How to Fund Your Master’s Degree: 6 Underutilized Strategies

You recognize the potential of a master’s degree to advance your career, increase your earning potential, or pivot to a new field. But the question of how to finance it can be daunting. Fortunately, the cost of pursuing a master’s degree may be more manageable than you think. Explore these six lesser-known strategies to help make your educational investment more affordable.

Understanding the Cost of a Master’s Degree

Unlike a fixed-price item, the cost of a master’s degree varies widely based on numerous factors, including the institution and program you choose. According to the Education Data Initiative, the average cost ranges from $30,000 to $120,000. This broad range reflects differences in school types, program specifics, and additional factors like transfer credits and employer tuition assistance.

Before diving into specifics, it's crucial to determine your actual costs. Here’s a step-by-step approach to managing your educational expenses.

1. Assess Your Total Costs

The cost of a master’s degree extends beyond tuition. Consider additional expenses such as fees, textbooks, and other related costs. By creating a comprehensive budget that accounts for all these expenses, you’ll better understand your financial needs and gaps. This will help you identify how much external funding you might require.

2. Choose the Right School

Tuition costs can vary significantly between institutions. According to the National Center for Education Statistics (NCES), average annual graduate tuition for 2020-21 ranged from $12,394 at public institutions to $28,445 at private non-profit schools. Here are some factors to consider:

• Public vs. Private Institutions: Public universities generally have lower tuition than private ones. However, in-state students often pay less than out-of-state students.
• On-Campus vs. Online: Online programs might offer lower tuition rates and reduced fees. Compare costs per credit hour to see if an online program could be more economical.
• Program Requirements: Understand the credit requirements for your program, as more credits can increase overall costs.

3. Apply for Financial Aid

Financial assistance is available for graduate students, even though federal grants are not. Explore the following options:

• Federal Stafford Loans: These loans offer low, fixed interest rates and favorable terms. They do have borrowing limits and require proof of financial need.
• Federal Grad PLUS Loans: These loans have higher limits and don’t require a demonstration of financial need but come with slightly higher interest rates.
• Institutional Aid: Many schools offer scholarships and grants based on merit or need. Check with your institution for available opportunities.
• Work-Study Programs: While not always ideal for full-time professionals, work-study positions can provide additional funding.

4. Seek Employer and Professional Association Support

Utilize your professional connections to find funding opportunities:

• Employer Tuition Reimbursement: Many employers offer tuition reimbursement as a benefit. Even if it’s not advertised, make a case for why your degree would benefit both you and your employer.
• Professional Association Scholarships: Industry-specific scholarships and grants can be a valuable resource. Start with any associations you’re a member of and search for additional opportunities.

5. Reduce Unnecessary Spending

To minimize debt, control your spending. Small savings can add up and help fund your education:

• Create and Stick to a Budget: Include all expenses, including those related to college.
• Cook at Home: Preparing meals at home is cheaper than dining out. Save on entertainment by eating before you go out.
• Cut Unnecessary Costs: Cancel subscriptions and memberships that you rarely use.

6. Borrow Wisely and Plan for Repayment

When borrowing, do so judiciously and have a repayment strategy in place. Here’s how to approach borrowing:

• Borrow Only What You Need: Assess your financial needs thoroughly before taking on debt.
• Have a Repayment Plan: Understand your loan terms and prepare a plan for repayment to avoid financial strain after graduation.

Can You Afford a Master’s Degree?

With careful planning and the use of these strategies, funding a master’s degree while minimizing debt is achievable. Consider flexible, online programs with generous credit transfer policies to further reduce costs. Remember, a well-thought-out approach and resourceful use of financial aid can make this educational investment a reality.

Your goal is within reach. With determination and strategic planning, you can navigate the financial aspects of obtaining a master’s degree and enhance your future opportunities.