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There are three primary sources to pay for graduate school:
- Money you’ve saved and any income you make now
- Contributions from parents and other relatives
- Loans, grants and scholarships
You will probably need loans, grants and scholarships to pay for graduate school. Financial aid may come from a number of sources including:
- Federal
- State
- School-based aid programs
Loans
In an ideal world, you would receive free money, which is financial aid that doesn’t need to be repaid. More than likely, however, you will be forced to borrow.
Here are some questions to ask about loans for graduate school:
- What is the interest rate and will it stay the same throughout the life of my loan or is it variable?
- How long will I be repaying my loan?
- Is there a pre-payment penalty if I pay the loan off early?
- How much of an origination fee is deducted from the face value of the loan I receive?
- Is there a guarantee fee deducted from my loan that protects the lender?
Even you pay a guarantee fee, you’re still liable for repaying the loan.
There are also private lenders that offer competitive rates, but watch out for fees. To see how much you will pay over the lifetime of your loan, check out these online calculators:
Financial Aid
Some financial aid comes in the form of:
- Work-study programs
- Teaching assistantships
- Research assistantships
- Fellowships
Generally, tuition benefits offered to graduate assistants are excluded from taxable income pursuant to section 117(d) of the Internal Revenue Code. Fellowships do not necessarily qualify for this tax break, since the individual may not be engaged in teaching or research activities. Salaries to graduate assistants are, however, subject to federal and state income taxes. Fellowships and scholarships are usually taxable if they exceed the cost of tuition and books.
Working and going to school requires good time management. Be sure you evaluate the pay, hours, how they impact your study time, and whether these opportunities will further your career goals.
Working Off-Campus >> |
