Paying For Graduate School
Before we discuss the types of aid available to advanced-degree students and the best
strategies for obtaining that aid, let's first briefly cover such topics as "what is a
graduate student," "why people go to graduate school" and "what are people studying in
graduate school."
So, what, exactly, IS a Graduate Student?
A "Graduate Student" is any student who is looking to continue his/her education beyond
the Bachelor Degree level of education. There were 2.7 million students enrolled in Graduate
School in the year 20001, and of these almost 60% were enrolled at the Master's Degree
level1 with another 13% enrolled in Doctoral programs and 12% in
"first-professional" programs of study1. The other 16% were enrolled in programs
such as post-baccalaureate certificate programs and non-degree-granting programs1.
First-Professional students are those enrolled in advanced degree programs in the fields of
law, medicine and related fields, and theological professions.
The rationale for Graduate School:
An estimated 364,000 students took the Graduate Record Exam (GRE) each year from
2000-20042. This means that almost 30% of students who received a Bachelor's Degree
in those years were at least contemplating the possibility of continuing their education,
despite the significant costs associated with Graduate School. So, what would motivate
this many of your peers to incur this expense? Perhaps one factor would be that all but
one of the fifty highest-paying occupations requires a college degree or better3.
In fact, the median household income is $65,922 for people who hold a Bachelor's degree,
while that figure rises to $77,935 for households in which a person possesses an advanced
degree4.
So, what are people studying in Graduate School?
At the Master's Degree level of study, about one half of all student's are working on
either a MBA (master's degree in Business Administration, 20%) or a master's degree in
education (28%). Master's degrees in Social Work, Public Administration and the Fine Arts
are also popular choices1.
While some students proceed immediately to an advanced degree after achieving a
Bachelor's degree, about 67% of MBA students waited three or more years before enrolling
in a program, and 75% of them worked full-time while pursing their MBA. Of those student's
pursuing a master's in education, 83% wait at least one year before enrolling in a program,
and nine out of every ten students combine work with school.
As for Doctoral degree students, 18% enroll in either an Education programs (either Ed.D
or Ph.D), while 62% enroll in non-education related disciplines. The other 21% enroll in
programs such as Business Administration, Public Finance, etc.
Types of Aid Available for Graduate School
The vast majority of graduate students, 82% of full-time students and 60% of students
overall, receive some type of financial aid1. In the 2003-2004 academic year,
the average amount of aid received by Graduate and First Professional students was
$15,1001. The most common forms of aid received by graduate students are grants,
loans, assistantships, aid from employers and work study. We will now explore each of these
aid types, and then present some statistics that will provide you with an idea of what the
typical graduate aid package encompasses.
- Grants, Fellowships, and Scholarships
Grants and fellowships are commonly grouped under the heading of "grants" where advanced
degrees are concerned.
There are many types of grants available to graduate students, with most being sponsored
by the federal government to encourage study in certain disciplines.
Grants.gov has extensive information
concerning these grants, and you will find a high concentration of health field-related
grants to be available.
Fellowships are monies that are provided by many types of entities, including educational
institutions, and that do not need to be paid back.
Cornell University's
fellowship database is an excellent source of fellowship information.
You can also use our free Scholarship Search
to research and access billions of dollars in grants and scholarships available to graduate students.
- Assistantships
Assistantships provide students with a stipend to help them cover the expense of their
education, while in return providing their institution with a source of labor for teaching
and performing research. Each college or university administers its own Assistantship
program. While 32% of full-time graduate and professional students received Assistantships
in 1999-20001, the availability of this type of aid was divided sharply by educational level
and legal status of the student.
For example, 54% of all foreign students received Assistantships that year while 17% of US
citizens and resident aliens received this type of aid1 This is due primarily to
visiting students not being eligible for most other forms of aid. Almost half of all Doctoral
students (47%) received Assistantships, while this was received by 16% of Master's students
and 11% of first professional students1.
The average value of Assistantships awarded in 2003-2004 was $10,000 for Graduate and First
Professional students1. The average for Doctoral candidates was $13,3001.
