While graduate education can provide valuable opportunities, it is pretty costly. Luckily, there are ways to finance your graduate education that are safer than traditional loans or high-fee products. By using practical financing options and focusing on lower-risk and higher-value options, you can successfully obtain your graduate degree without accumulating excessive amounts of debt. Below are five options to consider when planning to finance your graduate education.
Leverage Employer Tuition Assistance
Tuition reimbursement or tuition assistance from an employer is one way to obtain your graduate degree without incurring excessive amounts of debt. There are many healthcare providers, technology providers, banks, and others that will provide different amounts of tuition assistance for their employees.
Organizations may not provide information about their Educational Funding Programs or notify employees about their options for Tuition Assistance. If you are interested in furthering your education with a Graduate Degree Program, please contact the HR Department at your workplace to see what options for Educational Funding may exist for their employees.
Some organizations provide a percentage of tuition reimbursement; some have a set dollar amount that they will reimburse yearly, or, you may have discounted tuition rates through their partner colleges/universities.
When considering a graduate degree program, be sure to consult with someone in the HR Department prior to starting classes, to determine whether or not your program is considered appropriate for reimbursement based on your employment. It is also important to determine if your employer will cover all costs upfront or if they will reimburse you after you pay. Finally, ensure that you understand all requirements associated with obtaining the maximum reimbursement.
Seek Out Competitive Scholarships
A competitive scholarship is not just for students. Most graduate funding comes from the following:
- Professional Associations
- Non-Profit Organizations
- Universities
- Private Donors
Graduate funding can be more diverse than undergraduate funding because there are many types of awards for many types of people and research interests. To boost your chances of being awarded funds, consider the following:
- Apply early, as most grad scholarships have fewer applicants
- Research niche scholarships, as fewer applicants typically means less competition
- Explore funding opportunities at colleges and programs. Certain departments may offer awards that are not advertised.
Even winning a couple of modest scholarships may save you up to thousands of dollars on tuition.
Choose an Online Program That Lets You Keep Earning
One of the easiest ways to reduce your debt is to have a consistent source of income. A high-quality online degree program will allow you to maintain either a full or part-time job, while continuing to work toward your degree.
This does not only allow you to borrow less, but it also allows you to repay as you earn, which is significantly less risky than borrowing an entire tuition amount and hoping to find a job to repay the loans. Because of the flexibility of an online program, most employers are happy to reimburse for tuition paid on behalf of their employees.
To demonstrate how flexible work schedules are implemented, some accredited schools have MBA and graduate degree programs tailored specifically for those already working. Find out more on Baylor University graduate programs and how they can fit into your work schedule, reducing debt and enabling you to continue earning while pursuing your education.
Look For Tax Credits If You’re Eligible
Graduate Students can get tax benefits in certain areas, which can help reduce how much you owe each year. For instance, an LLC (Lifetime Learning Credit) is a credit for tuition and the associated fees. But, it is not just limited to degree programs. Education-related deductions can be written off if they can enhance your career.
While tax credits alone won’t pay for your entire tuition, the tax savings created by reducing your tax liability can help lessen the burden semester after semester. Be sure to check the eligibility criteria before your next tax deadline to ensure you take full advantage of available tax credits.
Use Federal Loans Wisely Through Income-Based Repayment
As long as you use regulated and transparent sources for borrowing, you can make borrowing less of a gamble. Federal student loans have fixed interest rates, standard protections, and income-based repayment options, making them safer than private student loan products.
Income-driven repayment is significant because it determines borrowers’ payment based on their income, not the total amount borrowed, which may be a burden on top of all their other monthly bills.
Endnote
Graduate School does not have to create a financial nightmare for you. With the above suggestions, you should be able to create a plan that meets your needs and is not excessively risky. By taking a strategic approach to your funding source(s) and avoiding predatory loans, you will position yourself for success, both from an academic standpoint and from a financial perspective.
