Graduate Student Financial Aid: Many Options Are Available to Finance Graduate School

After financing an undergraduate degree, potential graduate and professional students may wonder whether they can afford to continue their schooling and whether there are sources of financial aid they can tap. Fortunately, there are a number of financial aid options open to graduate and professional students. The major types of financial aid are federal and state government programs, research assistantships, teaching assistantships, fellowships and employer tuition reimbursement. These options are described below.

Federal and State Government Aid

For graduate students, qualifying for needs-based aid is unrelated to a family sponsor's financial situation since graduate students are considered independent from sponsors such as their parents. The calculations used for determining financial need will therefore, not assume any parental contribution. Graduate students must submit the Free Application for Federal Student Aid (FAFSA) each year to be eligible for any of these federal or state programs.

The following types of federal financial aid are available to graduate and professional students:

• Pell Grants and TEACH grants are available for financially needy students enrolled in a teaching certification program.
• Perkins loans are low-cost loans for financially needy students.
• Stafford Loans are available to most students regardless of financial need. Subsidized Stafford loans are available to those who qualify based on financial need. In recent years, graduate students were able to borrow up to approximately $20,000 in total with no more than $8500 coming from subsidized loans. There are also limits on the total amount of Stafford loans, including undergraduate loans, that can be taken.
• Student PLUS loans are available to students who have a good credit history. The maximum amount that can be borrowed is the difference between the cost of attendance and other financial aid.
• Work-study awards are given to financially needy students so they can earn money while attending school.
• Tax deductions and credits for education expenses can save money when filing tax returns.

State financial aid programs for graduate students vary from state to state and primarily consist of loan programs.

Research Assistantships

These positions can be an excellent way for graduate students to earn their way through graduate school while at the same time learn valuable skills related to their future career. Many students are able to use the research they participate in as a basis for a thesis or dissertation. Research Assistantship positions are awarded for a specific research project or to work with a specific faculty member on a funded project. In some cases, students can submit a research proposal to gain funding for a research position. These positions typically provide students with full or partial tuition waivers and often include a living expense stipend. Students typically work 15-20 hours a week during the academic year. These programs are administered at the department level so it is important to contact the department where the student will be studying to find out what positions are available.

Teaching Assistantships

Responsibilities vary between schools and programs but it is not uncommon for a Teaching Assistant to be the sole instructor of an undergraduate class, handling everything from creating the syllabus to lecturing, grading papers and holding office hours. In other cases, the graduate student assists a faculty member with grading papers, tutoring students and other tasks while the faculty member is the primary lecturer. Students typically receive full or partial tuition waivers and often receive a living expense stipend. Students typically work 15-20 hours a week during the academic year. Students should contact the department they will be studying in to find out what positions are available.

Fellowships

For graduate students, scholarships are usually referred to as fellowships. They are usually given to graduate students in a particular program for a specific number of years. Often, they cover full tuition costs and sometimes include a living expense stipend. Some fellowships include an internship. Large corporations, foundations, government agencies and college endowments fund most fellowships. Examples of funding sources include the U.S. Center for Disease Control, U.S. Department of Energy, U.S. Department of Education, as well as independent foundations such as the Ford Foundation, The National Science Foundation and the American Educational Research Association, among many others. Eligibility for each fellowship varies but almost always specifies a particular field of study and often includes academic performance criteria.

Employer Tuition Reimbursement

Employers will often pay for graduate classes, especially when the class or program is career-related. There are typically limitations, such as what classes can be taken, and conditions, such as an agreement to continue working with the employer for a set amount of time. Employees should be careful to understand all the company’s policies before assuming a company's tuition reimbursement policy applies to their situation.

Resources

Student Aid on the Web: Graduate and Professional Students - Provides an overview of federal aid programs and includes links to graduate student resources.

Council of Graduate Schools – Lists sources of fellowships and financial aid.

National Defense Science and Engineering Graduate Fellowship - Source of defense related science and engineering fellowships.

National Science Foundation - Major source of funding for science research projects at universities.