While Assistantships may sound like "easy money", the reality is that nearly one half (46%)
have full teaching responsibility for one or more courses, while also carrying a full course
load.
- Tuition Payments from Employers
In 2003, 72% of all U.S. companies offered some form of a tuition reimbursement program,
with 69% offering compensation for Graduate studies5. Of those companies categorized
as "large companies," fully 86% offer this benefit. This is a truly free benefit to most
employees, given that a law passed in 1997 makes this benefit tax-free up to $5,250 per
year. This benefit is a classic win-win situation for employers, as they are essentially
investing in the competency of their employees while their employees enjoy a free benefit.
Many employers attach certain terms to this benefit, such as requiring passing grades or
obligating employees to work for the company for a certain period of time for each course
provided.
- Federal and "Private" Student Loans
The amount of Federal student loan money available to Graduate, Professional and Doctoral
students through the Direct loan program is significantly higher than for Undergraduate students.
Students enrolled in Graduate or Professional programs of study may borrow up to $20,500
for each year of study. The total Direct loan limit for these students is $138,500.
Graduate students can also apply for a Federal Graduate PLUS loan to borrow up to the
difference between your post-graduate educational costs and your financial aid award
package.
"Private" student loans, also called "alternative loans," are student loans that work more
like common types of debt. These loans are not borrowed from the government, but rather
directly from a lender and without certain benefits offered through federal student loan
programs. Generally speaking, these loans carry larger upfront fees, higher interest
rates, and more stringent repayment terms than federal student loans. Many graduate (and
even undergraduate) students nonetheless find that supplementing their aid package with
this loan type is necessary to "close the gap" between their cost of attendance and
available resources.
- Early Withdrawals from IRA's
You may make early withdrawals from IRA's for qualified postsecondary educational expenses.
These withdrawals are not subject to the 10% penalty. Qualified expenses include tuition
and fees as well as books and supplies.
- Work-Study
Work-study is a government-sponsored form of financial aid which encourages students to
become involved in the community. Each work study program is campus-based, and you should
check on availability of these positions with the financial aid office of the institution
which you intend to attend.
Crunching the Numbers
The two charts below help to break down the amounts and types of aid being received by
students in Graduate, First Professional and Doctoral programs. The first chart indicates
average award amounts in dollars, while the 2nd chart displays the same information expressed
as the percentage of students receiving the aid type1.
| |
|
Grants |
Total Assistantships |
Student loans |
| Institution and Student Characteristics |
Total aid |
Total grants |
Employer aid |
|
Total loans |
Federal loans |
| |
| U.S total (excluding Puerto Rico) |
$15,200 |
$5,700 |
$3,000 |
$10,100 |
$16,900 |
$15,500 |
Type of institution
