Your Options When Paying for a Master’s or Doctoral Degree

How much does a master’s degree cost?

According to the Education Data Initiative, the average cost of a master’s degreeis well into the tens of thousands of dollars. Paying for an advanced degree can be overwhelming, particularly if you already used loans to finance your undergraduate education. If you intend to pursue a graduate degree, remember that you have options for financing your education — just as you do when paying for undergraduate tuition and fees. Some strategies are even unique to advanced degrees.

Loan options for master’s & doctorate degrees

There are numerous loan options specifically for graduate degrees. Some are designed more broadly for all types of programs, while others can be more explicit, such as loans for students seeking a medical degree (MD) or a master’s in business administration (MBA). Depending on a borrower’s credit score, or if they have a co-signer, interest rates can be favorable and repayment terms flexible, with longer forbearance or grace periods, if necessary.

For example, FNB offers a Physicians Education Refinance Loan for eligible physicians, dentists, veterinarians and other qualified medical professionals as an affordable alternative to refinance your current student loan debt. This can help you pay off your biggest expense with an unsecured installment loan with fixed monthly payments of principal and interest.

Additional financing options for graduate school

Student loans aren’t the only option for pursuing the next step in your academic career. Employer benefits, financial aid, work-study programs and graduate assistant positions are all excellent ways to lower the financial burden of a master’s or doctorate program.

For borrowers who do rely on federal student loans, important protections are available, such as Public Service Loan Forgiveness (PSLF) and Income Driven Repayment (IDR) plans. It’s important to note that refinancing federal student loans into a private loan may result in the loss of these federal protections, so borrowers should carefully weigh their options before making that decision.

Getting financial help from an employer

For those who decide to attain a graduate degree after entering the full-time workforce, employers, such as FNB, may provide benefits to employees who enroll in programs that support both the employee’s professional growth and the organization’s goals. Benefits can include tuition assistance, stipends and/or schedule flexibility to complete coursework.

Financial aid

While loans are often readily available for most students, other forms of aid that do not require repayment, such as scholarships and grants, also exist. The race for such awards can be competitive, but winning one or more can significantly reduce debt.

Work-study

Especially useful for those who are not already part of the workforce, a work-study program provides financial aid to students in return for their participation in part-time jobs. Typically, the positions are based on campus and potentially related to their field of study, although some are in the community.

Graduate assistant positions

Similar to work-study, graduate assistants work on campus and receive financial aid through teaching assistant, research assistant or other administration-related roles.

What else to consider when pursuing a graduate degree

• College and location: What is the reputation of the institution that offers the program? Is it a large college? Available resources can vary by size and impact your financial and academic goals. Is it an urban or rural campus? Is it an online program? Think about what best fits your needs and preferred lifestyle when comparing colleges.
• Program structure: How long will it take to complete the program? The more years, the more expensive it is likely to be. Will the coursework disrupt a job or family commitments? Some programs are more flexible than others. Investigate what the program will require of you before taking the next steps.
• Career prospects: Will an advanced degree help you achieve your professional goals? Sometimes, real-world experience is more valuable than extra education. On the other hand, look at the leaders in your field and what degrees they hold. Their educational histories can help inform how your decision will influence your career trajectory.

Finances should be a main point of consideration when making choices about your continued education. It’s important to do your research to ensure you maximize the potential benefits available to you.