided by the government [12] tend to have a lower interest rate and more flexible repayment plans than private loans.

3. Private loans: Private loans should only be considered after you’ve exhausted your other options.

This list was adapted from Sallie Mae.

Find resources to help you prepare for grad school

Discover practical resources, such as our Career Chat newsletter on LinkedIn, to help you prepare for your career. Then, check out these additional helpful resources:

• Watch on YouTube: Can You Go to Grad School for a Different Major?

• Read our Career Chat issue: 4 In-Demand Career Paths (and Skills) to Know

• Hear from a peer: Meet the CPA Advancing Her Data and Leadership Skills with an MBA

Earn your degree on a schedule that works for you by exploring degree programs available from esteemed college and university partners on Coursera.

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