8 Ways To Pay for Grad School in 2025

Going to graduate school can help you secure a better-paying job in the future, but attendance isn't cheap. Luckily, there are ways to lower your education costs. In the 2023-24 academic year, graduate students received an average of $28,420 in financial aid, including sources like grants, federal loans, and the work-study program, according to the College Board.

Here's how to pay for grad school without ending up with six figures of student loan debt:

Current private student loan rates

1. Apply for gift aid

When paying for grad school, it's a good idea to start with gift aid, which is money you don't have to pay back later. This includes scholarships and grants.

• Grants: Grants are usually awarded based on your financial need rather than your academic merit. Schools, professional associations, and private organizations often offer grants directly to grad students. You can search for federal grant opportunities on Grants.gov.
• Scholarships: Scholarships are often offered for academic merit, athletic achievement, demographics, or unique skills. Your school might offer you a scholarship, too, but you can also find and apply for awards on your own. Resources like Scholarships.com and GoGrad can help you find scholarships to apply for.

2. Use a 529 plan or other savings

If you or your parents set up a 529 savings plan, you can use these funds to pay for graduate school. This money can cover qualifying expenses such as tuition, books, and room and board. Each state has its own rules regarding 529 plans, so if you have questions about your situation, contact your plan administrator.

3. Research fellowship or assistantship opportunities

Some graduate students are offered a fellowship, another type of financial support. With a fellowship, you're expected to teach or perform research in return for a stipend. You might also get partial or full coverage of tuition. Fellowships are usually awarded based on academic merit.

If you're willing to step in as a teaching assistant or help professors with their research, you might also qualify for an assistantship. An assistantship is a type of paid academic employment for graduate students. You'll get a stipend to cover the cost of tuition in return for your work.

4. Ask your employer for help

If you're currently employed, ask your employer's human resources department if there's a tuition reimbursement program for graduate degrees. Many companies will pay for some or all of your program.

5. Participate in the work-study program

A commonly overlooked way to pay for grad school is using the federal work-study program, which is available to both professional and graduate degree students. If you qualify for work-study, you’ll get a part-time job to help pay for your education and living expenses.

The job will likely relate to your field of study. You’ll typically work for your school, a local nonprofit organization, or a public agency. Plus, you’ll earn at least minimum wage (though some fields pay a lot more). This can be a great way to pay for school while gaining experience and bolstering your resume.

To be eligible for work-study, you must complete the Free Application for Federal Student Aid (FAFSA) and have documented financial need.

6. Claim tax credits

As a graduate student, you can take advantage of valuable tax credits on your tax return — like the lifetime learning credit (LLC). With the LLC, you can claim up to $2,000 that you spent on eligible education expenses. Plus, there’s no limit on how many years you can claim the credit.

The amount of the LLC is gradually reduced if your modified adjusted gross income (MAGI) is between $80,000 and $90,000 ($160,000 and $180,000 if you’re married and file a joint return). If your MAGI is higher than $90,000 (or $180,000 if married and filing a joint return), you can’t claim the LLC.

7. Apply for federal student loans

If you have to borrow money, federal student loans are a good place to start. There are two federal options for graduate student loans:

Related: How Does the FAFSA Work?

8. Consider private student loans

In some cases, you might need to take out private student loans. Here are a couple of situations where this could apply:

• You’ve exhausted your federal student loan options.
• You qualify for a lower interest rate through a private lender.

Federal student loans have fixed interest rates regardless of your credit history, but private loans work differently. Loan terms and rates vary from lender to lender. If you have good credit and a steady income, you might qualify for a lower rate, helping you save money over the life of the loan.

If you decide to take out a private graduate student loan, make sure you consider multiple lenders to make sure you find the right loan for you. There are also private student loans specifically designed for certain degrees (like law school or medical school) that might be a good fit.