Funding Options
How to pay for graduate school is a question that nearly all students face, but there are many sources of financial support available. According to the most recent data available, 74% of graduate students receive some type of financial aid. Types of funding for graduate school fall into three broad categories:
- grants and fellowships, which, like scholarships, don’t have to be paid back
- teaching and research assistantships, where you gain research and professional experience, as well as skills development, alongside your studies
- personal resources, which may include loans, savings, or income
Although fellowships, traineeships, and assistantships may be available for master’s degree students, they are more common for PhD study. They are also most commonly given to full-time students. Furthermore, each school you apply to will have different options based on institutional and state policies. Make sure you check with your institution to see what funds are available to you.
Grants and Fellowships
Grants and fellowships are awarded for merit and are similar to undergraduate scholarships. They are intended to attract highly qualified students to graduate programs and unlike loans, they are funds you do not have to pay back.
Fellowships can be either portable (offered by an organization or agency that will allow you to use it at any qualifying institution) or institutional (offered by a university or department for study at that specific institution or department). Examples of these are provided below:
Portable fellowship: A student applies for and is awarded a Graduate Research Fellowship from the National Science Foundation. They can use that fellowship to pay for study and living expenses once they are accepted into a research master’s or doctoral program, or at the institution where they are already enrolled.
Institutional fellowship: A student applies to a doctoral program at the University of Missouri and is awarded a fellowship to support their study in a particular program at that university. Institutional fellowships are awarded either by departments or by a central fellowship office within an institution.
In research PhD programs, fellowships and assistantships may come with tuition remission (sometimes also known as a tuition waiver), where students do not pay some or all tuition, and/or a stipend for living expenses. A PhD student who receives a funding “package” of full tuition remission and a stipend may not have to pay any expenses out of pocket for their degree. However, it is important to evaluate such offers carefully to understand how they stack up against your expected expenses and cost of living in the area where you will be living.
Some institutions provide feedback on fellowship and traineeship applications to their undergraduates. If you are enrolled as an undergraduate, check to see if your school has that option.
Teaching/Research Assistantships
Like grants and fellowships, Teaching and Research Assistantships come with funds that you do not have to pay back. However, teaching and research assistantships require the “TA” or “RA” to take on responsibilities that support their learning and professional development while also supporting the research and teaching missions of the university. In 2022, 35% of doctorate recipients were primarily supported by research assistantships or traineeships (described below).
Teaching Assistantships: A teaching assistant (TA) helps teach undergraduate students in return for a stipend (and often a fee or tuition waiver or reduction).
Research Assistantships: A research assistant (RA) is often involved in laboratories or research teams to assist faculty in research projects. Advanced students working on their theses or dissertations may be supported by stipends to do their own projects.
Traineeships
Traineeships are similar to research assistantships, but are focused on skill acquisition and often involve some kind of hands-on component. Institutions, government agencies, and even private companies may offer traineeships. Many traineeships assemble a cohort of grad students who then participate in both their project and associated professional development opportunities together.
Traineeship: Trainees get real-world experience that relates to their degree, such as a cohort of graduate students studying environmental science who meet with farmers in the area around their institution to understand the challenges involved in testing pollutant levels.
Loans
Loans are funds that you have to pay back after you complete your degree. Taking out a loan can be a sound financial investment if your degree meets your long-term career and financial goals. A loan can be a bad choice, however, if you don’t complete your degree or if your degree program does not actually help you achieve your goals. That’s why it’s so important to understand the potential value of your degree as well as the financial costs of pursuing it.
Federal loans for graduate study are different from those available for undergraduate study. GradPLUS loans are federal loans specific to graduate students. Importantly, federal student loans typically have much better terms than private loans. For key differences between Federal and Private Student Loans, consult the Consumer Financial Protection Bureau’s information on student loans.
Employer Support
For International Students
If you live outside of the U.S. and want to pursue a graduate degree at a U.S. institution, you are eligible for the categories of funding support on this page but may have more limited or different options available to you. Consult your school’s office for international students to learn what options are available, as well as requirements, such as specific international financial aid forms, that they might have.
Regardless of how you fund your degree, you will need to acquire an F-1 visa to conduct graduate study. The F-1 visa comes with rules that may impact your finances or ability to make money while studying. Make sure you consider:
- A one-time fee of $185 to apply for an F-1 visa.
- How you will pay for all educational, living, and travel costs while studying in the United States.
- F-1 students cannot work off campus during their first academic year. They may work for up to 20 hours per week on campus while studying full time and may work on-campus full time during breaks and vacations.
In addition to the F-1 visa, international students may apply for curricular practical training (CPT) or optional practical training (OPT) to authorize off-campus work. All CPT/OPT requires approval from the United States Customs and Immigration Services (USCIS).
- CPT is an off-campus work experience that is part of your graduate school curriculum. These experiences include internships, cooperative education, and required work experiences. You must be enrolled in your academic program for at least one year before beginning CPT. If you do 12 months or more of full time CPT, you become ineligible for OPT.
- OPT is off-campus work that is related to a student’s field of study but is not a formal part of their academic program. Eligible students can apply for OPT for up to 12 months while studying (pre-completion OPT) and an additional 12 months after their program of study is complete (post-completion OPT). Pre-completion OPT allows a student to work for up to 20 hours per week off campus when school is in session and full-time during breaks and vacations. Post-completion OPT requires a student to work for at least 20 hours per week. You cannot receive post-completion OPT until you have finished your graduate program.
Students in certain STEM fields may be eligible for a 24-month OPT extension. The OPT-extension is available for post-completion OPT only. This extension is dependent on your field of study and OPT employer, so check the USCIS website for current information about this extension.
CPT/OPT Considerations
- You may not be able to work full time while studying for your degree.
- Your off-campus work must be related to your degree, which may limit your employment options.
- You are only eligible for 12 months of pre-completion OPT, so you may not be able to work off-campus for the duration of your study.
- International students are not eligible for some fellowships and other forms of financial aid.
You can find more information about international student visas and work requirements, as well as up-to-date guidance on new policies, at the USCIS website.