Public 4-year |
| Non-doctorate-granting |
7,100 |
2,600 |
2,300 |
6,400 |
8,700 |
8,800 |
| Doctorate-granting |
14,700 |
5,800 |
2,500 |
10,000 |
15,500 |
15,000 |
| Private not-for-profit 4-year |
| Non-doctorate-granting |
8,500 |
2,900 |
2,600 |
|
12,300 |
12,200 |
| Doctorate-granting |
20,500 |
7,700 |
3,800 |
12,300 |
21,900 |
18,500 |
| Private for-profit 4-year |
15,200 |
4,600 |
4,600 |
|
15,700 |
15,200 |
| More than one institution |
14,800 |
4,700 |
2,200 |
7,100 |
16,400 |
15,500 |
| Graduate program |
| Master's degree |
11,800 |
4,400 |
3,200 |
8,300 |
13,600 |
13,000 |
| Doctoral degree |
20,200 |
10,200 |
3,500 |
13,300 |
17,800 |
16,700 |
| First-professional degree |
27,500 |
7,100 |
3,500 |
7,500 |
26,400 |
22,500 |
| Other and nondegree |
7,800 |
2,700 |
1,700 |
6,400 |
11,800 |
11,300 |
| Attendance pattern |
| Full-time/full-year |
23,200 |
8,600 |
3,400 |
11,400 |
21,400 |
18,800 |
| Full-time/part-year |
12,600 |
6,500 |
4,300 |
9,300 |
12,900 |
11,600 |
| Part-time/full-year |
11,400 |
4,200 |
3,200 |
9,600 |
13,000 |
12,800 |
| Part-time/part-year |
6,000 |
2,700 |
2,300 |
6,000 |
10,100 |
10,200 |
| Income level |
| Less than $10,000 |
20,700 |
6,900 |
3,000 |
8,900 |
20,300 |
18,000 |
| $10,000-19,999 |
18,300 |
7,800 |
3,200 |
11,000 |
17,000 |
15,200 |
| $20,000-29,999 |
15,800 |
6,800 |
2,500 |
11,200 |
14,700 |
13,600 |
| $30,000-49,999 |
13,400 |
5,000 |
3,100 |
10,400 |
15,300 |
14,200 |
| $50,000 or more |
9,800 |
4,100 |
3,000 |
8,700 |
14,700 |
14,400 |
| |
|
Grants |
Total Assistantships |
Student loans |
| Institution and Student Characteristics |
Any aid |
Any grants |
Employer aid |
|
Any loans |
Federal loans |
| |
| U.S total (excluding Puerto Rico) |
72.6 |
39.9 |
20.4 |
14.8 |
42.0 |
39.5 |
Type of institution
Public 4-year |
| Non-doctorate-granting |
59.9 |
29.7 |
19.6 |
9.9 |
32.2 |
31.1 |
| Doctorate-granting |
71.8 |
41.7 |
17.5 |
24.5 |
36.0 |
33.1 |
| Private not-for-profit 4-year |
| Non-doctorate-granting |
69.2 |
37.5 |
29.5 |
2.7 |
37.8 |
36.7 |
| Doctorate-granting |
77.3 |
41.9 |
17.5 |
10.7 |
50.5 |
47.1 |
| Private for-profit 4-year |
90.6 |
43.6 |
43.6 |
0.1 |
74.6 |
74.2 |
| More than one institution |
72.3 |
40.6 |
22.5 |
10.8 |
48.7 |
47.6 |
| Graduate program |
| Master's degree |
71.0 |
38.5 |
24.2 |
12.4 |
40.8 |
38.5 |
| Doctoral degree |
82.6 |
54.7 |
14.2 |
41.2 |
30.5 |
28.1 |
| First-professional degree |
88.8 |
40.8 |
6.2 |
6.9 |
78.4 |
74.0 |
| Other and nondegree |
53.6 |
31.4 |
23.2 |
5.6 |
24.9 |
23.8 |
| Attendance pattern |
| Full-time/full-year |
87.0 |
44.7 |
9.2 |
21.6 |
63.6 |
59.6 |
| Full-time/part-year |
68.5 |
34.0 |
18.8 |
13.5 |
39.0 |
37.2 |
| Part-time/full-year |
70.7 |
40.5 |
25.6 |
14.0 |
37.3 |
35.5 |
| Part-time/part-year |
56.2 |
34.5 |
28.7 |
6.9 |
19.6 |
18.3 |
| Income level |
| Less than $10,000 |
80.9 |
38.8 |
8.9 |
19.0 |
59.8 |
55.7 |
| $10,000-19,999 |
81.7 |
40.9 |
9.8 |
29.4 |
48.9 |
46.6 |
| $20,000-29,999 |
78.9 |
36.9 |
13.0 |
18.7 |
53.0 |
50.9 |
| $30,000-49,999 |
70.9 |
40.4 |
24.6 |
12.1 |
39.8 |
37.2 |
| $50,000 or more |
62.3 |
41.5 |
32.5 |
6.4 |
25.2 |
23.7 |
- Department of Education
- National Center for Education Statistics
- Department of Education
- National Center for Education Statistics
- Occupational Outlook Handbook, 2004-2005
|
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