How To Pay for Graduate School in 2025: 7 Smart Strategies

If you’re paying for graduate school, some of your funding options include financial aid like student loans and grants, as well as less traditional options like employer tuition assistance. Because of the high cost of graduate school, you may have to use several different strategies to pay for your degree, and many students have to rely on loans.

If you’re in grad school or are considering it, it’s important to understand your total out-of-pocket cost, your funding options, and how your degree will impact your finances in the long run (especially if you take out loans that may take years to repay).

Current private student loan rates

What does graduate school cost?

The average cost of tuition and required fees for graduate school was $20,513 per year in the 2021-22 school year, according to the latest data from the National Center for Education Statistics.

Of course, these numbers don’t tell the whole story. The cost varies significantly depending on the school you attend, how long it takes to complete your program, and whether you live on campus or not. For example, tuition and fees at an affordable public graduate school program might cost less than $10,000 per year, while a private school on the higher price end might cost $50,000 or more per year.

The table below breaks down the average student loan debt for grad school for various degree programs from the 2019-20 school year to help you understand the real financial impact of graduate school.

The variance in these numbers shows the importance of doing your research ahead of time. By pricing out schools in advance and determining how long it will take to complete your degree, you can get a more accurate picture of your total price tag.

Can you get financial aid for graduate school?

The short answer is that yes, you can get financial aid for graduate school. The process for applying for graduate school financial aid isn’t all that different from applying for undergraduate aid. The first step is completing the Free Application for Federal Student Aid (FAFSA). 

To qualify for federal financial aid for graduate school, you’ll need to be a U.S. citizen or an eligible noncitizen and be enrolled in an eligible program at an eligible school. You can then qualify for aid like student loans, grants, and the federal work-study program.

After maximizing your federal financial aid, you can turn to private student loans to fill any funding gaps.

What are the best ways to pay for grad school?

With the high cost of graduate school, many borrowers piece together multiple funding strategies to pay for the full amount. There’s no one right strategy for everyone, but these are some of the most popular ways to pay:

• Grants and scholarships: There are various grants and scholarships you can use to help pay for graduate school. First, you can apply for grants and scholarships from nonprofit organizations, businesses, and other entities. And while the Pell Grant, the most popular federal grant, isn’t available for graduate school, there are other federal grants that are. For example, the Teacher Education Assistance for College and Higher Education (TEACH) Grant offers $4,000 for students planning to teach in a high-need field in an elementary or secondary school.
• Assistantships and fellowships: Grad school assistantships and fellowships are two forms of financial aid specifically for graduate students that allow you to earn money for your schooling. Assistantships often require that you work for the school in some capacity, usually in teaching, research, or administration, while fellowships offer stipends to help students pursue their research.
• Work-study: Grad students, just like undergraduate students, are eligible for the federal work-study program. This program offers part-time jobs for students with financial needs to help them pay for school and other related expenses. These jobs may be on or off campus.
• Federal student loans: You can get federal student loans for graduate school, just as you did for your undergraduate education. Grad school students aren’t eligible for subsidized loans, which don’t accrue interest while you’re in school, but they’re eligible for unsubsidized loans to help pay for their schooling.
• Private student loans: If federal loans aren’t enough to pay for your education, you can get private student loans for grad school. These loans serve the same purpose, but they come from private lenders like banks and credit unions. Each lender has its own loan terms, unlike federal loans, which have standardized terms.

What’s the difference between federal and private grad school loans?

Graduate students can use federal or private loans (or a combination of the two) to pay for school. A federal loan comes from the U.S. Department of Education. These loans have standard terms, including the interest rate and payment plans. They don’t require a credit check to qualify, meaning as long as you meet the other eligibility requirements, you can get a loan no matter what your credit score is.

Private graduate school loans are those offered by private lenders rather than the federal government. Unlike federal loans, these loans require a credit check, meaning not everyone will qualify. The loan rate is based on the loan amount and term, as well as your credit and other financial criteria. Unfortunately, this means some borrowers may end up with a high interest rate.

A final difference between the two types of loans is the repayment. Federal loans have more flexible repayment terms, including income-driven repayment plans that set your monthly payment as a percentage of your income and are based on your family size. And unlike federal loans, private ones don’t offer the option for loan forgiveness.

Changes to federal graduate student loans in 2026

The “One, Big, Beautiful Bill” was signed into law in July 2025, and it makes some changes to graduate school borrowing starting in July 2026. First, the new law changes the total borrowing limit to $100,000 for graduate students and $200,000 for professional students, not including loans taken out for undergraduate education. While the annual limit of $20,500 for graduate students will remain the same, there’s a new annual limit of $50,000 for professional students.

The law also eliminates grad PLUS loans, though there is an exception: If you’ve taken out a grad PLUS loan prior to July 2026 for an eligible program, you can continue to use this loan type for three academic years or the remainder of your education. These changes make private loan options all the more important.

“Private grad loans are still an option and may be used more frequently now with the lower limits on federal loans,” says Jack Wang, a wealth adviser with Innovative Advisory Group who specializes in college financial aid.

Are there alternatives to borrowing for graduate school?

Many graduate students rely on loans to help pay for school, but it’s not the only option. In fact, seeking out alternatives can increase the ultimate payoff of your degree. 

“Consider going part-time, paying as you go, and leveraging employer-paid tuition benefits and scholarships to keep borrowing costs as low as possible,” says accredited financial counselor (AFC) Jacquie Carroll.

Before you even start school, Carroll recommends running the numbers to make sure grad school is the right financial choice for you. Estimate the salary you’d be able to earn after graduating, and compare that to the cost of school to decide whether the cost is worth it.

If you decide grad school is the right choice, look for other ways to either offset or lower your schooling costs.

“If you are set on going to graduate school, avoid paying full price,” says Carroll.

First, look into whether your employer offers a tuition assistance or reimbursement program. This could help significantly offset your schooling costs. If your current employer doesn’t offer such a program, it may even be worth switching jobs to one that does.

Next, find other ways you can pay out of pocket for your schooling.