Financing a higher education to propel your career aspirations can feel overwhelming. As a public school teacher in Manhattan, I’m obligated to earn a master’s degree within the next four years to uphold my certification. It’s quite tough to save for graduate school on a teacher’s income, especially in a high-cost city, and without family support. Fortunately, I’ve discovered research strategies, scholarships, and financial plans to aid my education without depending on loans. Here’s my approach:
1. Determine If A Degree Is Essential
First, assess if attending graduate school is vital for your professional advancement. “Don’t presume that a degree guarantees employment. Investigate others on LinkedIn who have the career path you desire and note their qualifications,” advises Annie Cole, Ed.D., a financial consultant and the founder of Money Essentials for Women. While an MBA might facilitate securing an executive position, it’s not mandatory for entrepreneurship.
Mariam Sow, a student advisor at NYU, recommends evaluating the necessity of pursuing grad school immediately. “Many fear they’ll miss the chance for grad school if they wait after their undergraduate studies, but gaining experience can significantly enhance your readiness for grad school,” she suggests. Taking a pause can bring substantial advantages, like working and saving money.
2. Conduct Thorough Research
If graduate school is essential, explore the costs associated with various programs. When considering an MFA, I looked into low-residency and online options with lower tuition fees. I sought programs that lasted no longer than two years and compared tuition and educational offerings between private and public institutions. Instead of a full degree, Cole recommends considering earning a certificate as a shorter, less expensive alternative to gain required skills.
Patricia Roberts, author of Route 529: A Parent’s Guide to Saving for College and Career Training With 529 Plans and COO at Gift of College, suggests reaching out to alumni who have completed your targeted program.
“Inquire about their career outcomes. How fulfilled are they in their positions?” she advises.
When I was weighing a master’s in journalism against pursuing an MFA in writing, I spoke with alumni from my desired schools to understand how they financed their education.
Keep your findings organized concerning different programs. I maintain a consolidated Google Doc with categories for academic details, financial aid, application prerequisites, deadlines, and contacts. I also hyperlink resources for quick access.
3. Seek Out Free Financial Aid
After compiling a list of suitable programs, I explored online financial aid platforms to familiarize myself with the graduate fellowships, teaching assistantships, and research assistantships offered by each program.
Jennifer Harpham, financial aid director at My College Planning Team, emphasizes utilizing this aid first since it does not require repayment. Seek scholarships offered by your program and the broader university before considering external funding.
For external resources, Harpham recommends platforms like Scholarships.com and Fastweb, where you can create a profile reflecting your specific program. “The site will match you with relevant scholarships and present them to you,” she adds.
During my research, I discovered numerous school websites listed specific scholarships for various fields. If you come across similar resources, be sure to bookmark them. Additionally, check to see if your employer has any educational benefits. Even if they don’t, your job could still help you avoid debt: one institution I’m applying to offers public educators an incredible 50% tuition remission.
If crucial information is missing online and you cannot attend or access recorded info sessions, don’t hesitate to call or schedule a consultation with admissions and financial aid representatives.
4. Develop A Savings Strategy
Start saving money immediately. “Begin by creating a budget and planning backward,” says Cole. “Understand the total cost of your master’s degree and licensure applications. Determine how much you can realistically save from your monthly earnings for this goal.”
Sow advises assigning a purpose to every dollar in your budget and labeling each savings lump sum. This could highlight, for example, that while you’ve saved enough for tuition, additional fees are lacking.
I monitor my savings through a high-yield brokerage account that allows my money to grow over time. To keep living expenses down, I share a living space with roommates and occupy the smallest room to lower rent. I use public transportation, shop at Trader Joe’s for affordable groceries, and maintain my AC at a maximum of 75 degrees to reduce utility bills.
Everyone has a different threshold for managing expenses. “Avoid stressing to the point where your life quality diminishes, but challenge yourself regarding savings,” Harpham suggests. Sow recommends surrounding yourself with supportive individuals sharing similar goals. Personally, I find it easier to save when I view it as an important step toward my aspirations rather than a burden.
One effective method for saving is utilizing a tax-advantaged 529 college savings account. Roberts notes that you can invite individuals to contribute to your account instead of giving you birthday gifts, and “37 states plus Washington, D.C., offer annual state tax deductions or credits for these accounts.” To initiate one, search your state’s name followed by “529.” You aren’t restricted to establishing an account in your home state or that of your university, but that’s a good starting point if you’re looking for tax advantages.
Contributing directly from your paycheck to your plan is most effective; according to Roberts, studies indicate that people who automate their contributions from their paycheck donate 75% more than those who contribute manually from other accounts.
Also, consider finding graduate programs that accommodate full-time work, which could help you finance your degree. In such instances, a tuition payment plan might allow you to make multiple payments throughout the semester as your salary is received.
5. Handle Loans Cautiously
At times, taking out a loan might be necessary. Federal student aid via FAFSA typically offers the most favorable rates along with benefits such as deferments. “If you discover lower rates compared to FAFSA, it’s likely a worthwhile deal,” Harpham remarks. When exploring private loans, a fixed interest rate is generally preferable to a variable one. Moreover, some loans do not accumulate interest while you’re still enrolled, allowing you to use your salary to pay them off without accruing interest during your studies.
Be honest about your capacity to repay loans, particularly if you anticipate a modest starting salary. Roberts encourages validating whether your degree will lead to a position with loan repayment options before acquiring any loans. Make sure to inform yourself about potential challenges regarding loan repayment as well. “Women represent two-thirds of the total outstanding student loan debt, likely due to wage disparities,” she explains.
These figures shouldn’t instill fear but rather encourage you to plan purposefully so you can chase your dreams while maintaining a high degree of well-being.
